Yahoo Finance 6 Trump Money Tactics That Wouldn’t Work for the Average Person
With a reported net worth of about $6.5 billion, Donald Trump is one of the 500 richest people on the planet. Although stories of the ultra wealthy can often be instructive for your own financial pursuits, that’s not the case for the former president and 2024 presidential candidate.
Find Out: How Rich Is Former President Donald Trump?
Learn More: 4 Genius Things All Wealthy People Do With Their Money
Trump built his fortune through a series of deals and tactics that the average person simply can’t expect to repeat. These seven examples prove it.
Also see what a Trump presidency could mean for the middle class.
Wealthy people know the best money secrets. Learn how to copy them.
A $70 Million Co-Sign
Trump claims he built his real estate empire with nothing but a “small loan” of $1 million from his father, Fred. Documents show that’s not entirely true.
Trump qualified for a $70 million construction loan early in his career. But it was approved only because his father and his business connections co-signed for it. They promised to complete the project if Donald Trump didn’t do it himself.
This gave Trump the financial backing he needed to make his first foray into the luxury real estate development market. It’s an opportunity most of us will never get because we don’t have Trump’s family connections.
Check Out: How Obama, Biden and Other Elected Officials Have Made Millions by Being in Office
Fraudulently Reporting Property Values
In 2023, the New York Supreme Court ruled that Trump, his sons and several Trump organization executives committed fraud. They did so by reporting inaccurate — and often conflicting — property values.
Trump profited from reporting inaccurate property values in two ways. He told tax authorities that his buildings were worth less than they were to save on tax payments. At the same time, he told lenders the properties were worth more than they were to qualify for greater loan amounts and better terms.
Many people don’t even have properties to use this scheme. But even if you do, it’s not something you want to try.
Creating a For-Profit University
We’re all experts on something, but most of us will never start a school to share what we know. Trump did. He leveraged his public status as a real estate mogul to launch a for-profit university in his name.
Pricing information for the now-defunct university is hard to find, though some students say they spent as much as $20,000 on Trump University workshops. Trump ultimately paid a $25 million settlement as part of a class-action lawsuit filed by students who claimed they were duped by the school.
Dodging Taxes
Records procured by the New York Times show that Trump also profited by helping his father dodge taxes. They say he received the equivalent of at least $413 million in today’s dollars this way.
Donald Trump and his siblings reportedly set up sham corporations to disguise millions in gifts that they received from their parents. These records also show that Donald helped his father take improper tax deductions to save millions more.
The result is that the Trump family as a whole paid far less in taxes than it should have when Fred Trump was still alive. Most of us wouldn’t even know how to execute something like this, let alone have the capital to save millions by doing so.
Charging Extra Just Because
Trump’s controversial personality has made him a cult-like leader to many of those who share his views. He has taken advantage of this to sell relatively cheap products at high mark-ups under the guise of raising money for important work.
For example, he was recently selling Bibles for $59.99 even though they often retail under $20 on Amazon. He also has an online store where he sells $200 blankets, $50 hats and $60 branded thermoses.
If the average person could sell products at mark-ups like these, they might eventually become incredibly wealthy, too. Trump can do so only because he’s so high profile and has built such a loyal following.
Earning Income From the Presidency
Trump has leveraged his celebrity status to earn money in many different ways. This continued after he became president. Researchers estimate he earned around $160 million from foreign countries during his time in the Oval Office. Most of us will never be in a position of power that allows us to do something similar.
What You Can Learn From Trump’s Money Tactics
Trump has a long history of using money strategies that most people could never replicate. But there are a few takeaways from his journey to wealth that could apply to your own.
Leverage Your Following
Trump built a massive following on his journey from heir to U.S. president. He has tapped into this time and time again to increase his wealth. From book sales to a pricey online store, he markets products to his social media followers often. This is passive income he gets just because people like and want to support him.
You may not have Trump’s following, but maybe you have a few thousand people on your Instagram or TikTok page. You might be able to leverage that to sign sponsorship deals or even just get free products from brands you like.
Take Advantage of Your Connections
Trump’s family name certainly helped him build the connections he has today. But he has used those connections very well throughout his career — from the initial $70 million co-sign that allowed him develop his first property to the support he found en route to the presidency.
You can try to take advantage of your connections, too. That might mean using your network to find a higher-paying job or get your foot in the door on a new private investing opportunity.
Use the Rules to Your Benefit
Finally, Trump has a reputation for not following the rules. But it may be more accurate to say he excels at skirting the sometimes-fine line between legal and illegal. In other words, he looks for legal loopholes and exploits them to his benefit. His tax history is full of examples of this.
You definitely don’t want to break any laws that could get you into trouble. But you may have more wiggle room on business deals and investments than you think. Taking advantage of these opportunities when they come up could help to increase your wealth.
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