Trump Never Give Up

by Donald J. Trump

  On the positive side of things, I brought in Pete Dye, one of the legends in golf course design, to remake Ocean Trails into a worthy rival to Pebble Beach. If anyone in the industry could do that, Pete Dye could. I wanted to make this course the best, and we completely redesigned it. It’s brand new. It includes water-falls and a great driving range. In order to build the driving range, I had to wipe out about 30 housing lots to have the appropriate space. That means about $300 million because each lot would bring about $10 million—so all these things had to be considered. Also, everything was new, from the traps and sand to the tees and fairways. I wanted crushed granite for the bunkers. The costs were enormous, and I was hoping the rewards would be too. I was enjoying myself, but would this work and expense pay off? Would this be just a great experiment—great expectations that don’t manage to deliver?

  I have to stop here to say that there are no guarantees in anything. People see my successes and really think it’s a breeze to get it all done. It’s not, and I spend plenty of time assessing, reassessing, analyzing, and scrutinizing. People just don’t see me doing that. Another important thing to consider is experience—I’ve been a developer for a long time, so a lot of decisions are second nature to me and not a terrific demand on my brainpower to figure out. I can move quickly once I’ve done the groundwork in my mind. However, the plans have to be in place. Be sure you have a foundation of expertise and experience in whatever you do, and then you can act decisively and creatively.

  There were a lot of details to consider along with the reconstruction of the golf course itself. The 40,000-square-foot clubhouse, for one thing, which has a restaurant that has won the Golden Scepter Award (Best New Restaurant) and the Golden Bacchus Award (for its wine list). The course itself has become the number one golf course in California, and the Michael Douglas & Friends Pro-Celebrity takes place there every April. Trump National Golf Club Los Angeles has become a spectacular success on all levels. You might even call it a landslide. But my never give up moment came when, after knowing the potential of the property for years, I saw that landslide disaster and wanted to do something spectacular about it. Thinking big? What a great idea....

  40

  THINK INTERNATIONALLY

  You’ve heard me emphasize the importance of keeping informed about global events, which includes political as well as financial news. I’d like to recommend to you a book that was published in 2007 that reinforces the importance of thinking internationally. It’s called Microtrends: The Small Forces Behind Tomorrow’s Big Changes. It’s written by Mark J. Penn who is a highly respected analyst who has been an adviser to Fortune 500 corporations and to many foreign heads of state. He has an insight into both national and international trends and events that shape our future. Bill Gates said, “Penn has a keen mind and a fascinating sense of what makes America and the world tick, and you see it on every page.”

  Penn has a chapter on international home buyers. Being in real estate, I took a special interest in what he had to say. Penn astutely points out that foreign ownership of residential real estate in the United States is a hot trend. Globalization has torn down the barriers that have formerly separated the national from the international markets and one result is that affluent foreigners have been drawn to real estate in the United States. I recognized this years ago, which he points out:In New York, Donald Trump was a major factor in opening up the city to foreigners. Most buildings in New York City had been co-ops, and since co-ops can reject anyone for just about any reason, they looked very carefully at absentee foreign purchasers. But Trump opened condos, and sales of condos are largely unregulated because they offer single apartments, not share in a corporation. Now that most new buildings are condos, foreign buyers are streaming in.

  The important thing to consider is that more and more there is an interdependence of world economies. No one can afford to be isolationist anymore. For many years, many Americans have had second homes in foreign countries, and now the trend, as Penn points out, has hit our shores. This is nothing new, but it’s relatively new to us. I think it’s a harbinger of things to come, and when I first went with condos years ago, I knew it was a timely thing to do.

  My point is, I had been keeping up with global events for years, and it wasn’t that hard for me to see this trend coming. I’m not clairvoyant, but I take the time to be well informed. You can and should do the same thing. Spend some time on international events, read books, and keep ahead of what’s happening. Catching up can waste a lot of time—having some prescience can save you a lot of time. Keep your focus global and you may very well find yourself ahead of the game.

  41

  WHERE OTHERS FAIL—THERE’S YOUR OPPORTUNITY

  A Wall Street Story

  On occasion, I am asked what my favorite deals have been. I have a lot to choose from, but there is something about the acquisition of 40 Wall Street that will always stand apart. Not only because of the location, which is in the financial district of Manhattan, but because of an almost magical sense of timing, which made it seem like destiny. That does not mean it was an easy, simple feat to acquire it, because it wasn’t, but I like to use this as an example to tell people about how difficulties and challenges can add another dimension to your life—and a positive dimension at that.

  In addition to being the tallest building in lower Manhattan, 40 Wall Street is a 1.3-million-square-foot landmark. I got it for $1 million. Even people who know very little about real estate can be duly impressed with that price. I’ll tell you some background about how it came about because it’s a great story. It will also illustrate the myth of so-called overnight successes. I had been watching this building for decades, and I knew a lot about it before making my move.

