Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies

by Donald J. Trump

Overview

Donald Trump has gathered in one book the best advice on real estate from the brightest and most experienced people…

 “Don’t try to take the last penny off the table; make sure that the people who buy from you also make money. If not, they won’t buy from you again.” –Michael Shvo, Founder of the Shvo Group and “the most successful young real estate broker in New York”

“Mom said, ‘If you don’t have big breasts, put ribbons in your pigtails.’ Good salesmanship is nothing more than maximizing the positive and minimizing the negative. Although your competition might offer something you can’t match, that doesn’t matter. What matters is that you identify and play up what you’ve got.” –Barbara Corcoran, Founder of the Corcoran Group, New York City’s leading real estate company

“Real estate can be so much fun you almost feel guilty earning money at it!” –Monda Bassil, President of Prestigious Properties of New York

“When you sell real estate, pay tax only if you want, when you want, and in the amount you decide.” –Gary Gorman, Founder of 1031 Exchange Experts, LLC, and author of Exchanging UP!

“Whether it is a real estate deal or any other venture, the key is to find something you enjoy doing, and then do it better than anyone else—because success comes easier to people who follow their passion.” –Donald Trump, J r., Executive Vice President of Development and Acquisitions for The Trump Organization

Product Details

ISBN-13:	9781400207664
Publisher:	Nelson, Thomas, Inc.
Publication date:	08/15/2017
Sold by:	HarperCollins Publishing
Format:	eBook
Pages:	288
Sales rank:	1,020,537
File size:	460 KB

About the Author

Donald J. Trump is the very definition of the American success story, with interests in real estate, gaming, sports, and entertainment. He also owns a magazine, an online university, an online travel agency, and has a radio program and the hit television series, The Apprentice. In partnership with NBC Television Network, he owns the Miss Universe, Miss USA and Miss Teen USA Pageants. All seven of his books have become bestsellers.

Read an Excerpt

CHAPTER 1

1 BUY WHERE THE WEALTHY LIKE TO PLAY

ARTHUR L. ALLEN Arthur L. Allen is founder, president, and CEO of Allen Systems Group, Inc. (ASG).

Computer software has been my focus, my passion, and my life since I began working as a systems analyst nearly forty years ago. But one of my most profitable decisions, and one in which I take great satisfaction today, is my decision to act on a friend's real estate advice.

Regardless of downturns in the economy or slumps in the technology markets, my real estate investments in Naples, Florida, have flourished. I will always be grateful that I acted on my friend's advice, and kept investing over the years. If I were to generalize about this real estate advice and why it turned out to be so successful, I would say, buy real estate where the wealthy like to play.

When I moved to Naples in the seventies, this Gulf Coast community in southwest Florida was already a popular winter-residence community for many of the country's most affluent families. I certainly recognized the importance of Naples's climate, and few places matched its natural beauty. I did not think much about real estate investments, however, until my friend gave me this advice: "Buy all the real estate you can in Naples. It's a unique place, and you will make a lot of money investing in property here." At that time I started thinking about Naples real estate in other ways than just being a great location for my software company.

I knew the history of this part of Florida and that it attracted many wealthy people. Some of its early residents included such notable figures as Thomas Edison, Henry Ford, Harvey Firestone, Greta Garbo, Gary Cooper, and Barron G. Collier.

In the fall of 1975 I bought my first home in Naples, and I have been buying and selling real estate here since then. I have made many millions by following this advice. I paid $875,000 for that first property, and it is now valued at well over $14 million.

Even though my business now has fifty offices worldwide, I still have my company headquarters in Naples, Florida. Naples has grown many times over since I bought my first property, and it still attracts affluent individuals escaping from the cold winters of the North. People come here for many reasons — to play golf or tennis, to enjoy their pleasure yachts, and to retire. More than two hundred current or former Fortune 500 CEOs have homes here, as well as such celebrities as Larry Bird, Mike Ditka, Greg Norman, Mary Carillo, and many, many others.

