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

So I went to the bank in the Chrysler Building where my office was
located and said, “I want to borrow $30,000 to make a mortgage
loan. Here’s my background, I’ve been a lawyer 10 years, I make a
good salary, I own my own house, and here’s a list of my assets. As
you can see, I’m good for the money.” The bank officer said, “You’re
planning to invest in mortgages. I don’t like that kind of investment.”
I replied, “I didn’t ask you for investment advice, I asked you to
determine if I’m worth $30,000 on the hoof!”
He said, “No.” I couldn’t believe the turndown. It was the first
time I had ever applied for a personal loan and I thought I would be
received with open arms.
My brother-in-law Martin Beck had a good friend who was a loan
officer in a small bank and he suggested that I see this loan officer for
the $30,000 loan I needed. The banker said, “Okay, give me the
mortgage as collateral and I’ll lend you the $30,000.” I am certain
that he made the loan only out of friendship with Marty, not based
on my financial standing.
So I put up the money for the $35,000 mortgage. Like clockwork I
made monthly payments to my mother-in-law for her share of the in-
vestment. Then, to my delight, she started telling all her friends and
others who would listen that she invested money with me at 16 per-
cent interest and was receiving a check by the 5th of each month.
They said, “How can we get into a deal like that?” She told them to
call me and see if I would let them in on my next deal. I also told all
my potential investors who backed out what a mistake they had
made and their money could have been earning 16 percent a year in-
stead of the meager 3 percent a year their bank was paying.
Because of my newfound fame, the next time around I had no
problem getting investors—but I cut down the amount I was willing
to let each person invest in the deal. There’s nothing like telling a
willing investor, “I can’t let you in for $ 30,000 but I can give you a
$20,000 piece. I’m oversubscribed as it is but for you I’ll make
room.” Now that they believed I had many other investors clamoring
to let me invest their money in my deals, it was no longer a problem

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