Bill Perry : Gangster and Gunster – The West Palm Beach | Orlando Law Talking

Gangs provide a level of organization and resources that support much larger and more complex criminal transactions than an individual criminal could achieve. Gangsters have been active for many years in countries around the world. Some gangsters, perhaps most notably Al Capone, have become infamous. Gangsters are the subject of many movies, particularly from the period between 1930 and 1960. Nowadays, unorganized crime from non-Italian origins (such as Crips and Bloods) have taken to using the word “gangster” to refer to their fellow criminals, though often spelled as “gangsta” in reference to non-rhotic Black American pronunciation.

A gang may be a relatively small group of people who cooperate in criminal acts, as with the Jesse James gang, which ended with the leader’s death in 1882. But a gang may be a larger group with a formal organization that survives the death of its leader. The Chicago Outfit created by Al Capone outlasted its founder’s imprisonment and death, and survived into the 21st century. Large and well structured gangs such as the Mafia, Drug cartels, Triads or even outlaw motorcycle gangs can undertake complex transactions that would be far beyond the capability of one individual, and can provide services such as dispute arbitration and contract enforcement that parallel those of a legitimate government

The Sicilian Mafia, or Cosa Nostra is a criminal syndicate that emerged in the mid-nineteenth century in Sicily, Italy. It is a loose association of criminal groups that share a common organizational structure and code of conduct. The origins lie in the upheaval of Sicily’s transition out of feudalism in 1812 and its later annexation by mainland Italy in 1860. Under feudalism, the nobility owned most of the land and enforced law and order through their private armies. After 1812, the feudal barons steadily sold off or rented their lands to private citizens.Primogeniture was abolished, land could no longer be seized to settle debts, and one fifth of the land was to become private property of the peasants

As American society and culture developed, new immigrants were relocating to the United States. The first major gangs in 19th century New York City were the Irish gangs such as the Whyos and the Dead Rabbits.

These were followed by the Italian eight points Gang and later a Jewish gang known as the Eastman Gang.

There were also “nativist” anti-immigration gangs such as the Bowery Boys. The American Mafia arose from offshoots of the Mafia that emerged in the United States during the late nineteenth century, following waves of emigration from Sicily. There were similar offshoots in Canada among Italian Canadians.

Al Capone was one of the most influential gangsters during the prohibition period. Born in Williamsburg, Brooklyn in 1899 to immigrant parents, Capone was recruited by members of the Five Points Gang in the early 1920s. Capone’s childhood friend, 

Lucky Luciano, was also originally a member of the Five Points Gang. Capone would rise to control a major portion of illicit activity such as gambling, prostitution, and bootlegging in Chicago, Illinois during the early twentieth century

After his initial stint with small-time gangs that included the Junior Forty Thieves and the Bowery Boys, Capone joined the Brooklyn Rippers and then the powerful Five Points Gang based in Lower Manhattan. During this time, he was employed and mentored by fellow racketeer Frankie Yale, a bartender in a Coney Island dance hall and saloon called the Harvard Inn. After he inadvertently insulted a woman while working the door at a Brooklyn night club, Capone was attacked by her brother, Frank Gallucio, and his face was slashed three times on the left side. These scars gave him the nickname “Scarface”, a nickname he despised.

Yale insisted that Capone apologize to Gallucio, and later Capone hired him as a bodyguard.

When photographed, Capone hid the scarred left side of his face saying the injuries were war wounds.Capone was called “Snorky”, a term for a sharp dresser, by his closest friends.

The Torrio-Capone organization, as well as the Sicilian-American Genna crime family, competed with the North Side Gang of Dean O’Banion. In May 1924, O’Banion discovered that their Sieben Brewery was going to be raided by federal agents and sold his share to Torrio. After the raid, both O’Banion and Torrio were arrested. Torrio’s people murdered O’Banion in revenge on October 10, 1924, provoking a gang war.

In 1925, Torrio was severely injured in an attack by the North Side Gang; he turned over his business to Capone and returned to Italy. During the Prohibition Era, Capone controlled large portions of the Chicago underworld, which provided The Outfit with an estimated US$100 million per year in revenue.

