2018-05-05 23:56:31 UTC
Heres an interesting question: Do Donald Trump and his childrenEric, Ivanka,
and Donald Trump Jr., specificallystrike you as astute and savvy business
executives running a lucrative global real estate empire with hundreds of
millions of dollars in cash at their disposal?
A new report in The Washington Post reveals that in the nine years before Trump
launched his presidential campaign, the Trump Organization spent more than $400
million in cash on real estate deals. This represents a striking departure for a
business that previously had relied heavily on debt to do business. The Post
investigation, compiled from public records, raises as many key questions as it
answers regarding the source of funds used by the Trump family over nearly a
The newspaper describes 14 transactions that began in 2006 with the cash
purchase of a $12.6 million estate in Scotland as a buying binge that defied
real estate industry practices and Trumps own history as the self-described
King of Debt.
It shows that Trump had access to far more cash than previously known, despite
his string of commercial bankruptcies and the Great Recessions hammering of the
real estate industry, the Post stated.
The newspaper added:
In the next two years, he snapped up two homes in Beverly Hills. Then five golf
clubs along the East Coast. And a winery in Virginia.
The biggest cash binge came last, in the year before Trump announced his run for
president. In 2014, he paid a combined $79.7 million for large golf courses in
Scotland and Ireland. Since then, those clubs have lost money while Trump
renovated them, requiring him to pump in $164 million in cash to keep them
Asked about all of this, Eric Trump said none of the cash came from outside
investors or selling off Trump Organization assets. He had incredible cash flow
and built incredible wealth, Eric said about his dads apparent business
But thats not how Trump historically has done business. His was a career built
on chutzpah, debt . . . and more debt, the Post noted.
The report doesnt get to the bottom of where all this cash came from, but it
does bring past comments by the Trump children back into focus, at least
speculatively. In 2008, Donald Trump Jr. stated that, Russians make up a pretty
disproportionate cross section of a lot of our assets.
In 2014, golf writer James Dodson was hanging out on the golf course with Eric
Trump. Dodson asked him where the Trumps got all their money, as banks werent
loaning at the time. According to Dodson, Eric said, Well, we dont rely on
American banks. We have all the funding we need out of Russia. He added: Oh,
yeah. Weve got some guys that really, really love golf, and theyre really
invested in our programs.
Erics comments came at about the same time the Trump Organization embarked on
its biggest cash binge, as described by the Post.
The newspaper noted:
The company was taking in tens of millions from the sale of residential
properties, including a home in Palm Beach for $95 million in 2008. It made
money off licensing deals: In 2015, Trump reported making at least $9.1 million
from those deals over 16 months. The firm also collected rent from its
commercial buildings, producing what Forbes recently estimated was $175 million
But none of the costs associated with operating those assets has been made
Youre going to have some operational losses, Eric told the newspaper, and
then you get into the black, and you make great money.
So many questions...
Read the entire report here.