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TRUMP UNIVERSITY WEALTH BUILDING 101

When you evaluate a property, note in detail how it looks, feels, and
sounds. How much would the property increase in worth if you:
1. Put in a skylight?

2. Installed noise-proof windows?

3. Created a view through use of flowers, shrubs, trees, and other

landscaping?

4. Eliminated odors, unsightly views, and dark, dreary window
coverings?

5. Modernized the baths and kitchens; or replaced worn or stained
carpets?
Throughout my years of real estate investing, I have bought many
properties at or near their current market value and, because I always
buy with entrepreneurial insight, I see possibilities that others miss.
With large doses of ideas and relatively small cash outlays for actual
changes and improvements, these rentals (as well as some personal
residences and commercial properties) were soon worth 20 percent to
40 percent more than I paid.
• Reposition the property more profi tably: Along with property improve-
ments—or even exclusive of any improvements whatsoever—you can
often accelerate your profits by repositioning a property. As a rule,

properties that target a specialized market segment earn higher profi ts
than generic, run-of-the-mill rentals.
For example, a property that appeals primarily to families with
young children easily rents to this market segment at $1,000 a month.
But through your market awareness, you learn that college graduate
students who share accommodations typically pay $500 per bedroom.
With three bedrooms in the property, this rental house could bring in
$1,500 a month—if you shifted your market strategy.
Different types of tenants value properties differently. I encourage
you to develop the following three-step positioning strategy for your
properties:
1. Research your market.

2. Figure out what types of tenants will pay the most for what you’re
offering (or could offer).

3. Do what it takes to attract that market segment.
• Buy at a bargain price: Most real estate writers focus on one type of
bargain—a property that you can buy below-market from that much
sought-after, motivated seller. Unfortunately, the droves of investors
who seek out these sellers greatly exceeds the few sellers who actually
match this desperate profi le.

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