Real Estate Investor Magazine South Africa May/June 2015 | Page 20

BILLIONAIRE LESSONS

“Think big and live large”

CASE
STUDY

TRUMP TOWER
Trump thought creatively. He saw this
project as a prime location for upscale
retailers who are willing to pay annual
rents of $500 (or more) per square
foot. The high floors of the buildings,
will appeal to the rich who value the 5th
Avenue address and the expansive views
of Central Park and the Hudson River. He
believed that the high floors with their
beautiful views were ideal for luxury
residential condominium units that will
sell for high prices. As to the problematic
middle floors, Trump envisioned offices
but realized he will have to innovatively
market them to command the rent levels
he wanted. On all points, his ideas
succeeded.
‘The Trump Touch’
One of the cornerstones of Trump’s
philosophy is “to improve or
enhance any location.”
Trump’s signature style, known
as the ‘Trump Touch’, includes
improving dilapidated buildings
with flashy architecture and a
glamourous façade.
According to Trump, “Most
properties have hidden potential. It
is your job to find it.”
I am always trying to figure out,
“What can I do with this property
to give it flair, pizzazz—something
my buyers or tenants cannot find
anywhere else?” he adds.
By including these features the
property becomes impressive and
distinctive, Trump thus gets a
higher premium over similar sized
properties in the same area.
You can do this by doing
something radical to your property
by changing the zoning, changing
the way the property is used, or
renovating it so strikingly that
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MAY 2015 SA Real Estate Investor

people think about the location in
a new way.
To create more rental income,
create an inviting exterior.
“Enhance the perceived value.
Spend money where it creates the
most lasting and emotionally visual
effect,” Trump advises.
Create attractive cub appeal.
When prospects arrive, make sure
they immediately feel, like “This
looks like a nice place to live.”
What kind of signature, like
the location, or design elements
such as the architecture, interior
design or landscaping can you add
to your property that will impress
your prospective buyers or tenants?
Know what additional features they
will pay extra for and what they will
not.
Interiors are also important.
Kitchens and bathrooms seal
the deal. Extra money spent in
renovating these rooms will reap
big rewards either from the sales
price or the rentals.
www.reimag.co.za