Report: Donald Trump's companies at least $650 million in debt

His debt-to-equity ratio is 6.5%. That's perfectly fine. You guys are taking a number and running with it with no insight as to what it means. Do some reading.

hbr.org...

a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

originally posted by: desert
a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

a reply to: Southern Guardian

Post haste he needs to start a Trump Foundation and rig it such a way that other people simply give him money for little favors that he can do once he gets into office.

originally posted by: Aliensun
a reply to: Southern Guardian

Post haste he needs to start a Trump Foundation and rig it such a way that other people simply give him money for little favors that he can do once he gets into office.

Yes and then no matter what anyone says everyone on the left will jump to his support saying there is no direct evidence and they will dismiss the million and one coincidences as 'nothing to see here', then claiming no investigation is warranted. I am sure they will because I know they are very fair.

a reply to: UKTruth

originally posted by: UKTruth
Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

Quite correct. From the post I replied to

After news reports revealed back in January that his then-primary opponent Texas Sen. Ted Cruz had received two loans from Goldman Sachs and Citibank (totaling as much as $1 million) to fund his Senate campaign, Trump criticized Cruz as being beholden to banks.

Trump criticized a fellow candidate who did the same thing. It is this hypocrisy, not the debt itself, that should be noted.

And, Trump seems to give away other people's money (whether it's a bank's money or donations) to family and friends/cronies to help run his business/campaign, which certainly happens in the private world. So, how would he run the country any differently than he has run his business? We are given a clue; we should hope he'll change and should not, after all, run the country as he has run his business.

originally posted by: dashen
i dont think you understand how realestate development works.
a good developer never puts in his own cash.
he either takes a loan through an LLC that they set up, or sets up an LLC with several investors.
It may just mean he bought a lot of buildings that he is paying off.
Notice how it doesnt say he is in default on any of those loans

Except that an LLC (Limited Liability Company) is what is called a "pass-through" entity for tax purposes.

Meaning that any income or losses incurred by the LLC "pass-through" to the owner(s) of the LLC, and are claimed, for tax purposes on the owners tax return(s).

Being able to claim multi-millions in losses on your tax return can cut your Net tax to virtually zero.

And who gets to pick up the tax "slack" that he doesn't have to pay?

We Do.

a reply to: desert

There was more to Cruz loans than a simple financing:

www.npr.org...

However, I agree that IF Cruz simply paid the money back and did not promise any favours then its all fine in the context of this discussion. IN that regard, yes Trump was incorrect when he criticised Cruz.

originally posted by: UKTruth

originally posted by: desert
a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

Did he?? Can you get a zero intrest loan?? Wish I could never had a bank go here is money and we won't charge you for using it.

originally posted by: Bhadhidar

originally posted by: dashen
i dont think you understand how realestate development works.
a good developer never puts in his own cash.
he either takes a loan through an LLC that they set up, or sets up an LLC with several investors.
It may just mean he bought a lot of buildings that he is paying off.
Notice how it doesnt say he is in default on any of those loans

Except that an LLC (Limited Liability Company) is what is called a "pass-through" entity for tax purposes.

Meaning that any income or losses incurred by the LLC "pass-through" to the owner(s) of the LLC, and are claimed, for tax purposes on the owners tax return(s).

Being able to claim multi-millions in losses on your tax return can cut your Net tax to virtually zero.

And who gets to pick up the tax "slack" that he doesn't have to pay?

We Do.

An LLC does pay taxes but it's irrelevant when it comes to Trump he creates businesses not LLCs. This is thr stuff I was talking about people who don't understand business trying to figure out things that's well beyond there understanding. If I I nest in a company that has loans for equipment of property I don't take on that debt. However if I own thr company that's another matter since it's my credit involved. This is why he only included companies he owns.

originally posted by: dragonridr

originally posted by: UKTruth

originally posted by: desert
a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

Did he?? Can you get a zero intrest loan?? Wish I could never had a bank go here is money and we won't charge you for using it.

If he got a zero interest loan then that is an amazing piece of negotiation.

originally posted by: dragonridr

originally posted by: Bhadhidar

originally posted by: dashen
i dont think you understand how realestate development works.
a good developer never puts in his own cash.
he either takes a loan through an LLC that they set up, or sets up an LLC with several investors.
It may just mean he bought a lot of buildings that he is paying off.
Notice how it doesnt say he is in default on any of those loans

Except that an LLC (Limited Liability Company) is what is called a "pass-through" entity for tax purposes.

Meaning that any income or losses incurred by the LLC "pass-through" to the owner(s) of the LLC, and are claimed, for tax purposes on the owners tax return(s).

Being able to claim multi-millions in losses on your tax return can cut your Net tax to virtually zero.

And who gets to pick up the tax "slack" that he doesn't have to pay?

We Do.

