Page 141 - 2

TR U M P STR A TEGI ES FO R R E A L ESTA TE

carpeting and wanted to live there. My friend was able to receive
higher rents, and the building seldom had vacancies, all because of
this fancy carpet. It had the same effect as if the whole building had
been renovated, but for a fraction of the cost. The moral is, look for
cost-effective ways to impress your buyers and tenants. You may pay a
little more than your competition, but if it enables you to charge more
rent or get a higher selling price, it’s worth it.
A Word of Caution: Never lose your focus on the bottom line of your
investment. It is possible to lose control and spend too much on up-
grades, even though the reality is that most real estate investors proba-
bly don’t spend enough. It is important to create a spreadsheet listing all
anticipated costs associated with your property’s acquisition, possible
holding periods, construction, and marketing. After considering all the
expense items, give careful thought to the anticipated income. Strike a
balance between unbridled enthusiasm and realism in your financial
projections. If the result meets your expectations, go for it!

UNDERSTAND YOUR BUYERS’ AND
TENANTS’ LIFESTYLE

Before proceeding with any real estate venture, you have to determine
what’s appropriate for your particular project. You must familiarize
yourself with the surrounding neighborhood and the life style and in-
come of the people you are planning to sell or rent to. To accomplish
this, you have to do your homework, which includes doing research
and learning as much as you can about your potential customers. Can-
vass other projects in the area; speak to brokers whose livelihood
comes from the sales or leasing of units. If you portray yourself as a
potential buyer or renter, brokers will deluge you with loads of infor-
mation that you can distill to reality. Find out what amenities are
being offered by other developers building properties similar to yours.

120