Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested
This is the story motivating Trump's Hunter Biden hail mary collaboration with Russian Intelligence...
S E E D E D C O N T E N T
President Trump departs the White House en route to North Carolina.
Sarah Silbiger/Getty Images
The president's liabilities are spelled out in dozens of documents, published here.
No aspect of Donald Trump's business has been the subject of more speculation than his debt load. Lots of people believe the president owes $400 million, especially after Trump seemed to agree with that figure on national television Thursday night. In reality, however, he owes more than $1 billion.
The loans are spread out over more than a dozen different assets—hotels, buildings, mansions and golf courses. Most are listed on the financial disclosure report Trump files annually with the federal government. Two, which add up to an estimated $447 million, are not.
It is important to note, as Trump did Thursday night, that he also has significant assets. Forbes values them at $3.66 billion, enough to make his net worth an estimated $2.5 billion. He is not broke, despite what many critics claim.
Some people also like to suggest that Deutsche Bank is the only institution willing to lend to Trump. That's not true. The president's creditors include at least six other institutions, two of which began or reworked deals while the president was in office.
One reason for all the confusion: Trump's loans are not fully transparent. It's still unclear to whom he owes an estimated $162 million against his skyscraper in San Francisco, for example. The loan against 1290 Avenue of the Americas is also something of a mystery. And it's difficult to pin down the amount the president owes on a loan tied to his Bedford, New York, mansion. When asked about all of this, the Trump Organization did not respond.
Here's what we know—and don't know—about the president's debt.
1290 Avenue of the Americas
What Trump owes: $285 million
Who is the creditor: Unclear (see below)
When it's due: November 2022
Interest rate: 3.34%
The documents:
Donald Trump owns a 30% interest in 1290 Avenue of the Americas, which might explain why he does not list its debt on the financial disclosure report he files annually with federal ethics officials. Trump's share of the debt on the building appears to be the largest liability in his entire portfolio. In 2012, he and his business partner, Vornado Realty Trust, got a $950 million loan from four financial institutions: Deutsche Bank, UBS, Goldman Sachs and the state-owned Bank of China. It is not clear exactly who holds the debt today. The Bank of China told Politico that it had sold off its portion of the loan.
Trump International Hotel Washington, D.C.
What Trump owes: Est. $170 million
Who is the creditor: Deutsche Bank
When it's due: Sometime in 2024
Interest rate: Variable
The documents:
Trump funded his redevelopment of the Old Post Office building in Washington, D.C., which now serves as the Trump International Hotel, with a $170 million mortgage from Deutsche Bank. It's possible that Trump does not still owe all of that money today—the New York Times, which has access to Trump's tax-return data, recently reported that the loan has a balance of $160 million. Regardless of the exact amount of principal outstanding, it doesn't appear that the hotel is doing well enough to cover the interest expenses with profits from the business.
555 California Street
What Trump owes: Est. $162 million
Who is the creditor: Unclear (see below)
When it's due: September 2021
Interest rate: 5.1%
The document:
Trump also owns a 30% stake alongside Vornado in 555 California Street, a skyscraper in downtown San Francisco. The partners have been paying down the loan, but they might make changes to it soon. In June, Vornado announced that it was considering whether to recapitalize 555 California Street and 1290 Avenue of the Americas. Any transaction involving those two buildings could have a huge effect on Trump's business, given that his stakes in the two properties are his most valuable assets.
40 Wall Street
What Trump owes: $138 million
Who is the creditor: Ladder Capital
When it's due: July 6, 2025
Interest rate: 3.665%
The documents:
Weeks after announcing his initial presidential run, Trump refinanced his skyscraper in downtown Manhattan, borrowing $160 million. He has been paying down the debt ever since, but he still owes $138 million, according to documents filed with the Securities and Exchange Commission.
Trump National Doral
What Trump owes: Est. $125 million
Who is the creditor: Deutsche Bank
When it's due: Sometime in 2023
Interest rate: Variable
The documents:
Trump got a $106 million mortgage against his Miami golf resort from Deutsche Bank in 2012, at the time that he purchased the property. In August 2015, shortly after Trump launched his presidential bid, he got a second loan against Doral, this time for $19 million. It's possible that his debt on the property is now more than the $125 million combined value of the mortgages. The New York Times reported last month that Trump's balance totals $148 million.
