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S S SProven Systems and Strategies to buy Real Estate30-75% off Market Value



Trump’s Insider’s Secrets of Short Sale Success can help you make serious

money when the economy is volatile and prices are low. It’s a tried and true way to start

creating your fortune—and you’ll be doing it theclassic American way—through real estate

The $700 million bailout is all the proof you need that there is an unprecedented

opportunity for you to become a real estate millionaire. Banks are so strapped for cash you can make property deals they can’t refuse, even with little to no money.

The credit crunch can mean a wonderful opportunity is just waiting for you to seize it. In

fact, when credit is tight and other investors are sitting on the sidelines, it can be your

time to make a fortune. If it appears everything is upside-down financially, it is. Normally

you go to a bank looking for money for real estate. But now banks need you to bring money

to them.

That means real estate opportunities that only come around perhaps once in a lifetime

are not only present today, but plentiful. They’re available right now and you don’t need a

realtor’s license to cash in.

Best of all your credit score is irrelevant. Whether you have cash is irrelevant. You can

turn the crisis that banks are feeling into big profits going directly into your pocket. Many

people say that real estate has created more millionaires than any other asset in America

It’s more than a road to wealth, it’s a super highway! Stocks, the other traditional way to

make money, is a distant second. Especially today.

SIDER SECRETS OF SHORT S ALE SUCCESS ©2008 TRUMP UNI

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The financial

unrest in the

housing industry

has created the

largest real estate

fire sale in history.

It’s a buyers’ market

and an incredible

timing opportunity.

Take advantage of

it by learning

exactly what you

need to profit

and prosper.

—Donald Trump



In today’s uncertain market, the stock market is a rollercoaster off its tracks and little

more than gambling with paper. When its value is gone, it’s gone. Like Enron, not worth

the paper it’s printed on. Millions are feeling the pain of trusting a market that cannot be

trusted. Ask anyone looking at his or her shrinking 401K accounts right now; perhaps

even your own 401K is dwindling.

Real estate, however, is real. That’s why it’s called “real” estate. It doesn’t disappear in bad

times like a worthless stock certificate tossed in the trash. Land is under everything. You

can print more money—but you can’t make more land. That’s why real estate will always

have the upper hand long-term. New land simply isn’t being made and yet the population

keeps on climbing. Real estatevalues always recover from downturns and reach new highs

making millionaires in the process. It’s a financial escalator. All you have to do is get on

and ride it up.

That’s why the current financial “crisis” is actually a financial opportunity.

How did this opportunity happen? Let’s take a Trump look at it.

Is It a Crisis?Forget all the hype out of Washington D.C. The

crisis is easy to explain: People bought houses

they couldn’t afford and banks made more bad

loans than they could cover. Short and simple.

For every dollar of equity many banks had

made, they racked up $33 in debt. [NYT 3 Oct

08] For every dollar they earned in the last few

years they’vewiped it out—and losteven more. [NYT17 Oct

08] Thatamounts tosome $275billion tothe good—gone forever.

That means there’s far less money—or no money—to lend.

Credit has evaporated. And when you’re a bank if you don’t

lend money you don’t make a profit. If you don’t make a profit

you go out of business.

Banks need money to stay in business, and without banks

loaning money or extending credit, oureconomy tanks.Notgood.

Thatexplains the $700 billion bailout. And, $250 billion of ithas

already been released to get banks lending again.Let’s hope this

strategy will get consumers feeling good about spending again.

Modern economies run on credit and with no money to loan

economies fall apart.

Although $700 billion, the total estimated fallout, is a hefty

chunk of change, think about it in personal terms…say you had a lot

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For every dollar of

equity many banks

had made, they

racked up $33 in debt.

NYT 3 Oct 08]

For every dollar

they earned in the

last few years

they’ve wiped it out—

and lost even more.

NYT 17 Oct 08]



The Short SaleThe homeowner bought his house in the year 2000 when the prices were low. He paid

$125,000 at 8.5% interest, fixed. By 2006, the house was valued at $225,000. But today

it has slipped back to $180,000.