This wealth was generated through numerous illegal vice enterprises, such as gambling and prostitution; the highest revenue was generated by the sale of liquor.

His transportation network moved smuggled liquor from the rum-runners of the East Coast, The Purple Gang in Detroit, who brought liquor in from Canada, with help from Belle River native Blaise Diesbourg, also known as “King Canada”, and local production which came from Midwestern moonshine operations and illegal breweries. With the revenues gained by his bootlegging operation, Capone increased his grip on the political and law-enforcement establishments in Chicago. He made his headquarters at Chicago’s Lexington Hotel; after the St. Valentine’s Day Massacre, it was nicknamed “Capone’s Castle”.

Carlo Gambino

Carlo Gambino was an influential gangster in America. From 1961 until he died in 1976, he was chairman of the American mafia. Gambino was born in Palermo, Sicily, but moved to the United States at the age of 21. Through his Castellano relatives, he joined the Masseria Family. While Lucky Luciano was the underboss in the Masseria Family, Gambino worked for him. After Luciano had Masseria killed, Luciano became the boss, and Gambino was sent to the Scalise Family. Later Scalise was stripped of his rank, and Vicenzu Mangano became boss until 1951, when Mangano disappeared. His body was never found

Lucky Luciano

Lucky Luciano (born Salvatore Lucania), a Sicilian gangster, is considered to be the father of modern organized crime and the mastermind of the massive postwar expansion of the international heroin trade. He was the first official boss of the modern Genovese crime family and is credited with organizing the American Mafia’s ruling body

East Asia

The first yakusa (gangster) film made in Japan was Bakuto (Gambler, 1964). The genre soon became popular, and by the 1970s the Japanese film industry was turning out a hundred mostly low-budget yakusa films each year. The films are descendents of the samurai epics, and are closer to Westerns than to Hollywood gangster movies. The hero is typically torn between compassion for the oppressed and his sense of duty to the gang. The plots are generally highly stylized, starting with the protagonist being released from prison and ending in a gory swordfight in which he dies an honorable death.

Although some Hong Kong gangster movies are simply vehicles for violent action, the mainstream movies in the genre deal with Triad societies portrayed as quasi-benign organizations.

The movie gangster applies the Taoist principles of balance and honor to his conduct. The plots are often similar to those of Hollywood gangster movies, often ending with the fall of the subject of the movie at the hands of another gangster, but such a fall is far less important than a fall from honor.

The first movie made by the acclaimed director Wong Kar-wai was a gangster movie, As Tears Go By. In it the protagonist finds himself torn between his desire for a woman and his loyalty to a fellow gangster.

 Infernal Affairs (2002) is a thriller about a police officer who infiltrates a triad and a triad member who infiltrates the police department. The film was remade by Martin Scorsese as The Departed.

Triad

Triad refers to the many branches of Chinese transnational organized crime organizations based in Hong Kong, Macau, Taiwan and also in countries with significant Chinese populations, such as  the Philippines,  Indonesia, Malaysia,  Singapore, Siam (now Thailand), Japan, the United States, Canada, Australia, New Zealand and the United Kingdom.

36 Oaths

The Triad initiate is required to adhere to “the 36 oaths.”

After having entered the Hung gates I must treat the parents and relatives of my sworn brothers as my own kin. I shall suffer death by five thunderbolts if I do not keep this oath.

I shall assist my sworn brothers to bury their parents and brothers by offering financial or physical assistance. I shall be killed by five thunderbolts if I pretend to have no knowledge of their troubles.

When Hung brothers visit my house, I shall provide them with board and lodging. I shall be killed by myriads of knives if I treat them as strangers.

I will always acknowledge my Hung brothers when they identify themselves. If I ignore them I will be killed by myriads of swords.

I shall not disclose the secrets of the Hung family, not even to my parents, brothers, or wife. I shall never disclose the secrets for money. I will be killed by myriads of swords if I do so.

I shall never betray my sworn brothers. If, through a misunderstanding, I have caused the arrest of one of my brothers I must release him immediately. If I break this oath I will be killed by five thunderbolts.

