Behind Trump’s Billions: How He Really Got His Real Estate

Behind Trump’s Billions: How He Really Got His Real Estate


President Donald Trump: a very polarizing
figure whose wealth lies at the heart of his public persona. For decades Trump has presented himself as
a self-made billionaire who started out with nothing more than a million-dollar loan from
his father. And yet, as it turns out Donald’s father,
Fred Trump, had a much bigger part to play in his son’s rise to prominence. In this video, we’re gonna look behind Trump’s
billions, to see how he really got his real estate empire. This video is brought to you by Cheddar, who
just released an awesome video on how some of the most expensive apartments in New York
City pay less property tax than your average home. Find out how by watching their video. The story of Donald’s wealth starts almost
a century ago with the rise of his father. Fred Trump was a true hustler. Having lost his father at the age of 12, Fred
had to learn how to work and the industry he got into was construction. He had built his first residential house by
the time he was 20 and he got into this business at a very opportune moment. You see, President Roosevelt had just signed
the New Deal, which among other things wanted to encourage residential construction, providing
very cheap loans and subsidies that Fred was very eager to take. In fact, from the 1930s onwards America enacted
housing subsidy after housing subsidy, starting with the New Deal, then with military housing
during World War 2 and finally with the post-war housing boom enabled by the GI Bill. As the American home ownership rate jumped
by 20% in the span of just 3 decades, Fred Trump amassed a fortune, largely enabled by
the vast sums he received from the government. In 1949 alone the FHA gave him a $26 million
loan to build two apartment complexes in Brooklyn: Shore Haven and Beach Haven. What’s interesting though is not that he
got rich using government money, which is actually pretty typical, but that he began
a massive campaign of funneling money to his children when he was just 40 years old. The numerous methods he used were simple,
but effective. Before building those two apartment complexes
in Brooklyn, Fred purchased the land they would be built upon using his company. He then created a trust whose beneficiaries
were his children and he donated the land to the trust. Now because Fred’s construction company
was no longer the owner of the land he would have to lease it from the trust through a
contract known as a ground lease. Under this contract, the trust would receive
over $60,000 a year for the next 99 years, creating a steady stream of income for Donald
who at the time was only 3 years old. But the ground leases were just the beginning
because over the next twenty years, Fred would start to transfer the buildings themselves
to his children. He’d buy a plot of land through an empty
corporation, building apartments on it with government money and the he would gift the
company’s shares directly to his children. Now, this isn’t a very complicated scheme:
in fact it actually incurs a lot of gift tax, which Fred doesn’t seem to have paid. If you go through his tax returns it shows
that he paid gift tax on only one out of the eight buildings he transferred this way. He built it through a partnership for $2.5
million in 1968 and a year later he gifted 15% of the partnership to each one of his
children. If you do the math the gift tax should come
close to $100k, but he only paid six and a half. Of course, it’s worth noting that Fred Trump
has been pursued by the State of New York multiple times during the 50s and 60s for
underpaying his taxes. Despite these issues though, he had no problem
obtaining millions of dollars in subsidies, no doubt thanks to his political connections. In fact it is during this period that Fred
built his greatest project, the Trump Village, for which he received $50 million from the
State of New York and which he would also pass down to Donald through questionable means,
but that happens later. After graduating from college in 1968, Donald
of course went to work for his father and this is when the wealth transfer really kicked
into high gear. In 1972 Donald and his father formed a partnership
to secure an $8 million loan to build Prospect Tower. Interestingly enough, even though it was Fred
who did all the work, most of the profits went to Donald. On top of his share from the partnership,
he was receiving consultancy and management fees, as well as everything tenants paid to
rent air conditioners. By 1975 Donald was getting over $300k per
year just from that building and if you sum up everything else, by the time he was 29
he had pocketed $9 million from his father. Of course, Fred’s goal wasn’t just to
enrich Donald, but to build up an image for him to help start his career. A 1976 profile of Donald put his net worth
at $200 million, when in reality the projects he was claiming as his own were really his
father’s. At the time, Donald was the president of the
Trump Organization, which carried with it a hefty salary, but on top of that he was
constantly receiving loans from Fred. In 1979 Donald received loans for a total
of $3 million from his father’s companies and the way these loans were structured is
very interesting. They did come with a certain amount of interest,
but it was paid back as soon as the loan was taken out and because the loan had no repayment
plan Donald was free to keep the money indefinitely. These loans and many more came flooding into
Donald’s wallet when he began his first project in Manhattan, converting the Commodore
Hotel into the Grand Hyatt between 1979 and 1980. The exact same loans would appear a second
time when Donald was building Trump Tower between 1980 and 1983. During this time Fred masterminded another