2 DON'T BE AFRAID TO INVEST TIME

ADINA AZARIAN

Adina Azarian is president and CEO of Adina Real Estate and a member of the Real Estate Board of New York.

Real estate is all about wasting time. The more time you waste, the more money you make.

If you are a person who thinks about conserving your time, then you are not right for the real estate business, or you need to change your thinking. When I first started in the real estate business, I felt I was wasting a lot of my time — whether it was making phone calls to find listings or working with clients that I wasn't able to close. After some time, I went to my trainer and said, "I feel that I am wasting a lot of my time."

And he said, "Real estate is all about wasting time. The more time you waste, the more money you make." So instead of giving up, I kept at it, and things started to click. Eventually phone calls turned into listings, and appointments with clients turned into closings. The more and more I did it — even though, sure, sometimes things didn't work out — technically, the more time I spent at least making the effort, the better the results.

Cutting back — saying, "I won't meet as many clients today," or "I won't make as many phone calls today" — doesn't work in the real estate business. You must never view any time you spend working as a waste of time in order to become very successful in real estate. The more people you put yourself in front of, the more phone calls you make, or the more doors you knock on, the more money you will make. It's simple. So whenever one of my salespersons comes to me and says, "I wasted so much time with that client and I didn't close," or something to that effect, I remind her that the closings will come with time and experience and she simply can't gain experience without wasting her time! And don't forget to send a thank-you card, even to those clients you didn't close. Now that's the right thinking!

3 BUY THE BEST

ROGER BARNETT

Roger Barnett is chairman and CEO of Shaklee Corporation, a natural nutrition company, and founder of Beauty.com.

Buy the best. The best will always retain its value and appreciate at a faster rate. The best is always expensive today, but is always a good value tomorrow.

I purchased a building in New York City that was run by a foundation. At the time, it was one of the higher-priced single-use sales in the city. However, with the great structure, desirable location, and unusual width and proportions, I invested in bringing it to state of the art. Today it is worth three times my total cost, which is a significantly higher return than that from the rest of the real estate market.

4 FOCUS ON RESULTS

THOMAS J. BARRACK JR.

Thomas J. Barrack is chairman and CEO of Colony Capital, a private international real estate investment firm.

Don't confuse efforts with results.

5 LISTEN TO YOUR CLIENT'S NEEDS

MONDA BASSIL

Monda Bassil is president of Prestigious Properties of New York.

The best real estate advice I ever received was to listen to my client's needs. It's something I do each and every day. A truly successful real estate professional should know: (1) the client's needs and lifestyle; (2) the neighborhoods he or she is marketing; and (3) current market conditions.

You must prepare well for every appointment and do your homework, earnestly and methodically. If your Tuesday morning appointment mentions that he is a gourmet cook, you must know the available houses well enough to focus only on those properties that will fit his needs. Get organized, do your research, and don't bother showing him a loft with an under-equipped galley kitchen, no matter how stunning it is. If your latest referral is a couple who is downsizing, listen when they tell you about their lifestyle and interests. Does the property have a garden? Is the theater nearby? Is there enough space for grandchildren to visit?

In residential sales especially, service means a full understanding of areas, markets, and most important, people. I often say, "We don't sell, we educate." It is crucial, though, to read "educate" not as if we are teaching clients, but listening to clients. Your clients are entrusting their home search to you, and you must utilize the entire marketplace to find a great fit. You must also understand the neighborhoods you are marketing in order to match the neighborhood to the buyer's personality. Ask yourself, What kind of opportunities does this neighborhood offer to the buyer?

You know the desired product, you know the neighborhood, and you know the market, but you cannot sell any one of those as a separate entity. Instead all three must combine correctly to give your client a safe haven. This home is where your clients will open their eyes the first thing in the morning and turn off the lights at night. They need to feel a sense of comfort. You are guiding them in the most important purchase of their lives, the one that involves the largest percentage of every dollar earned. You must find the perfect match for your client's needs and the available property in their desired neighborhood. It's not easy, but with hard work and perseverance, it is very rewarding when that right match happens.

