Page 206 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Live Where You Want, But Invest
Where It Makes Sense

You probably did not make a scientific study before choosing
where you live. It might be the hometown you grew up in. Maybe you
went to college and stayed in the area. Perhaps you moved where your
spouse was given a great job offer.
Those may all be good reasons to live there, but they ’ re not good
reasons to invest in those markets. Don ’ t get me wrong: I bought
plenty of real estate close to where I lived, for two reasons. First,
I didn ’ t know any better. Second, I happened to buy into the market
at just the right phase of the cycle for the type of real estate I wanted
to buy.
Let me be clear about what I mean when I say bought into the market
at just the right time: It was a great time, because people universally told
me that I was crazy, I would lose my shirt, I should wait until the

market firmed up, they had tried real estate and it doesn ’ t work, and
so on.
Therefore, if your local market happens to be at the right phase of
the cycle for the property type you ’ re buying, go get ’ em! If it is not
at the right phase, go find a market that is.

I spend some time elsewhere in this book discussing how to
invest by trusting your instruments and not your eyes. It ’ s comforting
to drive by your property every day, but it ’ s much more profi table to
invest in a soon - to - explode market. Are you in this business to be
comfy or to be rich? Have your property manager do the heavy lifting
at your property.

A Real Litmus Test of Quality

If your management company cannot provide you with frequent
reports on all aspects of your property, it ’ s not a good management
company.

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