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Business Donald Trump The Trump Adminstration

Trump Falls Off List Of Richest People For First Time In 25 Years

Proving yet again that he’s one of the worst businessmen on the face of the planet, failed, one-term, twice-impeached former President Donald has fallen off the list of the richest people for the first time in a quarter century, according to a new report from Forbes.

The reason Trump is no longer one of the 400 richest people is simple, Forbes notes:

If Trump is looking for someone to blame, he can start with himself. Five years ago, he had a golden opportunity to diversify his fortune. Fresh off the 2016 election, federal ethics officials were pushing Trump to divest his real estate assets. That would have allowed him to reinvest the proceeds into broad-based index funds and assume office free of conflicts of interest.

Ironically, since the COVID pandemic began (and was badly mishandled by Trump as president), his own personal wealth has decreased by $600 million, leaving him with an estimated net worth of $2.5 billion, which is $400 million short of the cutoff he would need to make the list of America’s richest people.

Divesting his assets would have allowed Trump to save a cool fortune on capital-gains taxes while also letting him enjoy the perks of investing his money in the stock market, which would have been a gold mine for him:

Close-mindedness has its costs. If Trump had managed to avoid capital-gains taxes, he could have theoretically reinvested $3.5 billion into the S&P 500 on the day he entered the White House. In that alternate scenario, Trump would have been worth an estimated $7 billion by this September, when Forbes locked in estimates for its annual list, enough to earn a spot as the 133rd-richest person in the country. Instead, he’s off the Forbes 400 for the first time in a quarter-century.

The Donald is going to need plenty of money in order to pay the legal bills that are accumulating with him under investigation in multiple venues for crimes ranging from bank and tax fraud to interfering with an election.

Additionally, the Trump Organization has massive debts coming due in the near future:

Lenders will expect his businesses to pay back an estimated $900 million in the next four years, an alarmingly accelerated timetable that involves more than twice as much debt as the president previously indicated. In order to emerge unscathed, Trump will likely have to engage in a series of high-stakes, big-money transactions—deals that could produce arguably the biggest conflicts of interest that an American president has ever had to face.

About half of the debt coming due from the start of 2021 to the end of 2024 is secured against assets that the president and his children own outright. He will have to pay back loans against his hotel in Washington, D.C., his golf resort in Miami and his tower in Chicago. He’ll also have to sort out the debt against Trump Tower and Trump Plaza in New York City.

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Business Donald Trump The Trump Organization

Trump’s DC Hotel Is So Deserted That He’s Having Trouble Finding A Buyer: Report

Failed, one-term former President Donald Trump and his company, the Trump Organization, are desperately trying to sell their hotel in Washington, D.C., but business is so bad at the property that no one wants to make an offer to buy the hotel.

Jane Recker of Washingtonian recently dropped by the Trump hotel in the nation’s capital and reports it looked, sounded, and felt more like a tomb than a hotel:

It was 5 pm on the Tuesday after Labor Day, and roughly a dozen customers were in evidence—a tiny number for such a cavernous space. We camped out at the bar with a martini and a plate of fries, taking in the (lack of) scene. At one point, a maskless man approached us and asked, “Are you part of the Trump book club?” We were not. He wandered away, soon joining a small group across the room. A woman came to the bar and got a glass of Grenache. “I usually order the Trump wine,” she said, “but . . . .” She gazed around. “This is really a change from what it used to be. It used to be packed all the time.” She gulped her wine and left.

Another sign of just how little is going on at the Trump hotel: Recker spent two hours in the lobby and the elevator doors, she notes, didn’t move a single time.

At one point, it seemed things might change when a man approached Recker and sounded like he had some information for her:

Then again, maybe more is happening than is discernible to the naked eye. We struck up a conversation with a guy who was eager to chat with a journalist. “You ever write about Harris?” he asked, referring, we assumed, to the Vice President. He looked around suspiciously. “Meet me here at 10 o’ clock,” he said. “Get a few Irish whiskeys in me, I can tell you a lot of things.” We didn’t stick around.

The hotel has been on the market since 2019 and yet there have be no offers made to the Trump Organization. For all intents and purposes, it might just as well be what it once was before renovation: The old Post Office. At least when it served that purpose some people came in and gave the place some business.

Categories
Business Donald Trump The Trump Organization

Tenants At Trump Tower Are Now Refusing To Pay Rent And Moving Out: Report

Not so many years ago, Trump Tower was one of the most prestigious addresses in all of Manhattan. There was 100% occupancy and a waiting list to rent even the smallest spaces in the building.

But those days are gone, and Trump Tower is now at less than 75% occupancy, the lowest level since 2013, and a sign that times are indeed tight for the Trump Organization, which is facing a major loan payment later this year, the Washington Post reports:

“In its midsection, Trump Tower is something more prosaic: a Manhattan office building, with 12 floors available for lease. The Trump Organization’s headquarters occupies two other office floors.

“The leased floors serve as part of the collateral for one of Trump’s biggest outstanding debts, a $100 million loan with the full amount due next year, according to data kept by the real estate analysis firm Trepp.”

One of the former tenants that went belly up, ironically, was Marc Fisher Footwear, which used to manufacture shoes that carried the name of Ivanka Trump:

“But earlier this year, the Trump Organization sued Marc Fisher Footwear for unpaid rent. The suit said the shoemaker had stopped paying rent in November 2020, and owed more than $1.4 million.”

