# How did Trump make money from failed businesses? **URL:** \ **Category:** Factual Questions\ **Tags:** trump\ **Created:** [November 18, 2025, 5:17pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960 "2025-11-18T17:17:50Z")\ **Posts on this page:** 18\ **Page:** 2
**Author:** ![DMC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dmc/32/18049_2.png) [@DMC](https://boards.straightdope.com/u/DMC)\ **Post date:** [November 21, 2025, 12:14am UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/21 "2025-11-21T00:14:58Z")
> [@Saint\_Cad](#): > > Gotta be honest, sounds like the same strategy a lot of today’s home building companies use, except they do it at a smaller scale. Do you have links showing a lot home building companies stiffing their contractors? I was in an adjacent industry at one point and don’t remember that being at all commonplace, but would be interested in learning more. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [November 21, 2025, 12:22am UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/22 "2025-11-21T00:22:23Z")
I think he was referring to the practice of using lowest-quality materials. ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 21, 2025, 12:51am UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/23 "2025-11-21T00:51:50Z")
> [@DMC](#): > > Do you have links showing a lot home building companies stiffing their contractors? I was referring to building with the cheapest materials around for a huge profit margin. ---
**Author:** ![DMC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dmc/32/18049_2.png) [@DMC](https://boards.straightdope.com/u/DMC)\ **Post date:** [November 21, 2025, 1:24am UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/24 "2025-11-21T01:24:11Z")
> [@Saint\_Cad](#): > > I was referring to building with the cheapest materials around for a huge profit margin. Can you point me to examples that show this to be a widespread phenomenon? The building materials and construction have to at least meet code, and the finish levels are typically predetermined based on the types of consumers they are targeting. That’s on pre-built homes. On custom builds, the process is insanely transparent and I’m going through it right now. There is a base level for all finishes that is negotiated at the start and built into the price. You are free to pick from a wide range of things within that level. Each custom item or design that exceeds that level has an up-charge that is approved by the buyer on an individual basis. I’m not saying that Trump was the first, last, and only fraudulent builder, just that I don’t believe it’s quite as common as you are making it out to be. ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 21, 2025, 2:00pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/25 "2025-11-21T14:00:33Z")
> [@DMC](#): > > Can you point me to examples that show this to be a widespread phenomenon? My house. Here is the flooring that is peeling. Plaster coming off. Bathroom floor not level. Now let’s head into the kitchen … > [@DMC](#): > > The building materials and construction have to at least meet code, Care to point me to how meeting the bare minimum code indicates quality and not just that the house will hopefully not collapse on you. ---
**Author:** ![DMC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dmc/32/18049_2.png) [@DMC](https://boards.straightdope.com/u/DMC)\ **Post date:** [November 21, 2025, 2:21pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/26 "2025-11-21T14:21:06Z")
> [@Saint\_Cad](#): > > My house. Here is the flooring that is peeling. Plaster coming off. Bathroom floor not level. Now let’s head into the kitchen … So your house represents a widespread phenomenon? > [@Saint\_Cad](#): > > Care to point me to how meeting the bare minimum code indicates quality and not just that the house will hopefully not collapse on you. Most home builders are going to use either #2 or better 2x4s and you haven’t actually brought the cites to back you up. I’m not sure a luxury home owner actually cares (or knows) whether #2, #1, or SS are used, but if they do the builder will certainly accommodate them. As for the flooring peeling, flooring is typically based on chosen finish level. The customer can select cheap as stick-on vinyl, LVP, hardwood, or even Rosa Aurora marble if they wish to really go all out. Or, as in my case on one of the existing buildings, the previous owner replaced the original flooring with a shit DIY job that wasn’t even glued down properly, but we’re talking about new builds here. I’m currently being schooled by my builder on the slope ratio of the drain lines being installed and can see every sheet of plywood, the studs, and the brand of plumbing glue that is being used. Again, do you have any actual data to support the claim that a lot of home building companies are behaving in the manner described? ---
