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

optional upgrades that you would be willing to supply for a higher
rental rate. For example, the building standard refrigerator could
have a 17.5 cu. ft. capacity but an option could be one of higher ca-
pacity. Standard kitchen countertops could consist of Formica or
similar laminates. Options could include granite, ceramic tile, or
solid surface materials such as Corian or Stilestone, the extra cost of
which is included in the rent.
In any real estate deal, it’s important for you to identify your tar-
get audience and focus your attention on accommodating it. If your
target is middle-class families and you elect to provide amenities
typically found in developments catering to those with higher in-
comes, you won’t recoup the extra expense. However it is a fact that
most people, no matter their income level, will pay a little more for
luxury. Although you may be targeting middle-income buyers, you
should identify the cost-effective upgrades that will dazzle them and
make them willing to pay a little more than they otherwise would.
People who can afford luxury will recognize more extravagant extra
touches such as heightened security, 24-hour doormen, and closed-
circuit cameras or gated and manned entry areas. These are things
they can appreciate as having added value. Unfortunately, the lines
between low-income families, middle-income families, and high-
income families are blurry at best and difficult to pin down. After
you’ve obtained all the knowledge of your likely buyers or tenants as
you can, then go after that target. Having said that, be willing to
quickly revise your ideas about what your customers want, if you
learn new facts that warrant such a change. Success in any real estate
venture has a direct relationship to appropriate timing and the
changes in circumstances that occur in any timeframe. Be aware of
everything that’s happening in the local economic and real estate cli-
mate that could affect your decision making. Smart real estate in-
vestors, just like entrepreneurs in general, have to stay flexible.

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