Real Estate Investor Magazine South Africa May/June 2015 | Page 21

Enhance the location and your
property by converting a garage,
attic, and loft or mezzanine level
to make extra living space. Convert
houses or apartments into office
space
“Attend to the details,” Trump
advises, “Just like my father, I walk
every project. It is my responsibility
to make everything look exquisite.”
What Actions Must Investors
Take?
Trump advises that you evaluate
your properties to find multiple
uses, multiple streams of income,
or even multiple target markets. In
the past, developers will construct
an office building, a hotel or a golf
course. Now, use one idea, one use
with one target market.
Money, Money, Money
Before you even buy your
investment property and start
improving it, you need to get
money to finance the property such
as a bank loan.
The use of borrowed money
serves several purposes: It gives you
more leverage, which enables you
to purchase 20 or 30 times more
than what can be bought for cash
and it reduces your equity exposure.
However, remember, do not make
long-term investments with short
term money.
Here are a few tactics for
convincing your bank manager to
give you a loan:
Make bank lenders want to do
business with you by borrowing
small amounts, investing it wisely,
paying the loan back promptly, and
then subsequently asking to borrow
more. This approach builds up your
reputation as a responsible investor
and boost your credit record.
The key is the establishment of
trustworthiness.
Borrow money from a lender
with whom you already have a
www.reimag.co.za

BEST
ADVICE
3 CARDINAL NEGOTIATING
PRINCIPLES
1 Know yourself
2 Know the other party
3 Preparation is key

relationship and only borrow as
much money as you can, for as long
as you can.
Negotiating
Use your advantages as leverage in
negotiations. “In negotiations, look
for leverage,” Trump recommends,
“What do you have that the other
person wants? Or, even better, what
they cannot do without.”

“Do not go into a deal without
first figuring out the power you
posses to solve the other person’s
problems,” he adds.
Deal
making
requires
“accommodation,
adjustment,
diplomacy, and finesse,” while
negotiation requires “persuasion
more than power” and someone
with a “razor-sharp mind, who is
not a bulldozer.”
“Think just as hard about your
negotiations, strategy and tactics as
will for the property itself,” Trump
advises.
Preparation is key. “I always go
into a deal anticipating the worst. If
you plan for the worst—if you can
live with the worst—the good will
always take care of itself,” he says.
Get The Word Out
Befor