Two summer associate at a top 5 law firm were caught having sex in the office
Twice.
Both got return offers.
Firm is setting a pretty low bar for entry.
An “All Cash Offer” does not mean you need to pay with cash.
It just means that there is no financing contingency & the buyer will need to show proof of funds for entire sum.
Nothing stops the buyer from getting financing before closing.
In fact, in many cases, the buyer can
Dated my wife 3 months before we got engaged.
Married 5 months later.
Took LSAT before college.
Applied to law school day applications opened.
Committed to my firm after only 3 interviews.
Had 4 kids in my first 4 years of marriage.
Have a plan & execute.
Waiting,
Reverse 1031 Exchange
Every other TikTok post has another self proclaimed real estate “expert” advising the masses how to avoid taxes by performing a “1031 exchange.”
But did you know that you can do a “Reverse 1031 Exchange?” Here’s what you didn’t learn from Tik Tok:
Section 453 - Installment Sales
With rising interests rates, we have seen a large increase in seller financing at more digestible rates to get deals closed.
But how do these work? When & how does the seller recognize the gain of the deferred payments?
Let’s get into it, a 🧵
Broker friend followed up with a guy every 3 months.
Guy wasn’t interested.
But he kept trying, like clockwork.
Finally, after 2 years he gets this message:
“Mark, if you call me again, I will file a restraining order & get lawyers involved”
Hustle doesn’t always work. 😂
@Indus_Guy
I think it’s necessary at times, but I think the rule should require payment of something like double FMV.
If you are going to uproot someone’s life against their will, they deserve a windfall (and assurance that “FMV” won’t actually be less than what it’s really worth)
Imagine your just living your best life and you get this in the mail.
Now imagine you get this while in the middle of gut renovating your home.
Happened to a friend of mine today.
Brutal.
On an important call with a client today.
Walk back into my office & take a seat while still looking down at the document we are discussing.
Guy comes into my office and tries to get my attention.
I tell him I need 5 minutes.
He patiently waits.
I finally get off and he
Didn’t realize many don’t know this so here it is:
FHA residential loans are assumable.
Given the spread from 2020 rates - could be massive money saver.
Buyers: *always* check if home is subject to an FHA loan
Brokers: market & price the property as such.
Sellers: profit
When negotiating with someone, the worst thing you can do is interrupt them or even simultaneously respond with the drop in their voice and conclusion of their sentence.
If you respond the second they are done speaking, you likely didn’t really listen to what they were saying.
@GuyTalksFinance
How does this have to do with paying off a home early? In fact, your annualized return is assuming you only put 20% down. If you paid all in cash for example, this would be a much worse return.
@SMB_Attorney
Also, 40% effective rate?
Their marginal federal rate is 32% at these levels and even with marginal state tax of 6.5% at this level, that’s a marginal rate of 38.5%. Then of course the lower amounts are taxed less and they have charitable and mortgage interest deductions.
Unpopular truth.
Saving early in life is overrated.
Inflation will wipe out more than half your gains by the time you retire.
The marginal utility of a dollar will be less at retirement because you’ll have more money & less physical ability to enjoy it.
Doesn’t mean you
Clarifying note: this thread is not quite right.
Most deals are not funded with “preferred equity”. Rather, they just give LP’s a preferred return.
What’s the difference?
Average deal:
🔺The LP’s and the GP are in the same place in the capital stack- they are both common
If you're new to the real estate community on X this is a must-read.
A thread on how most real estate folks structure deals with outside investors.
Most GPs utilize the "preferred equity" structure when they raise money from outside investors.
They "syndicate" deals.
True story.
Hired new cleaning help this week.
She walks in, says hi to me, my wife & my 4 kids before going straight to the bathroom for 15 min.
After she gets out, my wife says she smells something.
We look around & see a bong sticking out of her bag.
She won’t be back.
@realEstateTrent
Huge part of the entertainment.
Fans love “playing General Manager”.
Making those private would take away a huge part of the fan experience.
Two weeks before my friend was set to close on his house his lawyer calls him:
“Greg, I’m sorry you can’t buy the home, they still haven’t removed the $400k lien on the property”
Greg immediately reaches out to the seller & realtor, who have no idea what he’s talking about!
Listen, my wife’s job of caring for our 4 kids is certainly harder than mine.
But thats sometimes hard to remember when I get texts like this at 6 pm after the kids are asleep and I’m still in the office for a couple more hours. 😂
Accounting has to be the worst bang for your buck of any corporate job out of school:
Bill 2,000+ hours a year for $65k.
Even at a big 4 firm.
