A Rare “Buy Signal” From
Real Estate Mogul Donald Trump
Donald Trump is in the news again, and it has nothing to do with Celebrity Apprentice… or a presidential bid.
No, the big news is that Mr. Trump has just made a huge real estate purchase: a golf resort in the Miami area with four golf courses and 700 rental units.
Now before you say “big deal,” you need to understand: this is a big deal.
Because Donald Trump has not been buying ANY commercial real estate for over 10 years.
The fact that he’s back at it is a huge clue for the rest of us.
Donald Trump’s Recent Purchase
Is an Important Signal for Anyone
Looking for a Safe-Haven Investment
Wait. A golf resort is a safe-haven investment?
Well this is where the story gets interesting…
Trump actually said the main reason he bought the golf resort in Miami was as an inflation hedge.
He’s positive higher inflation is coming soon due to the monetary policy of the Fed … so one way he’s protecting himself is by buying new income-producing properties.
As inflation goes up (and it will), rents will go right up with it. That’s why he considers this purchase a great inflation hedge.
But you need to realize that Trump doesn’t just go out and buy any piece of property. He rejected offers to buy eight other golf resorts in Florida before settling in on this one.
Why did he jump at this property? In short, the deal was just too good.
He bought the golf resort from a hedge fund that recently went bankrupt.
This hedge fund had purchased the resort about 7 years ago during the height of the U.S. real estate bubble for over $500 million USD.
Trump just snatched up the same property for … get this… $150 million. Wow! That’s a 70% discount.
The key, though, is that Mr. Trump buys real estate in a completely different way than most average folks and rookie real estate investors do.
It’s not just about his ability to buy high-ticket properties like golf resorts.
No. It’s the fact that Mr. Trump never speculates on how much the price of the property might go up or down in the future.
Trump’s Only Concern Is …
How Much Annual Income the
Property Can Produce for Him
This is a key trait of the wealthy mindset.
You see, a lot of people are avoiding real estate right now because they are worried that the real estate market hasn’t yet “bottomed out.”
Trump doesn’t know if the market has hit bottom either. But it doesn’t worry him one bit.
Even if property prices continue to plummet, he knows he can pull income out of this property year after year.
He has calculated that even if occupancy rates for his new resort stay at their current depressed level, he stands to make 15% on this investment each year.
Here are the two reasons Trump is jumping back into income-producing real estate purchases right now:
• Rental properties are at historic bargain basement prices and
• Interest rates for financing are at historic rock-bottom lows
These two key factors assure that his annual income from the property will far exceed his mortgage payments, even if rental occupancy rates stay at their current low levels.
Donald Trump doesn’t have a crystal ball any better than anyone else. He knows he could lose money on this investment. But because of the setup, it’s more likely he will make an obscene amount of money off this deal in the long run.
Either way, he is completely comfortable with his decision. Why? He knows how to analyze investment opportunities and he is convinced that…
The Current Real Estate Market
Is at a Once In a Lifetime Setup
That’s how rich people invest. They take advantage of great opportunities when they come up.
They don’t always get it right, but they are always comfortable with their decisions, because they do their homework first and calculate the one part of the equation they can control: annual income from the investment.
With bargain bin property prices and rock bottom interest rates, this is one of those rare opportunities in the real estate market.
Now we realize most people don’t have the capital to go out and start buying golf courses.
That doesn’t matter. You can scale this idea down to your own available resources and the results can be very similar.
The biggest problem you’ll encounter is where to find the good deals on income-producing real estate.
Here’s the secret:
Finding Good Deals in Real Estate
Is Not Just About Knowing WHAT to Do…
… It’s All About WHO You Know
That’s where the Elevation Group comes in. We’ve assembled a team of experienced commercial real estate investors who can help you get started.
What’s really unique about our real estate approach is that we combine two other Elevation Group strategies to form what we call a “Three-Part Real Estate Strategy That Can Turn $10K Into $3.9MM…”
And based on feedback from our members, they are absolutely killing it with this strategy.
Listen, if you want to get in on this once-in-a-lifetime real estate setup (like Donald Trump) you need to act soon.
To find out how the Elevation Group can benefit you…