He got Swifton Village running well enough so that I didn’t have to be in Cincinnati very often. I knew he was probably ripping me off, but he kept the place well and people actually paid their rent. The project was a resounding success. A few years later when I was visiting the property, I ran into a tenant who had become a friend. He had survived a concentration camp in Poland so I knew he had street smarts, and I respected his opinion. He told me I should get out, sell the place. It was successful and fully rented, so I ask him why, and he said it wasn’t the property or the management, but the area that was turning bad.
I spent a couple days in Cincinnati to check this out for myself, and he was right. It was becoming a rough area, surrounded by equally rough neighborhoods. There was an obvious shift occurring, and not in the right direction. I decided to put Swifton Village up for sale.
Response was swift, and it wasn’t long before I saw the fruits of my first big deal. We bought Swifton Village for $6 million and sold it a few years later for $12 million. That’s a nice profit. The thing to remember is that I went into this crummy place and decided not only to see it positively but creatively—and look at the results of that attitude. Cultivate it in yourself! Creative, positive thinking can be a powerful source for success.
35
GET THE MOST FROM EVERY DAY
When I was starting out in Manhattan, I had to be courageous because I was in new territory. I did my homework and studied and watched what was going on, but I was paving my own way here and I had to appear confident, or I knew I’d never make it. Every day mattered, and every day was important. This was the big time, and I knew it. I’ve never lost that edge. I still feel that way every day, and I think that’s one reason I’ve managed to achieve as much as I have.
Confidence can get you where you want to go. It’s so much easier to achieve when you feel good about yourself, your abilities, and your talents. That’s why I’m emphasizing confidence as a way to get the most from every day. It’s absolutely essential, so never let anyone undermine you, including yourself.
Even if you haven’t encountered great success yet, there is no reason you can’t bluff a little and act like you have. Confidence is a magnet in the best sense of the word—it will draw people to you and make your daily life—and theirs—a lot more pleasant.
Take the pains required to become what you want to become, or you might end up becoming something you’d rather not be. It’s like the hub versus rim theory—do you want to be the hub, or the rim? Being the hub means you’re more centered, more central; being on the rim is being away from the action or the driving force. When I emphasize the importance of focus, that is one way of visualizing it. Focusing on the center, on what’s really important in your life, can make the difference between your being the hub or on the rim.
Business is full of complexities. That’s what makes it so interesting. Anyone who thinks it’s boring hasn’t given it much thought. Business can be an art, and as an art, it is evolving and mysterious in its own right. When I wrote The Art of the Deal, I was really just illustrating this aspect of business, and I haven’t changed my mind about it. Like an artist, I give my utmost every day to what I’m doing. I’m not pretending in any sense of the word.
If you really want to succeed, you’ll have to go for it every day like I do. The big time isn’t for slackers. Keep up your mental stamina and remain curious. Bored people equal unintelligent people in my mind. Hopefully since you’re reading this, that unfortunate group won’t ever include you. It better not! I don’t like dropouts either. Get with and keep up with the program—and I mean every day. I’m not really a tough guy but I am when it comes to education and using your brains. Ignorance is more expensive than education, and considering what’s available these days—Trump University, for example—very few people can make a strong case for ignorance.
It was Thoreau who wrote, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.” I couldn’t have said it better. Get your vision, get focused, and then do the work—starting today!
36
TAKE A LESSON FROM MUHAMMAD ALI AND ME—KNOW WHEN TO BRAG
Noise versus Substance versus Chemistry
I remember when Muhammad Ali was claiming that he was the greatest. He didn’t quibble. He stated in absolute terms that he was the greatest. Fortunately, he proved that he was, or he might have gone down as someone who was delusional. It’s interesting to note, now that those days are history, that he set himself up for a situation that demanded that he prove himself, and he did. I think he set the bar high for himself on purpose. I know I do.
I can often be heard saying that my next project is going to be huge and that it will be a tremendous success. Why? First, I have confidence that it will be. Second, I know I have to live up to my own expectations. When you announce something publicly for the world to hear, you’d better be right or the day of reckoning won’t be sweet. I don’t have to worry about that so much any more, but my standards are such that I give everything the same amount of effort as if it was my first big deal. Plus, announcing a new project always gets my adrenalin flowing.
These public announcements aren’t bragging—I simply state the facts. The fact is my buildings are the best. That’s why they sell out, very often before they’re even built. Trump buildings get higher prices per square foot because they aren’t just a brand name, but a luxury brand name. People know what they’re getting. The buildings are in demand. Why should I have false modesty when it’s false? The same goes for you. If you have something to be proud of and you can back up your claims, then go for it. Let people know. There’s no reason to be coy about great accomplishments.
Marketing today requires that we grab the customer’s attention. It can make or break a business. I do most of my own public relations because I know how to advertise my own brand. If you have a product or service, learn to do the same. It will save you time and money. If you don’t believe in your product and can’t talk it up, who will? When people say, “that’s not my style,” I can understand up to a certain point, but my initial reaction is that maybe they’re not too confident about the quality of their work.
