TRUMP  THE BEST REAL ESTATE ADVICE I EVER RECEIVED 100 TOP EXPERTS SHARE THEIR STRATEGIES DONALD J. TRUMP RUTLEDGE HILL PRESS* Nashville, Tennessee  A Division of Thomas Nelson Publishers TRUMP  estate—the kind of information and wisdom that you can get only from a lifetime of experience.  In this book you’ll find tremendous insight based on positive experience and lessons learned the hard way by real estate moguls from around the country. From missed opportunities, to wrong guessing about the market, to under or over negotiating—there are a lot of ways all of us could have done it better. These men and women tell you what they have learned.  I am friends with some of these contributors and some I've never met, although I’ve admired them from afar. This book represents the best compendium of real estate advice ever assembled. And I think that it accomplishes its mission: to offer you help in planning your own success in real estate. Whether it s buying or selling your own house, condo, or co-op, or whether you're in or entering the real estate business, I think you'll learn a lot from The Best Real Estate Advice I Ever Received. INTRODUCTION Ve wanted to write this book for years.  Anyone who's observed my career is aware of my real estate strategies. (And if you haven’t observed my career, now is the time to watch me on television or pick up one of  my previous books.)  While very successful, my real estate business doesn’t cover everything that's happening in real estate. What I know, I know well, but I don’t have a monopoly on good ideas and real estate wisdom. I can’t know everything. As Susan Penzer points out, underlying my success is my "ability to gather the best information from the brightest people." Susan made that comment after watching how I did business. But that's also exactly what I've done in this book—gather the best information from the brightest people in real estate. They share their experience, the lessons they've learned from others, and the lessons they've learned from the mistakes they have made and almost made. The Best Real Estate Advice I Ever Received is sage wisdom garnered from one hundred leaders in the field of real  xiii xiv CONTENTS CONTENTS 23 12. John Brown REAL ESTATE AUCTIONS OFFER BENEFITS TO INVESTORS. WHETHER THEY ARE BUYING OR SELLING  13. Robert J. Bruss INVEST IN SINGLE-FAMILY RENTAL HOUSES  14. M. Anthony Carr	34 A COMMONSENSE APPROACH TO FORECLOSURE PROPERTIES  15. RichCasto CHOOSE A REAL ESTATE AGENT WISELY  16. Phoebe Chongchua FIVE PRINCIPLES TO SUCCESS  17. Frank Cook LISTEN TO YOUR TELEVISION  18. Barbara Corcoran WORK WITH WHAT YOU'VE GOT • •• XIII INTRODUCTION  1. Arthur L. Allen  BUY WHERE THE WEALTHY LIKE TO PLAY  2. Adina Azarian  DON'T BE AFRAID TO INVEST TIME  3. Roger Barnett BUY THE BEST  4. Thomas J. Barrack Jr.  FOCUS ON RESULTS  5. Monda Bassil  LISTEN TO YOUR CLIENT'S NEEDS  6. Douglas Baumwall TARGET GROWTH AREAS.  AND TRY NOT TO SELL WHAT YOU OWN  7. John Bearden  WORK WITH PROFESSIONALS YOU TRUST  8. Frank G. Binswanger Jr.  ALWAYS DO THE VERY BEST YOU CAN  9. Steve Bollenbach  FOCUS ON LOCATION AND EXECUTION  10. Robert Boykin  DEVELOP IN AN AREA WHERE GROWTH IS COMING  11. David Brause  MAINTAIN YOUR INTEGRITY; BE PATIENT;  DO YOUR DUE DILIGENCE; DEPEND ON LOCAL PEOPLE 29 1  4  6  7  8 11  12  15  17  18 19 38 41 44 47 56 19. Richard Courtney  THE FIRST OFFER IS USUALLY THE BEST 58 Lester Crown  CHOOSE A GOOD PARTNER 20. 