The homeowner has paid some $85,000 in interest so far. But, because the interest on a

loan is paid first he still owes about $120,000 on the property. On the surface that’s notbad; he owes $120,000 on an 8.5% fixed loan. But he lost his job eight months ago. He

went through his small savings and now he’s missed two mortgage payments. Soon the

bank will reluctantly start the foreclosure process. You see, the bank really does not want

to take the house back. Why?

First, they’ve already had too many loans go bad and have taken back too many foreclosed

properties, technically called “non-performing assets.” Even in good times that’s a bad

position to be in because it limits how much money the banks can lend. Every foreclosure

reduces profit and drags the bank closer to failure.

This is where you can step in with deals the bank can’t say no to.

The bank has already made about $85,000 off the house, so they’re still out around

$40,000 from what they originally loaned. Thehouse will soon become a “non-performing”

debt headache—not to mention the worries of taxes, upkeep, utilities, and legal liability

The reality is, the bank doesn’t want the house, and if you can offer them a way to make a

profit and dump the house, they will listen.

The way you do that is through a short sale. Short sales have always


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Today, short sales

are a bonanza. In

fact, the short sale

gold mine is so deep

and wide, you can

create short sales

every month or

every week for

years and still not

bottom out.



been a specialized techniqueforthereal estate investor—oneof many tools usedoccasionally

for theright deal. That’s in normal times. These arenot normal times. Today, short salesare

a bonanza. In fact, the short sale gold mine is so deep and wide, you can create short sales

every month or every week for years and still not bottom out.

If you want to be truly financially secure, an ironclad millionaire, this may be the best

opportunity you’ll ever have. You’ll never make a million-dollar salary working forsomeoneelse, but savvy short sales can put a million dollars in equity into your pocket.

Short sales are incredibly powerful. Best of all there’s very little work to do on your part

Short sales can help you amass a huge fortune immediately, especially now. It’s all a matter

of specialized knowledge and attitude. What many people are calling a frightening crisis is

really an incredible opportunity for the savvy real estate professional. Here’s the short way

to create financial security:

Creating a Short Sale You go to the homeowner who is nearly

broke. He has already run through his

savings, maxed out his creditcards, and sold

off personal items. He’s getting tired of the

battle. Soon he will lose his home through

foreclosure. That’s a financial black mark

worse than bankruptcy because it will last

at least 10 years. He wants to get it all over

with and your short sale offer gives him away out that can keep his credit intact.

With the homeowner’s agreement, you go to

the bank to negotiate. Even in a down cycle the house is worth

$180,000. Thehomeownerowes $120,000. The bank hasgotten

back $85,000 of the original $125,000 loan. So they’re still out

$40,000. The bank is hurting for cash and does not want

another foreclosure property. You offer to buy the house for

$60,000. That plus the $85,000 paid in so far is $145,000 total

for the bank, or $20,000 more than the original loan. Now thebank has a change of attitude.

You’ve created a way for them to dump the non-performing

problem and pick up $20,000 to the good. They would jump at

the chance in this market. So you get the house worth $180,000

for $60,000, at one-third of its value. Is that a bargain?

Absolutely. And you can do it in many instances without using

a penny of your own money.

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If you want to be

truly financially

secure, an ironclad

millionaire, this

may be the best

opportunity you’ll

ever have.



End Use

Depending on how you have structured the financing, you can keep the properties. This is

called buyand hold. Unless you count mythicalexamplessuch as Atlantisblowing up, there

has never been a real estate problem that time did not correct. Real estateruns in cycles. All

you have to do is sit back and let time make you big money.

While you hold the property, you can rent it. That way you have a steady income stream and

yourwealth increases witheach passing day. Another option is to sell the property. You can

do this easily, even now when seemingly every other house is for sale. You can even move

into oneandupgrade from your currenthome or apartment. Theshort sale is also a low-cost

way to purchase your first home, or a home for elderly parents who may need tomovecloser

to you.

Since you will be buying property far below notonly fair market value but also below what

was owned on themortgage, you will have created instant equity. That means you can sell

the property quickly because you can price it below market value and still make a huge

profit. Even in a tight market, bargain houses go fast. There are always people with money

looking for a steal.