In some ways, real estate is like the theater. You read the script, you rehearse, you rehearse even more, and then it's showtime. You are patient; you recognize that a perfect performance takes an enormous amount of preparation and lots of time; and you know you can't go wrong if you study and prepare. Also, you admit that part-time isn't good enough. If you say, "I'm keeping my other job, just in case this doesn't work," you can bet it won't.

Once you understand that you are selling a safe haven by matching up your client with the right neighborhood in the right market and spend the time and effort to make this your career, be it in investment where the excitement is, in development, or in sales, you just might learn the great secret: real estate can be so much fun you almost feel guilty earning money at it!

6 TARGET GROWTH AREAS, AND TRY NOT TO SELL WHAT YOU OWN

DOUGLAS BAUMWALL

Douglas Baumwall is a certified business intermediary with Collins & Collins Investments whose articles have been published by the Florida Association of Realtors and Florida Commercial magazine.

I received two pieces of advice that may be of interest to real estate investors.

The first is to target an area outside a city in the direction of growth. Then shop for raw land on a primary artery where you may purchase by the acre instead of by frontage.

The second is to try not to sell your own real estate unless it's too small to be managed efficiently. It can be a good idea to purchase real estate, and it can be a good idea to sell other people's real estate (either by flipping a purchase contract prior to closing or by owning a brokerage company).

7 WORK WITH PROFESSIONALS YOU TRUST

JOHN BEARDEN

John Bearden is president and CEO of GMAC Home Services. Koenig & Strey GMAC Real Estate, a GMAC entity, was selected to exclusively market the Trump International Hotel and Tower in Chicago.

My best real estate advice sounds simple, and that's because it is. But don't let its simplicity obscure how important it is.

Find a real estate professional you can trust.

I mean, really trust.

For many people, buying or selling a home is one of the single largest investments (and accompanying financial transaction) they'll ever make. Believe me, you do not want to hand this very important — and extremely complex — process to someone you don't trust completely, and who may not have your best interests at heart.

Like so many people, my wife and I learned this hard-knocks lesson long ago through firsthand experience.

We've bought and sold several homes through the years, and we've lost money on only one of them ... our very first home. Why? Because we didn't realize then, as we do now, how wise it is to take the time to find a real estate professional who knows what he is doing; whose passion for the job shines through in genuine concern for, and the desire to help, his customers.

Unfortunately the agent we chose (rather quickly and without a whole lot of research on our part) gave us bum advice. The only thing worse than her advice was her communication, which was pretty much nonexistent. I'll never forget what she told us — "I'll let you know when the closing date is" — because I now understand what she was really telling us: "I'll let you know when my commission check is ready." She might just as well have added: "Until then, don't bother me."

So, my bottom line is, find someone you can trust. Take your time and search for someone with whom you can build a mutually beneficial, long-term relationship; someone whose full-time career is real estate — not your friend's uncle who closes two transactions every three years. Look for someone who values a relationship more than a commission from a single transaction. Get opinions from friends and neighbors: Who did they use and why? Will they use that agent again when they buy or sell a home? Once you find that "someone special," hang on to him or her through the years as your trusted adviser and skilled negotiator.

Good agents pledge up front to make you partners in the process and to act as your trusted adviser. They spell out for you — figuratively and in some cases literally — what they'll do for you and when they'll do it and why. And after they're done, they ask for your honest feedback. They know the ins and outs of their market — your market — including anything and everything about the neighborhood and community (types of homes, the quality of local schools, nearby parks, and so on) that will help you make not just an informed decision, but the right decision.

So there it is — the best real estate advice I have to offer. I hope it not only helps you avoid the problems that can so easily sidetrack home buyers and sellers, but it actually makes the process what it truly should be: a wonderful, exciting, and life-changing experience.

8 ALWAYS DO THE VERY BEST YOU CAN

FRANK G. BINSWANGER JR.

Frank G. Binswanger is chairman of Binswanger, a family-owned international real estate leader with 160 offices worldwide.

