Trump: How to Get Rich

There was drama, however—especially when Steve Wynn got involved. It became a competition of heavy hitters, and I loved every minute of it. I’ll bet Steve did, too. To this day, we are good friends.

Interestingly enough, we are now both fodder for an HBO movie in development about Atlantic City. I got a copy of the script and it takes plenty of shots at me and Steve. It is highly inaccurate.

Steve, in essence, provided a catalyst for both the Hiltons and myself to get what we wanted. Was Steve the loser? No. I got the property I wanted, but Steve is thriving. The battle for the property enlarged his reputation and probably helped him move on to even bigger deals.

If the HBO movie ever makes it to the small screen, don’t believe what you see. You’ll get a better view of reality from other TV shows on the air. In a good negotiation, all sides win.

Let Your Guard Down, but Only on Purpose

Offer a calculated nugget of information, or a provocative opinion, to see what the reaction is.

If you say something seemingly off the cuff, you may get a revealing response. I might make an outrageous comment in a meeting just to see whether the other people play along or take a stand and disagree. It’s a good way of assessing the mettle of the folks across the table. Do they want to be liked? Are they comfortable with unpredictability? Are they capable of candor?

Know that your negotiating partner might bluff, too. But when it comes to serious endeavors, you don’t want bluffers of any sort. Study the person’s history.

I’m always surprised when newcomers to the real estate industry think that talking big and fast will get them somewhere with me. Construction of a big building is painstaking work and that’s the kind of person I want doing it—someone who will take the time to do it right. I don’t want people who think they can get it done in record time. That can spell disaster.

I remember one contractor who tried every angle to convince me how fast he was. His time estimates were so far off that I couldn’t take him seriously, but I let him keep trying to pitch me just to find out how full of it he really was. He must have thought he caught me on a bad day or with my guard down, but my guard wasn’t down—I was just incredulous. Finally, I told the guy that what he was saying was exactly what I never wanted to hear. He was the first person whose bid was ruled out.

Being Stubborn Is Often an Asset

My first big deal, in 1974, involved the old Commodore Hotel site near Grand Central Station on Forty-second Street in New York City. The hotel was vacant, except for a sleazy club called Plato’s Retreat and some rundown street-level stores.

The land was owned by the Penn Central Railroad, which was bankrupt and owed New York City $15 million in back taxes that the city desperately needed. The city was about to default on its bonds, and banks would not consider real estate loans in Manhattan.

My idea was to transform the Commodore into a state-of-the-art hotel. I had a six-point plan:

1. Buy the land from the railroad.

2. Induce the railroad to use the purchase price to pay the City of New York the back taxes it owed.

3. Convince a New York State agency with the power of eminent domain to accept a deed to the land to condemn all existing leases.

4. Persuade the city to accept a fixed rental and a share of the profits in lieu of taxes.

5. Find a big hotel operator to join me in the project, since I had no hotel experience.

6. Convince a bank to loan me $80 million to build the hotel.

When I first told my lawyer, George Ross, of my plans, he told me I was crazy to attempt something so bold in such a bad economic environment. I told him I was determined to get it done. He agreed to help.

For two years, I stuck to my guns. Eventually, it paid off.

The railroad sold me the land for $12 million and used the money to pay the city its back taxes.

The Urban Development Corporation accepted the deed to the land and agreed to condemn all existing leases, provided I would pay all damages to the displaced tenants.

The city agreed to the lease from UDC with a fixed rent and a share of the profits.

Hyatt became my partner in the deal and funded half of it.

I got a loan from the Bowery Savings Bank to cover the cost of acquisition and construction.

The hotel became the Grand Hyatt.

The fact that I was stubborn and had achieved a result others deemed impossible jump-started my career as a developer.

Be Patient

I like to move quickly, but if a situation requires patience, I will be patient. The speed depends on the circumstances, and I keep my objective in mind at all times. This alone can be a patience pill. I’ve spent from five minutes to fifteen years waiting for a deal.