More deep dives into T and his familyâs financial interests in the US and around the world, and how they âoversell,â their properties - claim that there is more occupancy achieved/value than there really is.
ProPublica, non-profit watchdog organization finds these results.
Projects Where a Trump Family Member Overstated Sales Numbers
Dominican Republic
Claim: Donald Trump claimed $365 million in sales in a 2007 letter to The Wall Street Journal.
Reality: Trump reported $290 million in a 2009 project audit.
Result: Never built.
Fort Lauderdale
Claim: Trump announced the hotel/condo was âpretty much sold outâ in April 2006, according to a broker who attended the presentation.
Reality: 62 percent of units were sold as of July 2006, according to bank records that emerged in a court case.
Result: Entered foreclosure. Trumpâs name removed before construction completed.
Las Vegas
Claim: Condos âsold out,â Trump told The Associated Press in 2005
Reality: About 25 percent of units were sold by 2011, according to press accounts.
Result: Built.
Panama
Claim: âItâs a 1,000-unit building, weâve sold over 90 percent of it,â Ivanka told Portfolio in 2008.
Reality: As of three months later, 79 percent of the units were pre-sold, according to Moodyâs.
Result: Built, but went bankrupt; Trump name removed.
SoHo
Claim: In 2008, Ivanka told reporters that 60 percent of units had sold.
Reality: A Trump partnerâs affidavit revealed that 15 percent had been sold at the time.
Result: Built, but went bankrupt; Trump name removed.
Tampa
Claim: The building âsold out,â Trump told The Wall Street Journal in 2007.
Reality: The developers failed to sell a minimum of 70 percent of units, according to a Trump company letter that year, which deemed that a violation of its contract.
Result: Never built.
Toronto
Claim: In a 2009 interview, Ivanka referred to the property as âvirtually sold out.â
Reality: 24.8 percent of units had sold, according to a 2016 bankruptcy filing by the developers.
Result: Built, but went bankrupt; Trump name removed.
Article highlights how some of the financial deals were struck with brokers, and when payments were to be made. Also describes the percentages Tâs reaped after a building was occupied. I know nothing about how licensing works, but these seem like extremely favorable rates for Tâs family.
Even as brokers were taking cash out quickly, buyers were given time to put their money in. They anted up just 10 percent upon signing a purchase contract, according to the bond prospectus. They paid the remaining 20 percent in increments over the year after that.
Khafif complained of soaring construction costs and raised prices even as brokers hustled for contracts, Studnicky said. âI kept saying I understand the problem, but if you keep pushing the prices up, people are never going to be able to close on these things,â he said.
The higher prices climbed, the more the Trumps stood to pocket. Their licensing agreement gave them a base fee of 4 percent of gross sales when units closed. (This was on top of the $1 million Trump was given in advance for the use of his name.) They also received an âincentive feeâ: the higher the price rose above benchmarks, the greater a proportion the Trumps earned, records show. A hotel-condominium unit that sold for $385,000, for example, would produce a payment of $20,650 â just over 5 percent â to Trumpâs company.
That was just the beginning. Along with the cut of sales, Trumpâs 2006 licensing agreement provided the family other cash streams from the Panama project. The Trumps could take a 20 percent commission on construction costs if money was saved through Trump dealmaking, for instance. Once the hotel opened, they would pocket 17.5 percent of what hotel guests paid for their rooms, including what they spent on minibar items, internet service and even bathrobes; 4 percent for parking unit sales; and 12 percent of commercial space rentals. The Trump Organization would also receive 4 percent of the hotelâs gross revenue for managing it, plus an incentive fee equal to a fifth of the hotelâs net operating income.