Our father, who started the Binswanger company in the middle of the Depression, always told us, "Never try to burn the candle at both ends." You are either a broker or an investor/developer. You are representing a client, or you are representing yourself. In the simplest terms, you cannot honestly serve two masters. Although such advice is controversial in today's environment, it was a sound business decision at the time, and our business has thrived as our company was able to devote our full attention to representing the client without conflict.

It was evident in the 1960s and 1970s that corporations and institutions wanted a single source to handle their real estate needs in the U.S. and across the globe. As a result, expansion from a regional firm to a national and ultimately international organization was an obvious course for us to follow. In addition, the company's operating disciplines were expanded to provide financial services, property and project management, appraisal, and strategic services on a global basis.

We have always thought real estate is a people business. No one ever sold a building with e-mail. Be "on the street" so you can talk personally to your sellers and buyers. Create a meaningful relationship.

Binswanger is now in its third generation. Our breadth of services reaches all continents. We are extremely proud of our alliance partners.

To paraphrase Robert Browning, we have always believed that "a man's reach should exceed his grasp, or what is heaven for?" That is, mediocrity is not acceptable. Always do the very best you can.

9 FOCUS ON LOCATION AND EXECUTION

STEVE BOLLENBACH

Steve Bollenbach is president and CEO of Hilton Hotels Corporation.

Everybody who has anything to do with the real estate business knows that location is a critical issue, particularly in our hotel business. Where there's a limited supply, we're going to do very well.

Donald Trump also has executed on that notion. With his expertise and well-known name, he could develop anywhere in the world. But if you think about how he's done his best developments over the years, he's focused on the United States, with a sharper focus on New York, and then within New York's Midtown. And he concentrated on the best pieces of real estate in Midtown — the Plaza Hotel, the General Motors Building, his own office complex on Fifth Avenue, and property along Central Park. All those things were good executions of what is obvious to any developer, but everybody doesn't always do it. His success comes from that energy and that focus on execution.

10 DEVELOP IN AN AREA WHERE GROWTH IS COMING

ROBERT BOYKIN

Robert Boykin is CEO of Boykin Lodging Company, a New York Stock Exchange real estate investment trust specializing in hotels. Based in Cleveland, Ohio, the company has been involved in the development, management, and ownership of hotels since 1959.

The best advice I ever got about real estate came from my father, William J. Boykin, who founded Boykin Lodging Company. He said, "Always develop in an area where growth is coming. If you are a little early, or a little wrong in some way, the growth will bail you out. If you develop where growth has been and growth is not continuing, when you are wrong, you are wrong forever." He was right.

(Continues…)

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Excerpted from "Trump The Best Real Estate Advice I Ever Received"
by .
Copyright © 2006 Donald J. Trump.
Excerpted by permission of Thomas Nelson.
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Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

