Page 149 - Trump University Commercial Real Estate 101

Ho w to Disco ver the Truth behind a Deal

Not only should you avoid annoying these people, but you should
do what I suggested earlier about real estate brokers: Be easy to do
business with. Treat the local officials with respect and jump to it when

they give you instructions.
If you get on their good side, they can actually become sources for
properties. I ’ ve done several great deals that started with a city offi cial
contacting me and wondering if I would be willing to take over a prop-
erty that someone else screwed up.
On the other hand, if you get branded as a troublemaker or a
smart - aleck, they can stall the process on your property and destroy
your investment very quickly.

Licenses, Certificates of Occupancy, and Permits

Know which licenses, certificates, and permits you ’ ll need by calling
the local city clerk.
You ’ ll probably need a business license, certificate of occupancy,

and other miscellaneous permits to run your property. Make sure you
have their expiration dates marked on your calendar! In the early days
of the Internet, Microsoft almost lost one of its most important domain
names because a clerk forgot to send in a renewal check for $ 35.

Vendor Contracts

As I mentioned before, make sure your attorney reviews all vendor
contracts not only for the commitment that will apply to you as the
new owner, but for any abnormal clauses. Now is the time to get expla-
nations from the seller, and in extreme cases, to be reimbursed if the
contractual obligation warrants it.

Estoppels

This is a very important item that I also referred to earlier. Retail and

office tenants should fill out an estoppel letter. Your attorney will be
familiar with the format. These letters are a way to audit what the

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