scheme for his children. Using multiple trusts, he’d buy off the
mortgages of at least 14 of his properties and he’d transfer them to the trusts, whose
beneficiaries were, of course, Donald and his siblings. Effectively, during the 80s Donald became
his father’s banker, even though he never actually provided mortgage loans, he just
pocketed the interest payments. By the end of the 1980s all the distribution
methods had transferred nearly $50 million to Donald from his father’s empire, but
that only emboldened him to take even bigger risks. In 1988 he bought the Plaza Hotel for over
$400 million and a year later he spent over $350 million on Eastern Airlines, which he
quaintly named Trump Shuttle. Most famous of all, of course, is Donald’s
entry into the casino business in Atlantic City. While that story is vast enough for a whole
video on its own, what matters is that when Donald’s casinos started failing in the
early 1990s it was Fred who propped things up. He personally gave Donald millions to prevent
his casinos from defaulting on their debts before bankruptcy proceedings could restructure
them to give the casinos more time to repay the loans. For example, Fred’s personal income skyrocketed
by an order of magnitude to $50 million, which incurred a tax bill of $12 million. During this time he made no significant debt
payments or charitable donations, and a frugal man like him would never just pay taxes because
he could, so the money must have gone somewhere. Around the same time, one of Fred’s employees
went to the Trump Castle casino, bought $3.35 million worth of casino chips and left without
placing any bets. Another technique Fred used was to actually
buy stakes in Donald’s properties and then to resell them back to him at loss a few years
later. In 1987 he purchased 7.5% of Trump Palace,
a 55-story building in Manhattan, for over $15 million. Just four years later Fred sold back his entire
stake for just $10,000 on the pretext that the business was failing even though it wasn’t. In fact, that very same year Trump Palace
sold 57 condos for over $50 million total. In the early 1990s, however, Fred’s health
began declining and he even started exhibiting symptoms of dementia. Because he still hadn’t transferred the
majority of his wealth to his children he began an impressive program to syphon everything
he had left to them without paying estate taxes before he died. In 1992 his children incorporated a maintenance
company which immediately became the subcontractor for all of Fred’s buildings. All the millions of dollars Fred’s properties
spent on repairs and improvements started going through this one company and they all
incurred a large markup. During the next few years the costs for Fred’s
empire went way up. In the case of Beach Haven, trash-compacting
services increased in price by 64%; janitorial supplies went up by 100%, and plumbing increased
by 120%. In 1994 Donald and his siblings also became
the managers of Fred’s buildings to further drain cash from his empire. By 1999 the methods Fred masterminded were
providing each one of his children with $2.2 million of income per year. Eventually, when the day came to transfer
the properties themselves, the only thing that mattered was at what price the buildings
would be valued and to that extent Donald and his siblings hired a notorious real estate
appraiser to help them out with their problem. Using a variety of methods, he brought down
the price of 25 apartment complexes with 7000 units to just $40 million. The most hilarious method of all was the way
he calculated two of the buildings in Trump Village to actually have a negative value. You see, in 1992 Fred removed those two particular
buildings from an affordable housing program so he could raise rents, but in doing so he
lost a tax exemption they had under that program. This created a one-time accounting charge
that, if you base your valuation on it, makes the building appear unprofitable even though
it definitely wasn’t. In the end, transferring Fred’s entire real
estate empire cost him $20 million. When Fred died in 1999 he had just $2 million
in the bank and all the properties he had spent seven decades to assemble were now in
the hands of his children. Here’s the funny thing though: just five
year later, when Donald’s Atlantic City casinos were once again nearing bankruptcy,
he convinced his siblings to sell the entire portfolio. In early 2004, Donald and his brothers and
sisters sold off the empire their father had spent his entire life assembling to a New
York City real estate investor for $700 million, officially bringing an end to the legacy of
Fred Trump. Of course, since then Donald has continued
doing business and today his net worth is estimated to be around $3 billion, so clearly
even though he got an immense kickstart from his father, he did achieve a lot on his own. And with regards to the legality of Fred Trump’s
tax-avoiding methods, even if they turned out to be criminal, the statute of limitations
for them has long since expired, so Donald can only be fined with penalties. Speaking of tax avoidance, New York City is
ripe with it, so much so that the owners of apartments worth hundreds of millions pay
less in property taxes than the average home, sometimes as low as 0.017%. If you’re curious how they’re getting
away with it, you should head on over to Cheddar, who did an awesome video on exactly this topic. If you don’t know, Cheddar’s channel is
the home to numerous fun videos that cover business and technology and if you haven’t
seen them you should definitely go and check them out and even consider subscribing. In any case, thank you for watching. You’re gonna see me again in two weeks,
and until then: stay smart.