In the example above, the value of the real estate is $180,000. You bought it for $60,000

Any price you sell it for more than $60,000 is profit. If the depressed market value is

$180,000 do you thinkselling it for$160,000 will attract buyers? Of courseit will. Subtract

your purchase price of $60,000 and you walk away with a profit of $100,000.

And you can do this time and time again without any money of your own. How many

$100,000 deals doyou havetoput together tomakeyour lifebetterthan itisnow? One? Ten?

Only you know how much money would make life good for you but it’s entirely possible to

earn that magic number through short sales. Do ten deals like this in a year and that’s a

million dollars cash. But what if you don’t have any cash to get started? Not a problem.


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Even in a tight

market, bargain

houses go fast.

There are always

people with

money looking

for a steal.

Before making such

deals, however, you

need to know yourexit strategy. What

will you do with all

the property you’ll

be picking up at a

deep discount?

Your intended use

drives the

financing.



Financing Where does the $60,000 come from to make this short sale deal work? If you have it, you

can useyour own money. A lot of people starting out in real estate, however, don’thave that

kind of money and banks are certainly not lending it easily. However, if you put the right

deal together, the money finds you. That’s a financial fact: If you work out a deal that canturn a foreclosure into a short sale, the money to get the deal done is easy to find.

You absolutely do not need to have any money to take advantage of the fortune-making

opportunities available right now. You cangetmoney based on the value of the deal, not on

your credit score or on how much money you actually have.

There is plenty of private money available for done deals in today’s market. Private lenders

wanttolend money now because this is a prime time for them tomake a profit. When banks

arelending easily, private lenders have a challenging time. When banks aren’t lending, like

now, private lenders arelooking forgood real estate transactions. They want to loan money

With the backing of a private lender you can take an offer to the bank that looks attractiveto them. The bank is happy to get rid of the foreclosure and make a profit. You score a

sweet deal. Let’s look at that

profit math again: You let the

house go for $160,000, pay

backtheprivatelender$60,000

and put about $100,000 cash

into your pocket. That’s pretty

good. It’s also the time to

remember the homeowner.

The homeowner has gotten

out from under a mortgage

he can’t pay and has kept his

credit record intact. It’s a

fact that a foreclosure is a

greater financial black mark

than bankruptcy. Thehomeowner has been in crisis mode for months. He’s financially and

emotionally beat. Now he’s out in one piece but is flat broke.

You can givethe homeowner some seed money to get started again. Provide a few thousanddollars to move and set up an apartment. Not only will it help ensure the property is

vacated in good condition, but when he has a friend in foreclosure, whom will he

recommend they call? You. That’s business you don’t have to look for. Soon you can pick

and choose from the offers.

In the end, everyone wins and you get the potential inside notice on more deals. That’s

another good aspect about short sales.

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In-depth Look Now that you have an overview and understand the basics of how a short sale works, let’s

take a closer look at Trump’s Insider’s Secrets of Short Sale Success and foreclosure.

Foreclosure has three stages.1) Pre-foreclosure.

This is the rocky financial time the homeowner has before foreclosure starts.

2) Foreclosure.

This is when the bank is in the process of taking back the property back.

3) Post foreclosure.

Here, the bank owns the property again. This is also called a REO, which stands for RealEstate Owned.

We’re not interested in the final two stages, just the first. A short sale is getting in at the

beginning of the process, during pre-foreclosure. That’s when you can make an offer the

bank can’t refuse. You’re likely to have no competition and that gives you first crack at a

bank that’s been bleeding money. How do you do that to your best advantage? You use

Trump’s Six Short Sales Secrets.


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Six Short Sale SecretsShort Sale Secret #1: Find and SignFirst, you have to find homeowners who are getting close to going into foreclosure. You

want to know who’s been skipping mortgage payments or has been underpaying for a

couple of months. They are prime candidates for the short sale. You can find them on your

own or you can learn the specialized locating techniques Trump graduates use to find

them quickly.

Distressed homeowners are the source of your deals and you can find them where you

live or around the country. Some people knock on doors to find the deals. Some do

mailings, emailing, and mass phone calls. Trump graduates use far more effective ways

to find those deals. For example: toll-free numbers, Google ads, or a simple website

(provided free or for a fee).

