T RU M P S T R AT E G I E S F O R R E E A L S TAT E T R U M P S T R A T E G I E S F O R R E E A L S T A T E Billionaire Lessons for the Small Investor G E ORG E H . RO S S wit h A ndrew James McLean JOHN WILEY & SONS, INC. Copyright © 2005 by George H. Ross. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. The publisher is not engaged in rendering professional services, and you should consult a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Ross, George H., 1928– Trump strategies for real estate : billionaire lessons for the small investor / George H. Ross with Andrew James McLean. p. cm. Includes bibliographical references and index. ISBN 0-471-71835-1 (cloth) 1. Real estate investment. 2. Real estate development. 3. Real estate investment—United States—Case studies. 4. Real estate development—United States—Case studies. 5. Trump, Donald, 1946– I. Title: Billionaire lessons for the small investor. II. McLean, Andrew James. III. Title. HD1382.5.R67 2005 332.63′24—dc22 2005000053 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 This book is dedicated to my wonderful wife, Billie the solid foundation on which the happiness and success in my life was built. C ONTENTS FOREWORD BY DONALD TRUMP ix PREFACE xi CHAPTER 1 SELL YOURSELF LIKE TRUMP: FIVE PERSONAL QUALITIES YOU NEED TO SUCCEED IN REAL ESTATE 1 CHAPTER 2 THINK BIG: HOW TRUMP CHOOSES PROPERTIES TO INVEST IN 21 CHAPTER 3 PRINCIPLES OF NEGOTIATION: HOW TRUMP USES THEM 45 CHAPTER 4 HIGH-POWERED REAL ESTATE NEGOTIATION TECHNIQUES AND TACTICS 69 vii CONTENTS CHAPTER 5 THE TRUMP TOUCH: CREATE “SIZZLE,” GLAMOUR, AND PRESTIGE TO GET HIGHER-THAN-MARKET PRICES FOR YOUR PROPERTIES 99 CHAPTER 6 RAISING MONEY: TACTICS FOR ATTRACTING LENDERS AND INVESTORS 125 CHAPTER 7 GET HELP FROM THE BEST REAL ESTATE SPECIALISTS YOU CAN FIND 153 CHAPTER 8 WHY TRUMP BUILDING PROJECTS ARE ALWAYS ON TIME AND UNDER BUDGET 165 CHAPTER 9 TRUMP MARKETING STRATEGIES: SELLING THE “SIZZLE” SELLS THE PRODUCT 179 CHAPTER 10 HOW TO MANAGE PROPERTY LIKE TRUMP: TREAT IT AS A CUSTOMER SERVICE BUSINESS 193 CHAPTER 11 HOLDING STRATEGIES AND EXIT STRATEGIES 207 INDEX 223 viii