59 Gil Dezer  ADD VALUE TO YOUR REAL ESTATE INVENTORY  22. Thomas E. Dobrowski  CHOOSE A TRUSTWORTHY PARTNER  23. Crosby Doe  SUCCESS IN REAL ESTATE COMES THROUGH HARD WORK AND DIRECT SALES CONTACTS  24. Marc Ellman  APPROACH THE BUSINESS WITH CANDOR AND FORTHRIGHT DEALING 21 61 63 65 CONTENTS CONTENTS 		39. Dorothy Herman	108 25. Blanche Evans	Du	OPPORTUNITIES ALWAYS EXIST	 DON'T FOLLOW THE CROWD	79	40. Thomas J. Hutchison III	110 26. Michael Fascitelli	t L	LEAVE BOTH PARTIES HAPPY	 emphasize quality and branding	7fl	41. Thomas J. Hynes Jr	114 27. Debbie Ferrari	/4	GET INTO THE COMMERCIAL REAL ESTATE BUSINESS	 MAKE THE MOST OF THE INTERNET	7K	42. Erez Itzhaki	118 28. Robert L. Freedman	/□	NEVER SHOW EMOTION; BE PATIENT;	 AIM HIGH AND TRUST YOUR INSTINCTS	n n	WORK HARD; AND CREATE VOLUME	 29. Doug Frye	80	43. Charles Jacobus	120 EMBRACE CHANGE		KNOW WHEN TO ANTICIPATE OPPORTUNITIES	 30. D. Kent Gale	82	44. OzzieJurock	122 TREAT PEOPLE WITH RESPECT		WORK TO GET A GOOD DEAL	 31. Stanley C. Gale	84	45. Bruce Karatz	127 MAKE INTEGRITY YOUR REPUTATION		TAKE CAREFUL RISKS AND HAVE FUN	 32. Jim Gillespie	87	46. Craig King	131 NEVER SELL INVESTMENT REAL ESTATE; TRADE IT		CAPTURE THE BUYER S IMAGINATION	 33. Lewis M. Goodkin	89	47. Michele Kleier	132 PAY ATTENTION TO DETAILS		PROTECT YOUR CLIENTS FROM THEMSELVES	 34. Gary Gorman	91	48. Robert A. Knakal	134 MANAGE YOUR TAX PAYMENTS	j.	PICK AN AREA OF SPECIALIZATION	 35. George E. Grace	97	49. Tom Kunz	138 ALWAYS NEGOTIATE		YOU MAKE YOUR MONEY WHEN YOU	 36. Harvey E. Green	99	BUY REAL ESTATE. NOT WHEN YOU SELL IT	 BELIEVE IN THE MARKET		50. Leonard Lauder	140 37. Jeffrey Gural	102	LEAVE YOUR EMOTIONS AT HOME	 ALWAYS HONOR YOUR DEALS		51. Stephen Leopold	141 38. Andrew Heiberger	104	FIND A NEED AND FILL IT	 TODAY'S RENTER IS TOMORROW'S BUYER			  CONTENTS  i  66. Enrique Norten  SEEK OUT GOOD ARCHITECTURE  67. Elan Padeh  REMEMBER THAT REAL ESTATE IS A CYCLICAL BUSINESS CONTENTS  i  52. Pamela Liebman  CAREFULLY CONSIDER GROWTH POTENTIAL  53. Dave Liniger CONTROL THE INVENTORY  54. Terry J. Lundgren  THINK AHEAD AND BELIEVE IN YOURSELF  55. lohn J. Mack NEVER BE GREEDY  56. Harry Macklowe LISTEN TO YOURSELF  57. Bernie Marcus  GO WITH YOUR GUT  58. Elias Masri  NEVER UNDERESTIMATE YOUR CLIENTS  59. Richard Meier  CHOOSE EXCELLENT DESIGN—AND GOOD PLACEMENT  60. Daniel F. Miranda  MANAGE YOUR RISKS AND MAXIMIZE YOUR RETURN ON INVESTMENT  61. Kim Mogull  MY FAVORITE “KIM-ISMS”  62. Bruce E. Mosler  GO WHERE YOU’RE NEEDED  63. David Mossier  THINK LOCATION—AND HONESTY  64. Terri Murphy BUY—AND WAIT  65. Joshua L. Muss ASSESS YOUR RISKS 183  184 188 147  149  151  153  155  156  157 160 162  164  170  173  174 180 68. John M. Peckham III IN THE FUTURE. EVERYTHING WILL BE VERY SMALL AND VERY FAST!  69. Susan Penzner	195 KNOWLEDGE, ENTHUSIASM, INTEGRITY. AND HARD WORK  70. Jorge Perez	199 BE OBJECTIVE; BE REALISTIC;  ALWAYS LEAVE SOMETHING ON THE TABLE  71.	David Picerne	200  STOP TALKING AND GET IT DONE!  72.	Robin E. Prescod	201  DON’T LET THE MARKET CONTROL YOU  73.	Bill Rancic	203  LEARN TO RECOGNIZE VALUE  74.	Henry Robbins	205  BUY LAND AND BANK IT. BUT DO YOUR HOMEWORK FIRST  75.	Phil Ruffin	208  EIGHT RULES OF REAL ESTATE SUCCESS  76.	Peter Sabesan	210  SOLID SALESMANSHIP. AN ENTREPRENEURIAL SPIRIT,  AND YEARS OF EXPERIENCE  77.	Henry Savage	213  NEVER LOSE PATIENCE  78.	Ronda Savoy	214  KEEP AN UPBEAT ATTITUDE IX CONTENTS 93.	Ivanka M. Trump  BUILD YOUR REPUTATION CAREFULLY	257 94.	Steve Van Amburgh  HAVE FUN AS YOU’RE PROFITING	258 95.	Leo F. Wells III FOCUS ON QUALITY	259 96.	Brett White  KNOW YOUR EXIT STRATEGY BEFORE BUYING	261 97.	Ken Wilson  DEAL WHEN YOU NEED TO DEAL	263 98.	Scott A. Wolstein WALK AWAY IF NECESSARY	265 99.	Rob Zache  FIVE RULES FOR SUCCESS OF YOUR BUSINESS	267 100.	Mortimer Zuckerman  BUY LOW, SELL HIGH, AND DON’T BE GREEDY	273  CONTENTS 79. Stephen Shapiro  THREE STEPS TO HAPPY CLIENTS	216 80. Michael Shvo  SEVEN STEPS TO SUCCESS	218 81. Larry Silverstein  PROCEED WITH PASSION—AND INTEGRITY!	