There is one issue that i wish to weigh in on and it is the supposed bankruptcies. What he did do was to always be in position to refinance an underperforming asset at a price that worked. After all, he and his many partners can never be always right when they front end finance a project. But it is then their choice in how they recognize the loss. That often includes refinancing the failed 200 mill hotel at an economic 100 mill hotel which then in the course of time is paid out and becomes worth 250 mill.
His choice is to take the loss, but then refinance that asset(s) of which he is expert at a viable cap level. He can do this because he has always been able to trade from strength due to the original 300 mill fortune his father created.
Those bankruptcies allowed refinancing and gave partners a decision point in terms of further development. It is really good business because even real estate deals can be serious losers.
"The Donald's" Finances and the Art of Ignoring Conflicts and Contradictions
Thursday, 01 October 2015 00:00
By Nomi Prins,