Foreword
Before I begin with this blog, let me tell you: I like Donald Trump! And, against Kamala Harris, I will be rooting for the golfer white guy.
Yes, that may sound unorthodox for a brown Muslim like me but I have my reasons. For one, Trump is unpredictable and stands NO ceremony.
In a world where most conventional leaders are “civilized savages”, I believe, though unconventional, Trump brings a fresh perspective.
He has a clearly conscientious voice on many issues that his competitors will conveniently sweep under the carpet!
Anyway, this blog is about Trump business empire – not his politics.
Donald John Trump – 45th president of the US
Donald Trump has yet again become the focus of the public eye ever since he got into the race for the US presidential election 2024.
To many, Trump’s presidency from 2017 to 2021 was a mix of good and bad – however, undoubtedly, it was a myriad of controversies!
Now, he may not have been a ‘great’ presidential success so far, but his business life can surely be a lesson (or at least a good read) for many aspiring entrepreneurs – particularly real estate investors.
That’s because, with an estimated 3.7 billion USD in net worth Donald Trump has made it to where many of us would only dream to reach, right?
So, politics aside, I present to you the “Donald Trump way of making a fortune’!
It All Started with a “Small” Loan
Donald Trump didn’t start from scratch. He’s not a self-made man as such. Yes, he’s got a great deal of real estate knowledge plus general business acumen in abundance but he never started off from point zero.
Fred Trump, Donald’s rich dad and a real estate tycoon himself, gave his son a “small” loan of $1 million to get started.
Then, when he was 25, Trump was put in charge of the family business, which he renamed the Trump Organization.
Trump shifted the business’s focus from middle-class housing projects in Queens and Brooklyn to high-end, luxury kind of real estate in the posh areas of NYC. Smart and calculated move, I should say.
Onwards, he developed several upscale buildings including the Grand Hyatt, the Plaza Hotel and Trump Tower.
That’s his real estate niche focus, but what was Trump’s funding strategy? Who gave him the money?
Trump Relied On Other People’s Money
Well, unlike most entrepreneurs, Donald Trump had the advantage of having a rich and influential father. And, Trump very often cashed in on that…
So, one of his key strategies has been to use other people’s money (OPM) to develop his empire.
And, since his dad was a real estate bigshot, Trump got his back covered and could get lots of credit money easily.
His father personally loaned him hundreds of millions of dollars from time to time, as some say, apart from the millions of dollars worth of family gifts.
Also, the banking and political connections of the Trump family helped the younger Trump climb up the ladder.
Branding Is Donald Trump’s Secret Sauce!
Trump jumped from a net worth of $1 billion in 1988 to $4 billion in 2015. He quadrupled it. That’s one big leap!
Of course, that’s clearly some real hard work and smart thinking behind the scenes.
How did he achieve that? Through BRANDING.
Trump is a big-time hype creator! He’s admittedly said many a time that he uses ‘exaggeration’ to sell himself.
The man has also openly used his TV fame to leverage his real estate business.
So much of his fortune primarily comes from his brand name only, Trump this, Trump that, you know…
Many businesses that have no connection to Donald Trump companies use the ‘Trump’ tag with his license, for example the Trump Ocean Club, Trump Fine Foods, etc.
Yes, He’s A Solid Negotiator!
Donald Trump has the skill of leaving a lasting impression on people’s minds.
He’s a good talker, a fine marketer and an excellent negotiator.
He got the reputation of a straight-talker from his TV series The Apprentice, in which he came across as a ‘no-nonsense’ sort of negotiator.
One great example of his negotiation power can be the time when he won over NYC to give one of his hotels a 40-year tax break. He saved 160 million USD on that property!
Penny-Wise But Not Pound Foolish
Trump has described himself as someone who ‘fights like hell to pay as little as possible.’ And, that’s very true.
In this way, Donald Trump seems to me just like his dad who held money in the highest regard.
Fred Trump was known to go under budget on the government projects and pocket the difference as profit for himself. Was he questioned? Many times! Never got caught though.
Also, Senior Trump had the habit of getting around tax laws, which the junior Trump picked too.
So, that’s next..
Exploiting Loopholes in Tax Laws
Donald Trump has been accused of having evaded tax multiple times.
According to the Times, Trump paid a miniscule $750 in federal income taxes in 2015 and 2016.
That goes to show he has got sharp and shrewd accountants working for him. Accountants who can make millions of dollars of Trump’s operating income to become just a few thousand on paper.
Tim O’Brien, an American journalist, points out that this art of avoiding taxes runs in the Trump family.
He says when Fred Trump passed part of his wealth to his children he missed inheritance taxes of about $500 million easily.
And, that’s exactly how Donald Trump likes to play the game.
Is Trump A Success?
Donald J. Trump does not make it to the top lists of the New York City property developers.
Having said that, with a fleet of NY skyscrapers, golf courses, deluxe towers, shopping plazas, and much more in his name, Donald Trump is definitely an American real estate and business giant.
Not only that but I find Mr. Trump a big time success in politics too.
With an unexpectedly thundering comeback for the Nov 5, 2024 US election, this man has rewritten American election history in the most jaw-dropping way!
P.S. All that said, Donald J. Trump is not infallible!
Trump has also made some terrible mistakes in his business career including his much-talked-about flop: the downfall of his hotel and casino empire.
Following which he lost much of his money and too much of his creditworthiness!
Wouldn’t you like to know (& be warned of) “Trump’s way of losing a fortune”?
Stay tuned to read the second part of this series.