I had a young guy come in who had a remarkable background, but he was so self-effacing that I started to believe his attitude more than his accomplishments. I ended up not hiring him because of the dampening effect of his attitude. If he had been a bit more upbeat, I would have been more apt to believe in him. Note what I said—I believed him, but I didn’t believe in him. His attitude overshadowed his qualifications. I don’t need to hear someone bragging to be impressed, but someone who is obliterating his own chances seems like a loser to me. I don’t want him on my team.
When you go out for interviews, keep that in mind. There’s a fine line you have to draw. You may be interviewing with someone who is low key. That’s good, keep that in mind. Most people will be able to recognize substance when they see it, but chemistry can’t be ruled out either. The young man I mentioned earlier will be a good fit—somewhere else. I have no doubt about it. Remember that sometimes it’s just a matter of being on the same wavelength—that old but true fact of personal chemistry. It’s an unspoken dynamic that even noise—or substance—can’t overrule. It’s there or it’s not.
37
HOW WOULD I LOOK WITH A SHAVED HEAD?
Wrestlemania
It became clear to me that wrestling is a very big deal these days, but just as I never thought I’d host Saturday Night Live, I never thought I’d get into a ring and take a challenge from Vince McMahon of Wrestlemania. But I did. I guess one thing to remember is never say never, and never think never.
I also never thought I’d agree to have my head shaved if I lost a bet, but I did. Fortunately, I didn’t lose, so my famous hair is still there, and it’s still famous. Did I have any doubts about winning? I sure did. The challenge was to remain confident and believe I would win. More than 81,000 peop
le turned out to see what would happen.
This was a new arena for me to begin with. Wrestling? I was into baseball when I was in college, and I know a lot about it. I was hardly an expert at wrestling. Which translates to, I had a lot to learn. I like to know what I’m doing, and Vince and I would be picking wrestlers to represent us in the ring.
After much research and consideration, I chose Bobby Lashley, and Vince chose Umaga, both top wrestlers. We had a press conference in Trump Tower a few days before the match, and during the conference, things got a little rough. Vince was taunting me so I belted him, and the next thing we knew Vince was on the floor. My bodyguard jumped out, our wrestlers went on the alert, but we saved the real fighting for the ring. Vince and I had been friends before, but this friendly competition was becoming something else.
The wrestling event set records and was featured in the New York Times in a major article. This was big time, and the buzz ran the gamut from die-hard fans who showed up in person to millions watching pay-per-view out of curiosity. What was Donald Trump doing now? Would he really risk getting his head shaved?
I have to admit, there were a few moments when I asked myself the same questions. What was I doing? What was I doing it for? Would the risk be worth it? I stood a very good chance of having my head shaved in public with millions of people watching, some no doubt gleefully. Well, I realized I liked the challenge. I didn’t have to get into the ring, but it was still a match. The Battle of the Billionaires is how it was billed, in fact. Vince McMahon is an amazing guy and has been a successful businessman. Because he’s an expert in wrestling, I had a few doubts about my ability to choose the right wrestler who would help me see this through triumphantly.
As the buzz increased, I knew there was no turning back. I’d either win or lose. It became that simple. I liked the adrenalin rush that this caused—it was exciting, and I realized I was having a great time. You’ve got to love what you’re doing, as you’ve heard me say many times before. There was no doubt that I was loving it.
Winning was the icing on top. Not having my head shaved was pretty nice, too. Which shows that it’s worth it to take some risks sometimes. This is one of the biggest public chances—and challenges—I’ve ever taken. Was it worth it? Absolutely. I recommend you take a few yourself. Life’s not for the timid. Life’s about never giving up. So get into the ring!
38
WHEN YOU’RE ATTACKED, BITE BACK
A Book and a Lawsuit
When you’ve spent 40 years building a brand that is known worldwide, and then someone publishes a book that denounces your worth and damages your image and reputation, and in a scathing way, it becomes a serious issue.
There is a writer with the New York Times named Tim O’Brien who had written some very negative articles about me. I didn’t like him, and I didn’t respect him as a writer because his facts were so incorrect and his articles were so viciously negative. Then I heard he was doing a book about me—and I was told he would write it with or without my cooperation—so it seemed in my best interests to work with him so his facts would be correct. I already knew he was bad news, but I was very cordial and open with him, giving him interviews, and having him travel with me on my jet so I could give him the time he needed. I extended every courtesy to him, especially that of time.
Then his book, Trump Nation, came out, and I realized there’s a difference between bad news and evil. This guy was despicable. His intent was defamation. I’m not sure what he was writing about, because what he wrote is so far from the truth, but I do know what he was writing for: attention and money. This isn’t the proper way to do that.
He had outright lies in his book, and he intended to damage me personally and my businesses. His reporting was reprehensible, and as a writer he is not very talented. I decided not to look the other way and toss it off as jealousy, malice, or greed. Instead, I sued him and the publisher for a lot of money. The writer got the attention he was obviously looking for, but his publisher got something they weren’t looking for. They obviously didn’t know they were dealing with a guy who would eventually write Never Give Up—and actually mean it. The publisher’s conduct was not much better than O’Brien’s, and they will have to bear the consequences.
There are all types in the world. I’ve known some terrific writers and journalists who are honest and dedicated to their profession. Even though this guy wrote badly about me in the past as a New York Times reporter, I like to give people the benefit of the doubt, or at least a chance. In this case, I was giving him a second chance, in fact more than a second chance, considering the negative articles he’d already written about me. So take this as a warning—they are going to pay a big price.
For example, this writer purposely and knowingly understated my net worth by billions of dollars. He insisted I was worth a couple hundred million dollars, at most. Even Forbes acknowledges I’m worth much more, $2.7 billion being their conservative valuation. This writer had access to all the facts, but chose to ignore them. Instead of relying on those facts, he claimed he was relying on anonymous sources to misrepresent my business. So what I did was to invite Forbes in to investigate, to go over everything, which they did meticulously, and they confirmed what they had originally found—that I was worth, conservatively, $2.7 billion. They published their findings. All this time and effort put out by the Forbes’ team and my team was a direct result of Trump Nation’s deliberate reporting errors designed to damage my reputation and businesses. As of September 2007, Forbes confirmed my worth at $3 billion. That number is much less than my actual net worth but they were being very conservative.
By way of comparison, a very respected journalist and writer, Robert Slater, wrote a book about me—No Such Thing as Over-Exposure —that turned out wonderfully for everyone. I had extended to Bob actually less hospitality than I had to Tim O’Brien, but because Bob is a writer of integrity, the end result was terrific. Bob has great credentials, having reported for both Time and Newsweek for many years, and he is one of the world’s leading business biographers. He also seems to understand that getting the facts right is part of a journalist’s job.
In any event, I told the publisher I had no interest in settling without a large payment and a full apology. I do not mind paying large legal fees as long as the end result will be the truth, which is something they are avoiding. Many people would say, why bother? I say, why give up? I do not back down. I don’t need the money from winning the case—I need to set the record straight and maybe make it harder for other disreputable writers to knock people for the fun or profit of it. I told them it was a court case that I am truly looking forward to, because that’s the truth.
39
PRIME REAL ESTATE FALLS INTO THE PACIFIC—NOW WHAT?
Trump National Golf Course in Palos Verdes, California
I’ve always said I liked challenges, and when I decided to take over the beleaguered Ocean Trails Golf Course in Palos Verdes near Los Angeles, that’s exactly what I got. I began referring to it as Ocean Trials before renaming it Trump National Golf Club, and for good reason. In an article in Fairways and Greens, they described the 18th hole, which, by the way, is the one that slid into the ocean, as Ground Zero plus $61 million. Can you believe I spent $61 million on one hole? Well, believe it. When I want something done, I want it done right.
This hole is the most expensive in golf history. I would hope so because I can’t imagine doing this too many times. If you saw the situation through my eyes, you would see that it warranted every penny I spent. The course fronts the Pacific Ocean for two miles and easily rivals the fabled Pebble Beach in both beauty and finesse. I could see that before it became a reality, and so I didn’t care about the expense involved. Golf courses are works of art and deserve that kind of attention.
Trump National Golf Club
As with many of my projects, I’d been paying attention to this course for years. I knew it had the potential to be one of the top tier golf courses of the world. However, whe
n it opened as Ocean Trails in 1999, there was a catastrophe when the 18th hole slid toward the ocean, also damaging three adjacent holes. The water lines, which were beneath the fairway, had given away. This was a very serious mess. A landslide is a nightmare for a cliffhanging property. Especially when it involves 17 acres of earth. Suddenly, an 18-hole course was reduced to a 15-hole course.
It was a disaster for the owners, and they entered bankruptcy court in 2002. That’s when I made my move and offered them $27 million for the land, the clubhouse, and the course. Compare that to $61 million for one hole. It was a good deal. I had to make a choice—should I just fix it and be done with it because it was already a nice enough course—or should I go all out and make it over into one of the most celebrated courses in the world?
I think you can guess which choice I made. It wasn’t the easy choice, but it was the best one. I estimated that to redo the entire course, including reconstruction of the fallen hole, would cost me around $265 million. So how do I explain $61 million for one hole? Well, this was what was involved: A series of walls, made from local Palos Verdes rock quarried at $600 a ton, and a structural layer built underneath the hole that goes down the cliff to the beach, which means that every 10 feet is a steel platform—which provides a very strong structure. This was intricate and difficult work.
I will admit I had some second thoughts about spending that much on one hole. That’s a huge investment, no matter how much money you have. And the difficulties were astounding. What I did was something that I would suggest to you: Look at the solution—not the problem. I focused on the spectacular outcome I wanted, and it got done. I had moments of doubt, when I wondered how feasible my “think big” attitude was going to be in this situation, and where it might lead me. Well, I guess I like cliffhangers because it definitely had that feeling about it.
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