Trump Tower
What Trump owes: $100 million
Who is the creditor: Ladder Capital
When it's due: September 6, 2022
Interest rate: 4.2%
The documents:
Trump took out a $100 million, interest-only loan against his signature Fifth Avenue tower in 2012. The property kicked off $13.3 million of net operating income in 2019, more than enough to cover the roughly $4.2 million Trump owes in annual interest expenses. Paying back the $100 million principal, due in two years, could be more complicated.
Trump International Hotel & Tower (Chicago)
What Trump owes: More than $75 million
Who are the creditors: Deutsche Bank, Chicago Unit Acquisition LLC
When it's due: 2024 for part of it, unclear for the rest
Interest rate: Variable
The document:
The debt against Trump's Chicago tower includes the most confounding liability in his portfolio. In addition to a Deutsche Bank loan for what seems to be $45 million, there's a loan of more than $50 million, from a creditor named Chicago Unit Acquisition LLC. Here's where things gets confusing: Donald Trump owns Chicago Unit Acquisition LLC, so he's lending money to himself. If one of his companies owes more than $50 million to another one of his companies, then the company lending the money should theoretically be worth more than $50 million. But Trump does not list any value for Chicago Unit Acquisition LLC on his financial disclosure report. All of this has befuddled investigative reporters from Mother Jones, the Washington Post and, yes, Forbes for years.
Trump Plaza
What Trump owes: $13 million
Who is the creditor: Ladder Capital
When it's due: July 6, 2024
Interest rate: 3.85%
The documents:
Through a company called Trump Plaza LLC, the president controls two brownstone apartment buildings, a garage and a strip of retail shops on Third Avenue in New York City. From 2017 to 2019, one of the tenants paying rent to Trump Plaza LLC was Trump's 2020 reelection campaign.
Palm Beach, Fla. home
What Trump owes: Est. $11 million
Who is the creditor: Professional Bank
When it's due: June 1, 2048
Interest rate: 4.5%
The documents:
Trump took out a 30-year, $11.2 million mortgage from Professional Bank on May 16, 2018, the day he purchased an $18.5 million home near Mar-a-Lago from his sister Maryanne Trump Barry.
Trump National Golf Club, Colts Neck
What Trump owes: Est. $11 million
Who is the creditor: Amboy Bank
When it's due: Sometime in 2028
Interest rate: 5.25%
The documents:
Trump purchased a golf club in Colts Neck, New Jersey, for $28 million in 2008, borrowing $18 million from a local institution called Amboy Bank. In 2019, the club produced just $7.6 million of revenue, suggesting it's now worth about half of what Trump paid for it. Forbes estimates he still owes roughly $11 million on the property.
Trump Park Avenue
What Trump owes: Est. $10 million
Who is the creditor: Investors Savings Bank
When it's due: Sometime in 2020
Interest rate: 3.25%
The documents:
The president's financial disclosure report, which discloses assets and liabilities in broad ranges, lists the loan against Trump Park Avenue at $5 million to $25 million. Patrick Birney, who works in financial operations at the Trump Organization, said in February 2019 that the balance was just under $10 million. It's possible that the principal is lower today.
Trump National Golf Club, Washington, D.C.
What Trump owes: Est. $7 million
Who is the creditor: Chevy Chase Trust Holdings
When it's due: Sometime in 2029
Interest rate: 5.5%
The documents:
Trump took out a $10 million loan in 2009, when he bought a golf course near his future home for $13 million. Forbes estimates its principal outstanding is now more like $7 million. With a 5.5% interest rate, it's one of Trump's priciest loans.
Trump International Hotel & Tower (NYC)
What Trump owes: $6 million
Who is the creditor: Ladder Capital
When it's due: August 6, 2026
Interest rate: 4.05%
The documents:
Five months before he was elected president, Donald Trump refinanced the debt against this tower on the corner of New York City's Central Park.
Seven Springs
What Trump owes: $5-25 million
Who is the creditor: The Bryn Mawr Trust Company
When it's due: Sometime in 2029
Interest rate: 4.5%
The document:
At some point last year, while the president was in office, the Trump Organization reworked the loan against his New York estate. The maturity date moved from 2019 to 2029, and the interest rate jumped from 4% to 4.5%. It's unclear exactly how much the president still owes on the loan.