I will offer financial assistance to sworn brothers who are in trouble in order that they may pay their passage fee, etc. If I break this oath I will be killed by five thunderbolts.

I must never cause harm or bring trouble to my sworn brothers or Incense Master. If I do so I will be killed by myriads of swords.

I must never commit any indecent assaults on the wives, sisters, or daughters, of my sworn brothers. I shall be killed by five thunderbolts if I break this oath.

I shall never embezzle cash or property from my sworn brothers. If I break this oath I will be killed by myriads of swords.

I will take good care of the wives or children of sworn brothers entrusted to my keeping. If I do not I will be killed by five thunderbolts.

If I have supplied false particulars about myself for the purpose of joining the Hung family I shall be killed by five thunderbolts.

If I should change my mind and deny my membership of the Hung family I will be killed by myriads of swords.

If I rob a sworn brother or assist an outsider to do so I will be killed by five thunderbolts.

If I should take advantage of a sworn brother or force unfair business deals upon him I will be killed by myriads of swords.

If I knowingly convert my sworn brother’s cash or property to my own use I shall be killed by five thunderbolts.

If I have wrongly taken a sworn brother’s cash or property during a robbery I must return them to him. If I do not I will be killed by five thunderbolts.

If I am arrested after committing an offence I must accept my punishment an not try to place blame on my sworn brothers. If I do so I will be killed by five thunderbolts.

If any of my sworn brothers are killed, or arrested, or have departed to some other place, I will assist their wives and children who may be in need. If I pretend to have no knowledge of their difficulties I will be killed by five thunderbolts.

When any of my sworn brothers have been assaulted or blamed by others, I must come forward and help him if he is in the right or advise him to desist if he is wrong. If he has been repeatedly insulted by others I shall inform our other brothers and arrange to help him physically or financially. If I do not keep this oath I will be killed by five thunderbolts.

If it comes to my knowledge that the Government is seeking any of my sworn brothers who has come from other provinces or from overseas, I shall immediately inform him in order that he may make his escape. If I break this oath I will be killed by five thunderbolts.

I must not conspire with outsiders to cheat my sworn brothers at gambling. If I do so I will be killed by myriads of swords.

I shall not cause discord amongst my sworn brothers by spreading false reports about any of them. If I do so I will be killed by myriads of swords.

I shall not appoint myself as Incense Master without authority. After entering the Hung gates for three years the loyal and faithful ones may be promoted by the Incense Master with the support of his sworn brothers. I shall be killed by five thunderbolts if I make any unauthorized promotions myself.

If my natural brothers are involved in a dispute or lawsuit with my sworn brothers I must not help either party against the other but must attempt to have the matter settled amicably. If I break this oath I will be killed by five thunderbolts.

After entering the Hung gates I must forget any previous grudges I may have borne against my sworn brothers. If I do not do so I will be killed by five thunderbolts.

I must not trespass upon the territory occupied by my sworn brothers. I shall be killed by five thunderbolts if I pretend to have no knowledge of my brothers’ rights in such matters.

I must not covet or seek to share any property or cash obtained by my sworn brothers. If I have such ideas I will be killed.

I must not disclose any address where my sworn brothers keep their wealth nor must I conspire to make wrong use of such knowledge. If I do so I will be killed by myriads of swords.

I must not give support to outsiders if so doing is against the interests of any of my sworn brothers. If I do not keep this oath I will be killed by myriads of swords.

I must not take advantage of the Hung brotherhood in order to oppress or take violent or unreasonable advantage of others. I must be content and honest. If I break this oath I will be killed by five thunderbolts.

I shall be killed by five thunderbolts if I behave indecently towards small children of my sworn brothers’ families.

If any of my sworn brothers has committed a big offence I must not inform upon them to the Government for the purposes of obtaining a reward. I shall be killed by five thunderbolts if I break this oath.

I must not take to myself the wives and concubines of my sworn brothers nor commit adultery with them. If I do so I will be killed by myriads of swords.

I must never reveal Hung secrets or signs when speaking to outsiders. If I do so I will be killed by myriads of swords.

