3 Lessons Every Real Estate Investor Can Learn From Donald Trump

Written by Posted On Monday, 14 March 2016 10:24
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Whether you believe Donald Trump is crazy like a fox or just flat-out crazy, there’s no denying that he knows a thing or two about smart and savvy investing.

 

Love him or hate him, the guy has made a lot of money in real estate investing. There’s no investor on this planet who can’t learn something from The Donald about the business of real estate. Here are three big lessons:

 

1. The Best Defense Is a Good Offense

 

Trump is a beast when it comes to business. He is constantly on the attack, and he doesn’t seem to know the meaning of the word “retreat.” Look at his well-publicized feud with Megyn Kelly. Though Fox News is consistently the highest-rated news station on television, he didn’t hesitate to boycott it, even if the move may have cost him the Iowa caucus.

 

In real estate, this bullish attitude is a crucial trait. You’re inevitably going to face rent dodgers, and you need to have a good plan of attack for when it’s time to address them. A less shrewd investor might be willing to strike a deal with a pesky tenant, but a Trump-esque mogul will hold his ground and firmly counterpunch with remedies such as legal action, credit reporting, or sending repossessors to the property.

 

Conventional wisdom tells us that Republican presidential candidates need Fox News in their corners, similar to how landlords should do all they can to keep their tenants happy. However, Donald Trump teaches us that you can’t be afraid to proactively draw a line in the sand — even if means alienating someone or something that could be one of your strongest allies.

 

2. Look for Hidden Opportunities

 

Being from Detroit, I understand that investment opportunities come in all shapes and sizes. Donald Trump definitely knows this, too, and for evidence of that, look no further than the first hotel he ever bought: the Grand Hyatt in midtown Manhattan.

 

When he purchased the building back in 1976, it was a rundown, dilapidated structure surrounded by buildings that faced foreclosures. Trump leveraged the declining property values in Manhattan at the time to negotiate an unprecedented 40-year tax abatement and arranged financing, and then he renovated the hotel with the mirrored glass and stainless steel façade that it’s known for today.

 

Don’t aspire to purchase those beautiful mansions and properties that everyone else wants — the prices are exorbitant to match the high demand. It’s impossible to make billions by chasing after the properties of billionaires. Instead, look for those gritty, nasty, rundown properties in prime locations, and make them beautiful.

 

3. Make People Feel Like They’re Winning

 

Despite what it might look like on TV, Trump isn’t a one-man show. Though he is indeed polarizing, those who work with him and support him are very enthusiastic and committed to his brand’s goals. Why? Because he preaches and embodies the concept of “winning.”

 

From his campaign slogan to quotes like, “We will have so much winning if I get elected that you may get bored with winning,” Trump instills a culture of victory in his followers, associates, and employees.

 

Whether you’re an investor, agent, house flipper, or borrower, your mission has to be about more than just money. Your work has to have a purpose attached that motivates you to talk about it with pride. This is what gets people excited to be a part of your team.

 

Forget about everything Trump’s political positions make you feel. From a real estate perspective, he is a massive success. Put up a strong offense, find hidden opportunities, and make others feel like winners!

 

Those are lessons from The Donald we should take to heart.

 

An entrepreneur at heart, CEO Mike Kalis leads the team at MarketplaceHomes.com, a Detroit-based brokerage that specializes in new construction sales and property management. Marketplace has sold more than $1.5 billion in new construction homes, gained a controlling interest in more than 2,000 single-family properties, and been a four-time Inc. 5000 list awardee. In addition to his managing partner role at Marketplace, Mike is a venture capitalist and investor in ZipTours. The startup helps homebuyers and renters see a home with an agent streaming live to their smartphone; it has conducted tens of thousands of tours since March 2015. When he’s not busy creating new real estate solutions, Mike loves wakeboarding, playing guitar, and spending time with his family.

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Mike Kalis

An entrepreneur at heart, CEO Mike Kalis leads the team at MarketplaceHomes.com, a Detroit-based brokerage that specializes in new construction sales and property management. Marketplace has sold more than $3 billion in new construction homes and gained a controlling interest in more than 2,500 single-family properties. It also offers new-construction homebuyers a guaranteed lease on their previous properties for up to six years. It is currently the third-largest property management company in the United States.


Mike has been featured four times on the Inc. 5000 list, and in addition to his managing partner role at Marketplace, he is a venture capitalist and investor for ZipTours. The startup helps homebuyers and renters view homes with agents who stream live to their smartphones. It has conducted tens of thousands of tours since March 2015. When he’s not busy creating new real estate solutions and helping investors purchase new-construction homes, Mike loves wakeboarding, playing guitar, and spending time with his family.

 

marketplacehomes.com/

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