Before he became a controversial former president, Donald Trump was widely recognized for the wealth he gained in the real estate industry. But the story behind his billions is more intricate than it may appear. The Trump family’s journey into real estate success began with Trump’s father, Fred Trump.
Fred Trump entered the construction business during a significant era in American history — the time of President Franklin D. Roosevelt’s New Deal, which aimed to boost residential construction through accessible loans and government support. Fred Trump capitalized on these opportunities, accumulating substantial wealth.
One of his major achievements was securing a $26 million loan from the Federal Housing Administration (FHA) in 1949 to fund the construction of the Shore Haven and Beach Haven residential complexes in Brooklyn, New York.
What sets the Trump family’s story apart is their approach to transferring wealth strategically. Fred Trump employed clever methods to ensure the financial well-being of his children, including a young Donald. He acquired land through his corporation, set up trusts with his children as beneficiaries and endowed the land to these trusts. This created a consistent income stream for his offspring while effectively navigating around hefty gift taxes.
Fred acquired Steeplechase Park in Coney Island on July 1, 1965, for $2.3 million with the plan to develop luxury apartments.
