On: Trump’s Taxes Show Chronic Losses and Years of Inc...

[cm2187]

Commercial real estate loans are often non recourse. You lend to the holding company who owns the property. If it fails you don’t necessarily have a claim on the owners of that company.

And I would expect covid to have decimated the value of commercial real estate, particularly hotels.

[kthejoker2 → cm2187]

Nope, we're talking about personal loans, personally guaranteed by him. No intermediary, no holding company.

[ENOTTY → cm2187]

This is briefly discussed in the NYT article. Apparently some of the loans are borrowed against his personal holdings.

[cm2187 → ENOTTY]

That may be the case but I would be surprised the NYT would know, unless they have seen the terms of the loan.

[digitaltrees → cm2187]

No. Recourse loans are listed on tax filings separately from non-recourse. The personal guarantee means it shows up on personal income statements. So no other records are needed.

[jshaqaw → cm2187]

Because it's so easy to play asset stripping games, personal guarantees are very common in the commercial real estate world.