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

However the existence of a commitment for a takeout loan may be a
prerequisite of the bridge lender. It is possible for the bridge lender
and the takeout lender to be the same party, although the terms of
the bridge loan and the takeout loan could be substantially different.
But most lenders pursue a single role rather than a dual one.

BORROW FROM A LENDER WITH WHOM
YOU ALREADY HAVE A RELATIONSHIP

You need to develop a working relationship with one or more commer-
cial lenders ifyouhaveasincere desire to be in the business of real estate
investing. It is equally important to develop similar relationships with
potential investors. Remember if you do a good job on your first proj-
ect, see that the word gets out and it will be a lot easier to get investors
on your next project because nothing succeeds like success. Don’t be
timidwhenit comes to boasting about your accomplishments; use pho-
tographs and any favorable publicity your property has received.

DON’T SWEAT THE DETAILS

Keep in mind that banks, or for that matter any type of commercial
lender, have their own lending philosophies and ways of doing busi-
ness and preparing documents. Don’t expect to win much in negoti-
ating the details of your loan agreement. With the exception of
interest rates, terms of payment, rights of prepayment, and maturity
dates, you’ll have to accept the language contained in the lender’s
loan documents. You can rely on the fact that banks are extremely
reluctant to call in a loan that is being paid in a timely fashion even
when many technical defaults exist. If more than one lender partici-
pates in making your loan, the chance of their pursuit of a technical

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