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ITH THE EXCEPTION of condominium units, Donald Trump,
Wlike most savvy real estate investors, seldom sells his real estate
investments that are good income producers. If he sells any of his real
estate holdings, he would have to reinvest the proceeds in something,
and what better place to have your money than in a good solid chunk
of mother earth. As an investor in real estate, you should realize that
it’s very difficult, not to mention very time consuming, to find an-
other good real estate investment where you can park sale proceeds.
With that in mind, the following are key principles that will help
you to determine whether or not to sell a particular real estate in-
vestment, along with several real estate holding or exit strategies for
your consideration.

PLAN SEVERAL POSSIBLE OWNERSHIP TIMELINES

Trump always tries to estimate when his properties are likely to reach
their maximum value to help him decide how long to hold on to a
property or when to offer it for sale. Small investors should create sev-
eral possible timelines for ownership, including when you might want
to sell, and what you expect to gain or lose, depending on how long
you hold the property.

Fix and Flip

The shortest holding timeline is the “fix-and-flip” strategy. This
entails purchasing the property, building on it or renovating it,

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