**Author:** ![griffin1977](https://avatars.discourse-cdn.com/v4/letter/g/977dab/32.png) [@griffin1977](https://boards.straightdope.com/u/griffin1977)\ **Post date:** [November 21, 2025, 2:37pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/27 "2025-11-21T14:37:50Z")
> [@DMC](#): > > So your house represents a widespread phenomenon I mean it’s a meme (in Britiain at least, I don’t think “new build” has the same connotations in the US, I’ve even heard of people who won’t buy a “used” home as if it was a piece of clothing or furniture someone else had used) > There are countless Facebook groups such as Taylor Wimpey – Unhappy Customers, DO NOT BUY a Persimmon Home and David Wilson Homes Hell, where buyers share their horror stories. They are full of tragic tales of families who saved for years for their dream homes, only to move in and be greeted with gruesome evidence of bodging, corner-cutting and dangerously shoddy construction. The plague has even spawned dedicated social media accounts, including Newbuild Hate (131k followers), showcasing bleak worlds of windowless facades, misaligned balconies and rows of prison-like gardens. > **[Cracked tiles, wonky gutters, leaning walls – why are Britain’s new houses so...](https://www.theguardian.com/lifeandstyle/2023/oct/21/cracked-tiles-wonky-gutters-leaning-walls-why-are-britains-new-houses-so-rubbish)** > > Buying a brand new property these days is often less of a dream home, more a living nightmare. With housebuilders – and their shareholders – making huge profits, how come so many new builds aren’t up to scratch? ---
**Author:** ![Moriarty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/moriarty/32/49_2.png) [@Moriarty](https://boards.straightdope.com/u/Moriarty)\ **Post date:** [November 21, 2025, 2:47pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/28 "2025-11-21T14:47:28Z")
> [@Ancient\_Nerd](#): > > It got to the point where no bank or anyone else would loan him anything. No _Western_ bank. Thats when he turned to Russian financing. > **[Eric Trump in 2014: ‘We have all the funding we need out of Russia’](https://thehill.com/homenews/news/332270-eric-trump-in-2014-we-dont-rely-on-american-banks-we-have-all-the-funding-we/amp/)** > > President Trump’s son, Eric, once told a golf writer that funding for Trump golf courses come from Russia, that writer recounted in a new interview.James Dodson during an interview Friday … ---
**Author:** ![DMC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dmc/32/18049_2.png) [@DMC](https://boards.straightdope.com/u/DMC)\ **Post date:** [November 21, 2025, 3:09pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/29 "2025-11-21T15:09:56Z")
> [@griffin1977](#): > > I mean it’s a meme… Quote snipped by me. I’m aware of the meme, but since it was a claim made in Factual Questions, even if not a direct answer to the OP, should be able to be backed up with sources. It might be a Florida thing (although with how shitty our government is, I’d be surprised), but the process I’m going through has required a level of construction that far exceeds what I think of as shoddy. Our builder has done excellent work, but mistakes are still made. One of our drain lines had a tiny leak but only when fully pressurized, which doesn’t typically occur under normal use. Still failed inspection and that section had to be completely redone. Is there some code inspector who takes bribes under the table for overlooking shoddy work from some disreputable builder somewhere? Probably so. Do I think that’s common? Not without some proof. This is off-topic, but so was the claim I take issue with. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [November 21, 2025, 3:31pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/30 "2025-11-21T15:31:10Z")
There is the term “contractor grade” or “builder grade” for lower-end appliances. And regarding him cheapening out on the finishes, I do expect that those buying multi-million dollar condos at Trump Tower are probably going to finish the space to their needs. I think the term there is “white box”. But the common spaces should be higher end. ---
