More trouble for Trump: Families go into hock investing in his name

Updated

This guy's as slippery as an eel! Donald Trump keeps failing, failing, failing, but yet each time, he sneaks out of it. He shouldn't be in real estate. He should be in P.R.

The Trump Ocean Resort Baja, a condo tower planned for Rosarito, Mexico, has gone belly-up even before it was built. The luxury development was supposed to have 526 units on a cliff-side tower about 10 miles south of the border by San Diego, but instead, $32 million from investors and hopeful condo owners has gone down the drain. They were informed last week that their money was gone for good. Spent.

Trump will likely escape scot-free because the condo was not technically his, but a joint venture with Los Angeles-based Irongate Development, which apparently failed to properly secure funds. Trump never put his own money in the project bearing his name. Still, he participated aggressively in the collection of funds for the doomed development, and he used his name to lure investors in exchange for a licensing fee. He and his daughter Ivanka made personal appearances in support of the project (selling $188 million in units in single day at a 2006 launch event in San Diego), and plenty of everyday people took the bait. A few weeks ago, Trump said he wanted his name off the development.

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