Rubin Schron To Buy The Empire State Building?!

[churnbabychurn]

These offers are all cash.

-1 Generally bank loans are not considered a cash offer because the bank still has to approve of the deal. Removing the legal holdup with a true cash offer can persuade a seller to settle faster.

(Unless the bank pre-approved the deal, but that would be doubtful on such a large deal without the details worked out yet.)

[Saver2000]

These offers are all cash.

[churnbabychurn]

Unless he can raise the cash from his oilem..

[damaxer91]

With financing as cheap as it is, nobody in their right mind would pay cash for something, unless he has a refi lined up right after closing

[churnbabychurn]

schrons offer was cash

UPDATED, 6:00 a.m., June 19: Rubin Schron, president of Cammeby’s International and one of the city’s major property owners, has offered $2 billion in cash to buy the Empire State Building, according to a letter an attorney for the investor sent Tuesday to an attorney for Malkin Holdings, the firm that controls the iconic skyscraper.
Schron proposed to make a $50 million non-refundable deposit once the contract was signed, and close within 90 days, the letter, written by Stephen Meister, a partner at the law firm Meister, Seelig and Fein, said. (Click here to see the letter.)

[churnbabychurn]

With financing as cheap as it is, nobody in their right mind would pay cash for something, unless he has a refi lined up right after closing

With the empire state building so cheap....They are paying cash

[Saver2000]

With the empire state building so cheap....They are paying cash

Cbc, you don't seem to understand. 
Cash mean that the seller wont have to get paid in installments over the next 30 years - they will get all the money up front. AKA a loan.

A loan gives the buyer the "cash benefit". The seller doesn't need to actually put down that cash.

[dd321]

My friend always says "Gevirim is the Yeshivish version of sports"

+1

[MarkS]

Cbc, you don't seem to understand. 
Cash mean that the seller wont have to get paid in installments over the next 30 years - they will get all the money up front. AKA a loan.

A loan gives the buyer the "cash benefit". The seller doesn't need to actually put down that cash.

Not sure if you're right. I believe in a real estate transaction the promise of cash means that you're not dependent on getting a mortgage and therefore the seller is more convinced that the deal will actually close.

[Dan]

Not sure if you're right. I believe in a real estate transaction the promise of cash means that you're not dependent on getting a mortgage and therefore the seller is more convinced that the deal will actually close.

Correct, though the buyer can always take out a loan against the building after it closes.
Typically offering cash in real estate will get you a discount as well.

[Steven]

I thought paying cash means you won't have to pay tax. . Like when ppl say it's off the books

[damaxer91]

I thought paying cash means you won't have to pay tax. . Like when ppl say it's off the books

This thread just got WAY more yeshivish

[Dan]

This thread just got WAY more yeshivish

[churnbabychurn]

I thought paying cash means you won't have to pay tax. . Like when ppl say it's off the books

Untern tish gonna need a big table!

[MarkS]

I thought paying cash means you won't have to pay tax. . Like when ppl say it's off the books

Lol. Growing up in the frum community there always appeared to be two legitimate ways to run a business - on the books or off the books.
Entering the accounting world I was shocked (JK    ) to find out that there's no option on the tax return to select that you're an off the books company and don't have to pay taxes!

[Chaikel]

Lol. Growing up in the frum community there always appeared to be two legitimate ways to run a business - on the books or off the books.
Entering the accounting world I was shocked (JK    ) to find out that there's no option on the tax return to select that you're an off the books company and don't have to pay taxes!

You missed the whole point. There is no section to insert cash payments, so you can just leave it out

[churnbabychurn]

Lol. Growing up in the frum community there always appeared to be two legitimate ways to run a business - on the books or off the books.
Entering the accounting world I was shocked (JK    ) to find out that there's no option on the tax return to select that you're an off the books company and don't have to pay taxes!

businesses file tax returns? Why, they get refundable credits??

[hocker]

With financing as cheap as it is, nobody in their right mind would pay cash for something, unless he has a refi lined up right after closing

That's it. He's buying it with cash to push his bid over the top, cash deals are a big advantage from my limited understanding.

[elikay]

My friend always says "Gevirim is the Yeshivish version of sports"

Like!

[ahecht37]

cmiiw when someone sells a property, and then takes the money and puts it into other real estate, there is no tax