  40 Wall Street

  In the 1960s and 1970s, 40 Wall Street was a fully occupied building, and it was indeed a hot property. However, in the early 1980s, it was bought by Ferdinand Marcos, the former dictator of the Philippines. Unfortunately, a revolution in the Philippines required his full attention, and the skyscraper at 40 Wall Street fell into decline. Dealings became chaotic, and soon the whole thing was a mess. Marcos was out.

  Then the Resnicks, a great real estate family, descended on 40 Wall Street, but after a long period of negotiation, it became clear that the Resnicks and their partner Citibank weren’t going to make it, and 40 Wall Street would once again be back on the block. They were unfortunate to be dealing with one of the dumbest bankers I have ever known, Patricia Goldstein. But for me this was good news. I wanted very much at this time to make my move, but this was the early 1990s and I was in no position to do so. The market was terrible, and in addition, my own financial woes were exactly that—woeful. I remember thinking that I’d love to acquire this building, but I thought it was one of those dreams that would never come true. This is a good lesson for those of you who have thought that way too. Shortly after I had just about given up on my dream, something happened.

  It was announced that the Kinson Company, a group from Hong Kong, was buying 40 Wall Street. They made a great deal. After their purchase was complete, I called them and said I’d like to meet them about a possible partnership. As it turns out, they weren’t interested in a partnership but in making 40 Wall Street the downtown equivalent of Trump Tower—with an atrium. What they would do with the steel columns that held up the 72-story building never seemed to enter their minds. I was truly astounded. But it also gave me some hope—they obviously didn’t know what they were doing. How long could they continue to hold on to a building that dwarfed them in every conceivable way?

  The Kinson Group did prove to be relatively clueless about renovating, running, and leasing out a New York City skyscraper. To begin with, they weren’t in the real estate business, they were in the apparel business. Kinson began pouring tens of millions of dollars into the building and getting absolutely nowhere. They had problems with tenants, contractors, suppliers, architects, even the owners of the land under the building, the Hinneberg famil
y. Eventually, they wanted out, and they called me. I was thrilled.

  Three years of dealing with a situation out of their depth had taken a toll on Kinson. It was now 1995, and the market still wasn’t so good. Kinson had every reason to want to get out, and they wanted to do so quickly and quietly. I was in a great position due to their distress, and the negotiations began, with me offering them $1 million in addition to assuming and negotiating their liens. I also made the deal subject to a restructured ground lease with the Hinneberg family.

  They accepted my terms without question—they obviously just wanted out and fast. Sad as their story is, it’s true to New York real estate—if you don’t know what you’re doing, you simply won’t make it. That’s another good lesson to remember: always know what you’re getting into—you have to do your due diligence, especially if it’s a field that’s new to you.

  The next thing I did was to call Walter Hinneberg himself in Germany, then I flew over to meet him. I got along very well with the Hinnebergs, and they realized that after a string of losers who had owned the building, I had the integrity of their spectacular property first and foremost in my mind. They are a truly great family, and they knew I loved the building, that I would be doing everything possible to restore it to its inherent grandeur. We worked out a new lease for the land under the building, extending the term to over 200 years, and the agreement was modernized, which served everyone’s best interest. However, keep this in mind—getting to this point was a long time coming. It didn’t happen overnight. I was tenacious and attentive to this property for many years.

  Then the question was what to do with the building. I had been advised to turn it into a residential property by almost every person who had an educated opinion to give. However, I felt in my gut that I wanted to keep it as a great business address, because Wall Street is a great business address, so I refused to budge. Time has shown that I made the right decision—it is a thriving and sought-after building, with many of the top-notch businesses in the world operating within its walls.

  In addition, very soon after acquiring 40 Wall Street, the real estate market turned for the better, and the downtown area experienced a renaissance in both commercial and residential properties and developments. The timing could not possibly have been better. I’m not one for miracles, but this comes close.

  I make approximately $20 million a year in rentals from 40 Wall Street and the building is now worth $500 million. Not bad for a $1 million investment. So, aside from owning the most beautiful building in lower Manhattan, I have the added attraction of making a profit. Have you been to the Trump Building at 40 Wall Street? If you have, you know why I’m so proud. There is nothing like Wall Street, and there is nothing as beautiful as this building.

  COACH TRUMP

  MAKE IT HAPPEN IN YOUR LIFE

  Nothing is easy. Sometimes you just have to be stubborn as well as patient.

  Recognize opportunity—it always hides behind problems and ugliness and failure—especially the failures of others. Every challenge or obstacle you come up against is simply an opportunity in disguise. Think big, think creatively, and you’ll see it.

  And don’t forget your gut instinct—it′s there for a reason.

  APPENDIX A

  Trump’s Top 10 List for Success

  If you’ve heard me speak, you may have noticed I emphasize several things repeatedly—never give up is one, being passionate is another, keeping focused is up there, and keeping your momentum runs a close fourth. I’ve learned those things from experience.

