Page 177 - 2
P. 177

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


                   successful business that was ultimately sold for a profit of millions of
                   dollars. Don’t think you can do everything yourself. Surround your-
                   self with professionals and you’ll save yourself aggravation and even
                   money.

                   INVESTING CASE STUDY



                                         VILLA TRUMP BRAZIL
                     Trump has earned such a reputation for hiring top people, and creat-
                     ing quality and luxury in whatever he does, that he can now license
                     his brand and property design and management expertise to other
                     real estate investors. They realize the value of having a top name (in
                     this case, Trump) associated with their development. They appreciate
                     the marketing power it gives them. (I’ll describe later in the chapter
                     how small investors can use the same principle when hiring archi-
                     tects, builders, and designers.) One example of this is a project near
                     Sao Paulo, called Villa Trump Brazil. For Trump to permit his name to
                     be connected with this project, the land owners paid him $1 million
                     cash up front, plus a share of the profits on anything over $45 million
                     in  sales. They intend to sell 400 building lots at $300,000 each.
                     That’s $120 million in sales right there. Except for supervision and
                     guidance,Trump’s input is minimal with no dollars in but he’ll get lots
                     of dollars out. His major contribution is his name coupled with his ex-
                     pertise in development supervision. It will inevitably turn out to be a
                     beautiful, luxurious first-class development. It’s a huge project on
                     1659 acres, including a Jack Nicklaus signature golf course and golf
                     academy, with a nine-hole executive course for the academy. It will
                     feature a high-quality boutique hotel, situated around the 18-hole golf
                     course along with 18 mansions, worth between $4 and $10 million.
                        Trump wouldn’t ordinarily go out and build a project in Sao Paulo,
                     Brazil. However, local real estate developers knew that there were
                     many wealthy Brazilians who would pay more for the quality and lux-

                                                  156
   172   173   174   175   176   177   178   179   180   181   182