Text by Kyle Gray
Source: This article was taken from the March/April 2011 Real Estate Investor
8 ways to play the real estate game
Donald John Trump is the Chairman and CEO of the Trump Organization, a major US-based real-estate developer. Trump is also the founder of Trump Entertainment Resorts, which operates numerous casinos and hotels across the world. Trump’s extravagant lifestyle and outspoken manner have made him a celebrity for years, a status amplified by the success of his NBC reality show, The Apprentice, where he serves as host and executive producer.
1. Be conscientious
Through a conscientious approach to business, Donald Trump has built a strong brand. The strength of his brand also means he can license his name and manage hotels, but get developers to pay for construction. He is notorious for risking little of his own money upfront. By building a famous family business he can save money on marketing. The Trumps don’t need to pay celebrities to market their businesses or attend their parties – they are the celebrities. Always look for opportunities where you can use your resources, your reputation and your connections to help you save on capital outlay.
2. Build momentum and keep it moving
Trump is betting he can do for hotels what he has done for skyscrapers, casinos and reality TV. In ten years’ time, Trump wants his hotel to be the first choice in every major city, fifty cities in total if things pan outright. A highly ambitious project, as the Trump brand is only really popular in America. “It has been difficult, but we are gaining a lot of momentum and support by keeping our eye on the ball”. Once you have conquered a goal or an industry, move onto something more ambitious and keep moving forward.
3. Look at the solution, not the problem
In the worst market, anyone can remember what makes the Trumps think they can succeed where others have failed? “We go further, our hotels will be different. We will try to do something new everywhere we go, a lot of hotel companies can’t do this because they have a set of standards they don’t know how to deviate from them,” comments Donald Trump. Does it showcase the age-old question as to whether the glass is half full or half empty? Only you can decide.
4. Be fierce
“Always look out for yourself,” says Trump. Never one to back down from a challenge, Trump has made a career out of being ruthless when it came to his business. Trump realised early on that he would only reach the heights of success if he was willing to tackle whatever or whoever stood in his way. He took no prisoners when it came time to make a deal and did whatever it took to get the job done.
5. Raise the stakes
“I don’t believe you can ever be hurt by buying a good location at a low price,” says Trump. Even as the city seemed to be crumbling around him, Trump dreamed of the amazing potential for properties throughout New York. The first piece of real estate that Trump went after was a large abandoned rail yard along the Hudson River.
6. Love what you doing
“Firstly the most important thing in life is to love what you’re doing,” says Trump, “Because that’s the only way you’ll ever be really good at it. “It wasn’t Trump’s knowledge of the real estate market, or salesmanship alone that led him to become the owner of over 18 million square feet of land in Manhattan alone. Rather, it was all the late nights he worked to get his ideas off the blueprints and onto the streets, it was the endless business meetings and phone calls, it was his tireless promotion of what seemed to others to be nothing more than outlandish fantasy. In other words, it was his passion. The harder you work, the luckier you will be.
7. Money can’t be your only motivation
“Money was never a big motivation for me, except as a way to keep score,” says Trump. “The real excitement is playing the game.” It is Trump’s love for the game that allowed him to keep playing despite the critics, the lawsuits, and the bankruptcy. It was only the dedication that came from his passion for real estate that enabled him to continue reaching for his dreams against all odds.
8. Play on perception
From gold-plated hotels to the controversy over a simple mop of hair, the Trumps play on perceptions. “If you want to sell a car and you spend five dollars to wash and polish it with a little bit of elbow grease, suddenly you find you can charge an extra four hundred dollars,” says Trump.
In the fine art of deal-making, perception is often one of the most important factors that stand in the way of success. As a good salesman, Trump found it crucial to control the perceptions he was giving off to the other side. Aside from his all-important self-grooming in order to look as professional as possible; Trump is an expert in keeping up all appearances when it comes to his deals.
Resources:
Trump Organisation www.trump.com
