Starting a real estate coporation - BONDS, Financing etc. Help?

**adn258** · 11-05-2009, 01:54 AM

For instance I was thinking about Donald Trump since he keeps doing this with Real Estate and Hotels and this is like the third time his companies go broke and need restructuring anyway. So how hard is it say and is it hypothetically possible for say someone to start a real estate company and issue 10 million in bonds to buy cheap real estate in Phoenix for example and have the bonds backed buy the real estate assets, and then make them hybrid securities so that at a point in time the bondholders become stockholders and the company has an IPO. It seems this system works well as Trump has done it before--the good news for his is that while he has to give a large portion of his company away he still gets to keep millions in stock, he is the CEO and the company haha pays him 2 million in a salary a year. Could a person like me do this? How does one startup a big Real Estate company like that and use investors money to buy it all? Are companies like Barclay JPMorgan helpful for this? Can someone explain all this to me? I get the general ideas but I need someone to fill in the gaps for how this works.

**adn258** · 11-12-2009, 08:05 AM

Originally Posted by adn258

For instance I was thinking about Donald Trump since he keeps doing this with Real Estate and Hotels and this is like the third time his companies go broke and need restructuring anyway. So how hard is it say and is it hypothetically possible for say someone to start a real estate company and issue 10 million in bonds to buy cheap real estate in Phoenix for example and have the bonds backed buy the real estate assets, and then make them hybrid securities so that at a point in time the bondholders become stockholders and the company has an IPO. It seems this system works well as Trump has done it before--the good news for his is that while he has to give a large portion of his company away he still gets to keep millions in stock, he is the CEO and the company haha pays him 2 million in a salary a year. Could a person like me do this? How does one startup a big Real Estate company like that and use investors money to buy it all? Are companies like Barclay JPMorgan helpful for this? Can someone explain all this to me? I get the general ideas but I need someone to fill in the gaps for how this works.

Nobody has anything to say about this?