100 thoughts on “Behind Trump’s Billions: How He Really Got His Real Estate

  1. Heroic music over tax scams ? Inapropriate music choice.

  2. First of all Trump doesn't have billions with an s. He worth 1.5 billion. That is what he is worth, not actually what he has personally…In the billionaire's members club. He is considered one of the poor boys.

  3. And here I thought he dreamed of being an interior decorator…..

  4. Wow, from 1 million to 3.5 Billion. 3.5 billion is 3,500 million That's an amazing increase. That man is Brilliant.

  5. What about Donald claiming bankruptcy eight times!!! And that no bank would go near him! Finally Deutsche bank Who is known to be laundering money for the Russians… gives him a loan! I don’t believe for a second that he is debt-free! Somebody somewhere got the thumb on him! Putin come to mind! Lol

  6. HA ! A family who knew how to leverage property against the system. MAGA !

  7. It’s no surprise that a crook segregate, tax evader, and cartoon like idiot, wouldn’t, or couldn’t do anything for himself but lie.

  8. So he got rich though pseudo-legal scams….. yeah we all know there are different laws for the rich than the rest

  9. His dad went from $0 to 700 mil, that was a lot harder than Trump went from 700 mil to 3 billion

  10. Smart!

  11. PROPAGANDA. let's go back 2 generations
    Trumps grandpa made seed money from prostituting women in his Alaskan brothel

  12. Soo. In 'Other Words" Trump's daddy gave him a SHIT TON!

  13. Correction, Trump is worth: $0 and will remain so until he proves, with tax returns and an independent accounting of assets and debt. We know Trump received virtually ALL of his money from his dad and $35 mm from his apprentice show but we have no prove of anything else so, he's flat broke.

  14. He full of hate no help

  15. Does Trump really have billions?

  16. So what happen to the other trumps…Donald kill em off n take all the money n lands ?????

  17. Boy what a gift to a father that gave u everything..mf shit on his name

  18. Ahhh i see were the eye brows came from…yupp dude u are the father ..

  19. This is all white collar corruption … is it envy or simply cynicism that has you all in awe … unevolved…. all of you mistaking this for "success" – time will dictate this as nothing more than greed and corruption.

  20. "achieve a lot on his own" – it's a snowball …. once you are ahead, only a drug addict or a fool like we have never seen, can plummet that loot …. give me a break…

  21. He bought construction equipment and resold it. That's how his money is missing. Avoiding the taxes.

  22. The undertones from the commentator are obnoxious. Fred was a business man who used the laws in place to gift his hard earned wealth to his family so they can evolve his legacy. Donald seems to have passed the same ethics down to his kids who will likely do the same.

    Donald gave it all up for the Love of country and is generating results that past and likely future Presidents will envy.

