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

He put the Trump name on the building creating the aura of su-
perb management and operation. We created brochures showing the
fantastic harbor views and the flexibility of various floor sizes. We
boasted of state of the art facilities and the availability of the latest in
communication systems. We promised quick approvals of lease terms
and quick payment of brokerage fees. And in the end, that’s how we
leased it as exclusive office space at over $30 per square foot when the
“experts”—the aura creators—said it could never be leased, not even
at $17 per square foot.

HowYou Can Avoid the Hypnotic Effect of the Aura of Legitimacy

Don’t take everything you read or hear from brokers, sellers, buyers,
tenants, experts, or see on television as if it were etched in stone. Be
willing to dig to confirm the facts behind whatever type of project
you get involved with. For instance, say you’re interested in purchas-
ing a four-unit apartment building in a certain area. First, you might
go to a local real estate broker and make inquiries about vacancy
rates in that area. The broker says, “Well, the statistics I have show
that the area has a very low vacancy rate of 3.6 percent and rents are
high.” That’s a start, but you can’t just take his or her word for it. In
addition, you should do your own survey of apartments in your area
to find out what, in reality, the vacancy situation really is and what
the asking rental rates are. Otherwise, you might make an erroneous
investment decision based on an aura of legitimacy that indicates a
low vacancy rate. In fact, the market in your immediate neighbor-
hood could be glutted with vacant units available at distressed rents.

HowYou Can Use the Aura of Legitimacy Principle to Your Benefit

Now that you know the effect the aura of legitimacy has on others,
it’s easy to make it work for you. Create eye-catching literature

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