trump made no secret about his belief that the way to an effective real estate investment is to do it with other people's money. this is apparently a widely accepted practice in the industry.
so what changed? trump abandoned this philosophy and went on a cash spending spree, on a bunch of notoriously losing investments.
maybe there are some real estate guys in here that can provide some insight.
https://www.washingtonpost.com/poli...6fda6b404c7_story.html?utm_term=.053666e63f4e
"In the nine years before he ran for president, Donald Trump’s company spent more than $400 million in cash on new properties — including 14 transactions paid for in full, without borrowing from banks — during a buying binge that defied real estate industry practices and Trump’s own history as the self-described “King of Debt.”
Trump’s vast outlay of cash, tracked through public records and totaled publicly here for the first time, provides a new window into the president’s private company, which discloses few details about its finances.
It shows that Trump had access to far more cash than previously known, despite his string of commercial bankruptcies and the Great Recession’s hammering of the real estate industry.
Why did the “King of Debt,” as he has called himself in interviews, turn away from that strategy, defying the real estate wisdom that it’s unwise to risk so much of one’s own money in a few projects?
nd how did Trump — who had money tied up in golf courses and buildings — raise enough liquid assets to go on this cash buying spree?"
the conspiracy theorists immediately point to widespread money laundering as the reason for the change in "strategy."
trump's explanation:
Eric Trump, a son of the president who helps manage the company, told The Washington Post that none of the cash used to purchase the 14 properties came from outside investors or from selling off major Trump Organization assets.
Instead, Eric Trump said, the firm’s existing businesses — commercial buildings in New York, licensing deals for Trump-branded hotels and clothes — produced so much cash that the Trumps could tap that flow for spending money.
“He had incredible cash flow and built incredible wealth,” Eric Trump said. “He didn’t need to think about borrowing for every transaction. We invested in ourselves.”
He added: “It’s a very nice luxury to have.”
so what changed? trump abandoned this philosophy and went on a cash spending spree, on a bunch of notoriously losing investments.
maybe there are some real estate guys in here that can provide some insight.
https://www.washingtonpost.com/poli...6fda6b404c7_story.html?utm_term=.053666e63f4e
"In the nine years before he ran for president, Donald Trump’s company spent more than $400 million in cash on new properties — including 14 transactions paid for in full, without borrowing from banks — during a buying binge that defied real estate industry practices and Trump’s own history as the self-described “King of Debt.”
Trump’s vast outlay of cash, tracked through public records and totaled publicly here for the first time, provides a new window into the president’s private company, which discloses few details about its finances.
It shows that Trump had access to far more cash than previously known, despite his string of commercial bankruptcies and the Great Recession’s hammering of the real estate industry.
Why did the “King of Debt,” as he has called himself in interviews, turn away from that strategy, defying the real estate wisdom that it’s unwise to risk so much of one’s own money in a few projects?
nd how did Trump — who had money tied up in golf courses and buildings — raise enough liquid assets to go on this cash buying spree?"
the conspiracy theorists immediately point to widespread money laundering as the reason for the change in "strategy."
trump's explanation:
Eric Trump, a son of the president who helps manage the company, told The Washington Post that none of the cash used to purchase the 14 properties came from outside investors or from selling off major Trump Organization assets.
Instead, Eric Trump said, the firm’s existing businesses — commercial buildings in New York, licensing deals for Trump-branded hotels and clothes — produced so much cash that the Trumps could tap that flow for spending money.
“He had incredible cash flow and built incredible wealth,” Eric Trump said. “He didn’t need to think about borrowing for every transaction. We invested in ourselves.”
He added: “It’s a very nice luxury to have.”