Do any other corporate jobs compare?
Proud to have just surpassed 100 pro bono hours for the year thus far.
Got me thinking, are there professions other than doctors and lawyers where pro bono work is highly encouraged/expected?
The final installment (pun intended) of this series:
🏦 Deferred Sales Trust (DST) 🏦
Like a 1031 exchange, Installment Sale, and Monetized IS, the goal is to defer paying taxes, but the DST does this by combining components of ALL 3.
How so? Let’s get to it:
Note to sellers and brokers:
Selling a property “as is” does not relieve you of your duty to disclose to the buyer material latent defects in the property.
🏦 Loan Guaranties 🏦
When seeking financing to acquire or develop a property, you can expect the lender to require that a creditworthy entity provide certain guaranties.
What are the different types of guaranties and how do they work?
A 🧵
🥂 Surpassed 1k followers 🥂
What can you expect from me?
📚Education on real estate transactions
📈 Market info based on current deals
👨⚖️ Insight into the 🌍 of big law
👨👩👧👦 Posts on raising too many kids to count
🌆 Random NYC observations
Thanks for all your support! ✌️
What’s the minimum forecasted IRR of a deal before you would consider investing as an LP?
For me, ~15% is the absolute minimum.
Otherwise, I would rather take a slight haircut and go with stocks or REITs that offer much more downside protection and much better liquidity.
1 Year Warranty on my new home expired today.
Some stats:
💧5 (!!) leaks
🌊 1 basement flood
💨 1 dryer vent venting into the attic
🔥 2 furnace repairs
💡 3 light malfunctions
🔌 4 dead outlets
🤕 1 endless headache
# Make new builds good again #
Co-Tenancy Clause
Provides the Tenant with a termination option or rent abatement if an anchor tenant leaves or x% of the shopping center goes dark
Tenants require consumer traffic to bring in business. Less traffic means less revenue. Nobody wants to rent space in a ghost town
Mistake many first time home buyers make:
Escrowing taxes and insurance premiums with their lender.
Locking up thousands and reducing cash flow, all for the “convenience” of your lender paying your taxes every quarter.
Law school is generally a very liberal, left leaning environment.
Then they take Federal Income Taxation.
Suddenly, almost overnight, everyone around you is fiscally conservative.
75% of work during the day is just meetings, coordinating and responding to emails.
Not until 6 when the e-mail traffic stops that the real work gets done.
@JulieChangRE
Also reflects badly on house and sellers. If you are willing to let you house be listed looking this way, what else did you do to the house over the years?
I’m not sure there is a better job in the world than a summer associate at a law firm.
Get paid an ungodly amount of money to go out to fancy restaurants and social events.
Sign me up.
Will be my last off topic post for now:
For those who are confused, here’s all you need to know about the Israeli conflict:
Hamas targets civilians, women and children.
Israel targets military objectives.
Hamas hands out candies in the streets when civilians are killed.
Just referred
@chernobelskiy
to a family member looking to invest substantial capital in a deal.
The turnaround time was insanely quick, he was super responsive and the report was extremely insightful.
His analysis was helpful in not just making a yes/no decision on the
@SMB_Attorney
Not really though.
Assuming itemized deductions of ~50,000 ($10k taxes, $18k charity, $22,000 interest)
You’re still looking at max ~31%.
Breakdowns for NYC and San Francisco below.
@dtmorgan18
Yup, extend and pretend was the theme 2 years ago. Debt was so cheap, all the companies that should have gone bankrupt during Covid were given new life. Can’t last forever.
Preferred Equity RE Investments
In a distressed environment, borrowers will need to get creative with the capital stack in order to avoid handing the keys over to the bank. One such way is by obtaining a preferred equity investment, but what is that and what does it entail? A 🧵
This would be impressive but unfortunately he’s a W-2.
If only he would see the light and hang up the cleats.
He could buy like 1,000 plumbing companies and own 10,000,000 sq ft of self storage in Idaho.
Saudi Arabian club Al-Hilal is offering a record-breaking $1.1 BILLION to bring over Mbappé on a one-year deal 😱
Transfer fee to PSG would be $332M and his salary would be $776M
UNREAL. 🤯💰
(via
@jamesbenge
, h/t
@FOS
)
Not sure whether to start a fund or raise deal by deal?
There is no one size fits all answer.
But here are some factors to consider.
First, those weighing in favor of starting a fund:
Working on a deal and the city recorded a lien against the property for failing to cut back its weeds.
Cost of violation: $76.32
Price of recording: $26
Why.
Spoke confidently in front of a crowd of 200+ this weekend.