Follow me on Twitter or LinkedIn. Check out some of my other work here. Send me a secure tip.Dan Alexander
I am a senior editor at Forbes, as well as the author of White House, Inc.: How Donald Trump Turned the Presidency into a Business, released Sept. 22, 2020. I write about
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I am a senior editor at Forbes, as well as the author of White House, Inc.: How Donald Trump Turned the Presidency into a Business, released Sept. 22, 2020. I write about money in politics, with an emphasis on the businesses of Donald Trump and the people around him.
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No wonder Trump is desperately trying to distract us!
Why would he need to distract us from knowledge of perfectly ordinary and legal debt?
There is nothing ordinary about a billion in debt!
For someone like him, it probably is.
You understand that he owns skyscrapers, hotels, and golf courses, right? The Trump Organization is said to own some 500 businesses. Think about the mortgage on a home. Now extrapolate that to several tall buildings and some resorts. It would probably be weird if he didn't have several hundred million dollars in debt.
People and companies that make a lot of money also spend a lot of money. So they have a lot of debt.
Apple has over $109 Billion in total debt.
Walmart has over $58 Billion in total debt.
Amazon's debt is over $24 Billion.
Tesla has $13 Billion in debt. (And they get massive government subsidies)
So regular people might gape in horror at Trump's debt, but the rest of the corporate world is like "Hold my beer!"
Those companies don't control America's foreign policy.
All the corporations you cite have (very) healthy balance sheets. Trump is at best on a razor's edge and perhaps in virtual bankruptcy.
Yeeeesh!
Don't they, though?
So what I hear you saying is that context matters. I agree.
That sounds invented. "at best?" "perhaps?" "virtual?" That's a lot of vague qualifiers, without backing evidence, to justify alarm.
I would be glad to be more precise, but Trump has done everything possible to make his finances opaque. Refused to publish his tax returns, for example...
He's a crook.
Too bad there aren't debtor's prisons any more.
That's likely why Trump said that he would likely have to leave the country if Biden wins, as he knows he would be facing a lot of jail time if he is no longer the President. And that is why he is so desperate to win the election that he has a legion of lawyers on hand to try and prove the election is a fraud.
And BTW, who is going to pay for all those thousands of lawyers Trump says he has waiting to void the election, which means he will not accept the results of the election and will not leave the WH unless he wins.
Why is that too bad?
Do you have some information that he isn't paying his debts?
Actually you DON'T have debtor's prisons, you have Sec.11 and other bankruptcy proceedings instead. However, if the debts are secured against his hotels, buildings, and other assets I can understand why he would have to maintain payment on the debts, or lose what he owns.
Yes I know. You said that was too bad, which I still don't understand. Were you being ironic?
Exactly. He keeps his properties, which means he is managing his debt - i.e. paying it. Strangely, some people are bothered by it. Frankly, I don't think they know why. I hate to use the cliché, but it seems like another mindless "orange man bad" story.
Lots and lots of information and evidence...
Donald Trump’s Bankruptcies
USA TODAY exclusive: Hundreds allege Donald Trump doesn’t pay his bills
Donald Trump’s Business Plan Left a Trail of Unpaid Bills
TRUMP ACCUSED OF ROUTINELY STIFFING HIS OWN EMPLOYEES
Sure, businesses declare bankruptcy all the time. My point is Trump still owns his buildings, golf courses, and so on, so he seems to be doing ok for himself vis a vis his debts.
A person whose debts are greater than their assets is not "doing ok".
You might want to think about that. Many many many many people owe more on their house, car or business than those things are worth at the moment. That is true of anyone who gets a loan.
They can manage the situation because they have a stable revenue stream.
What's to think about that? The 'president' isn't a billionaire, he never was, he's in debt to the tune of 1 billion dollars. He's indebted to the Russians and god only knows who else. He's worthless in more ways than one.
His debts are coming due . . . no wonder the 'president' is becoming increasingly unhinged about the thought of losing the election and no wonder he's putting up all the road blocks to everyone voting.
Clearly Trump's businesses generate some kind of revenue - enough that he keeps getting loans.
That's one explanation.
"enough that he keeps getting loans"
Not anymore. No one else will loan the 'president' any more money.
He is down to 1 single bank to get loans from. If he loses the election, Putin will cut off that bank.
BANKS REFUSE TO LEND TO TRUMP, CITING “THE DONALD RISK”
American banks don't support Trump — voters soon won't either
Trump Deutsche Bank Loans Underwritten By Russian State-Owned Bank, Whistleblower Told FBI
Donald Trump has had no trouble getting big loans at competitive rates
Also, check this out:
So the fact that Trump has hundreds of millions of dollars in debt is not only old news, he wasn't even keeping it a secret.
