Trump's Real Estate Empire Is Doing Something Unusual

It's buying properties with cash, and lots of it, instead of through loans
By John Johnson,  Newser Staff
Posted May 7, 2018 8:52 AM CDT
In this 2015 photo, then-presidential hopeful Donald Trump arrives for the grand opening of the Albemarle Estate at Trump Winery on July 14 outside Charlottesville, Va. Trump paid cash for the winery.   (Andrew Shurtleff/The Daily Progress via AP)
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(Newser) – The Trump Organization keeps the details of its financial operations close to the vest, but the Washington Post uncovered something unusual about its real estate strategy: It's been paying cash for properties and forgoing the usual practice of securing loans. Specifically, the Post found that the president's company paid $400 million in cash since 2006 on 14 properties including golf courses, homes, and a winery. The practice not only defies the norms of the real estate industry, but runs counter to the "borrow as much as you can for as long as you can" credo of Trump, the self-titled "King of Debt." Details:

  • Trump explanation: Nothing strange about it, says Eric Trump. The company became so flush with money thanks to rent income, licensing deals, etc., that it became easy to buy properties outright, and more nimbly, with cash. “He had incredible cash flow and built incredible wealth,” Eric says of his father. “He didn’t need to think about borrowing for every transaction."

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