One tenant, however, is indeed paying their rent on time and at an exorbitant rate: The Make America Great Again PAC, which rents the 15th floor of Trump Tower, providing $37,541.67 a month in guaranteed revenue for Trump and his company, which some suggest may be legal but is certainly not kosher:

“He’s running a con,” said Paul S. Ryan, a campaign-finance expert at the watchdog group Common Cause. “Talking about political expenses — but, in reality, raising money for self-enrichment.”

Then again, Donald Trump has always run a con. In his days as a real estate mogul, he was doing little more than leveraging properties with borrowed money so he could pay off other loans he owed to other banks.

It’d be tempting to call Trump’s entire life a giant Ponzi scheme, but that’d be an insult to anyone who ever ran one of those.

 

Categories
Business Donald Trump

Asking Price For Trump Condos Is Plummeting And Tenants Are Refusing To Live In Them

As he faces legal problems in several states and his name continues to be associated with the hatred, violence, and cruelty he inflicted on the country during his four years in office, Donald Trump is also watching as his business begins to circle the drain.

 

The Associated Press reports that Trump condos in several cities are selling for one-third of their original value, a stunning reversal of fortune for a man who built his brand and name on luxury at any price:

“An Associated Press review of more than 4,000 transactions over the past 15 years in 11 Trump-branded buildings in Chicago, Honolulu, Las Vegas and New York found prices for some condos and hotel rooms available for purchase have dropped by one-third or more.

“That’s a plunge that outpaces drops in many similar buildings, leaving units for sale in Trump buildings to be had for hundreds of thousands to up to a million dollars less than they would have gone for years ago.”

Some of the reduction in value may be attributable to the fact that the COVID-19 pandemic has hit real estate hard, but the bad associations of anything carrying the Trump name aren’t helping, especially since many people recall the insurrection that took place at the U.S. Capitol on January 6 shortly after the former president urged his supporters to march on Congress:

“After Trump was accused of whipping up the mob that stormed the Capitol on Jan. 6, things got really bad. Banks vowed not to lend to him, the PGA canceled a tournament at his New Jersey golf course, and New York City fired him as manager of a public course in the Bronx. Several brokers say many potential buyers won’t even look at Trump buildings now.”

In Chicago and Las Vegas, the fall in Trump property values has been even more dramatic:

“In Las Vegas, prices at Trump’s hotel have fallen 4% since he took office four years ago, while average prices for three dozen other hotels in the city that also sell condominiums and rooms rose 14%, according to data collected by Berkshire Hathaway HomeServices broker Forrest Barbee. Since the Trump building opened a dozen years ago, prices per square foot have fallen 66%.”

Ondel Hylton, senior content director at CityRealty, had this to say about what’s happening with Trump-branded properties:

“I have never seen buildings plummet so dramatically. It seems like this is a bottom.”

Donald Trump probably thought being president would be a boon to his company. But it turns out his father was right: He’s a failure, no matter what he attempts.

 

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Business Donald Trump Money Uncategorized

Trump Org. CFO Is On The Verge Of Going Down For Tax Fraud – And Taking The Donald With Him: Report

On Tuesday evening, the New York Times reported that the Chief Financial Officer of the Trump Organization, Allen Weisselberg, is on the verge of being indicted and that the charges could come down as soon as this summer:

“In recent weeks, a grand jury has been hearing evidence about Mr. Weisselberg, who is facing intense scrutiny from prosecutors as they seek his cooperation with a broader investigation into Mr. Trump and the Trump Organization, the people with knowledge of the matter said. The prosecutors have obtained Mr. Weisselberg’s personal tax returns, the people said, providing the fullest picture yet of his finances.”

If Weisselberg does indeed wind up being charged, according to former federal prosecutor Elie Honig, that could also wind up bringing down former President Donald Trump.

During an appearance on CNN shortly after the Times story broke, Honig remarked:

“We’re on the brink of two make-or-break decisions. First, prosecutors will need to sit down, assess all their evidence and decide, do we have enough evidence to indict Allen Weisselberg? If so, then the big decision is, does he flip? Whether he flips will mean everything for this investigation. He’s the exact right person to target to try to flip. He’s in the inner circle, the only person not named Trump who is in the inner circle of the Trump Org. If they flip him, he can open up a universe of evidence.”

That led host Erin Burnett to inquire:

“What is this new reporting from The New York Times, what does it tell you about the types of charges Weisselberg could be facing, especially when you’re getting into this issue of prison time?”

Honig replied:

“Prosecutors seem to be looking to make tax charges against Allen Weisselberg. The charge is that he was paid by the Trump Organization not with a paycheck, but in the Trump Organization paying for tuition, for cars, for apartments. That can be a lot of income. Normally that kind of income is taxable. If they were doing this to try to get around the taxes, to try to beat having to pay taxes, that could be a tax fraud charge.”

Honig added that the prison time Weisselberg could be facing would help determine if he agrees to flip on Trump and tell what he knows to prosecutors:

“A lot is going to depend on the amount here. Tax fraud charges can be as minor as a misdemeanor under New York state law, meaning nobody is going to flip on a misdemeanor, you don’t go to jail. Or they could be up to seven years per year of tax fraud. He could be looking at very little time or very serious time. That’s going to be a huge factor when deciding whether to flip.”

There’s another possibility that Weisselberg has to take into consideration: That Trump will flip on him in order to save his own ass. That alone should give Weisselberg all the motivation he needs to cooperate with investigators.

Here’s Elie Honig on CNN: