Sam Zell and the real estate investment trust (REIT)

[yankeedoodle]

From the Wide Awake Gentiles at NWO Broadcasting Corp
HOW SHUMEL ZIELONKA AKA SAM ZELL CREATED REITS .....AND ITS REAL CONSEQUENCES
https://nwobroadcastcorp.wordpress.com/2023/01/22/how-shumel-zielonka-aka-sam-zell-created-reits-and-its-real-consequences/

Congress established REITs in 1960 as an amendment to the Cigar Excise Tax Extension(typical US legal legerdemain of slipping very important legislation under innocuous sounding laws). The provision allows investors to buy shares in commercial real estate portfolios—something that was previously available only to wealthy individuals and through large financial intermediaries

Shumel Zielonkas parents were Jewish immigrants from Poland

From a very early age, Zell had an interest in the world of business. In 1953, when he was 12, he would buy copies of Playboy in bulk quantities for two quarters each and resell them for $1.50 to $3″For the rest of that year, I became an importer—of Playboy magazines to the suburbs," Zell recalled at a 2013 Urban Land Institute meeting

By age 12 Zell had managed to combine two great Jewish pursuits of pornography and trading The high achiever was meant for greater things

While at the University of Michigan, he and a friend, Robert Lurie, managed student apartment units for landlords. (Polish Jews used to act as estate managers in Poland for irch absentee landlords) Bob Lurie also Jewish was the son of Louis Lurie. whose name was synonymous with San Francisco real estate development during the middle part of the 20th century Louis Lurie founded the Lurie Foundation

Zell is a multi billionaire with a net worth of 6.7 billion

Zell/Zielonka the lawyer is considered the creator of the contemporary real estate investment trust (REIT), and he and his team created some of the world's largest publicly-traded REITS. They include Equity Residential (EQR), an apartment REIT with a market capitalization of nearly $20.5 billion, and Equity Commonwealth (EQC), an office REIT with properties across the U.S. and a market cap of nearly $3.32 billion as of October 2020.According to Forbes, Zell's net worth is $4.7 billion

Legally a REIT is a trust not a company or a partnership so certain tax benefits accrue Zell, who proudly talks about having played tax-avoidance games throughout his 40 years of buying and selling, bought control of Tribune (in 2008) , the big media company, using a clever scheme to shelter Tribune's profits from income tax.

The $34-a-share, $8.2 billion buyout of Tribune was run through an ESOP, using borrowed money. (Including Tribune's existing debt, the transaction totaled roughly $13 billion.) Zell lent the post-buyout company — which we'll call New Tribune — $225 million. He paid it an additional $90 million for a warrant that gave him the right to buy 40 percent of it for prices ranging from $500 million to $600 million.After all the papers are shuffled, Tribune, currently a C corporation, will convert to an S corporation. New Tribune's only shareholder will be the employee stock ownership plan, which — like all ESOPs and other employee-benefit plans — is tax-exempt. So New Tribune will be a tax-free company

In 2017 Sam Zell and other former officers and directors of Tribune Co reached a $200 million settlement resolving allegations of fraudulent transactions related to the media company's disastrous 2007 leveraged buyout.

You can take a Polish Jew out of his shtetl but you cannot take the shtetl out of the Polish Jew

A real estate investment trust (REIT) is a company (actually a trust) that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors

Theoretically land isn't owned by anyone individual or family but large pools of land or apartments are managed by (((trust managers)))

Since individuals cannot compete with cash rich REITS the number of individual home owners with an inflation proof lifetime asset for themselves and their families goes down

More and more families will be dependent on name less faceless (((REITS landlords)))

In an economy with REITS and a large urban population REITS with their deep pockets will always beat the individual wannabe home buyer They might even pay more and they pay cash upfront ( no mortgage nonsense) Naturally builders and home sellers prefer them to small individual families and their cumbersome and long term mortgages REITS want the house (for its cash flow) andas the number of houses decreases over time and rent goes up rents also go up as does the REIT cash flow ( the be all of REITS)

The end result however is that such an economy becomes a rentier economy not a nation of home owners or land owners with a permanent inflation beating security ie the house

Add the problems people face with banks and mortgages and you have a perfect storm for a huge pool of rootless cosmopolitans willing do do anything (or anyone) to keep their homes

Welcome to the global shtetl