Trump: The Art of the Deal

In college, Donald Trump focused on real estate opportunities instead of typical student interests. This led to his first major deal, Swifton Village, a 1,200-unit apartment complex in foreclosure in the “very troubled” (81) Cincinnati. The development had 800 vacant units, and the government, struggling to manage it, was eager to offload the property. Trump and his father purchased it for less than $6 million, despite the complex costing twice that amount to build just a few years earlier. By securing a mortgage covering both the purchase price and an additional $100,000 for renovations, they acquired the property without investing their own money. The key to success was management and marketing. The tenants, many of whom were lower income and unfamiliar with apartment living, caused significant damage to the property. Some tenants avoided rent payments by fleeing overnight in trailers, prompting Trump to establish a “trailer-watch” (83) to prevent losses. After removing problematic tenants, they invested $800,000 in upgrades, including white shutters, colonial-style doors, and enhanced landscaping.

Trump prioritized cleanliness, believing well-maintained properties increase in value. He likened real estate maintenance to selling a clean car for a higher price. He ensured hallways were freshly painted, floors refinished, and vacant apartments spotless while running aggressive newspaper ads.