221 82. Rand Sperry  TAKE A PROFIT AND MOVE ON	222 83. Norman Sturner  KNOW YOUR MARKETPLACE	224 84. Robert E. Sulentic  WORK HARD AND FOLLOW THROUGH	226 85. Stefan Swanepoel  COMMIT YOURSELF TO WINNING	228 86. Emily Tannen  DON'T JUDGE A BOOK BY ITS COVER	233 87. Robert S. Taubman  THREE LESSONS FROM MY FATHER	236 88. Joseph Thanhauser  TRUST, TIMING, TERMS, AND TRUTH	238 89. Richard Thompson  DEVELOPING A SUCCESSFUL HOMEOWNER ASSOCIATION	244 90. Jonathan M. Tisch  FIT BUILDINGS TO THE COMMUNITY	250 91. Marjorie Torres  GROW STRATEGICALLY	253 92. Donald Trump Jr.  THERE IS NO SUBSTITUTE FOR PASSION	256  xii xi THE BEST REAL ESTATF ADVICE I EVER RECEIVED  No” Really Means “Convince Me"  I've always been a salesperson, and I’ve learned that people can be sold on any product if you give them the nght reason to buy it. I first began honing my sales skills in elementary school while selling costume jewelry to teachers and classmates. In high school. I moved on to selling clocks out of the trunk of my car. And while attending Northwestern University, I became the number one door-to-door Encyclopedia Britannica salesperson in the Midwest. Although the product was different, rhe lesson remains the same: ' No” really means "Convince me.”  Move Your Inventory Fast  Even rhe best real estate appears stale w'hen it sits too long because people just assume there is something wrong with it. In 2006 I brokered a joint venture for a hotel on the corner of Fifty-seventh Street and Sixth Avenue in New York City and simultaneously leased the vacant retail space ro a celebrated restaurant group. The building owner had previously hired two major brokerage firms to fill the vacancy with no luck. The market's primary objection was that Fifty-seventh Street and Sixth Avenue was "an unlucky, dead coiner.” Of course it was dead—it had been vacant for years! The vacancy, combined with the momentum of other false objections, caused the market to turn a blind eye to the highly trafficked site near Carnegie Hall and Central Park.  165 MY FAVORITE “KIM-ISMS" KIM MOGULL  Kim Mogull is president and CEO of Mogull Realty, Inc., a Ieadr in representing marquee developers and retailers in New York Florida, and select key markets throughout the United States I have never shied away from getting advice from the brM and brighrest—from clients, from friends, and from fain ily. I've also had the privilege of observing brilliance in action. It is a pleasure to pass along some of the lessons I \« learned along the way.  Do What You Love and You’ll Never Work a Day in Your Life  • People say I’m a workaholic. I say, Tm just having fun.” My mother, Martha Mogull, who remains my besi friend and mentor, always encouraged me to pursue the kind of career that if I couldn't do for a living, I'd do for a hobby. The "hobby” of commercial real estate became my playground.  164 THE BEST REAL ESTATE ADVICE I EVER RECEIVED  door. A S3 pocket dictionary would wind up costing them a minimum of $1,099—the price of our least expensive set of encyclopedias. Nothing has changed. When I visit my real estate clients, I often come armed with something unexpected that the person will appreciate. It’s usually something that personally touches the client or sparks their imagination. But I also always come prepared to back up the incidentals with something of value—information—something my client would want to know but didn't before I arrived. This is a way of adding value while keeping a smile on their face.  Never Lose Sight of the Human Side of a Deal Selling real estate is not just placing a piece of property with a buyer or tenant; it is bringing two people together. Even in a corporate transaction, the decision to make or break a deal is made by people. No matter how tight your schedule or your clients’ time, do your best to have face-to-face meetings. It is much easier to kill a "faceless deal.’’ And above all, act honorably. That is what people remember.  My Mother Always Said, "From Little Acorns Big  Trees Grow"  Many people have asked me, “How did you gel Donald  Trump's business?” I got it through preparation, passion, and persistence—plus seventeen years of practicing commercial real estate 24/7 and loving it. When Mr. Trump's  167 TRUMP  Once hired. I immediately spruced up the building, wrapping it with a huge purple ribbon and bow along with a sign that read, "Our gift to you—a brand new restaurant for no key money.” Among those I contacted w'as the owner of The James Hotel Group, one of the hottest new' boutique hotels expanding across the country. We soon formed a joint venture to convert the site to The James' flag and leased the retail space to a major restaurateur. The pre viously "dead'' corner will emerge as one of New York City ’s most vibrant.  Create Excitement and a Sense of Urgency About Your Product  In one of Donald’s previous books, TRUMP: The Way to the Top, Barbara Corcoran offered great advice when she said, "When there are ten buyers and three puppies, every dog is the pick of the litter.” Well said, Barbara. My favorite way of showing space is through back-to-back showings with prospects coming in one after the other. This not only maximizes your time, it creatcs a sense of urgcncy and inflated demand.  Make It Memorable; Makf, It Fun; Make It Productive When I sold encyclopedias door-to-door, I used to take a wrapped up gift - usually a little dictionary. People were so curious to unwrap the gift that they would let me in the  166 THE BEST REAL ESTATE ADVICE I EVER RECEIVED  Above All, Be Passionate; Passion Is Contagious The day I was hired, Donald not only gave me a great opportunity but also the best business advice I’ve ever received. As I was leaving his office, he said, “Kim, you’re one of the greatest salespeople I’ve ever met. Start your own company. Brand yourself. Make it easy for people to find you.” The next day I formed Mogull Realty with Donald as my first client. I’ve never looked back.  It took years to win his trust—years of working hard and smart. The bottom line is the bottom line, and clients like Donald reward results. Years and many transactions later, Mogull Realty has become the exclusive broker for the bulk of the Trump Organization’s retail portfolio. TRUMP  office first called to request a meeting with me. I was president of a small real estate company. I went to my first meeting with Donald knowing everything I could about his retail portfolio. I also told him where I thought I could add value. After one hour of classic Donald Trump interrogation (causing sweating, nausea, and slight hyperventilation), I was hired—but only for one store. I had one chance to prove myself and was assured that if 1 did. more business would follow. Once hired, I immediately began implementing my plan and proving myself one store at a time.  Don’t Be Afraid to Trust Your Instincts or Spend Money to Make Money  My first assignment from Donald was to lease a corner restaurant at Trump Plaza. But when I walked through the space for the first time, my radar went off because a restaurant didn't belong there. Furthermore, the store seemed bigger than what I had been told. I was nervous about giving Donald advice because he barely knew me, and my competitor had been marketing the vacant restaurant "as-is” at the smaller square footage. I advised Donald to hire an architect to remeasure the spacc and a contractor to gut it. If I was wrong, he would never hiit*. rne again. I stuck to my instincts, and they were right. The spacc was larger than I had been told. We doubled our rent and blew through previous income projections.