**Author:** ![DMC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dmc/32/18049_2.png) [@DMC](https://boards.straightdope.com/u/DMC)\ **Post date:** [November 21, 2025, 4:42pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/31 "2025-11-21T16:42:14Z")
> [@Dewey\_Finn](#): > > There is the term “contractor grade” or “builder grade” for lower-end appliances. Sure, but that’s not what what I’ve seen in every move-in ready new luxury home. Even in mid-range homes, it’s typically mid-range appliances. It’s actually not easy to find that many examples as most builders prefer to let the buyer pick the finishing touches, but here is a local example of the first mid-range home I could find that was move-in ready. Mid-range in every way, but nothing appears to be cheap. That price is also on the lower end per square foot in the area and probably falls into standard/builder grade. $280 and up is where the nicer finishes start appearing and $400 is probably the entry point for luxury homes. [https://www.newhomesource.com/specdetail/11828-mile-marsh-dr-riverview-fl-33569/2985204](https://www.newhomesource.com/specdetail/11828-mile-marsh-dr-riverview-fl-33569/2985204) This is what the entry point of luxury looks like in Sarasota at just over $400 a sq foot. [https://www.newhomesource.com/plan/grand-cayman-medallion-home-sarasota-fl/3565845](https://www.newhomesource.com/plan/grand-cayman-medallion-home-sarasota-fl/3565845) Here’s everything in the area and I don’t really see anything where the construction, cabinetry, appliances, etc. seem to be cheap for the price. [https://www.newhomesource.com/communities/fl/tampa-st.-petersburg-area/tampa?availability=now](https://www.newhomesource.com/communities/fl/tampa-st.-petersburg-area/tampa?availability=now) ---
**Author:** ![md-2000](https://avatars.discourse-cdn.com/v4/letter/m/9d8465/32.png) [@md-2000](https://boards.straightdope.com/u/md-2000)\ **Post date:** [November 21, 2025, 7:07pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/32 "2025-11-21T19:07:49Z")
> [@DMC](#): > > It might be a Florida thing (although with how shitty our government is, I’d be surprised), but the process I’m going through has required a level of construction that far exceeds what I think of as shoddy. I recall an article years ago on the lessons of Andrew (the hurricane, not the ex-prince). So many (newer) houses had their roofs blown completely off that the government found it necessary to double down on standards and building inspections. So instead of roofs being held on with gravity and a few nails, they had to have hurricane anchors (metal strips) tying the trusses to the walls. More than a few nails per sheet of plywood, etc. Higher standards all around. Whether that’s still enforced, I don’t know, but it’s telling that recent events have not resulted in massive building failures (unless you count high waves). There’s a bit in that same Netflix documentary I watched about Trump where one contractor relates being persuaded to do the work to fix up that skating rink in Central Park. He was told he would be sharing the limelight, but when the big news conference came, it was all Trump and no mention of his company that did a lot of the construction work. His comment was along the lines of “He did it to us again.” ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [November 21, 2025, 7:22pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/33 "2025-11-21T19:22:13Z")
> [@Lucas\_Jackson](#): > > > [@Dewey\_Finn](#): > > > > What I’m wondering is why any general contractor or attorney, or anyone else agrees to work on one of his projects. > > I’m guessing they are Republican companies who believe in him And specifically with the East Wing work, probably never expecting that it would happen with a _government_ project. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [November 21, 2025, 7:25pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/34 "2025-11-21T19:25:34Z")
That’s the thing; shouldn’t the ballroom construction be managed through the General Service Administration thus avoiding all of Trump’s usual scams? ---