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Table of Contents

Contents

INTRODUCTION....................xiii
1. Arthur L. Allen BUY WHERE THE WEALTHY LIKE TO PLAY....................1
2. Adina Azarian DON'T BE AFRAID TO INVEST TIME....................4
3. Roger Barnett BUY THE BEST....................6
4. Thomas J. Barrack Jr. FOCUS ON RESULTS....................7
5. Monda Bassil LISTEN TO YOUR CLIENT'S NEEDS....................8
6. Douglas Baumwall TARGET GROWTH AREAS, AND TRY NOT TO SELL WHAT YOU OWN....................11
7. John Bearden WORK WITH PROFESSIONALS YOU TRUST....................12
8. Frank G. Binswanger Jr. ALWAYS DO THE VERY BEST YOU CAN....................15
9. Steve Bollenbach FOCUS ON LOCATION AND EXECUTION....................17
10. Robert Boykin DEVELOP IN AN AREA WHERE GROWTH IS COMING....................18
11. David Brause MAINTAIN YOUR INTEGRITY; BE PATIENT; DO YOUR DUE DILIGENCE; DEPEND ON LOCAL PEOPLE....................19
12. John Brown REAL ESTATE AUCTIONS OFFER BENEFITS TO INVESTORS, WHETHER THEY ARE BUYING OR SELLING....................23
13. Robert J. Bruss INVEST IN SINGLE-FAMILY RENTAL HOUSES....................29
14. M. Anthony Carr A COMMONSENSE APPROACH TO FORECLOSURE PROPERTIES....................34
15. Rich Casto CHOOSE A REAL ESTATE AGENT WISELY....................38
16. Phoebe Chongchua FIVE PRINCIPLES TO SUCCESS....................41
17. Frank Cook LISTEN TO YOUR TELEVISION....................44
18. Barbara Corcoran WORK WITH WHAT YOU'VE GOT....................47
19. Richard Courtney THE FIRST OFFER IS USUALLY THE BEST....................56
20. Lester Crown CHOOSE A GOOD PARTNER....................58
21. Gil Dezer ADDVALUE TO YOUR REAL ESTATE INVENTORY....................59
22. Thomas E. Dobrowski CHOOSE A TRUSTWORTHY PARTNER....................61
23. Crosby Doe SUCCESS IN REAL ESTATE COMES THROUGH HARD WORK AND DIRECT SALES CONTACTS....................63
24. Marc Ellman APPROACH THE BUSINESS WITH CANDOR AND FORTHRIGHT DEALING....................65
25. Blanche Evans DON'T FOLLOW THE CROWD....................68
26. Michael Fascitelli EMPHASIZE QUALITY AND BRANDING....................72
27. Debbie Ferrari MAKE THE MOST OF THE INTERNET....................74
28. Robert L. Freedman AIM HIGH AND TRUST YOUR INSTINCTS....................76
29. Doug Frye EMBRACE CHANGE....................80
30. D. Kent Gale TREAT PEOPLE WITH RESPECT....................82
31. Stanley C. Gale MAKE INTEGRITY YOUR REPUTATION....................84
32. Jim Gillespie NEVER SELL INVESTMENT REAL ESTATE; TRADE IT....................87
33. Lewis M. Goodkin PAY ATTENTION TO DETAILS....................89
34. Gary Gorman MANAGE YOUR TAX PAYMENTS....................91
35. George E. Grace ALWAYS NEGOTIATE....................97
36. Harvey E. Green BELIEVE IN THE MARKET....................99
37. Jeffrey Gural ALWAYS HONOR YOUR DEALS....................102
38. Andrew Heiberger TODAY'S RENTER IS TOMORROW'S BUYER....................104
39. Dorothy Herman OPPORTUNITIES ALWAYS EXIST....................108
40. Thomas J. Hutchison III....................110
41. Thomas J. Hynes Jr GET INTO THE COMMERCIAL REAL ESTATE BUSINESS....................114
42. Erez Itzhaki NEVER SHOW EMOTION; BE PATIENT; WORK HARD; AND CREATE VOLUME....................118
43. Charles Jacobus KNOW WHEN TO ANTICIPATE OPPORTUNITIES....................120
44. Ozzie Jurock WORK TO GET A GOOD DEAL....................122
45. Bruce Karatz TAKE CAREFUL RISKS AND HAVE FUN....................127
46. Craig King CAPTURE THE BUYER'S IMAGINATION....................131
47. Michele Kleier PROTECT YOUR CLIENTS FROM THEMSELVES....................132
48. Robert A. Knakal PICK AN AREA OF SPECIALIZATION....................134
49. Tom Kunz YOU MAKE YOUR MONEY WHEN YOU BUY REAL ESTATE, NOT WHEN YOU SELL IT....................138
