How did the Trump Empire rise in the real estate industry?

In fact, the rise of Trump's Trump real estate empire has experienced many challenges, not only because his father paved the way for him, but also because he dared to try. Innovative management is also a good example for many real estate companies. The first project that Trump Empire took over was Hyatt Regency new york.

At that time, the hotel that Trump planned to take over continued to lose money for many years due to poor management. Its internal facilities are in disrepair for a long time, the surrounding environment is harsh, and municipal taxes and fees are in arrears for many years, and even banks are reluctant to lend. This is a hot potato that everyone sees. At this time, the Pennsylvania Central Railway Company, which owns the property right, was eager to ease the financial difficulties and tide over the crisis because of the bankruptcy crisis.

So at that time, all real estate developers in new york, big or small, regarded Komodo Hotel as a garbage project. In this case, two young people of the Trump family won the question.

Among all the doubts, Trump realized the perfect location of the railway station and subway hub connecting new york and Connecticut, and the continuous flow of people in the business district, and decided to transform it with this hot potato.

He believes that the key is to consider the following questions:

First, no bank is willing to provide loans for a project with no future in the industry.

Second, decades of tax arrears are enough to make any investment end in loss.

Third, the backward facilities in Comodo need to be rebuilt, which further increases the investment cost.

At that time, Trump did not own the hotel industry. His father is a real estate developer. The future operation of the hotel needs to be solved urgently. Almost impossible to start. People in the real estate industry in new york are ready to see what will happen to this old Trump kid. After some preparation, Trump decided to start with the issue of taxes and fees, and applied to the municipal authorities to reduce the huge tax arrears based on social negative problems such as unemployment caused by bankruptcy and railway traffic paralysis.

After a series of arduous negotiations, the municipal authorities finally agreed to reduce the 40-year tax arrears and reached an agreement to replace taxes with rents and profits in the future. This is actually the recognition of them by the municipal authorities.

With the city government's tax reduction and tax substitution, Trump was confident and applied for loans from two banks in the hotel area. On the contrary, the two banks in the hotel area finally agreed to lend money because they didn't want their area to decrease.

On the other hand, Trump is in no hurry to complete the transaction. His negotiation strategy made Pennsylvania Railroad think that he was the only buyer, forcing Pennsylvania Railroad to make more concessions and more room for operation in the process of "Comodo Hotel".

Finally, after the transaction was completed, Trump recovered some funds from the original household equipment auction, invited the high-end hotel brand Hyatt to conduct traffic management, and agreed that Hyatt would not build a second hotel in new york.

Finally, new york Hyatt opened a successful high-end brand.

Although everyone has doubts, the young Trump has since won a reputation in the real estate industry in new york, which proves the correctness of his ideas in this era of corporate depression. His Trump real estate is also famous in the industry, and the "Trump Empire" has also risen in the real estate industry.