  23. Who gives a fuck! They’re smart biz people just like many before and most politicians.

  24. every dad should be like fred trump

  25. Ok but will nt b taken any juz empty pocket garment😍

  26. Devils in a lot more than details

  27. Several insights:
    1. Fred was a Queens developer for working-class homes that were filled with late payments and squatters. Donald went to Manhattan aiming at high-end renters. Very different customer pools. It's like your dad owns a fast-food chain, and you own a Michelin five-star restaurant chain.
    2. I wish I have a dad like Fred Trump, not really because of the money, but because of the savvy. Dumb "working-class" employees get taxed, the most.
    3. The higher the tax and the bigger the entitlement programs, the more dishonest, corrupted and polarizing a society is – In New York and California for example, you have one tax code for the rich, one tax code for everyone else; One criminal court for the wealthy and connected, one criminal court for everyone else.

  28. Good Father figure

  29. All that money and they dont want to pay their fair share of taxes. So greedy.

  30. Can a homeless man own a home?
    Not if he rents an apartment. Systematic 🦅

  31. Respect and admire how Fred worked to give his kids a leg up. Parents work hard to give their kids a better start! Fred’s legacy is his children

  32. Not tax money

  33. I agree, remarkable businessmen!

  34. Trump billions started in a whorehouse in Canada……

  35. Look at what the Kennedy kids did with their daddy's wealth. They killed women, started wars and generally sucked their inheritance dry. They never grew it like Trump.

  36. Who purchased the Real Estate Empire in 2004

  37. Real state is where 70% of all wealth comes from. Real state is just an amazing piece of financial art. Knowing how to properly used it, can generate massive gains. A great accounting & lawyer is all you need. Great stuffs 👍🏻

  38. He probably spend it on bigmacks

  39. Scum

  40. Ties to jewish mobsters? Roy Cohn?

  41. He graduated in 1968 yet too many accused & rate him of gradeschool education😱thier real estate business what a story of progress though too many bankruptcies

  42. He ñeft out the part that freds furst housing were whore houses he provided for political and mafia clients which he kept ledgers for leverage on.thats how he got off criminal charges inside trade and tax exempts.dont act like its a rags to riches story he like all of us we sell pussy and drugs.donald ran out of cash by 92 and started cons with all he had left name sake.dr.dre left deathrow with just his namesake and drew all kinds of artist from mary j to tony benet..if you know americas games youll survive.

  43. Everything Trump does goes unpaid, broke, Bankrupt, sued, settled out of court, divorced, raped, tied to a bed and raped, taken the fall and put in prison, scammed, threatened with their life or given to Russian oligarchs for defaulted loans.

    Doesn't anyone understand that this nation in Great!? That we are ten time better than any nation in medicine science economics on and on BUT it is the Corruption the Scoundrels like Trump and Moscow Mitch McConnell and AG Bill Barr…. that is not only shaming us all but acclimating us all to be no better than anyone else or any nation so it makes it all right to not tell the truth if it involves more money or a job, just be sure to look away. Look away and see the magic….. Wow we are all in trouble.

  44. “He who would live must fight. He who does not wish to fight in this world, where permanent struggle is the law of life, has not the right to exist.”

    “If the Marxist teaching were to be accepted as the foundation of the life of the universe, it would lead to the disappearance of all order that is conceivable to the human mind. And thus the adoption of such a law would provoke chaos in the structure of the greatest organism that we know, with the result that the inhabitants of this earthly planet would finally disappear.

    Should the Jew, with the aid of his Marxist creed, triumph over the people of this world, his Crown will be the funeral wreath of mankind, and this planet will once again follow its orbit through ether, without any human life on its surface, as it did millions of years ago.

    And so I believe to-day that my conduct is in accordance with the will of the Almighty Creator. In standing guard against the Jew I am defending the handiwork of the Lord.”

    ~ Adolf Hitler, Mein Kampf

  45. He doesn't have Billions, Maybe Millions and most of that is committed to his huge loans, which explains why he has been bankrupt 6 times.

  46. so all of trump's money is Fred trump's money?

  47. Dementia???
    Wooow

  48. So it’s just reaffirming what we know.
    Donald trump is a brain dead loser, his father was a very clever guy, seems his intelligence did pass down.

  49. A conman, crafty Billionaire Trump

  50. Legend. He played the system well

  51. I want to work hard and become rich.
    Trump: my dad has a better scheme.

  52. You can’t blame Trump for having a brilliant Father! He could have &$#@%# it all up but instead, he turned it into billions!

