Page 200 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

If you saw some angel investors on the street, you ’ d never suspect
their resources. That ’ s often the case with really wealthy people — they
drive plain cars and live in modest homes. It ’ s simply that their bank
accounts have inordinate numbers of zeros in them.
Angel investor groups meet regularly in most major cities.

Start with Google to find them, and start going to their meetings.
They ’ re looking for great opportunities and you need funding, so it ’ s a
two - way street.
Your comprehensive loan presentation will come in handy here, in
addition to your business plan. The latter should describe where you
are planning to go with your business, and not just focus on the one
property. It also tells angel investors that you actually sat down and
thought it all out, which most people don ’ t do.
Important tip: Your loan presentation may be all that you need to
get one investor in your deal, but not to form a syndication. As I stated
earlier, there are complex rules to follow when pooling investors ’ funds.
You simply must discuss your syndication intentions with an attorney
who specializes in securities law — not real estate law, but securities law.
Want a handy rule of thumb, based on my experience with private
money? Of the people who say they will give you money, only about
50 percent will do so. About 20 percent of that 50 percent will back
out just before the closing. It ’ s important that you know that some-
times an early “ yes ” doesn ’ t really turn out to be a “ yes. ”
Therefore, line up more investors than you need, and somewhat
oversubscribe your deals. Let investors know that it is fi rst - come,
fi rst - served , and that you will fill your deal in the order in which you

actually receive funds. Anyone who is too slow to act will need to wait
until the next deal. The prospect of being left out will result in more
investors following through.

The Pros and Cons of Deal Structures

I ’ m not an attorney and have no plans to become one. Therefore, the
following is not legal advice, but instead is my take on the practical
aspects of the deal structure you choose.

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