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

effort to make the project a successful one, that has tremendous
value that must be recognized.
Syndications have been around for years. If you have certain exper-
tise and need investors, team up with money partners who should not
be involved with other aspects of the project such as management, re-
pairs, and maintenance. You would be surprised how many people are
interested in investing in real estate solely for the purpose of receiving
ahigher rate of return than might otherwise be available and a share of
theupside potential that real estate projects usually have.

Tips on Getting Investors

It is very hard to borrow money from friends and family, especially
for your first transaction because they won’t believe you know what
you’re doing. But once you show them a successful real estate invest-
ment you’ve managed, they’re willing investors.
How do you improve your chances of getting others to invest with
you? If you had a situation where you wanted to buy a property and
you needed a $50,000 deposit. And you went to a potential investor
and said, “I want you to be my partner and we have to put up a $50,000
deposit”—that’s one scenario with a low probability of success.
A better scenario with a higher degree of success is: “I’ve already
put up $50,000 to buy this property that I think has great potential.
I’m offering you the opportunity to come in on the ground floor as my
partner and share in the benefits.” This concept is a lot easier to sell
because your money is already where your mouth is. You’ve already dis-
played your confidence in the deal. It’s a whole different selling situa-
tion compared with someone who is thinking of investing. It’s strong
because you have shown that you have faith in the transaction and
don’t need them to tie up the deal. It’s very hard to do a transaction
where the investors are asked to put up 100 percent of the money. In-

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