Quick Summary
The book "Dealing: A Week in the Life" offers an intimate look into the author's high-stakes world of real estate and business. It chronicles a fast-paced week of negotiations, project oversight, and strategic decision-making, driven by the thrill of the deal rather than mere profit. The author details his aggressive, instinct-driven approach to acquiring properties like the Grand Hyatt and Trump Tower, emphasizing "thinking big" and securing every advantage. He shares philosophies on leverage, marketing, cost control, and fighting back against opposition. The narrative also delves into his formative years, early successes, and major projects, including the Wollman Rink's rapid reconstruction and the challenging West Side yards development, portraying deal-making as a personal art form.
Key Ideas
Deal-making is an art form driven by instinct, not just formal education.
"Thinking big" and focusing on monumental goals are crucial for success.
Effective negotiation relies on identifying and maximizing leverage.
Protecting the downside and anticipating worst-case scenarios are vital for risk management.
Persistence, strategic use of the media, and a willingness to fight back are key to overcoming obstacles.
A Week in Deal-Making
The author pursues deals for the excitement, viewing it as his art form. He prefers an unstructured style, focusing on rapid-fire calls and spontaneous meetings. His week involves monitoring investments, providing political advice, managing projects like the Wollman Rink, and discussing various opportunities from hotels to urban developments, always prioritizing the present.
He describes deal-making as his art form and notes that he prefers a loose, unstructured working style without the constraints of a briefcase or a rigid schedule.
The Elements of a Deal
Deal-making is an innate ability driven by instinct, not education. The author advocates thinking big, aiming for monumental goals. He emphasizes protecting the downside in every deal, believing that if the worst-case scenario is covered, the upside follows. True success comes from focus, single-mindedness, and challenging the status quo, using negative thinking as business conservatism.
He outlines his primary strategy as thinking big, explaining that since people are going to think anyway, they should aim for monumental goals rather than small achievements.
Negotiation Strategies and Principles
The author stresses flexibility and keeping many projects active due to high failure rates. He values natural instinct for market desires over formal data. Leverage is crucial, using what the other party needs. Enhancing location through marketing and branding creates prestige. He uses the press for excitement, employing "truthful hyperbole." He believes in fighting back forcefully when treated unfairly and ensuring quality product delivery while containing costs. Finally, he emphasizes having fun and enjoying the game of deals.
He explains his use of truthful hyperbole, which he describes as an effective form of promotion that plays to the public’s desire to believe in the spectacular and the greatest.
Early Life and Business Beginnings
The author credits his father, Fred Trump, for teaching him toughness and hard work. After graduating from Wharton, he found his father's outer-borough housing business too limited. His first major independent deal was turning around Swifton Village in Ohio, which he sold for a significant profit. He moved to Manhattan in 1971, networking and meeting attorney Roy Cohn, who reinforced his approach to fighting disputes.
Key Real Estate Projects: Hotels and Towers
He identified the failing Commodore Hotel as an opportunity, partnering with Hyatt and securing unprecedented tax abatements through shrewd negotiation and leverage. This became the successful Grand Hyatt. He then acquired the Bonwit Teller building for Trump Tower, navigating complex land leases, air rights, and city planning opposition. He used demolition controversy for publicity and targeted ultra-wealthy buyers, resulting in a landmark.
Ventures in Gaming and Sports
His interest in casinos led him to Atlantic City, where he strategically acquired land, secured a gaming license, and partnered with Holiday Inns to open Trump Plaza. He later acquired Hilton's Atlantic City facility, renaming it Trump's Castle, and placed his wife, Ivana, in charge. He also bought the New Jersey Generals in the USFL, advocating for a move to the fall and an antitrust lawsuit against the NFL, a venture that ultimately saw the league collapse.
Major Urban Development Challenges
He purchased 100 Central Park South and the Barbizon-Plaza, facing tenacious rent-controlled tenants. He pivoted to renovating the Barbizon-Plaza into Trump Parc, a profitable success. Frustrated with the city’s failure, he took over and completed Wollman Rink under budget and ahead of schedule. He re-acquired the West Side yards for "Television City," a massive mixed-use development with the world's tallest building, navigating political gridlock.
Reflections and Future Endeavors
Following various deals, including profitable investments in Bally Manufacturing and acquiring Resorts International for the Taj Mahal, he also successfully paid off Annabel Hill's farm mortgage. He withdrew from an Australian casino bid and secured a private Boeing 727. Looking ahead, he expressed a desire to apply his skills in overcoming obstacles and motivating people to philanthropic efforts.
Frequently Asked Questions
What is the author's primary motivation for making deals?
The author is driven by the excitement of the deal itself, viewing it as his personal art form. He seeks the thrill of the process rather than purely financial gain, as he already possesses ample wealth.
What is the "thinking big" strategy discussed in the book?
The "thinking big" strategy suggests that since people are going to think anyway, they should aim for monumental goals. This approach allows him to outmaneuver competitors by focusing on grand achievements rather than small ones.
How does the author typically approach potential risks in his ventures?
The author employs "negative thinking" as a form of business conservatism, anticipating worst-case scenarios to ensure survival. He focuses on protecting the downside in every deal, believing the upside will naturally follow.
What role did the author's father play in his business development?
His father, Fred Trump, was his most significant influence, teaching him toughness, competence, and hard work. While learning construction and negotiation from him, the author sought a more glamorous and ambitious stage in Manhattan.
How did the author handle public relations and media attention for his projects?
The author views the press as a vital tool for generating excitement. He believes that being bold or controversial naturally attracts media coverage, which he finds more effective and credible than paid advertising, often using "truthful hyperbole."