This chapter brings up three points that can be applied in more than just business. How to use other people’s money, the positive effects of showing no fear during confrontations, and the importance of listening to folks you may only have professional associations with. Yup! I’m saying we could all benefit Mr. Trump’s insights where these three points are concerned, in this part of his book, “The Art Of The Deal.”
In President Trump’s original work; He talks about the first big deal he ever made. It was a joint venture with his dad; purchasing an apartment complex in Cincinnati, Ohio, called Swifton Village.
Write off the bat; we learn here how Donald and his father approached the whole concept of being able to buy something with little to no money down. “True!” We’re talking about real-estate here. However, the concept of using other people’s money for making other kinds of purchases in life can still be applied.
Swifton Village was a government foreclosure; with many unoccupied units. The Trumps put in a low bid for the property, which was accepted. The Trumps then got a mortgage from a bank, which included one hundred thousand dollars extra; money they used to fix up the property; attracting long term tenants. “However,” in order to avoid paying the mortgage out of their own pockets, they would need to properly manage the place; complete with one-hundred percent occupancy; enabling the Trumps to pay the mortgage, Swifton Village staff, and turn a profit.
It is while reading about the management phase of Swifton; we learn from Mr. Trump that he discovered the importance of showing no fear in heated situations via an employee he called Irving. Apparently; the most effective manager he could find for Swifton Village was Irving; a police confirmed con man. Yet; despite Irving’s criminal record, The Donald never caught him stealing. “Also,” Mr. Trump seemed rather in awe of how Irving could face down the most menacing tenet; surviving disputes over rent due, without trading blows.
The Donald equated this guy to a Lion Tamer. He tells us in his book that Irving’s mouth was the equivalent to a Lion Tamer’s whip. Apparently, Trump’s manager was quite the talker; like all con men, putting on one hell of a show if need be.
Donald J. Trump and his dad did finally sell Swifton Village; after investigating a tip from one of his tenants regarding negative changes in the area. The company they sold Swifton to, Prudence, apparently wasn’t all that prudent, either.
However, President trump’s admitted source of information, which led to the decision to sell, does stand as a testament to the fact that other bestselling authors aren’t wrong when they tell us, “We need to be open to making friends with our customers and creditors.” Had Mr. Trump not allowed himself to develop a relationship with at least one tenant at Swifton Village; he and his dad may both have lost their shirts on that particular job.