Donald Trump acquired a property for $8 million, including a $2 million beachfront house previously owned by Jack Massey, co-founder of Hospital Corporation of America and former owner of KFC. The deal was facilitated by a $500k cash payment from JP Morgan and a $1.5 million mortgage underwritten by Massey, reportedly as a favor to Fred Trump. Despite the transaction's controversy, the bank involved stated in court that it had conducted its own evaluation of the property, negotiated the interest rate satisfactorily, and would undertake a similar transaction again. This comes amid discussions on the common practice in real estate of developers overstating property values to secure loans, a practice for which Trump is reportedly being fined half a billion dollars. Critics argue this reflects a double standard and points to a broader issue of appraisal bias in the industry.
In real estate, the developers often overstate the value of their building to get loan from bank. Banks then do their due diligence before lending. This is standard practice. Every developer does this. And they are fining Trump half a billion dollars for this! Thieves!
In real estate, the developers often overstate the value of their building to get loan from bank. Banks then do their due diligence before lending. This is standard practice. Every developer does this. And they are fining Trump half a billion dollars for this! Thugs.
So lenders do hire appraisers when borrowers want to buy/borrow against their homes? Interesting. A conspiracy by appraisers to overvalue Trump's properties in NY and to undervalue minorities properties. Appraisal bias should be Trump defense. 🤣🤣🤣 https://t.co/54iKhqQI6c
And yet the bank told the court it did its own evaluation of the property that served as collateral, negotiated the interest rate, and was happy with the transaction and would do it again. The disinfo comes from fanatical Trump haters who don’t understand commercial real estate. https://t.co/vSw8fEHc4Y
Trump got it for $8 mm plus the $2 mm beachfront house that he bought from Jack Massey who owned KFC &cofounded Hospital Corporation of America. Jack was in poor health. Sold it to Don as a favor to Fred Trump for $500k cash JP Morgan provided& $1.5mm mortgage Massey underwrote. https://t.co/P70dysRHbG