**Author:** ![Moriarty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/moriarty/32/49_2.png) [@Moriarty](https://boards.straightdope.com/u/Moriarty)\ **Post date:** [November 21, 2025, 8:16pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/35 "2025-11-21T20:16:09Z")
Before Trump was elected, I had lunch with a group of airplane mechanics who were name dropping the rich and famous (who, not surprisingly, often fly private planes).. Anyway, after mentioning Bruce Springsteen (“really down to earth”), Jennifer Lopez (“wouldn’t let you look her in the eye”), Michael Jackson (“drank wine from a Coke can”), Justin Beiber (“tried to smoke weed mid flight”), and a few others, they eventually got around to discussing Trump, whose plane they had worked on. Now, it’s useful to know that planes have to undergo regular inspections. During these tune ups, mechanics might identify repairs that are needed. Once they do, those repairs are **mandatory** before the plane is deemed airworthy. You have to do the repairs if you want to fly again. The story was that after sending in an invoice for repairs (which would have been in the tens, if not hundreds, of thousands of dollars), Trump returned it with half the items crossed out, along with a threat to sue. Trump never paid for the work that was done. Donald Trump **always** stiffed his creditors. He was **notorious** for that. ---
**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\ **Post date:** [November 21, 2025, 8:20pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/36 "2025-11-21T20:20:55Z")
> [@Moriarty](#): > > No _Western_ bank. > > Thats when he turned to Russian financing. It’s worth remembering that after US banks cut him off, he found a temporary angel in **[Germany](https://www.worldfinance.com/strategy/deutsche-bank-loaned-trump-2bn-despite-multiple-red-flags-new-report-claims)** (it didn’t go well for them). _Then_ he ended up in Russia. Which is probably why he’s Putin’s puppet: Vlad has him by the financial short hairs. ---
**Author:** ![Moriarty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/moriarty/32/49_2.png) [@Moriarty](https://boards.straightdope.com/u/Moriarty)\ **Post date:** [November 21, 2025, 8:29pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/37 "2025-11-21T20:29:32Z")
> [@Cervaise](#): > > It’s worth remembering that after US banks cut him off, he found a temporary angel in **[Germany](https://www.worldfinance.com/strategy/deutsche-bank-loaned-trump-2bn-despite-multiple-red-flags-new-report-claims)** (it didn’t go well for them). _Then_ he ended up in Russia. Deutsche Bank, though, was the vehicle by which a lot of Russian money was laundered. > **[Bank that lent $300m to Trump linked to Russian money laundering scam](https://www.theguardian.com/world/2017/mar/21/deutsche-bank-that-lent-300m-to-trump-linked-to-russian-money-laundering-scam)** > > Deutsche Bank among western institutions that processed billions of dollars in cash of ‘criminal origin’ through Latvia ---
**Author:** ![Moriarty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/moriarty/32/49_2.png) [@Moriarty](https://boards.straightdope.com/u/Moriarty)\ **Post date:** [November 21, 2025, 8:35pm UTC](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960/38 "2025-11-21T20:35:25Z")
Another way Trump made money, back in the day, was by getting bailouts from his father. > [@](#): > > At the end of 1990, when Mr. Trump was facing an $18.4 million interest payment, his father sent a lawyer to the Castle casino to buy $3.3 million in chips and leave without cashing them, providing his son with an infusion of cash. > > As BuzzFeed’s Andrew Kaczynski [reported in 2015](https://www.buzzfeed.com/andrewkaczynski/you-can-rely-on-the-old-mans-money?utm_term=.cg5wXkYPK#.rpKYogpPX), that “loan” prompted an investigation from the Division of Gaming Enforcement, who “ultimately found the loan to be illegal. In the end, Trump got to keep the money but had to pay a $30,000 fine.” > > > “Sweeney said Fred Trump also agreed to apply for a license as a financial source, which would make another such loan possible in June, when the next interest payment is due,” a Philadelphia Inquirer [story](http://articles.philly.com/1991-04-09/news/25780577_1_casino-control-act-donald-trump-casino-owners) from the time read. > > > > Fred Trump would make further payments to his son, and Donald Trump ultimately settled his debts. > **[Fred Trump illegally used millions in casino chips to keep debt-ridden Donald...](https://americanjournalnews.com/fred-trump-illegally-used-millions-in-casino-chips-to-keep-debt-ridden-donald-afloat/)** > > Donald Trump is not the wildly successful businessman he has portrayed himself to be. And following his devastatingly bad business decisions in the 1980s [Previous page](https://boards.straightdope.com/t/how-did-trump-make-money-from-failed-businesses/1024960.md?page=1)