Page 169 -

TRUMP UNIVERSITY WEALTH BUILDING 101

• To build wealth, maintain an impeccably strong borrower profi le.
A strong borrower profile opens doors locked shut to those with lesser

credentials. “No cash, no credit” folks can frequently raise money to

finance a property acquisition, but they will sacrifice a large part of
their anticipated returns to higher loan costs, interest, and fees. They
will lose many potential deals to people whose record affi rms their
character, their financial responsibility, their habits to spend below

their means, and only borrow constructively—not destructively).

Develop a strong borrower profile and lenders (as well as other inves-
tors) will compete to do business with you. A strong borrower profi le
will not only put more deals in front of you to consider, it will also give
you the power to negotiate the most f avorable deal/debt terms.

Maximize Returns through Strategic Management

Unlike day-to-day property management, strategic management creates a
winning value proposition for your tenants and a high reward/low risk return
on your investments of time, work, and money. To manage strategically and
effectively, execute the following eight action steps:

1. Before you buy, verify, verify, verify: When you shop for a property, you will

likely obtain information from sources (sellers, real estate agents, home

inspectors, government officials, lawyers, fellow investors), and maybe
even friends, relatives, and neighbors. You will seek information about
property condition, rent levels, operating expenses, comp sales prices,
zoning, building regulations, government rules and practices, neighbor-
hood desirability, the features, quality, and rents of competing properties,
and dozens of other facts, judgments, and opinions. To construct a base of
knowledge, every investor must rely on data gathered from other people.
But don’t naively accept information. Check supposed facts
through more than one source. Probe and explore the judgments and
opinions that people share with you. Do they really know what they’re

talking about? What biases or conflicts of interest might color their
views and advice? The price you pay, the market strategy you create,
depends on facts and judgments. Verify, verify, verify. Does the infor-
mation you possess really warrant your confi dence?

2. Craft a winning value proposition: Your profit potential increases when
you target specific market segments. Do you want your property to

attract quiet college students, families with young children, Section 8
tenants, wheelchair-bound folks, or perhaps seniors who want an adult
congregate living facility?
146

8/23/07 3:21:47 PM
c14.indd 146 8/23/07 3:21:47 PM
c14.indd 146