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

your money. Or, in another part of the city you might buy something
that can be leased to a reputable tenant giving you a safe return of
8 percent on your money. In another neighborhood, you might con-
sider building something new from the ground up with a view to-
ward sale, lease, or long range ownership.
Here are somequestions to answer in your business plan for
the property:

•How are you going to increase the value of whatever it is you
intend to buy?
•What are the projected costs for refurbishment, income, and
expense? Make a financial analysis of the property to find out.
•Is it going to be a short- or long-term investment? Are you
planning to flip the property or buy and hold?
•How do you intend to manage the property?
•How will you finance the property? Do you intend to get in-
vestors, or finance it through a bank by yourself?
• If you need investors, how will you pitch them? What percent-
age return on their money will they get?
•What is your strategy and timeline for selling the property?

Careful crafting of a business plan will not only help you explain
more convincingly to lenders the great plans you have for the property,
it will also help you be realistic about costs, and projected profits.

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