50. Leonard Lauder LEAVE YOUR EMOTIONS AT HOME....................140
51. Stephen Leopold FIND A NEED AND FILL IT....................141
52. Pamela Liebman CAREFULLY CONSIDER GROWTH POTENTIAL....................147
53. Dave Liniger CONTROL THE INVENTORY....................149
54. Terry J. Lundgren THINK AHEAD AND BELIEVE IN YOURSELF....................151
55. John J. Mack NEVER BE GREEDY....................153
56. Harry Macklowe LISTEN TO YOURSELF....................155
57. Bernie Marcus GO WITH YOUR GUT....................156
58. Elias Masri NEVER UNDERESTIMATE YOUR CLIENTS....................157
59. Richard Meier CHOOSE EXCELLENT DESIGN-AND GOOD PLACEMENT....................160
60. Daniel F. Miranda MANAGE YOUR RISKS AND MAXIMIZE YOUR RETURN ON INVESTMENT....................162
61. Kim Mogull MY FAVORITE "KIM-ISMS"....................164
62. Bruce E. Mosler GO WHERE YOU'RE NEEDED....................170
63. David Mossler THINK LOCATION-AND HONESTY....................173
64. Terri Murphy BUY-AND WAIT....................174
65. Joshua L. Muss ASSESS YOUR RISKS....................180
66. Enrique Norten SEEK OUT GOOD ARCHITECTURE....................183
67. Elan Padeh REMEMBER THAT REAL ESTATE IS A CYCLICAL BUSINESS....................184
68. John M. Peckham III IN THE FUTURE, EVERYTHING WILL BE VERY SMALL AND VERY FAST!....................188
69. Susan Penzner KNOWLEDGE, ENTHUSIASM, INTEGRITY, AND HARD WORK....................195
70. Jorge Perez BE OBJECTIVE; BE REALISTIC; ALWAYS LEAVE SOMETHING ON THE TABLE....................199
71. David Picerne STOP TALKING AND GET IT DONE!....................200
72. Robin E. Prescod DON'T LET THE MARKET CONTROL YOU....................201
73. Bill Rancic LEARN TO RECOGNIZE VALUE....................203
74. Henry Robbins BUY LAND AND BANK IT, BUT DO YOUR HOMEWORK FIRST....................205
75. Phil Ruffin EIGHT RULES OF REAL ESTATE SUCCESS....................208
76. Peter Sabesan SOLID SALESMANSHIP, AN ENTREPRENEURIAL SPIRIT, AND YEARS OF EXPERIENCE....................210
77. Henry Savage NEVER LOSE PATIENCE....................213
78. Ronda Savoy KEEP AN UPBEAT ATTITUDE....................214
79. Stephen Shapiro THREE STEPS TO HAPPY CLIENTS....................216
80. Michael Shvo SEVEN STEPS TO SUCCESS....................218
81. Larry Silverstein PROCEED WITH PASSION-AND INTEGRITY!....................221
82. Rand Sperry TAKE A PROFIT AND MOVE ON....................222
83. Norman Sturner KNOW YOUR MARKETPLACE....................224
84. Robert E. Sulentic WORK HARD AND FOLLOW THROUGH....................226
85. Stefan Swanepoel COMMIT YOURSELF TO WINNING....................228
86. Emily Tannen DON'T JUDGE A BOOK BY ITS COVER....................233
87. Robert S. Taubman THREE LESSONS FROM MY FATHER....................236
88. Joseph Thanhauser TRUST, TIMING, TERMS, AND TRUTH....................238
89. Richard Thompson DEVELOPING A SUCCESSFUL HOMEOWNER ASSOCIATION....................244
90. Jonathan M. Tisch FIT BUILDINGS TO THE COMMUNITY....................250
91. Marjorie Torres GROW STRATEGICALLY....................253
92. Donald Trump Jr. THERE IS NO SUBSTITUTE FOR PASSION....................256
93. Ivanka M. Trump BUILD YOUR REPUTATION CAREFULLY....................257
94. Steve Van Amburgh HAVE FUN AS YOU'RE PROFITING....................258
95. Leo F. Wells III FOCUS ON QUALITY....................259
96. Brett White KNOW YOUR EXIT STRATEGY BEFORE BUYING....................261
97. Ken Wilson DEAL WHEN YOU NEED TO DEAL....................263
98. Scott A. Wolstein WALK AWAY IF NECESSARY....................265
99. Rob Zache FIVE RULES FOR SUCCESS OF YOUR BUSINESS....................267
100. Mortimer Zuckerman BUY LOW, SELL HIGH, AND DON'T BE GREEDY....................273