  53. Now let’s talk about about how much wealth the TRUMPS created for NYC and the state of NY! Every room rented in the hotels creates revenues for the state and the city. It was smart for the Govt to loan WINNERS money!! How bout all the taxpayers those buildings created. It’s called TRICKLE DOWN folks and despite what the Commie Democrats say TRICKLE DOWN is inevitable. It will positive or it will be negative but it WILL BE!

  54. you gotta admit billionaires/ millionaires are the real genius.

  55. Behind Trump about Billions of Dollars, How he Truly Get the real Estate

  56. I want his tax attorney and account

  57. He did not want his kids working for anybody..smart

  58. And now he is the BEST president ever and you're butthurt LoL!!!

  59. Wow

  60. America: Good job, Fred… Thank you!

  61. Trump: I’m a safe made man the tip is be born rich with a gold spoon on your mouth

  62. Him and his pop was crooked

  63. I find it most interesting that this narration is done by a RUSSIAN… an anti-Trump Russian

  64. This is cool speculation but the truth is Ivana and Donald built the Trump empire together, the loaned money from his father was invested. But this was produced in 2018 so… you have to understand the desired narrative to discredit the Trump wealth.

  65. So daddy was a tax cheat and passed on his unethical business practices to his son Donald. FYI- Remember the HUGE tax break the wealthy and corporations got ? Well, Donnie included a tax break for real estate developers. Can you say I'm screwing the American taxpayer,just like my dad ?

  66. With the Wealth he had at his disposal, he could have done Wondrous things to enrich Humankind. He really would have been enshrined. But…..

  67. This bum is broke, on paper. The reason for hiding taxes is the embarrassing truth

  68. I left two trumps in the bowl this morning.

  69. Legend. He played the system well

  70. Donald J. Drumpf, is the greatest charlatan the world has ever known, and continues to demonstrate that he is a naive, ignorant, delirious sociopath, devoid of principles, deceitful, divisive, inarticulate, incompetent, hypocritical, thin-skinned and grossly narcissistic; a dishonest, arrogant, autocratic, loser, bullying, misogynist, zionist, serial exaggerator and fabricator,pathological blacksmith and congenital liar and least of all a b.s. Artist and a political neophyte, with a feverish brain that continues "status twitterus" (a dangerous mental condition in which the twitter fits the one the other without recovery of consciousness between them) – in sum, a classic, "Dunning-Kruger" / "Peter's principle" affectionate – absolutely unsuitable for being POTUS.
    Drumpf's only reason for being is to nurture his insatiable narcissism and sustain his wealth, which he always exaggerates. Anyone who thinks they have ever had a sense of service other than self-service, or a man who spent his entire adult life promoting his vulgar "brand" and the many scams he gave his name to – at the cost of ,usually , the "poorly educated" – now they worry about a comma about someone else, or that he or his family / relatives parasites will pass every opportunity to monetize his presidency, is naive – to the extreme.
    Pathologically, Drumpf is an idiot; if he had not been born in great wealth, he would probably now live under an overpass somewhere. Yet the "poorly educated" elected this "snorted buffoon" to be POTUS, making the United States the laughingstock of the world.
    Drumpf has no principles; it only offers "snake-oil" tactics and illusory or naively simple answers to complex problems – we will be lucky if this cretin does not cause a real tragedy in the country.
    "Trump is a man of flexible principles, the first of which is to show inconsistent inconsistency at all times." –
    Now after 3 years of this so-called Trump show it's still bewildering to me that polls
    Still show that his base is still loyal to this cretinous individual!
    I guess history is going to repeat itself but this time in America! Imagine an aryan America!
    The Trump empire is being born thanks to all of you poor IDIOTS !
    I guess history is going to repeat itself but this time in America! Imagine an aryan America!
    The Trump empire is being born thanks to these so-called no-clues Idiots !

  71. Handed to him on a plate , don't sound as good as self made billionaire

  72. Only in America!

  73. lol he said just 14 million but the paper clearly showed 41 million. Fred was shrewd. Donald is his fathers son. One shrewd SOB. He just keeps winning.