Had this been a networking event of 200+ I would have been glued to the wall.
Who else is like this?
If you are selling a property, you are likely repping that there are no building code, health, fire or other government violations affecting the property.
Important to have that rep only apply as of the SIGNING date, not closing.
This stops a sneaky buyer from triggering a
This is almost always true, but is unfortunately not the case in some very odd situations, known as “Tax Cliffs”:
1. Mansion Tax: the mansion tax in NY is $1,000,000. Receive $999k for your house, no tax. Receive $1m, 1% on the entire purchase price in tax.
2. Estate Tax: NY
Starting a family early greatly reduces your ability to take risks & try things outside your comfort zone.
It is also worth it pretty much every time.
Put it this way: how much money would you pay to guarantee an extra 5 to 10 years with your loved ones?
Priceless.
NYC’s population of almost 9 million is more than 39 states.
More than a million people commute into Manhattan alone for work each day.
Being in NYC unlocks unrivaled opportunity.
Office will return.
Patience.
We need a family law guy on twitter.
Lots of mistakes made here.
Here’s one to avoid:
If you give or bequeath an extremely large gift to your married children - like a house- put it only in your child’s name.
They can both enjoy it but if shit hits the fan & their is a
Some people won’t like this:
But all big law isn’t the same.
Yes there are great lawyers at all firms.
But, on average, there is a real and tangible drop off in skills and intelligence between a top 5 firm and a top 30 firm.
Which partially explains why a first year at my
The correct answer is 94.5 (almost always).
LP Equity and GP Equity are generally treated EXACTLY THE SAME before the Pref.
Meaning: Whatever return on investment the LP gets before the Pref, the GP will receive the same for their equity.
In truth, “Pref” is usually
@yieldchaser2
Technically, but often doesn’t end up that way.
Also, not sure how it works if they want to take mid construction - personally never seen or read about a case like that before.
Retwit: 🤯 Frying their brain trying to figure out how to pencil 20% IRR in this market or waiting with dry powder to catch the bottom🔪
Me: quietly adding to equities, seeing returns north of 35% in 6 months doing nothing more than clicking a button. 👨💻
Sometimes just pays to
There are 3 summer associates next to my office carefully crafting an email to the associates listserv to pick up a few people for lunch tomorrow.
Being a summer associate is exhausting.
@realEstateTrent
Debt and starting a family early greatly restrict risk taking.
Had 4 kids and a house before I was 28.
Taking a stable, predictable path was the only realistic option.
Summers are starting at firms all over the country today.
My advice? Be kind & act like you are excited to be there.
Nobody will remember your work when you return, but they will remember your character and your positive energy.
@bradford_hardin
any sage advice to add?
Am I the only one that is also way less efficient in the office?
Between the transporting, group lunches, office chats, snack hours… I find I have way fewer hours to do work.
Still, some in office is helpful, not everything can be replicated at home.
Hybrid is here to stay.
Many firms are forcing their people back to the office.
At
@smblawgroup
, we think you shouldn’t have to:
• Sit in traffic
• Live next to an office
• Worry about what to wear
• Attend awkward work events
• Race home for bedtime
No thanks! We’re staying
When does a broker earn their commission?
You may be surprised to learn that under NY State law she earns her commission when she has produced a “buyer who is ready, willing and able to purchase the property upon terms that are acceptable to seller”.
This is true even if the
Good dad: worked until 5 AM last night (this morning?) so I could spend Father’s Day with my kids.
Bad dad: left the hospital in this shirt after kid 3
Happy Father’s Day!
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If financially able, one parent should primarily be focused on raising the children.
Doesn’t matter which one.
Doesn’t need to be all they do.
But it should be their primary responsibility.
Children are our most important assets.
Important to treat them as such.
The lottery is the most regressive tax we have.
Those in the lowest tax bracket spend 6% of their income on tickets.
Directly funding schools, transportation & other state programs.
This doesn’t include casinos & sports betting.
Should we really be expanding these programs?
You know what’s harder than closing large commercial real estate transactions?
Taking 4 kids under 4 on a carousel by yourself.
👏 Props to to my wife who convinced the operator she could safely bring all 4 on 😂
Friendly reminder of the inefficiencies of government
Have a friend who made over $1m last year.
Will make $2m this year.
Just got kicked off Medicaid.
🚨 Monetized Installment Sale 🚨
1031’s let you defer taxes by transferring proceeds to another property.
Installment Sales let you defer taxes by deferring the receipt of proceeds
But what if you could receive the proceeds AND defer gains?
Welcome to the 🌎 of the MIS