After you find a potential short sale candidate, always get an “authorization to release”

form from the homeowner. It does no good to contact the bank when you do not have the

legal authorization to make offers on the property. Besides, it’s always better to have to

have the homeowner involved in the process.

Also, don’t waste time. When you contact the bank for a short sale package, have them fax

ittoyou. Snail mail takes too long. You want to turn the deal as fast as possible. This is also

when you submit the makings of the deal to private money lenders, and you submit to

more than one.

Let theprivate money lenders compete forthe opportunity as well. They will independently

check out the value of the property and how much the deal is worth. They will all tell you

how much they are willing to finance. For you, it comes down to choosing the best deal

Private lenders charge higher interest rates than banks, but if your strategy is to buy and

sell quickly, the interest in the short term is a minor business expense.

Short Sale Secret #2: Identify Key PlayersDon’t deal with people put in the way to keep you away from the decision makers. You’re

not a clerk for the dealmaker. You are the dealmaker. Likewise, don’t deal with clerks for

the decision maker. Deal directly with the decision maker. It is important that you have

direct contact with the decision maker. (A loss mitigation department at the bank usuallyhandles this.) Get his or her direct line, personal email, and fax number. You will want to

contact that person directly, a lot. Make it clear that you are there to make a deal, and the

deal is now, and it needs prompt attention. You are there to bring the bank cash.

1 S E C R E T

2 S E C R E T



Short Sale Secret #3: Give Them More Than They Want All banks have a short sale package they will send you, asking the questions they think wil

help them decide whether to accept your offer. Fill out the short sale package and then

some. This is one case where more is better, but don’t you do the work. This is where the

homeowner comes back into the picture. Put the homeowner to work ahead of time to

provide records beyond what the bank is asking for, records that show the financial stateof the homeowner.

This should include pay stubs, tax returns, bank account statements, a hardship letter

written by hand, a clean and lean Purchase and Sales agreement, and an estimated net

sheet (HUD1.) The Hud1 is the first thing the lender will look at. It’s where they usually

find a reason to turn you down. You have to make it failsafe, which Trump graduates know

how to do. (And if homeowners are not motivated to do all this, move on to the next

property. In time the homeowners will become motivated. Make a note to call them back

in a few weeks. Time is on your side.)

By giving the bank more than they ask for you are giving the bank every reason to say yesand no reason to turn you down. Meanwhile, you run an inexpensive title check. Always run

a title check to make sure the titles are clear and there are no title surprises at the last minute

Short Sale Secret #4: Quick TurnaroundThe bank faxes the short sale package to you and because you have had the homeowner

collecting the material you get it back to the bank in 24 hours. Serious investors don’t

waste time. The sooner you have your profit, the quicker your fortune grows. Also, many

states have a very short foreclosure cycle, some just a few weeks, so the quicker you work,

the greater your chance of success. The quicker the lender reads the package, the quicker

the negotiation start, and the quicker you make money. More than that, action gets things

done. Letting deals sit on a clerk’s desk helps no one. Driving the deal brings results.

Sometimes you can turn it around in just days, increasing your net worth in just 72 hours

Trump graduates know how to turn deals fast.

Short Sale Secret #5: Know the Art of the DealKnow what homeowners and bankers are going to ask, and how they are going to object to

your offer. You won’t be debating every topic on earth, just a few key areas, and you canlearn the elements of each ahead of time and what to say. It’s like preparing for a debate:

Know both sides.

You should have an answer for every possible objection offered. You should also know

what not to say. You should know all the figures, what your exit strategy is, and how much

leeway you have to change your offer by the amount of money the private lender is willing


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4 S E C R E T

5 S E C R E T

3 S E C R E T



to put up. Even if you are using your own cash, you should have the same information in

mind going in.

Also the bank may have sent a real estate agent to look at the property to evaluate it; the so

called Broker’s Price Opinion (BPO). They tend to evaluate high, causing the bank to ask for

more. You have to know how to reduce the BPO to something more favorable. That can be

done by knowing what the agent’s looking at to form an opinion. This is also why you need

to know how to access the condition of real estate and what work it will need, if any.

