Page 46 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Take any real estate market and you ’ ll find investors who fall into

one of three groups: the seasoned professionals, the rank amateurs,
and everyone in between.
Earlier in this chapter we discussed how the pros read a market
and act long before the crowd even knows what ’ s going on. The rank
amateurs and a good hunk of investors in between (that third group)
do not get their information from hard data on market trends.
No, they get it from Fox News, CNN, a couple of blogs they follow,
and lots of gossip. Therefore, when the national media does feature sto-
ries about all the new real estate millionaires being minted each week,
the amateurs sit up and pay attention. When these investors sit on a
plane or in a taxi and hear someone brag about how his cousin just made
a fortune in condo developments, the amateurs start to salivate. And

finally, when they go out to dinner and the waitress reveals that she, too,
is a real estate investor, it ’ s time to get in while the getting is good!
That ’ s also the time when the professionals are selling like bandits
and hightailing it out of that market.
Of course, the opposite is also true. The pros move into a market
when the gloom factor is at its peak, judging by headlines, news stories,
foreclosure auctions, and taxi talk.
Other than that powerful psychological factor, it usually doesn ’ t
matter what is happening in the national economy. As we already dis-
cussed, the local job growth and supply situations are much more
important than the national headlines.
Demographics are also a big predictor of demand in a market. The
two big demographic trends happening in many markets right now
are the rise of immigrants and the emergence of echo boomers , who are
the children of baby boomers.
Over the next 50 years the immigrant population in the United
States is expected to account for 62 percent of population growth.
With that growth, you will see retail and apartments competing for
these tenants.
Most fi rst - generation immigrants spend long hours working to
provide a better life for their families. They want their descendants

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