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TR U M P STR A TEGI ES FO R R E A L ESTA TE
to your request. If you keep pushing the bank to increase the loan
amounts, make all payments in a timely fashion and if your latest fi-
nancial statement is sound, when you really need a sizable loan your
bank will be there without questioning the wisdom of your invest-
ment plans. Of course, this violates normal bank policy. But it hap-
pens all the time with a bank’s good customers with whom they have
an established relationship. Your goal should be to get banks to trust
your judgment and trustworthiness based on your track record, so
you can get money when you need it without the typical inquisition.
My reasoning may sound far-fetched but you have to keep in
mind that banks don’t like to lose business from a good customer. If
you have a good track record with a bank, and they refuse to make
you an unsecured loan, you can tell them, “I’ve been banking here
for years. My credit history is impeccable and I’ve enjoyed the rela-
tionship. But if you can’t see your way clear to increase my credit
line, I’ll have to find another bank who will appreciate me as a cus-
tomer.” Banks will lean over backward not to lose good borrowers
with a proven track record.
Lessons on Raising Money: First-Time Borrowers
The application of pressure from the right people in the right places
can make the difference for a borrower. If, for example, you have a
friend who knows the bank officer you’re dealing with, that could be
the item that tips the scale in your favor, as it was for me. You want
someone with a great banking relationship to say, “I have known this
guy for years, he’s great, and I know that he will live up to all his fi-
nancial obligations.” Good recommendations go a long way in loan or
investment decision making.
Also, a real estate broker with whom you’re doing business or in-
tending to do business could be very helpful in obtaining financing.
He or she is likely to have developed contacts with mortgage lenders
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