Since you are working with the cooperation of the homeowner you have the advantage of

seeing the property up close. People who buy foreclosures in the last two stages often aren’t

allowed to look at the property they are bidding on. By getting in at the beginning you know

far more about the property than do second- and third-stage buyers, which is a distinct

advantage to you.

Short Sale Secret #6: Your Offer to the Bank Should

Embarrass youOn first mortgages, never make any offer more than 50% on the face value of the loan. Never

more than 25% on any second mortgages. Not more than 1% on any third mortgages. Don’t

worry that your offer is low. All the bank will do is ask you to raise it...and you can, a little

if you want. On our earlier example, the bid ($60,000) was less than half of what was owed

($125,000) and a third of the fair market value ($180,000.) You want to buy the property for

the lowest price possible, and banks will want to get as much as they can. There will be a

profitable compromise where you both are pleased, if you start out low enough.

So, make your offers embarrassingly low. And don’t forget, sometimes banks say yes at

even a rock-bottom offer.

Where to Find DealsWith these six short sale secrets you can start finding opportunities and start making

offers. Don’t just stop at one. The better you get at handling simultaneous deals, the sooner

you will start carving out your slice of the big money being made in short sales.

Don’t limit yourself to just your local area. The deals are everywhere, in every city and

state. With internet resources you can uncover great opportunities anywhere in the

country, particularly in hard-hit areas. Often foreclosures are clustered in certain zip codes

or gated communities such as a housing development. That’s because many properties

shared the same over-extended developer so the foreclosure rate is higher. There are also

several cities and states that are leading the nation in foreclosures. These are prime areas

to look. If you are a Trump graduate, use your specialized locating techniques.

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6 S E C R

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Evaluate. Evaluate. Evaluate.Because you’re interested in the short sale as a moneymaking real estate tool, here’s one more bit of advice

from the experts at Trump University. As with any piece of property, evaluate the short sale deal before

anybody signs anything. Know before you go. Learn before you leap. Finding the right set of financialcircumstances is excellent, but also make sure the property is worth your time and effort. When analyzing

and putting a deal together, here are some common property issues you should take into consideration in

addition to the financial dynamics.

First, assess the condition of the property and estimate any repairs. You do not want to buy anything with

hidden surprises because that could cut into your profit. Next, evaluate the location, either for use or

resale. As with any piece of property, especially residential, find out what the neighborhood is like and

how the schools are. Drive by at night and evaluate any change in character happening in the neighborhood

Also look into whether the property can be rezoned for a higher and more profitable use. If the bank does

not have this information it may help you counter the Broker Price Opinion ordered by the bank. And ofcourse, working with the homeowner in a positive situation also allows you a closer and more accurate

evaluation of the property than the realtor will make.

To help you keep on track with a short sale, we’ve included a wallet-size card with the six short sale secrets

you can keep on hand. Refer to it so you don’t miss one. It’s a list of the essential steps you need to start

making your fortune in short sales.

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What Next?Traditionally, real estate success is based on a number of techniques and

strategies. But that’s in a normal market. This is not a normal market,

and it won’t be for sometime. In this current real estate cycle, one

technique is absolutely the way to wealth: The short sale.

Anyone who wants to amass the huge wealth that real estate

can generate needs to harness the power of the short sale.

Using these six secrets can lead you to that wealth.

Whether you master them on your own over time or you

learn them quickly by studying with wealth-generating

professionals, you need to know them now if you want to

take advantage of the current fantastic opportunity. You

need to master them if you want to create Trump-size

returns in real estate.

There are lot of Johnny-Come-Lately people and websites

offering short sale training, but none have the Trump

experience, insight, or real-life success in finding

opportunity and turning it into wealth. There are no short

cuts to short sales. If you are going to learn, learn the best

from the best at Trump University.

To discover more about the wealth you can make with Trump

University’s Insider Secrets of Short Sale Success visit us at:

TrumpUniversity.com

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Trump University’sInsider Secrets of Short Sale Success

1. Find and Sign

2. ID Key Players

3. Give Them More

4. Quick Turnaround

5. Negotiate (Assess the property)

6. Low Price



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You took an important step to achieving your dream of financial freedom when you downloaded this

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But we want to help you kick-start your drive to financial freedom.

Because you’ve already shown us that you have the passion and motivation to change your life we

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