OK so you’ve read The Art Of The Deal.
Have you ever found yourself in quiet moments alone, pondering the Trump story, thinking you’re going to do what he did? Whatever liquid motivation Donald Trump was channeling from the gods, you’re going to get some of that and do what he did?
Alright, so now twelve months have gone by and you are looking back, trying to reconcile the gap between your humble output and the record of the early Trump years.
Don’t beat yourself up.
As with the legend of Bill Gates, there is more to the story than just other worldly will, and “brilliance”. Gate’s case is documented in Outliers by Malcom Gladwell. But Trump’s story has remained as a touchstone for real estate investors over the decades, when really, he should have been one of Gladwell’s ‘Outlier’ subjects as well.
Gladwell’s premise for Outliers was extraordinary success is no accident, however it is not repeatable due to the extraordinary circumstances that contribute to it occurring.
First, Trump got his 10,000 hours at the knee of his father, Fred Trump. Fred Trump built his first house in 1923 at the age of 18, and by 1945 when Donald was born, he had a thriving construction company building houses and apartment buildings for returning GIs. Donald began accompanying his father to the construction site at age five. Throughout his childhood Donald had a front row seat, watching Dad negotiate with vendors and contractors in the living room of his home in Queens.
In his teens Donald got more involved in his father’s company. By his early twenties, when he located and partnered with his father on the 1,154 unit Swifton Village Apartments (a foreclosure) in Cincinnati, the business of real estate is all Donald Trump had ever done.
Second, he had the financial backing of his father, Fred Trump. By the mid 1970s Fred Trump had been in business for 50 years and accumulated 100,000 units. His financial statement was significant, around $40 million. He introduced Donald to his private and institutional banking relationships, Manufacturers Hanover Trust, and the Equitable Life Insurance Company. Read more…