  74. Trump's broke. That's why he's stealing money from everything he passes in the White House. He's literally squeezing blood from a turnip. Does Trump even know that every penny that he and his family steals, while in the White House belongs to the American people. I don't believe he knows that. I want to thank Trump and his family for all the hard work they are doing that will fill the American coffers, after he's out of the White House. And thanks for all the jail time the entire Trump family will do after the White House.
    Trump, not being able to read is really a bitch because of the consequencs to your family.

  75. Trump is a lousy buisness man and even worse president

  76. 2, Million Dollar Questions:

    Is Uncle Donny Happy?
    How many Red ties does he own?

  77. Trump killing people by spewing hatred to undermine our way of life to manipulate situations by hurting our follow Americans who can't defend themselves against trump and his cockroaches who are using our delusion to take,change things to their advantage regardless of we the people trying desperately to stop trump from destroying our way of life !! Wake up things will only get so much more disgusting trump stupidity will kill more of our own needlessly over stupidity and hatred God bless you and God bless America !!

  78. Wonderful video…, now do one on Joseph Kennedy. Thank you.., point made..! I think..!

  79. Is it capitalism, or just plain greed? I know, let's ask Marie Antoinette….ooops, her ears can't connect to her mouth. Wish it was true of Trump.

  80. Trump has doubled the budget deficit.

  81. Youngs market company, bank of California bund Australian whiskey rice cartel thieving 5000 rogue river route 66 killers… goldfield nevada comstock ding of killers stirey county nevada gillman, 555 california street San Francisco, pg&e… home office, British columbia, ENGLAND ALBION…,BOSNIAN Don , isle of manuone

  82. Kiddie pornograoher of Gracie Glam Alexis Grace kahney karter alexis texas myfreecams chaturbate Pentagon defense district Paris UAE Singapore deli gujarati Maldives senagal

  83. Cia,KGB, MI5…. The hills st paul Minnesota mci dba sprint dba Verizon DNA Berkshire Hathaway Dba soverign trust v Virginia et all… 100-555 California street SF Shanghai bund China

  84. Dba king ranch texas , Dallas OpEc puppet Bush, coors,PayPal,…. Confederation Union, Southcom, Orik California- Toronto, York

  85. Corupto

  86. He was worth 9% of what he is worth now when his father died. He makes enough money to pay 150 million + in taxes every year. He owns 521 companies, half the size of France in land and over 900 buildings and houses, the vast majority fully paid for…

  87. If anything the video is motivational, anything is possible with a dream and hard work, ultimately the Trumps werent rich, theyre emblematic of the American dream.

  88. Trump is broke. If that stable genius simply put the money he inherited into a managed fund and did nothing. He would actually be worth billions today. He didn’t, he ran business after business into the ground, declaring bankruptcies as he went along and he is now trading insolvent. Trump is a failure and not some genius businessman

  89. Quite a number of facts was not mentioned here.

  90. Did All That On Tax Payer Government Money, Worse Than Food Stamp Welfare. Shame On You. Now He Is A President, Still On Government Money. Ugly American Bastards.

  91. The narration is either bad or it's my hearing. Every sentence is made of words. I had difficulty making out certain words at regular junctures throughout the entire narration! Does anybody have the same problem? The unnecessary background music only makes it worse. For me at least!

  92. Some very creative financial engineering there.

  93. No doubt Fred did what every father would like to do on a grand scale – provide for their kids – I sure cant imagine that kind of $$ but seems the descriptions are similar to other big time real estate family management. No mention of Swifton village (first deal at very young age) or the fact that while a number of his contemporaries were partying he was pouring through distressed property publications. This piece seems to be yet another interesting but ultimately unflattering Trump “reveal” – “Here’s how he REALLY did it”! …….kinda more of the same…..

  94. Is this all facts. Is there any proof to this? I just really dont trust what i hear.

  95. Well done, Frederick C. Trump !! What a wonderful father…

  96. Hi

  97. That's what a father does for his kids, TAXES HUH Tell me about anybody that doesn't Take advantage of loop holes , Trump is a Good man and a GREAT PRESIDENT !!!

  98. Daddy gave his dumbest child millions and millions and millions.

  99. Awesome Mr. Fred there no man like you. President Trump your the best.

  100. This is amazing..im trying rent to own..getting white walled ..y..hmm ?i.d.k.

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