After entering the Hung gates I shall be loyal and faithful and shall endeavour to overthrow Ch’ing and restore Ming by co-ordinating my efforts with those of my sworn brethren even though my brethren and I may not be in the same professions. Our common aim is to avenge our Five Ancestors.

Bill Perry (Gunster): Real Estate & Property Law

Bill Perry (Gunster): Real Estate & Property Law

Property law is the area of law that governs the various forms of ownership and  tenancy  in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system. In the civil law system, there is a division between movable and immovable property. Movable property roughly corresponds to personal property, while immovable property corresponds toreal estate or real property,  and the associated rights and obligations thereon.

Common law is law developed by judges through decisions of courts and similar tribunals, as opposed to statutes adopted through the legislative process or regulations issued by the executive branch.

Civil law (or civilian law) is a legal system originating in Europe, intellectualized within the framework of late Roman law, and whose most prevalent feature is that its core principles are codified into a referable system which serves as the primary source of law.

Property rights are rights over things enforceable against all other persons. Property rights may, however, arise from a contract; the two systems of rights overlap. In relation to the sale of land, for example, two sets of legal relationships exist alongside one another: the contractual right to sue for damages, and the property right exercisable over the land. More minor property rights may be created by contract, as in the case of easements, covenants, and equitable servitudes.

An easement is a non-possessory right of use and/or entry onto the real property of another without possessing it. It is “best typified in the right of way which one landowner, A, may enjoy over the land of another, B.” It is similar to real covenants and equitable servitudes; in the United States, the Restatement (Third) of Property takes steps to merge these concepts as servitudes.

A covenant is a type of contract in which the covenanter makes a promise to a covenanter to do (affirmative covenant) or not do some action (negative covenant). In real property law, the term real covenants is used for conditions tied to the use of land. 

An equitable servitude is a term used in the law of real property to describe a non possessory interest in land that operates much like a covenant running with the land. However, covenants and equitable servitudes should not be confused. One may tell the difference based on the remedy plaintiff seeks. Holders of a covenant seek money damages, but holders of equitable servitudes seek injunctions. In England, when a party is forbidden from certain use, the covenant is called equitable servitude. In the United States, both negative and affirmative equitable servitudes are recognized. It is a covenant that equity will enforce against the successors of the burdened land who have notice of the covenant.

A separate distinction is evident where the rights granted are insufficiently substantial to confer on the no owner a definable interest or right in the thing. The clearest example of these rights is the license. In general, even if licenses are created by a binding contract, they do not give rise to property interests.

Property rights are also distinguished from personal rights. Practically all contemporary  societies acknowledge this basic ontological and ethical distinction. In the past, groups lacking political power have often been disqualified from the benefits of property. In an extreme form, this has meant that people have become “objects” of property— legally “things” or chattels.

The most usual way of acquiring an interest in property is as the result of a consensual transaction with the previous owner, for example, a sale or a gift. Dispositions by will may also be regarded as consensual transactions, since the effect of a will is to provide for the distribution of the deceased person’s property to nominated beneficiaries. A person may also obtain an interest in property under a trust established for his or her benefit by the owner of the property.

 

Real Estate Broker (Agent) Definition

Bill Perry (Gunster): “Real Estate Broker” Definition

A real estate broker or real estate agent is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy. In the United States, the relationship was originally established by reference to the English common law of agency, with the broker having a fiduciary  relationship with his clients.

Estate agent is the term used in the United Kingdom to describe a person or organization whose business is to market real estate on behalf of clients, but there are significant differences between the actions and liabilities of brokers and estate agents in each country. Beyond the United States, other countries take markedly different approaches to the marketing and selling of real property.

In abstract, property is that which is had by or belongs to/with something, whether as an attribute or a component. For the significant context of this article, property is one or more components (rather than attributes), whether physical or incorporeal, of a person’s estate; or so belonging to, as in being owned by, a person or jointly a group of people or a legal entity like a corporation or even a society. (Given such meaning, the word property is uncountable, and as such, is not described with an indefinite article or as plural.) Depending on the nature of the property, an owner of property has the right to consume, alter, share, redefine,  rent,  mortgage, pawn, sell,  exchange, transfer, give away or destroy it, or to exclude others from doing these things, as well as perhaps to abandon it; whereas regardless of the nature of the property, the owner thereof has the right to properly use it (as a durable, mean or factor, or whatever), or at the very least exclusively keep it.

