Page 248 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

• Commit time to the project. Even though you ’ re not spend-
ing your time handling day - to - day responsibilities, you still
must commit to investing time and, if necessary, money to the
property to ensure that all goes well. Regarding the money
commitment . . .

• Fund reserves with your cash flow before you pay yourself .
Maintain an adequate reserve so that when unexpected capital
improvements or repairs occur — and they will — you will have the
money to cover them promptly. If you know a big expense will
inevitably arise, such as a roof replacement, build up those
reserves to prepare for that day.
• Know your exit strategy when you purchase the property.
Is this a fi x - and - fl ip , a long - term hold, or a repositioning to its
highest and best use? On day one of your ownership you should
already be working steadily toward that goal.
Of course, this does not mean you are tied to that one exit
strategy. New challenges and opportunities will present them-
selves. That ’ s a reason to reevaluate your existing plan, but not
to avoid having one in the fi rst place.
• Know the market where you buy. That means knowing your
tenant profile, your competition, the current supply - and -

demand situation, and also trends into the future. It ’ s a lot of
work initially, but just think how much easier it will be to buy
your second property in that market!
• Visit your property every three to six months. It may be

more frequent at first, but when your monitoring systems begin
to hum, those visits will become further apart.
I like to arrive unannounced. That way I can catch people in
their regular routines, and see the property as it is normally run.
Planned inspections can contain a lot of theater, with a sudden
flurry of activity to impress the boss — you.

Imagine the confi dence you ’ ll gain when you make a sur-
prise visit and things are neat, attractive, and working well. Also

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