An LLC does pay taxes but it's irrelevant when it comes to Trump he creates businesses not LLCs. This is thr stuff I was talking about people who don't understand business trying to figure out things that's well beyond there understanding. If I I nest in a company that has loans for equipment of property I don't take on that debt. However if I own thr company that's another matter since it's my credit involved. This is why he only included companies he owns.

The taxes paid by an LLC are often far less than most would expect.

In California, for example, regardless of the amount an LLC makes (or loses), it only has to pay $800 in tax per year; even if it makes over a $1 Billion.

This is offset, somewhat by gross receipt fees assessed, in most cases.

And the losses can be, as I said, passed through to the members (Trump) and used to offset the members' personal income tax.

I deal with these questions everyday.

a reply to: NthOther

I agree with most of this, other than Trump is enabling the stupidity by not releasing his tax returns.

Why is he supposed to put his empire at risk because lefties don't understand how business debt works???

If anything, he's providing evidence of how poor the democratic run educational system is. This # is business 101 type stuff, stuff any college Freshman should understand(see Princeton, I still use the term "Freshman" as that's what they are).

When the lefties don't understand the difference between upfront payments/loans to acquire real estate property(or a mortgage, or car loan, or investment from a venture capitalist to fund a startup) compared to say, some 22 yr old girl running up 10K on her AMEX card with no ability to pay it off, that's not Trump's problem.

You don't put your empire at risk to appease the mentally challenged products of a broken educational system.Given they don't understand how debt works, what makes anyone think they'd be able to understand a 5ft tall pile of tax filings?

a reply to: In4ormant

His debt-to-equity ratio is 6.5%.

Are you basing this on Donald Trumps own claim that he is worth $10 billion?

originally posted by: Aazadan

originally posted by: Swills
a reply to: Southern Guardian

Wouldn't all this debt disqualify him from being POTUS? Could be why he refused to release his tax returns.

No. It's debt owned by his business, not by him. The real question you should be looking at is if his real estate assets are worth more than the debt carried by them.

having represented a lot of large lenders, I can assue you that he was required to sign a personal guarantee and the debt were most likely cross-collateralized.

a reply to: Southern Guardian

First off...
Report: Donald Trump's companies at least $650 million in debt

I have been saying this for months around here...

He is under-water...

And I would be interested in how much of what debt we don't know about is held by Russian oligarchs..

The Trump-Russia links beneath the surface are even more extensive,” Max Boot wrote in the Los Angeles Times.
“Trump has sought and received funding from Russian investors for his business ventures, especially after most American banks stopped lending to him following his multiple bankruptcies.”

time.com...

originally posted by: UKTruth

originally posted by: dragonridr

originally posted by: UKTruth

originally posted by: desert
a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

Did he?? Can you get a zero intrest loan?? Wish I could never had a bank go here is money and we won't charge you for using it.

If he got a zero interest loan then that is an amazing piece of negotiation.

Or a pay-off for corrupt dealings.

originally posted by: Indigo5

originally posted by: UKTruth

originally posted by: dragonridr

originally posted by: UKTruth

originally posted by: desert
a reply to: Southern Guardian

I'm not so concerned about the debt as

Trump, while on the trail, has repeatedly slammed his political rivals for their connections to Goldman Sachs.

and the selective disclosing (admitted by the lawyer) of Trump's debt, to make it look not as large.

People go into debt, for example, when they hold a mortgage. Business's have debt. Oh, and business's indeed use other people's money. The Trump campaign, for example, is using money from other people, donations, for their campaign expenses.
Example, the campaign is giving donations to Giles-Parscale for web design. Trump has had business dealings with them before

hire[ing] Parscale in 2012 to build a website for Trump International Realty. Parscale went on to work on sites for Trump Winery, the Eric Trump Foundation and a site for Trump’s wife, Melania.

So, yes, give other people's money to your business buddies, who in turn help you. Business uses cronyism all the time. Sometimes people and businesses look forward to putting someone in office so they can reap later rewards. Remember Halliburton/KBR? Remember Heck-of-a-job Brownie?

Connection with Goldman Sachs? He took a loan to fund his business as a private citizen. Follow the trail and you'll soon realise that if you have a mortgage YOU are taking money from these wall street criminals. So is everyone else. If you want a loan, you have to go through them somewhere in the chain.

I have no problem with loans as long as the loan is paid back with cash or tangible assets and NOT political favours.

Did he?? Can you get a zero intrest loan?? Wish I could never had a bank go here is money and we won't charge you for using it.

If he got a zero interest loan then that is an amazing piece of negotiation.

Or a pay-off for corrupt dealings.

Pure speculation.

only $650 million? in case you haven`t heard the country is about $19 trillion in debt,sounds like he did better in the last 8 years than obama did.

a reply to: Tardacus

only $650 million? in case you haven`t heard the country is about $19 trillion in debt,sounds like he did better in the last 8 years than obama did.

simple question.
if he's proven to be as useless with his own money as it appears, how could you trust him to to all of a sudden become competent, and manage an entire nations economy?