In the United States, real estate brokers and their salespersons (commonly called “real estate agents” or, in some states, “brokers”) assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a buyer’s agent with a signed agreement (or, in many cases, verbal agreement, although a broker may not be legally entitled to his commission unless the agreement is in writing), they assist buyers by helping them purchase property for the lowest possible price under the best terms. The real estate broker “broker” is obligated to provide fiduciary duties to whomever that broker services as client, this agency relationship can become very confusing; if the broker is helping both the buyer and seller, this is called dual agency.

Traditionally, the broker represents the seller, and has a fiduciary duty to the seller. If the broker suggests to the buyer that he will help them negotiate the best price, then it is said the broker is practicing undisclosed dual agency, which is unethical and illegal in all states.

Under a dual agency transaction it is vital the broker discloses to either/or part whom they represent as client, and whom they represent as customer. A real estate broker owes his client fiduciary duties, those duties include care, confidentiality, loyalty, obedience, accounting & disclosure.

A license may be granted by a party (“licensor”) to another party (“licensee”) as an element of an agreement between those parties. A shorthand definition of a license is “an authorization (by the licensor) to use the licensed material (by the licensee).”

In particular, a license may be issued by authorities, to allow an activity that would otherwise be forbidden. It may require paying a fee and/or proving a capability. The requirement may also serve to keep the authorities informed on a type of activity, and to give them the opportunity to set conditions and limitations.

In most jurisdictions in the United States, a person must have a license before they may receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. In some states, lawyers are authorized to handle real estate sales for compensation without being licensed as brokers or agents.

To become licensed, most states require that an applicant take a minimum number of classes before taking the state licensing exam. Such education is often provided by real estate brokerages as a means to finding new agents.

In many states, the real estate licensee (acting as an agent of a broker) must disclose to prospective buyers and sellers who represents whom. See below for a broker/licensee relationship to sellers and their relationship to buyers.

While some people may refer to any licensed real estate agent as a real estate broker, a licensed real estate agent is a professional who has obtained a real estate broker’s license. The licensee is one who has obtained a real estate license and is employed by a real estate broker. Often, licensee’s refer to themselves as an “agent”, but the true agent is the broker and the licensee is a representative of the broker, often referred to as the real estate “salesperson.” A real estate broker who works for another broker is referred to, sometimes, as a junior broker.

 

Real Estate Investment Securities Association (REISA)

Bill Perry (Gunster): REISA

The Real Estate Investment Securities Association (REISA) is a national trade association for professionals who offer and distribute real estate investment securities.

REISA represents those professionals focused on real estate, oil and gas, and other direct/alternative investments typically sold through the Broker-Dealer or Registered Investment Advisor (RIA) network.

REISA exists to educate Broker-Dealers/RIAs, FINRA registered representatives, investment advisory representatives (IAR), and other professionals in the securitized real estate industry on how to protect clients, increase business, resolve problems, introduce them to quality real estate sponsors, and provide networking opportunities. The association’s registered trademark is Helping Members Serve Investors.

REISA, formerly the Tenant-In-Common Association (TICA), was formed in 2003 specifically to provide a central organization of industry related companies focused exclusively on the fractional ownership industry.

It was founded as a cooperative effort between TIC professionals to advance the TIC industry. Its mission was to promote the ethical standards for its members, while providing education and information to the entire TIC community.

In 2009, as the industry changed and TICA members began selling additional products, the organization adapted to the changing marketplace by expanding the products it represented and changed its name to the Real Estate Investment Securities Association (REISA).

 

Commercial (Business) Law

Bill Perry (Gunster): Commercial (Business) Law

 

Commercial law, also known as business law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

It is often considered to be a branch of civil law and deals with issues of both private law and public law.

