I see many posts on FR saying inflated asset values on a mortgage application is no big deal. that is wrong. It’s illegal to knowing lie about asset values on the application. That said, I dont think Trump lied on those applications so it likely comes down to an opinion about what the value is. Nothing illegal about that.
The Trump Organization claimed a real estate empire worth $6.7 billion in 2014.
James claims she has hard evidence the combined value did not exceed $4.5 billion.
She’s nuts.......
The value of real estate changes constantly.....from day to day.
Most listings are priced higher to leave “dickering room.”
See my prior post on this thread. This is way beyond “mortgage applications.” These are complex commercial loans where lenders have a fiduciary duty to scrutinize loan applications closely.
Brands have intrinsic value. A men’s golf shirt with the Ralph Lauren or Tiger Woods logo on it sells for a premium over the same shirt with no logo.
Trump worked decades to build and promote the Trump brand. Many of his real estate properties realized higher sales or rental prices because they had the Trump name on the building. How much is the Trump “premium” on the value of a building. It is a subjective assessment. Before he ran for president his brand was probably worth more than it does today since so many liberals hate him today.
The changing value of brands has recently been demonstrated with the collapse of Bud Light.
So Trump essentially stated his brand was worth $2 billion more than some other “authority”. Who is to say he is right or wrong. That’s why when properties sell banks require an independent appraisal of the value of the property, before they issue a loan.
Recently I’ve seen asking prices of houses in my area dropping. Should the DA prosecute for fraud everyone who lists a house and then several weeks or months later drops the price to move the property?
It is not uncommon for developers and individuals to pay more than market price to secure a particular property. The reality is, the market price for a property is the price a willing buyer and seller will agree to on a particular day.