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T HINK B IG

cation if he can devise a plan that will dramatically change the way
people perceive and value the property. To be attractive to Trump or
to any intelligent investor there has to be undiscovered potential for
adding significant value to the property—value that is not already
factored into the selling price of the building.
For example, if the officers of the engineering society had known
that it was possible to build a 90-story building on their property
they could have sold the concept to many other developers for a much
higher price. Most people looking at the site would have seen only
the potential for a 370,000-square-foot 20-story building, the limit
permitted under the then existing zoning restrictions of the city.
What made the deal successful was Trump’s creative vision for buy-
ing up the surrounding air rights, and using them to build a towering
667,000 square foot structure with high ceilings, floor-to-ceiling
windows, thus capitalizing on the site’s potentially magnificent
views. The genius of Trump was that he was able to put all the pieces
together at a price that was consistent with the anticipated sales
prices he would get for the condominium units.
Though you may be a small investor, if you want to be extremely
successful make sure that you too have a vision for adding significant
value to any property you buy. Think about your vision for adding
undiscovered value before you get serious about putting any money
down for the property. You have to think creatively about the ways
to get the highest and best use out of a property. For example, you
might buy a fixer-upper in a great neighborhood and renovate it, or
build an addition, increase the number of units or the quality of the
tenants. Other creative options are to build another building or
amenities on the property, change the use from residential to com-
mercial or vice versa, or seek a variance or a change in the zoning.
These are all ways to enhance the value.
The bottom line is, whenever you are considering buying an in-
vestment property; explore ways to “Improve the Location.”

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