Private law is that part of a civil law legal system which is part of the jus commune that involves relationships between individuals, such as the law of contracts or torts (as it is called in the common law), and the law of obligations (as it is called in civil legal systems). It is to be distinguished from public law, which deals with relationships between both natural and artificial persons (i.e., organizations) and the state, including regulatory statutes, penal law and other law that affects the public order. In general terms, private law involves interactions between private citizens, whereas public law involves interrelations between the state and the general population.

Public law (lat. ius publicum) is that part of law which governs relationships between individuals and the government, and those relationships between individuals which are of direct concern to the society. Public law comprises constitutional law, administrative law, tax law and criminal law, as well as all procedural law. In public law, mandatory rules (not optional) prevail. Laws concerning relationships between individuals belong to private law.

The relationships public law governs are asymmetric and unequal – government bodies (central or local) can make decisions about the rights of individuals. However, as a consequence of the rule of law doctrine, authorities may only act within the law (secundum et intra legem). The government must obey the law. For example, a citizen unhappy with a decision of an administrative authority can ask a court for judicial review.

Rights, too, can be divided into private rights and public rights. A paragon of a public right is the right to welfare benefits – only a natural person can claim such payments, and they are awarded through an administrative decision out of the government budget.

The distinction between public law and private law dates back to Roman law. It has been picked up in the countries of civil law tradition at the beginning of the 19^th century, but since then spread to common law countries, too.

The borderline between public law and private law is not always clear in particular cases, giving rise to attempts of theoretical understanding of its basis.

 

Commercial law – body of law that governs business and commercial transactions. It is often considered to be a branch of civil law and deals with issues of both private law and public law. It is also called business law.

Foreign Direct Investment (Common Definitions)

Bill Perry (Gunster): Foreign Direct Investment (common definitions)

Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.

The stock (also capital stock) of a corporation constitutes the equity stake of its owners. It represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders’ equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company’s creditors.

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date. Interest is usually payable at fixed intervals (semiannual, annual, and sometimes monthly). Very often the bond is negotiable, i.e. the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market.

Broadly, foreign direct investment includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans”. In a narrow sense, foreign direct investment refers just to build new facilities. The numerical FDI figures based on varied definitions are not easily comparable.

Mergers and acquisitions (abbreviated M&A) are both aspects of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. Mergers and acquisitions activity can be defined as a type of restructuring in that they result in some entity reorganization with the aim to provide growth or positive value. 

The distinction between a “merger” and an “acquisition” has become increasingly blurred in various respects (particularly in terms of the ultimate economic outcome), although it has not completely disappeared in all situations.

From a legal point of view, a merger is a legal consolidation of two companies into one entity, whereas an acquisition occurs when one company takes over another and completely establishes itself as the new owner (in which case the target company still exists as an independent legal entity controlled by the acquirer). Either structure can result in the economic and financial consolidation of the two entities. In practice, a deal that is an acquisition for legal purposes may be euphemistically called a “merger of equals” if both CEOs agree that joining together is in the best interest of both of their companies, while when the deal is unfriendly (that is, when the target company does not want to be purchased) it is almost always regarded as an “acquisition”.

Real Estate Investment Trust: REIT

Bill Perry (Gunster): Real Estate Investment Trust (REIT)

A real estate investment trust (REIT) is a company that owns, and in most cases, operates income producing real estate.

REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands.

Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges.

REITs can be classified as equity, mortgage, or a hybrid.

In accounting and finance, equity is the residual claimant or interest of the most junior class of investors in assets, after all liabilities are paid; if liability exceeds assets, negative equity exists. In an accounting context, shareholders’ equity (or stockholders’ equity, shareholders’ funds, shareholders’ capital or similar terms) represents the remaining interest in the assets of a company, spread among individual shareholders of common or preferred stock; a negative shareholders’ equity is often referred to as a positive shareholders’ deficit.

A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

The key statistics to examine in a REIT are net asset value (NAV), funds from operations (FFO), and adjusted funds from operations (AFFO). In the period from 2008 to 2011, REITs faced challenges from both a slowing United States economy and the late-2000s financial crisis, which depressed share values by 40 to 70 percent in some cases.

