Does Donald Trump Know Real Estate?

Does Donald Trump Know Real Estate? by Bill Roberts

"When I first started out in Manhattan, everyone was saying what a terrible market it was, and if I'd listened to them, I would not be where I am today. There are always opportunities." Donald Trump.

Lately I have seen a lot of negative things written about real estate.

Everybody has some area of the real estate market to rail against. Too much inventory seems to top the list.

Do as Trump did, don't listen to them.

Ageless advice to investors is to buy when everybody else is selling. This is when you get the best deal. If you buy when everybody else is also buying the price will be high and you just might be buying at the top of the market.

On the other hand if you buy when everybody is selling you'll get a good deal.

So how do you know when everybody is selling? Well, a very good indicator is published by most MLSs, it is "days on the market" or DOM which is how long the average listing takes to sell. The bigger this number, the likelier it is a "Buyer's Market."

You can also get the absorption rate. This is the available inventory divided by the average number of sales per period of time. If there is two or three months worth of inventory, you probably have a "normal" market, if you have 15 days of inventory it is definitely a "Seller's Market," but when inventories stretch out to over a year it is time to buy.

This is a signal like those stock investment programs on the TV infomercials, ALL GREEN LIGHTS.

In most markets in the US inventories are very high.

If you would like to invest in real estate but you are waiting for the "bottom," don't wait.

By the time you know the bottom has been reached, it is already going up the other side.

The Seller's psychology is affected by the same "news" that you get. Right now he will probably take any reasonable offer, but once the bottom is reached he will be looking for a better offer. If you want the best deal possible, you better buy sooner rather than later.

My advice to you is pick the area you like and don't worry about the local conditions.

Real estate is a "Buy and Hold" investment. It is not well suited for "day traders" and "flippers." But as a long term invest it is great. Over time the trend line is up, and remember, "The trend is your friend."

So, if Donald Trump says buy now, you should listen to him.

If you need help with your real estate investments or financing for your real estate investments give me a call. Bill Roberts (619) 244-4610.

 

 

17 Comments on Does Donald Trump Know Real Estate?

Great Article,

I love seeing postings like this - With the papers out there running the doom and gloom idea through everybody's heads it's nice to see these articles.

Keep up the good work

11/10/2007 02:31 PM by Vincent McKamy Realtor Fredericksburg Virginia (Coldwell Banker Elite)


Hey Bill, Great post. I agree with you and Donald...now is the time to buy AND investing in real estate is a long term investment.

Sean Allen

11/10/2007 02:31 PM by International Financing Solutions


Vincent, thank you very much. We all need to tell this story.

Bill Roberts

11/10/2007 02:33 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Hi Sean, thanks for commenting. Since he made a lot of his money in Manhattan, it stands to reason he learned something from the stock market pros "buy low and sell high." Why people want to do it in the other order is a mystery to me.

Bill Roberts

11/10/2007 02:37 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Great topic.  I agree completely. So many buyers who don't understand this think it's just something that Realtors say to get them to buy.  Once educated, most will come around, but there are plenty of those pessamistic individuals.  When I have bought investment property in other areas, I have the intention of buy and hold, so I don't worry too much about current market conditions.  I look at long term growth factors to decide where to invest.

11/10/2007 03:40 PM by Deborah Engel, San Diego Homes & Property (Prudential California Realty)


Deb, thanks for commenting. I checked your profile since I saw "San Diego" in your tag. I almost became a lawyer. I started law school at the University of Santa Clara but decided that the law wasn't for me.

I hope you enjoy ActiveRain.

Bill Roberts

11/10/2007 04:14 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Bill, After 4 years of undergrad, 3 years of law school (with 96K racked up in student loans), 10 years of practice, I realized that law wasn't for me either.  :)  You did it the much more efficient route.  I now sell real estate full time and don't practice law.  Great decision for me, although my legal background and experience has certainly helped me as a Realtor.

11/10/2007 04:22 PM by Deborah Engel, San Diego Homes & Property (Prudential California Realty)


Well Deb, In a lot of ways the practice of real estate is like the practice of law. But for most of us it is more remunerative and more satisfying. How do you say too many lawyers?

I hope you've kept your law license in good standing however. The combination could really benefit you in this profession. Sometimes I wish I had gone ahead with law school, not to practice law but because it could help me here.

11/10/2007 04:32 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Bill- And Trump is buying right here in South Florida! He lives here part of the year and has a huge mansion on Palm Beach Island called Mar-a-lago. And he has the Trump towers condos here on the water. He is buying, and so should everyone else! Katerina

11/13/2007 01:08 AM by Nestor & Katerina Gasset, Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.)


Hi Katerina, Yes, you can lead a horse to water, but you can't make him drink. I personally prefer to emulate somebody like Donald Trump than listen to the morons on the nightly news.

Thanks for commenting.

Bill Roberts

11/13/2007 09:56 AM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Bill,

Good post! There is too much doom and gloom displayed in the media these days. It is on the newspaper, radio, tv news, etc. This is putting the scare on the buyers and keeping them out of the market. If only people do not listen to these exaggerations everywhere because it is a great time to buy. Donald has been successful and he knows real estate so we should follow him.

Dave

11/13/2007 12:06 PM by Dave D, Southern California Real Estate ~San Gabriel Valley (LA) & Orange County (Century 21 Excellence)


Dave, thank you for your comments. I hope you are "educating" your clients.

Bill Roberts

11/13/2007 12:38 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Great post Bill!  give Think Big and Kick Ass in Business and in Life by the Donald, a read

11/13/2007 05:09 PM by Mark Savel (Re/max Realtron Realty Inc., Brokerage)


Mark, thanks for stopping by. I'll take a gander at it.

Bill Roberts

11/13/2007 05:12 PM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Bill,

Absolutely as that is part of our services in the industry. We need to "educate" the clients as to what they do not already know. However, there are times when the media has undue influence on their decision making and it provides a challenge to convince them. That is not to say it is impossible of a task but it is something that is convertible.

Dave

11/13/2007 11:05 PM by Dave D, Southern California Real Estate ~San Gabriel Valley (LA) & Orange County (Century 21 Excellence)


Dave, You don't have to "convince" anybody. If you "educate" them, but they don't "learn" its on them. Good luck.

Bill Roberts

11/14/2007 09:30 AM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)


Bill,

"Convincing" them may not be the best choice of word. Yes, "educating" the buyers is one thing we can do but ultimately it is up to them to decide what's best for them. Thanks for the dialogue! 

Dave

11/14/2007 05:34 PM by Dave D, Southern California Real Estate ~San Gabriel Valley (LA) & Orange County (Century 21 Excellence)


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