Donald John Trump example essay topic
446 words
Donald John Trump may have been born into the business in which he masters today, but it wasn't easy becoming the 186th richest man in America. Donald Trump was born on June 14, 1946 in New York. His father was in the real estate business in New York City and is the man who is responsible for pointing Donald Trump in the real estate direction. After attending the Wharton business school, he joined the family real estate business. Being a self-promoting and flamboyant deal maker, he was able to secure loans with minimal collateral in the free- wheeling 1980's and created an empire in real estate, casinos, sports, and transportation. In the late 1980's Trump's empire included Trump Tower, Trump Park, over 24,000 rental and co-op apartments, the Trump Shuttle airline, and casinos in Atlantic City, including Trump's Castle, and the Taj Mahal as well as many private homes. At his peak he also owned a yacht worth 100 million dollars. By 1990 the effects of the recession were catching up to him and he was not capable of meeting loan payments. Twelve years ago Trump's personal net worth was a negative $900 million. Through this Trump kept a famous saying in mind "If you owe the bank $1 million and can't pay, you " re in trouble, but if you owe the bank $1 billion and can't pay, the bank's in trouble". A perfect example of this strategy came into use when Trump's CFO received an $800,000 quarterly insurance bill for Trump's yacht, which was, of course, mortgaged.
He sent the bill to the bank of Boston, which was the holder of the note of the boat, with a note that said if the boat sank uninsured, there'd be no collateral for the loan. Sure enough, the bank paid the bill. Trump convinced his main lenders that if he had trouble, they had trouble. So the lenders cut Trump some slack.
He was able to get the casinos into better financial shape, which enabled him to make the final step in his debt rehab: going public and selling some $1.5 billion of stock and bonds. By 1994, Trump had eliminated a huge portion of his $900 million personal debt and reduced substantially his nearly $3.5 billion in business debt. Forced to sell the Trump Shuttle, he retained Trump Tower in New York City and control of his three casinos located in Atlantic City. Donald John Trump now has an estimated worth of about $1.7 billion and was ranked 186th on Forbes' list of the 400 richest Americans.
