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

Land banking is always a risky investment but one that can be ex-
tremely profitable if you guess right. It’s a good idea to go into land
banking with money you’re willing to lose or tie up for a long time. It
works especially well when there’s an area or neighborhood that is in
transition, or it looks like it’s in transition. For example, you see a de-
pressed area, and an area not far away which is starting to flourish,
being rebuilt, and on the rise. You might say to yourself, “Hey, I can
buy here while it’s cheap, because sooner or later the growth will come
my way and I want to be there when it happens.” So you buy on the
theory that there will be an uptick at some time in the foreseeable fu-
ture. You never know how long it will take for that to occur. You have
no control over if it happens or when it happens. However one thing is
for sure. The earlier you buy it, the cheaper the price and conversely,
the later you buy it—once the growth in the neighborhood gets hot—
the higher the price.

Convenience

Another thing Trump looks for in a location is the convenience of
the location for his intended customers whether they are apartment
owners or office tenants. Convenience encompasses the proximity of
shopping facilities, transportation, schools, houses of worship, and
other amenities. Availability of a suitable labor force is a factor to be
considered in determining the desirability of office or commercial
space. If you intend to live or work in the property you are planning
to buy, just ask yourself does this property meet your needs; can you
picture yourself being happy there and in the neighborhood. If the
answer is “yes” it should be a good buy. Your future buyers will prob-
ably have the same response. If it’s not a place you would feel com-
fortable, I suggest you pass.

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