mgokev

March 9th, 2012 at 1:09 PM ^

I liked the part about how he got fired from Wall Street for talking back to his boss then decided to start his own business when he didn't want to go through interviewing again.

Shows what hard work and a little luck can accomplish.  Starting with a $10,000 loan from his parents and now being worth $3.1B. 

Jon06

March 9th, 2012 at 2:13 PM ^

i responded too soon, anyway. the article says he also got a lot of government funding since he started with affordable housing, and got the rest of the early money by helping wealthy investors exploit tax loopholes.

i actually find it really interesting to read how this guy got his money. thanks for posting, OP.

aaamichfan

March 9th, 2012 at 2:17 PM ^

"..and got the rest of the early money by helping wealthy investors exploit tax loopholes."

 

The benefits of having both a business and law degree....

UMDrone

March 9th, 2012 at 1:29 PM ^

It might be documented somewhere in the internet ether but i have heard that when Ross donated $100 million to the business school he stipulated that the school had to spend $75 million building/renovating the b-school and had to use his construction companies, so he made a little money back. I have no problem with that at all, btw, just kind of an interesting story... 

justingoblue

March 9th, 2012 at 1:36 PM ^

he walked in with a check, or is that kind of thing wired like in the movies? If I was going to drop nine figures on a donation, I think I would walk in with a check, but that's just me.

Bringing in multiple duffle bags would be way cooler, but I feel like that would cause a lot of distractions/problems for the people involved.

mgokev

March 9th, 2012 at 1:43 PM ^

Money order from Western Union.  Also, I wonder if he got a receipt for tax purposes.  Imagine that guy's Turbotax software..."Did you make any charitable donations this year?" ... "Why yes, $100,000,000.00 actually..."

Then again, I'm sure the the guy with an LLM in tax law doesn't use Turbotax

justingoblue

March 9th, 2012 at 1:33 PM ^

  • I don't think he wants his dollars going to his competition.
  • He obviously thinks he has the best company in the world.

I realize you said you had no problems with it and whatnot, but there might have been reasons beyond making a few bucks back (which I agree, even if that was the case it's totally fine).

JeepinBen

March 9th, 2012 at 1:43 PM ^

If Ross had walked in and said "My company is building you a new business school, we'll call you when it's done" that probably wouldn't work either. So they had to figure out the best way to get it all done in the way that both parties wanted it done. He still paid for it.

PlayByPlay

March 9th, 2012 at 1:58 PM ^

Though his construction company may have won the bid to build the new B-school, it would be highly illegal for a no-contest contract to be issued. Michigan, as a public institution, is obligated to accept the bid of the lowest competant bidder. 

aaamichfan

March 9th, 2012 at 1:52 PM ^

Awesome project. I'm surprised he was able to get financing for something that large in the current environment.

ziggolfer

March 9th, 2012 at 4:03 PM ^

I wish he started rebuilding the bronx instead. The place could use some help, and I can't understand why no one has developed it more. I guess Steve is leaving something for me to develop once I make it big. I hope I could give enough money to U of M someday too, so I could name a building after__________(excluding myself).

 

Suggestions? 

jmblue

March 9th, 2012 at 4:41 PM ^

Well, Detroit needs even more help than the Bronx, but there aren't any $12 billion projects in the pipeline. 

This isn't charity.  The expectation is that this project will eventually pay off, business-wise.  The Bronx is much more of a gamble for a big business venture than Manhattan.  Businesses may not want to be based there.

NYWolverine

March 10th, 2012 at 4:06 PM ^

The problem with the Bronx, and even the blighted areas into Yonkers and around the Hudson River, is low-income housing and Legal Aid. The issue goes back to the 70s and 80s when tenants in the Bronx, unable to continue paying rent and facing eviction proceedings, began receiving advice from Legal Aid to file as poor persons, demand reasonable accomodation, and stay eviction proceedings. Building owners faced a growing number of holdover tenants, to the point where overhead exceeded rental streams.

Coupled with sprawl and the growth of low-income zoning regulations, effectively requiring buildings to house additional low-income tenants, proper building owners quickly fled. In their place, slumlords took over. Depending on how you look at it, they ran the buildings as well as possible based on limited revenue streams, or they ran them into the ground.

Housing culture in the Bronx is on full display daily in Landlord/Tenant court. Constant stays requested from eviction, constant holdovers filed, it's a headache. Nobody in their right mind would develop there.