The Growth Of The Real Estate Empire Of Donald Trump

Donald Trump provides an interesting case study in the creation of a self made millionaire through personal charisma and diversification. Trump is best known for his timely and shrewd real estate investments, and there are lessons for every person interested in real estate investing in his lucrative career- both in mistakes that he has made and in his many successes.

Donald Trump, like may other successful people, did not simply wake up one morning and decide that real estate was the place in which he could make his fortune. Many people believe that they possess the necessary knowledge inherently or by superficial observation to be able to turn a real estate investment into a multi-million dollar business. The fact is, Trump built on what he knew from his own family. Donald’s father owned a real estate company called the Trump Organization, which specialized in middle class rental housing. When he first started out in the field he depended heavily on his family, both in terms of having a job and in terms of living- he moved back in with his parents after completing undergraduate studies at University.

There are a few lessons to be learned in terms of real estate in Trump’s early career. The first is in the type of niche he chose- middle class rental. The purchase of middle class housing for resale is generally not a great money maker- the market moves at a slower pace and houses are generally flipped for less. Renting, on the other had, allows for the retention of the deed as well as the ability to set the prices in order to meet mortgage requirements and turn a profit. Another lesson that can be taken from The Donald’s early career is that he himself was not tied down by real estate needs- living with his parents ensured a mortgage free start.

There are also lessons to be learned from Trump’s failures. His near bankruptcy in the mid nineties was well publicized, and came about as a result of his massive personal debts due to loans which helped him to purchase some of the most expensive real estate parcels in the world. These debts would have ended his career without the interference and aid (again) of his father. It is fortunate that Donald had this backup to fall upon, otherwise he would be just another living example of the old adage to not live beyond your means, even if the money you have been loaned is put into investments that seem solid.

When it comes to real estate, where Trump exceed the rest of the field is in building and development. He has a gift for the huge” and his tastes are reflected in virtually all of his building projects.

Perhaps the greatest lesson that can be learned from Donald Trump is the charisma and attitude that he brings to the table which enable him to make some of his extraordinary deals. His larger than life approach certainly enables him to retain a cloud of secrecy over his actual net worth- there is ongoing speculation that Trump may not even be a billionaire at all by the time all of the debts are added up. Regardless, Trump continues to enjoy the perception of a real estate mogul and billionaire in the eyes of most of the world.

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