  Here’s the complete top 10 list I give when I speak at colleges:1. Never give up! Do not settle for remaining in your comfort zone. Remaining complacent is a good way to get nowhere.

  2. Be passionate! If you love what you’re doing, it will never seem like work.

  3. Be focused! Ask yourself: What should I be thinking about right now? Shut out interference. In this age of multitasking, this is a valuable technique to acquire.

  4. Keep your momentum! Listen, apply and move forward. Do not procrastinate.

  5. See yourself as victorious! That will focus you in the right direction.

  6. Be tenacious! Being stubborn can work wonders.

  7. Be lucky! The old saying, “The harder I work, the luckier I get” is absolutely right on.

  8. Believe in yourself! If you don’t, no one else will either. Think of yourself as a one-man army.

  9. Ask yourself: What am I pretending not to see? There may be some great opportunities right around you, even if things aren’t looking so great. Great adversity can turn into great victory.

  10. Look at the solution, not the problem. And never give up! Never never never give up. This thought deserves to be said (and remembered and applied) many times. It’s that important. Good luck!

  APPENDIX B

  Trump’s Rules for Negotiating

  Negotiating is an art. There are nuances and finely honed techniques and rules to be aware of. Here are a few of them:• Know what you’re doing. Sounds simple, but I’ve seen a lot of instances where I couldn’t believe how much the other side didn’t know. I immediately knew I could have a grand slam and fast, just based on their apparent lack of preparation. My father used to tell me, “Know everything you can about what you’re doing.” He was absolutely right, and I’m giving you the same advice. Follow it.

  • Remember, it takes a lot of smarts to play dumb. This is a good way to see how much your negotiating partners don’t know. It’s also a good way to see if they are bulldozing you.

  • Keep them a bit off balance. What they don’t know won’t hurt you, and that may help you down the line. Knowledge is power, so keep as much of it to yourself as possible.

  • Trust your instincts. There are a lot of situations that will not be black and white in negotiating, so go with your gut. Combine this with your homework and you’ll be ahead of the game.

  • Don’t be confined by expectations. There are no exact rules, and sometimes I’ve changed course in the middle of negotiations when something new has occurred to me. Remain flexible and open to new ideas, even when you think you know exactly what you want. This attitude has provided me with opportunities that I would not have thought about before.

  • Know when to say no. This has become instinct for me by now, but I think we all know when that buzzer goes off inside. Pay attention to that signal.

  • Be patient. I’ve waited for some deals for decades, and it was worth the wait. But make sure what you’re waiting for is worth it to begin with.

  • To speed up negotiations, be indifferent. That way you’ll find out if the other side is eager to proceed.

  • Remember that in the best negotiations, everyone wins. This is the ideal situation to strive for. You will also be laying the groundwork for future business deals with people who know what integrity is.

  In summing up, I can say that negotiation is an art. All the arts require discipline, technique, and a dose of imagination to take them beyond the realm of the ordinary. Don’t be an ordinary negotiator when you can be an extraordinary one. Devote time to this art and it can bring you enormous rewards.

  INDEX

  A

  Aberdeen, Scotland golf club project

  Achievements, photos and mementos of

  Adversity

  Advice:

  best piece of

  for entrepreneurs

  going against

  Airline industry

  Air rights

  Ali, Muhammad

  America We Deserve, The (Trump)

  Amtrak

  Anderson, Joel

  Apartments, foreclosed

  Apprentice, The:

  audition process

  editing of boardroom scenes

  firing people

  humor and

  most surprising thing about

  success of

  Art of the Deal, The (Trump)

  B

  Baudreau, Brian

  Bayrock Grou
p

  Black, Conrad

  Blips:

  catastrophes versus

  taking in stride

  Bluntness

  Boardwalk Restaurant

  Bonwit Teller

  Bragging

  Branson, Richard

  Brown, Tina

  Burnett, Mark

  Business:

  as about knowing the world

  as an art

  C

  Capuchin Food Pantries Ministry

  Carter, Jimmy

  Castro, Bernadette

  Catastrophes versus blips

  Central Park

  Character Studies (Singer)

  Charity activities

  Chemistry, personal

  Chicago hotel project

  Chicago River

  Chicago Sun-Times

  Churchill, Winston

  Cincinnati apartment project

  Citibank

  Citicorp

  Coliseum site

  Commercial real estate

  Commodore Hotel

  Community, doing something for

  Complacency

  Complaining

  Condominiums

  Confidence

  Co-ops

  Costas Kondylis & Associates

  Courage

  Cruise, unexpected

  Curiosity

  Customers, with excessive complaints

  D

  Dayton, Ohio public speaking engagement

  Delta Airlines

  De-stressing

  Discipline

  Discovery, cultivating sense of

  Doodle for Hunger

  Doubts, dealing with

  Dubai hotel project