Can anyone buy Florida real estate for $41 million then sell it for $95 million four years later? This is what has happened between a Russian Billionaire and Donald Trump. The incredible deal between President hopeful Donald Trump and Russian billionaire Dmitry Rybolovlev reveals how profits can be made from international real estate and provides an insight into Trumps business relationship with a Russian
Donald Trump Real Estate Deal
It was in November 2004 when Donald Trump saw a bargain come onto the Florida real estate market. A bargain so big that only the very rich would be able to afford to even think about buying it.
This dream Florida USA real estate was a massive 62,000-square-foot, 17-bedroom mansion featuring Greek fountains, tennis courts, trompe l’oeil murals, underground parking for dozens of cars, a 100-foot swimming pool and hot tub overlooking the ocean.
The property was called “Maison de l’Amitie,” or the House of Friendship. Formerly a Boston-area nursing home magnate, until he lost his fortune in 2004. That’s when Donald Trump scooped it up.
Four years later in comes Dmitry Rybolovlev with a net worth estimated at $13 billion who just had to have this piece of USA real estate, it was a superb trophy for his portfolio no doubt. Rumours are that he have never set foot in the place!
Where did this insanely rich Russian get his riches ? Rybolovlev had made his fortune in the 1990s post-Soviet Russia. Everything has not been easy for Dmitry he had spent a year in Russian prison on murder charges but was later cleared.
Dmitry Rybolovlev went into business with his scientist father in 1990 after studying medicine at Russia's Perm Medical Institute. In 1992, he opened an investment fund and, like other future tycoons, began buying shares of industrial enterprises. He consolidated his shares into a controlling stake and in 1995 was named chairman of the board of Uralkali, Russia's largest producer of potassium fertilizers.The biggest real estate deal between him and Trump happened in 2008. He would pay Trump a cool $95 million for Maison L’Amitie in what was widely described as the most expensive U.S. residential property sale ever.
Does Trump have close ties with Russia?
CNN reports on Trump being was asked about Russia during a news conference because of speculation that Russia was behind the hack of the Democratic National Committee's emails in an effort to help his campaign. The FBI is still investigating and has not identified the hackers.
"No, I have nothing to do with Russia," Trump told a reporter in Doral, Florida. "How many times do I have say that? Are you a smart man? I have nothing to with Russia, I have nothing to do with Russia."
Trump then acknowledged: There was that one time.
"What do I have to do with Russia? You know the closest I came to Russia, I bought a house a number of years ago in Palm Beach, Florida... for $40 million and I sold it to a Russian for $100 million including brokerage commissions."
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Russians love US real estate
When placing an expensive home on sale located in the US realtors and owners should always consider the International property buyer. According to PropertyShark, 54% of all New York real estate that was sold for over $5 million in 2014 was sold to shell companies. For example, if you were to lookup who owns many of the apartments in the Time Warner Center in New York’s Upper West Side, you would find a litany of LLCs and partnerships. But behind many of these companies are notable Russian elite like former Russian Senator Vitaly Malkin. These shell companies are frequently used by foreign investors to transfer large sums of cash around the world and are increasingly used to hold real estate assets in the United States with a degree of anonymity.
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