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Under U.S. Federal income tax law, a REIT is “any corporation, trust or association that acts as an investment agent specializing in real estate and real estate mortgages” under Internal Revenue Code section 856.

The rules for federal income taxation of REITs are found primarily in Part II (sections 856 through 859) of Subchapter M of Chapter 1 of the Internal Revenue Code. Because a REIT is entitled to deduct dividends paid to its owners (commonly referred to as shareholders), a REIT may avoid incurring all or part of its liabilities for U.S. federal income tax.

To qualify as a REIT, an organization makes an “election” to do so by filing a Form 1120-REIT with the Internal Revenue Service, and by meeting certain other requirements. The purpose of this designation is to reduce or eliminate corporate tax, thus avoiding double taxation of owner income. In return, REITs are required to distribute at least 90% of their taxable income into the hands of investors. A REIT is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

In the United States, a REIT is a company that owns, and in most cases operates, income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.When a corporation earns a profit or surplus, it can either re-invest it in the business (called retained earnings), or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend. Distribution to shareholders can be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.

 

Real Estate: Property Development

Bill Perry (Gunster): Property Development

Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.

The main target is a profit on an investment:  It comprises any change in value, interest or dividends or other such cash flows which the investor receives from the investment.

The expected return (or expected gain) refers to the value of a random variable one could expect if the process of finding the random variable could be repeated an infinite amount of times. Formally, it gives the measure of the center of the distribution of the variable.

Real estate development is different from construction, although many developers also construct.

Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end.

Developers usually take the greatest risk in the creation or renovation of real estate—and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structure, and lease, manage, and ultimately sell it.

Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, leasing agents and more.

A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed.

Assembling a team of professionals to address the environmental, economic, physical and political issues inherent in a complex development project is critical. A developer’s success depends on the ability to coordinate the completion of a series of interrelated activities efficiently and at the appropriate time.

The development process requires skills of many professionals: architects, landscape architects, civil engineers and site planners to address project design; market consultants to determine demand and a project’s economics; attorneys to handle agreements and government approvals; environmental consultants and soils engineers to analyze a site’s physical limitations and environmental impacts; surveyors and title companies to provide legal descriptions of a property; and lenders to provide financing.

General and sub-contractors create the visual results of development. In depth knowledge of how each functions and prices their work is critical to control costs and create a quality project.

Purchasing unused land for a potential development is sometimes called speculative development.

Subdivision of land is the principal mechanism by which communities are developed. Technically, subdivision describes the legal and physical steps a developer must take to convert raw land into developed land. Subdivision is a vital part of a community’s growth, determining its appearance, the mix of its land uses, and its infrastructure, including roads, drainage systems, water, sewerage, and public utilities.

In general, land development is the riskiest but most profitable technique as it is so dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow.

After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a warehouse or shopping center. In any case, use of spatial intelligence tools mitigate the risk of these developers by modeling the population trends and demographic make-up of the sort of customers a home builder or retailer would like to have surrounding their new development.

Real Estate: Facilities & Penthouse

Bill Perry (Gunster):

Real Estate: Facilities & Penthouse

Laundry facilities may be found in a common area accessible to all the tenants in the building, or each apartment may have its own facilities. Depending on when the building was built and the design of the building, utilities such as water, heating, and electricity may be common for all the apartments in the building or separate for each apartment and billed separately to each tenant (however, many areas in the US have ruled it illegal to split a water bill among all the tenants, especially if a pool is on the premises).

Outlets for connection to telephones are typically included in apartments. Telephone service is optional and is practically always billed separately from the rent payments. Cable television and similar amenities are extra also. Parking space(s), air conditioner, and extra storage space may or may not be included with an apartment. Rental leases often limit the maximum number of people who can reside in each apartment. On or around the ground floor of the apartment building, a series of mailboxes are typically kept in a location accessible to the public and, thus, to the mail carrier too.

