Making investments in and managing the Real Estate Market for apartments provides imaginative and rational opportunities to achieve success. The most profitable entrepreneur of the real estate industry in the area of apartment living is now president of the United States. Donald Trump wrote ‘The Art of the Deal’ in 1987 which described his amazing accomplishments at that time. While his primary business involves commercial real estate generally the majority of his deals involve apartments.
“Deals are my form of art”, Trump says in his book. Indeed, he made the art of deal-making into a profession by ingeniously putting huge deals together and then himself into the top ranks that were his own. The chapters of the book provide particular examples of the deals that he crafted and the way he came up with strategies to ensure they worked, regardless of the challenges faced. His creative thinking helped him continuously develop new ways to implement them on a large scale.
The first project Trump worked on in Manhattan was the transformation of the former Commodore Hotel into the Grand Hyatt New York. He acknowledges that at the time, he was not aware about the business of hotels. In spite of everything he was able to form a partnership with Hyatt and finished the $100 million overhaul of the Commodore. It was not easy, but it required quite a bit of guts, but also demanded to make use of every resource available.
Trump calls his deals art to show his creative flair in making his deals successful. However, a thorough reading of the book, you will see an underlying logic pattern that is apparent as he moves from one major initiative to the following. Each project was confronted by situations that demanded a lot of problems-solving abilities. At the same time, he was working on the renovation of the Commodore and deciding to construct a Casino, Trump Plaza, in Atlantic City. In addition, having no knowledge of the business of gambling He took huge risks by investing his money in another business which he was not aware of at the same time that he was investing huge amounts of cash on projects like the Commodore project.
The eventual success of Trump Plaza combined his creative deal-brokering skills with research into the most risky risks that could have sunk the deal and even sank the other casinos at Atlantic City. One of the biggest risks he identified was obtaining the sought-after gaming license. This process was unpredictable at best. Several operators prior to his, Hugh Hefner being one of them, were refused licenses. In addition, many operators were in the middle of budget due to the carrying cost in the midst of waiting for license approval. Other operators faced budget problems and delays in scheduling due to design modifications that were required by the licensing commission, even though construction had already begun.
Trump was able to get the commission to make an answer on the permit within six months, which provided a reasonable, definite time frame for this crucial condition, while other licenses could take 18 years or more. Trump further reduced the possibility of denial by providing the commission with detailed sketches and plans well ahead of the construction (a sensible mitigation plan). Six months after his application the gaming division granted Trump his gaming license.
Through his dedication to the investigation of risks and implementation of mitigated actions, Trump was able to avoid failure and transform risks that were high-risk into wins. His awareness of risk and the process to manage it methodically effectively transformed his art into a science that has proven results.
In the field of engineering and science the theory is transformed into practice through testing the theory to see if the outcomes are reliable. Risk management can be mastered using strategies that have stood tests of endurance. Researching risk offers knowledge which can be used to identify opportunities to manage, limit and eliminate it. It’s been proven that it can be effective as well and successful business owners have had the ability to utilize that skill and transform lemons into lemonade.
There’s always room for innovation in apartments to ensure the success of a project such as new counter tops or dog parks, and from imaginative financing to savings on water. Apart from the creative ways to help make deals, successful risks are always lurking right around the corner, waiting to wreck the most carefully planned plans. The process of identifying risk, assessing and managing down to a science is the best method to apply engineering principles to apartment transactions and guarantee the highest chance of success.
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