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Is a TRUMP REAL ESTATE SELL-OFF in the works? | Episode 58

Is Donald Trump’s presidential bid about to force a HUGE REAL ESTATE SELL-OFF in the Big Apple? He’s going to have to come up with some MAJOR MONEY SOMEWHERE. I’m Carole Ellis. I’ll tell you where the Donald’s BIGGEST FUNDRAISING CHECK might come from today, in episode 58.

So does Donald Trump’s presuumptive nomination to the republican party’s presidential real estate ticket mean that a HUGE real estate sell-off could be coming in New York City? Let’s just say the money’s gotta come from somewhere, and the GOP isn’t coughing up yet…

Before we get into why Trump might be forced into selling HIS MEGA-MANSIONS and ultra-high-end apartment and condo developments, however, let’s talk a little bit about how you could start investing, TRUMP-STYLE, as it were, for a much, much smaller original outlay than the Trump Towers require. It turns out that investing in multifamily real estate (specifically, in HUGE apartment buildings) isn’t as complicated as most people think it is. In fact, with a little guidance, it can be DOWNRIGHT SIMPLE. You may have heard me mention my friend Sue Nelson before. Sue is a former art teacher whose FIRST COMMERCIAL DEAL was a 104-unit apartment complex, she now owns more than 2,000 units and has flipped multifamily buildings for six-digit profits COUNTLESS TIMES, and her motto is “If I can do it, ANYONE can!” Oh, and she backs that up in a major way you’ve got to get a look at, by the way. This opportunity is IMPORTANT (look how it’s benefiting Donald Trump to own major multifamily real estate if you doubt me), so you MUST take a few minutes to check out Sue’s free, highly-detailed training at http://www.rei.today/IMPORTANT right now. You’ll be incredibly glad you did.

Now, let’s get back to a clear demonstration of what it can mean to own serious square footage in multifamily real estate…

So, with Ted Cruz bowing out of the republican race for president, that leaves Donald Trump as the presumptive republican nominee, although as you’re probably aware he’s a little bit less presumptive than some thanks to some wiggling and conniving going on in the background from the “Never Trump” crowd that has a large following in the GOP. But let’s go ahead and face it: You’re probably choosing between Clinton and Trump this fall.

HOWEVER, Trump has a serious problem now. One of his main appeals is that he doesn’t take money from SuperPACs, lobbyists, or even his own party! He’s made it very clear he’s self-funding this presidential run and that he’ll answer to NO ONE but the American people (and himself) once he lands in office. However, there’s a bit of a problem. He’s likely to have to self-fund himself to the tune of about a BILLION DOLLARS, the largest amount by far spent by candidates in any presidential campaign yet. By comparison, Mitt Romney spent $100 million LESS in 2012 on his failed bid, and he had GOP support to raise it.

So what’s the big deal? You may be wondering. After all, Trump claims to be worth $10 BILLION, so that’s definitely a hefty chunk but surely it’s doable. Nevermind, for the moment, that Forbes says he’s worth more like $3 billion. Even assuming that $10 billion estimate is accurate, it’s unlikely that Trump can just write himself a check for that amount. He’s made no secret of the fact that most of his worth is tied up in real estate, and that could mean one of two things if he ends up needed to self-fund instead of fundraise in order to give Hilary Clinton a run for her money (by the way, she’s already raised $186 million and is backed to the hilt by well-funded political action committees (PACs) – no question about Hilary answering to no one if she takes office, that’s for sure. She’s going to be answering to just about everyone.

Okay, back off the soap box and back onto the real estate sale Trump trail.

Anyway, so far, Trump has spent about $47 million on his campaign because he’s a publicity MACHINE and gets free PR in the form of free TV and Radio AIRTIME just about everywhere. However, he is going to need some support in the next six months, and campaign analysts predict that he’s going to have to fund it largely by himself because he’s made such a big deal about how wealthy he is. One campaign consultant, who insisted on remaining anonymous, predicted that Trump will end up selling off properties to fund longer-term needs and taking out a massive number of loans for the short-term. “He’s perceived as immensely wealthy,” the guy warned, adding that it will probably be a problem when it comes to fundraising because people will not accept the idea that Trump actually needs their money.

So what could Trump borrow against or sell? Well, he’s got about $2.1 billion worth of New York City properties, and about $366 million worth of golf clubs around the world. If he was really in a pinch, Forbes Magazine estimates that he could get $630 million for Trump Tower in New York if he sold fast, and about $113 million for Trump National Golf Club in LA under similar circumstances. What’s Trump got to say about it? “I do love self-funding,” he said recently on MSNBC, but he added, “We do need money for the party.”

I’ve got to say, I’m curious. Surely Trump wouldn’t get this far, then let the nomination be essentially wasted because he can’t compete with Hilary’s well-oiled money-printing political machine. But would he really sell off a marquee property like Trump Tower to make his presidency happen? I have to say, if he does I’m going to have a hard time not cheering for him! But if he goes the traditional campaign fundraising route, he loses so much of his independent appeal. My prediction (and we’ll check back on this so keep listening) is that he’ll take out loans on top of loans, assuming he’ll be able to pay them off or leverage them in some meaningful way farther down the road. But that takes us into another issue: his stance on debt. And that’s a topic for another day. In the interim, take a quick gander at our Trump Timeline in the REI Today Vault at www.rei.today/vault. It will give you a really good idea of how the guy has grown his family and his business in a unique way, because we used all public info but it is not usually put together in the same place quite like this. If you’re not yet a member, don’t worry! text REITODAY no spaces, no periods to 33444 and I’ll immediately send you the information you need to get that access to the Trump Timeline and ALSO provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.

And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.

REI Nation, thanks for listening in and always remember this:

Your best investment is your own education.

About the Author

Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.

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(5) comments

Brian Pinto last year

I think Mr. Trump is our main man for the year now…& Real Estate is everything!!!!

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Don Tepper last year

I’d be willing to bet that Trump WILL take outside funds. He’s certainly, ummm, “adjusted” his positions on other issues even within this campaign on everything from abortion to the minimum wage. And none of that seems to have hurt his popularity at all.

Admittedly, one of his core appeals (others include: “He’s not a typical politician” and “He tells it straight.”) is that he isn’t “bought” by anyone. True . . . but look at Bernie Sanders and his successful fundraising at an average of $27 per contribution. It appears that in this election cycle, it’s possible to raise huge amounts of money in small chunks from actual supporters. No one would accuse Sanders of being “bought” because he accepts campaign contributions. Trump might well do something similar and he’d get away with it.

I’m confident he wouldn’t sell any of his properties. They’re too much part of his image and his ego. He’s emotionally attached to them. (Imagine a Trump golf course or building being sold to, gulp, Chinese investors.) Nope, that won’t happen. And while I don’t consider him to be the great businessman he’s cracked up to be, I doubt he’d over-leverage any of his prize jewel properties, either.

No. He’ll figure out a way to take money from outsiders and make it appear to be a virtue, not a vice.

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Gian last year

We’ll see, he has thus far out-maneuvered and manipulated his opponents and the press respectively. Spending the least amount for the most coverage. Trump is not just a real estate mogul, he is and astute businessman and negotiator, qualities the current administration is totally void of. He appears to be staying controversial, purposefully to stay in the lime light, non gratis. Don’t believe for a minute Trump does not have a plan how to pay for this and ride the populous vote into the White House.

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[…] Trump would finance his campaign. (That blog, by Carole Ellis in Real Estate Investing Today, is here.) That blog asked whether “a HUGE real estate sell-off could be coming in New York City? […]

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Earl Laplante 11 months ago

Thanks for sharing this info

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