Regardless of the controversy caused just by the mention of his name these days, one thing is undeniable – Donald Trump is the wealthiest US President to date, with an estimated net worth of over USD 3.1 billion as of March 2019 by Forbes.
Surely, it’s not his political greatness that made Donald so rich. Far from it. In fact, Abraham Lincoln, who is widely considered to be one of the greatest presidents of the US, had one of the lowest net worths of all the US presidents of under USD 1,000,000.
Since 2001, US Presidents have been paid around USD 400,000 in annual salaries with a pension of around USD 200,000 per year after retiring from office. Not a bad salary, but it’s far from enough to make someone a billionaire.
So what is it that made Trump so rich? And how about the other presidents? Is there a pattern?
I took a look at 20 of the richest US presidents to date to find out (adjusted for inflation):
As you can see, the top 20 richest presidents mostly followed a predictable pathway to financial success.
Many of them inherited wealth that was originally created through land ownership, grew their wealth through continued land ownership and acquisitions, and many married into further wealth.
We can also notice that none of them are on that list because of the salaries that they received as presidents.
Although inheriting wealth and marrying into wealth is not something we can necessarily achieve or control, we can all take a lesson from the long line of wealthy presidents – invest in property.
By now, you might be thinking “But wait! Donald Trump also got wealthy through inheritance and real estate like all the other presidents, how come his net worth is so much higher?”
There is a simple answer to this question.
While most of the presidents simply inherited or acquired land to passively receive rents and enjoy the natural appreciation of the capital value of the land, Donald Trump actively developed unique properties and added massive value to force appreciation of capital values.
He took that extra step of becoming a developer, not just an investor.
Whether you personally like Trump or not is irrelevant. The focus here is on the formula and the vehicle he used to become wealthy.
The Epic Property Investors Club can’t help you become the president of the United States, but we can help you follow in their footsteps and get involved in the UK property market as an investor or developer.
If you are interested in reviewing the options with us and taking the first presidential step to wealth in the UK, let us know!