Then where are his tax returns?
If you read and understood my previous post, you would know that this information is well known via the financial disclosure forms he filed. You don't need his tax returns for that information.
Then maybe you can explain how we came by all this information four years ago without them, hmmm?
Be careful what you wish for.
This is shocking! Who would have guessed that Trump was in the real estate business?
Shocking is everything he owns is worth half that...
Considering that Trump has run every business he's ever owned into the ground, why is he president?
That's obviously not true.
Enough people in the right places thought he was better than the alternative. Presidents are not elected after comparing them to all of humanity. They are compared to one person. It's really not a very high bar when you think about it.
215,000 of those people's relatives are regretting their choice.
Are they? I don't think I heard anyone saying Hillary should run again.
Your comment is nonsensical.
Which part was unclear? I have been talking about the 2016 election if that helps.
But we're talking about the 2020 election, if that helps.
Is it obvious? Clear as mud? Prove it!
I don't know who the "we" is that has been talking about the 2020 election. I responded to the question "why is he president?" in @4.2. The answer is that we had an election in 2016. That election was a choice between Trump and Hillary Clinton. Trump won the election.
Then it was suggested that people might regret that choice. Logically, that says to me they would want Hillary to be president now. Clearly they don't, so they don't really regret the choice. Biden is clearly seen as being a better choice than either one of them.
I wonder if Hillary will accuse voters of misogyny for that.
Whatever . . .
No, it's obviously true.
Mrs Clinton hasn't held public office for 8 years.
What she thinks is not irrelevant to this election, to Trump versus Biden...
You're right. I was mistaken. He actually lives under the freeway overpass, owns nothing, and just pretends to be rich. Incredibly, millions of people, along with real businesses, banks, and governments buy into his charade. It's amazing, isn't it. Totally broke guy somehow masquerading as a rich businessman. Whodathunkit?
/s
that was funny
You said a mouthful. Our choices in 2016 were pathetic
It seems to me that there are people in the world who would be genuinely good at the job but choose not to submit themselves to the horror of it all. So many people who actually seek the job are the kind of person you'd never want to turn your back on or don't have the first clue how to do the job well.
Yup. We need a national lottery and force people to run for POTUS
I'm only slightly kidding
Hey TG, weren't you speaking of Henry VIII before you went on vacay?
I believe I was. And this does describe trmp. Except for the second son part (he's the oldest son, isn't he?)
Fred Jr was the oldest son, butt Fred is...dead.
.
I stand corrected. For some dumb reason I was thinking Donald Trmp, Sr, was the Jr....never mind!
Obviously, no creditor is going to foreclose on a sitting President. What happens after the election?
I'm worried about what revengeful things he's going to do during his lame duck period, but I'm looking forward to the lawfuits and criminal charges waiting for him.
It could be a hell of a roller-coaster ride.
Chevy Chase Trust Holdings
He should stick to comedy. Loaning a con man money is not working out.😎
Knock...Knock...Knock...
Who is it?
Candy Gram.
Damn land sharks!
Those were my favorite bits.
Trump is broke arse. Been living on 'the float' for at least two decades. Most if not all of 'the float' from foreign sources. Trump has taken Bernie Madoff Ponzi schemes to levels never before seen in finance----with the exception of what Vladimir Putin has been able to pull off against the Russian people.
I am betting that he has been laying away stolen tax payer dollars in untraceable off shore accounts.
No. I think he's 'broke arse'. What ever he allegedly 'squirrelled' away has had liens on them for decades by the Russian oligarchs. And these guys get their pound of flesh one way or another. They don't care. Trump has played dangerous games with dangerous people. He is a fool.
Okay, which oligarchs, and which properties?
You are willing to lose money on something you have ZERO proof of?
I need another victory. SCREW YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I guess that is as good an answer as any when you just can't prove what you claim.
Which oligarchs, which properties again?
He is hiding the money from anyone he owes.
I just saw a clip of Trump speaking at one of his super spreaders, and he was opining about what to do if he loses to the worst politician on the planet (gag), and he suggested that he might have to leave the country. I believe Jim Carey actually predicted that Trump will schedule a good will trip to Russia during the last weeks of his presidency, and not come back. I see this as a very real possibility. Trump is pretty infamous for telling us his intentions in plain English.
It is not leaving the country. It is fleeing prosecution.
So he is twice as bad at business than I thought? lol