“The Trump Name Is Worthless” – Trump’s Property Valuations Analyzed by Real Estate Developer

Gabriel RomanNov 29, 2023

Minute Read

In the labyrinth of legal proceedings involving former President Donald Trump, some have questioned the valuation of his properties. This debate is central to a lawsuit spearheaded by New York Attorney General Letitia James. It involves the analysis of the alleged inflation of property values within the Trump Organization.

The Trump Effect on Property Values

Terrence Wall, a prominent Wisconsin real estate developer, supports the notion that Trump’s presidency in 2016 strengthened the value of his properties. Wall’s perspective aligns with Trump’s defense in the New York fraud trial. They are claiming there has been a natural appreciation in value due to Trump’s elevated status.

Legal Challenges Against Trump

In 2021, New York Attorney General Letitia James filed a $250 million lawsuit against Trump, his organization, and his two eldest sons. The lawsuit accuses them of inflating the value of Trump’s assets. This is an allegation that Trump and his sons deny, dismissing it as a politically motivated attack.

Valuation Insights from Terrence Wall

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Wall strongly believes this brand factor elevates Trump’s properties’ worth by a notable margin. He claims that “the Trump brand” would have added at least “20 percent or more” in value. This statement demonstrates his conviction about the unique influence of Trump’s brand on real estate valuation.

Discrepancies in Mar-a-Lago’s Valuation

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Wall presents a strikingly different valuation of Mar-a-Lago, Trump’s opulent Palm Beach resort. While Trump’s estimation soared to $612 million, the court’s valuation stood at a mere $18 million. Wall’s figures highlight a substantial discrepancy and also call into question the methodologies employed by the court in property appraisal.

The Role of External Valuations

Emphasizing the difference in valuations, Wall notes that external evaluations place Mar-a-Lago’s worth significantly above the court’s estimate yet still below Trump’s figure. Wall finds this disparity intriguing. He suggested “the city assessment on Mar-a-Lago was $30 million, and even Zillow says it was worth $24 million.”

Comparative Property Analysis

Wall spoke about other properties in Palm Beach, using the local real estate market as a benchmark. He points out that luxury condos in the vicinity imply a land value for Mar-a-Lago far exceeding the court’s appraisal. This method of analysis, grounded in market realities, suggests that Mar-a-Lago’s land value could be astronomically higher, potentially in the billions.

Calculating Mar-a-Lago’s Potential Worth

Wall estimates, “At 875 units times the land value per unit […] the land would be worth $4.375 Billion to $17.5 Billion.” This theoretical projection contrasts with both the courts’ and Trump’s assessments. This inconsistency clearly underscores the complexities in real estate valuation, especially in a high-stakes case.

Overlooking the ‘Trump Brand’ Factor

Wall criticized the New York court for their apparent oversight of the ‘Trump brand’ in their valuation. He claims that Trump’s globally recognized brand adds substantial value to his properties. He believes this factor was unjustly ignored in the court’s assessment, arguing for a more holistic approach to property valuation.

The Historic Value of Trump’s Properties

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Wall argues that, following his presidency, Trump’s properties should be classified as ‘historic.’ He believes this status justifies an additional valuation increase of 20%. He claims this reflects the unique historical significance imbued in these properties due to Trump’s political ascendancy and the global prominence of the Trump brand.

Public Perception of the Trump Brand

The public’s view on the value of the Trump brand is divided. While some see it as significantly diminished post-presidency, with a critic bluntly stating, “I would argue that the Trump name is worthless after his shenanigans,” others might still see clear worth in the brand. This split opinion reflects the polarizing effect of Trump’s political and business actions.

Allegations of Supporter Bias

Critics level accusations of partiality against Terrence Wall and similar Trump advocates. Their support for Trump’s property valuations is seen as possibly clouded by loyalty, leading one user to remark, “Another supporter lying for the Donald.” This comment suggests a belief that personal biases are influencing what should be objective financial assessments.

The Relevance of Past Valuations

The debate extends to the historical accuracy of Trump’s property valuations. Critics argue, “What Trump’s properties are worth NOW has no effect on what he CLAIMED they were worth then.” This stresses the significance of truthful representation in past valuations, especially in legal and financial contexts.

The IRS and Tax Implications

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Comments jokingly proposed the defunding of the IRS, a jab at the perceived manipulation of tax laws by the wealthy. “Yes, let’s defund the IRS so more people like Trumpty Dumpty can profit from the American taxpayers,” said one user. This sarcasm underscores the frustration over how property valuations can be exploited for tax benefits.

Property Deed Restrictions

One critic pointed out, “Trump owns that property with deed restrictions that require the club to operate as a private club, and it is not allowed to be broken up or used as private residences.” This observation suggests that such restrictions should be a key factor in valuation. They believe this impacts the property’s market worth.

The Debate Over True Property Value

The consensus among critics is that a property’s value lies in what a buyer is willing to pay, not the owner’s claim. “The true value of assets, including real estate, isn’t really worth what the owner believes it is worth,” one comment reads. This challenges the often-inflated valuations provided by property owners like Trump.

Overlooking Operational Restrictions

Critics note the omission of operational restrictions in property valuations, significantly affecting their real value. “As usual for a Trumper, he failed to consider the agreement that the property can never be used for private residence,” said one user. This stresses the importance of these restrictions in determining a property’s market value.

Banks and Loan Approvals

Some users questioned banks’ scrutiny, or lack thereof, in verifying property valuations for loans. One skeptic remarks, “Paid back everything he borrowed. The banks never checked up any of this either, I guess, for decades and decades.” This skepticism suggests an apparent negligence by financial institutions in adequately checking property claims.

Exaggerations in Property Descriptions

Critics also point out Trump’s alleged tendency to exaggerate property features for financial gain. One commenter said, “Donald Trump said that his condo in NY was 30K sqft when it is actually 11K sqft. He also says that Mar A Lago is worth $1.8 billion.” This demonstrates the gap between Trump’s representations and reality.