Do you believe these stories that Trump is broke?
- Tmess2Lv 73 weeks agoFavorite Answer
Not broke. Just not liquid.
In the commercial real estate business, it is not unusual to have substantial debts on property. Usually, the loan/mortgage has a big balloon payment at the end of the loan period. If the developer has made enough payments and the assets appear to be sufficient to cover the loan, some bank will give the developer a new loan to let the developer make the balloon payment.
The problem is when the developer has a lot of properties that are overvalued and losing money (like President Trump's golf courses), then the banks might not be willing to make a new loan for those properties. At that point, you get in a cascading spiral of needing to make a rushed sale of assets to cover the balloon payment.
All told, Trump probably has a positive net worth, but nobody (other than his accountants and banks) knows the real value of his assets and his total debts. And, if he has to make a forced sale of assets to cover his debts, even if he has a positive net worth, it might not be enough to avoid bankruptcy again.
- Anonymous3 weeks ago
I doubt he's broke, finance on his level is very technical
- ArcherLv 73 weeks ago
So I would wonder why would it matter!
- L. E. GantLv 73 weeks ago
No. But who cares?
Debt needs to be measured against equity, and he has enough equity to carry him for a while.
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- BillLv 43 weeks ago
Sounds silly but a lot of rich people don't have any of there own money. They use other people's but one day all debts are called in
- 3 weeks ago