Every unit typically gets its own mailbox with individual keys to it. Some very large apartment buildings with a full-time staff may take mail from the mailman and provide mail-sorting service. Near the mailboxes or some other location accessible by outsiders, there may be a buzzer (equivalent to a doorbell) for each individual unit. In smaller apartment buildings such as two- or three-flats, or even four-flats, rubbish is often disposed of in trash containers similar to those used at houses. In larger buildings, rubbish is often collected in a common trash bin or dumpster. For cleanliness or minimizing noise, many lessors will place restrictions on tenants regarding keeping petsin an apartment.

In some parts of the world, the word apartment refers to a new purpose-built self-contained residential unit in a building, whereas the word flat means a converted self-contained unit in an older building. An industrial, warehouse, or commercial space converted to an apartment is commonly called a loft, although some modern lofts are built by design. An apartment consisting of the top floor of a high apartment building can be called a penthouse.

A penthouse apartment or penthouse is an apartment on the highest floor of an apartment building. Penthouses are typically differentiated from other apartments by luxury features. The term penthouse originally referred to, and sometimes still does refer to, a separate smaller “house” that was constructed on the roof of an apartment building.

In architecture, the term penthouse is used to refer to a structure on the roof of a building that is set back from the outer walls. These structures do not occupy the entire roof deck. High-rise buildings will often have penthouse structures enclosing mechanics such as those in an elevator machine room.

While European designers and architects long recognized the potential in creating living spaces that make use of rooftops and such setbacks, in US cities, exploitation of these spaces began in earnest in the 1920s. It was a matter of news when the development of a rooftop apartment at the Plaza Hotel overlooking Central Park was announced in 1923, and this was followed by rapid development of luxury penthouse apartments in the following years.

When used as private outdoor terrace spaces, setbacks can allow for significantly larger and more protected spaces than cantilevered balconies. Due to the desirability of this outdoor space, buildings may be designed with such setbacks on more than one of its uppermost levels, to allow apartments on several levels to feature such terraces. Not all penthouses have such terraces, but they are a desired feature. One such space may be divided among several apartments, or one apartment may occupy an entire floor. A penthouse apartment/condominium may also provide occupants with private access to the roof space above the apartment, instead of, or in addition to, terrace space created by an adjacent setback.

Penthouses also differentiate themselves by luxurious amenities such as high-end appliances, finest materials fitting, luxurious flooring system, and more.

Features not found in the majority of apartments in the building may include a private entrance or elevator, or higher/vaulted ceilings. In buildings consisting primarily of single level apartments, penthouse apartments may be distinguished by having two or more levels. They may also have such features as a terrace, fireplace, more floor area, over-sized windows, multiple owner suites, den/office space, jacuzzi, and more. They might be equipped with luxury kitchens featuring stainless steel appliances, granite counter-tops, breakfast bar/island, and more.

Penthouse residents often have fine views of the city skyline. Access to a penthouse apartment is usually provided by a separate elevator. Residents can also access a number of building services, such as pickup and delivery of everything from dry cleaning to dinner; reservations to restaurants and events made by building staffers; and other concierge services.

 

Real Estate: Garden apartment

Bill Perry (Gunster)

Real Estate: Garden apartment

In some locales, a garden apartment complex consists of low-rise apartment buildings built with landscaped grounds surrounding them.

The apartment buildings are often arranged around courtyards that are open at one end. Such a garden apartment shares some characteristics of a townhouse: each apartment has its own building entrance, or shares that entrance via a staircase and lobby that adjoins other units immediately above and/or below it. Unlike a townhouse, each apartment occupies only one level. Such garden apartment buildings are almost never more than three stories high, since they typically don’t have elevators/lifts.

However, the first “garden apartment” buildings in New York, USA, built in the early 1900s, were constructed five stories high. Some garden apartment buildings place a one-car garage under each apartment. The interior grounds are often landscaped.

In other locales, a “garden apartment” is a unit built at or below grade or at ground level. The implication is that there is a view or direct access to a garden from the apartment, but this is not necessarily the case.

In most west coast cities in United States, due to the need for resisting earthquakes at a low building cost, these low rise apartments are mostly built of wooden frames with thin plaster-board based interior dry walls, despite that they can be up to 3 to 4 levels.