The Shocking Secret to Donald Trump's Fortune

By Wayne Mulligan, on Thursday, September 3, 2015

Forbes estimates his net worth to be $4 billion...

The man himself says the figure is closer to $10 billion...

No matter which source you believe, one thing is clear:

Donald Trump has become seriously wealthy.

Many assume it’s due to his vast real estate holdings.

But as you’ll learn in a moment, that’s not entirely accurate.

As it turns out, most of his wealth comes from a far more unusual place.

A Look Behind The Kimono

The Federal Elections Committee (FEC) requires all Presidential candidates to submit a detailed accounting of their personal finances.

It helps voters look for any potential “conflicts of interest” in case the candidate ends up in the Oval Office.

According to Trump’s FEC report, he’s worth roughly $8.7 billion.

A chunk of that wealth comes from his real estate holdings, which include residential, commercial, golf & resort facilities.

But real estate isn’t the largest contributor to his net worth—not by a long shot.

The Trump Royalty Plan

As it turns out, the most valuable asset in Trump’s portfolio is, quite literally, the “Trump” name.

According to Trump’s financial disclosure form, roughly $3.3 billion of his net worth comes from "Licensing Deals & Branded Developments."

Just like Tiger Woods “rents” his name to Nike (his latest contract was worth about $100 million), Trump rents out his name to residential real estate projects, hotels, clothes, TV shows, and even cologne (“Empire,” for the smell of success).

Basically, Trump receives royalty payments for the use of his personal brand.

The Power of Royalties

Royalty income streams are powerful because they’re pure profit:

When you collect royalties, there’s no property or staff to pay for...

You’re not responsible for any “upgrades” to the machinery or landscaping.

The company that licenses your brand is the one worrying about those details.

You just collect checks.

And to be clear, royalty income isn’t limited to brand licensing deals.

Royalties can be derived from any business where you build something once, and the product gets sold over and over again.

In fact, this is how authors and musicians make their money.

Wouldn’t it be great to own a piece of these income streams?

To just sit back and collect a check, month after month?

Now you can...

Patent Royalties

One of the most lucrative sources for royalty income is patents—specifically, drug patents.

Small biotechnology companies invest years and years and millions of dollars to create new drugs.

When they identify one that’s clinically effective, the government grants them a patent that lasts for 20 years.

Armed with their government-protected intellectual property, these smaller biotech firms will partner with larger drug companies to market the drug for them.

Then, the biotech company can just sit back and collect its royalty payments.

Unfortunately, biotech companies that are traded on a stock exchange like the NYSE tend to be too large for you to properly capture their patent-protected income streams.

But if you could buy a stake in these royalty payments while the company was still private… then you could earn a steady stream of royalty payments for years.

Private Royalties

But that begs the question:

How do you—as an individual investor—get access to private biotech companies?

Where do you find them? And how would you separate the good from the bad?

Normally, the answers to those questions would be complex.

But today, we’ll share a super simple way you can get access to a portfolio of private biotech royalty income streams.

And all you need is an ordinary brokerage account.

We’ve put together a special report about this opportunity for all Crowdability readers.

You can download it here. Inside, you’ll learn about one of our favorite ways to collect biotech royalties, and to earn yields north of 10%.

With yields like that, you might become the next Trump.

We hope you enjoy.

Best Regards,


Founder
Crowdability.com

Comments

If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Biotech Donald trump Patent royalties Patents Royalties Royalty payments

Share This:
comments powered by Disqus