Page 14 - Trump University Commercial Real Estate 101

CONTENTS

CHAPTER 7 T AKE O NLY I NTELLIGENT R ISKS 138
Crucial Elements of Your Success 139

Look at Lots of Deals 139
At First, It’s Just a Date 141
Make Offers Regularly 141
How to Recognize a Bad Deal Early in the Process 142
Bad Numbers 143
No Numbers 143
Pro Forma Numbers 143
Bad Property 144
Wrong Area 144
Properties That Have Been on the Market
for a Long Time 145
Do Not Fall into This Trap 145

Amateur Mistake: “I gotta do this deal!” 147
Know Where You Are in the Real Estate Cycle 148
Don’t Let Yourself Be the Cause of Failure 149
Not Taking Action 150
Being Cheap 150
Doing Marginal Deals 151
Little or No Traffi c 152
When Good Debt Turns into Bad 153
Don’t Persuade Yourself into Failure 154
Collections 154
Occupancy 154
Attitude 155
Be the Right Kind of Control Freak 156
Three Types of Risk 158
Business Risk 158
Financial Risk 158
Insurable Risk 159
Diversifi cation 159

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