Page 92 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Be on the lookout for markets where you can buy buildings below
replacement cost. It will discourage builders from coming into that

market because — all else being equal — they ’ ll find it hard to compete
with you, given their higher price to build.

Other Important Components of Value

Those three methods are just the beginning steps to becoming com-
fortable with value. Let ’ s look at several other considerations.

Location

You ’ ve no doubt heard the old saying that the three most important things
in real estate are location, location, location. It ’ s a cute saying, but wrong.
As with most sayings, it ’ s simplistic. Location is indeed important, but
it ’ s only one factor.

You definitely want to spend time assessing the location, though.
For instance, most successful coffee and doughnut shops are on the
going - into - town side of the road, where most commuters drive in
the morning. This is called the A.M. side. Most successful dry cleaners
are located on the P.M. side , going out of town.
You ’ ll see shopping centers off major highways and offi ce build-
ings near mass - transit lines or major arteries. Hotels often prefer the
central business district and airports.

Each commercial property type has its own profile for best location
to ensure that it ’ s getting maximum exposure to its target market.
You know those small black hoses stretched across roads for a couple
of weeks at a time? Someone ’ s counting traffi c. Well - established busi-
nesses are very good at knowing what demographics they need to be

successful, and an accurate traffic count in front of a commercial build-
ing is a key selling point. It ’ s especially important for retail properties,

but not as important for industrial, office, or apartment buildings.
Another way to focus on location is to look for up - and - coming
areas. If you can get in on the ground fl oor, you ’ ll make a bundle when

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