Chapter 1
1.The Early Years
Back in the eighties, I was the Alex P. Keaton of the day (if you ever watched the popular TV showFamily Ties). I devoured books on Wall Street and investing and dreamed of one day working on Wall Street. Posters of the New York Stock Exchange and tall skyscrapers lined my childhood bedroom walls, while my peers hadBaywatch models and famous athletic heroes. You could find me at the local library checking out everything in the business section; I often wondered why anyone would read fictional stories! How was that going to help me achieve my goals and make me rich?
I jumped into competitive mock stock trading contests and started many entrepreneurial ventures to raise money to invest in stocks. It was the roaring eighties, and Wall Street was the place to be. But I’ll never forget the day I came across a new book calledThe Art of the Deal, written by a guy named Donald J. Trump.Wow, I thought,this commercial real estate thing sounds pretty exciting! Those 384 pages of gilded gold became mygo-to bible of a sort. What if I could be a Wall Street guy and also invest in commercial real estate? Who knew that one day this dream would become a reality.
My first big break came when a family friend introduced me to a commercial real estate developer and investor. He offered me an apprenticeship, and I jumped at the chance. I learned how to evaluate complex investment deals, construction management, structuring development opportunities, and learned how millionaire business people thought much differently than most of my friends.
Wall Street would have to wait. I was going all in on commercial real estate.
I’ll never forget my first deal. I drove into a dusty industrial area hidden behind the airport and found a treasure. This was the ugliest piece of real estate you’ve ever seen. It was 4.3 acres of flat dirt located in a heavyindustrial-zoned area that was the home to an aging crane construction company. To the untrained eye, it was a junkyard. But I’d been learning about zoning classifications and how it impacts real estate valuations. This was going to be great.
After meeting with the property owners, I quickly assembled a group of investors to buy the property. We did it, and we eventually sold the investment a year later for more than a 300 percent return. Walking out of that real estate closing one week before Christmas with asix-figure check wa