Reborn in America, I am a legendary short seller on Wall Street.

Chapter 178 One Surprise After Another

What happened in the next two days illustrated a point: Larry, being a country bumpkin, underestimated the influence of the Astor family in New York at that time.

In New York in 1892, purchasing a property from a prominent family like the Astors involved far more complex procedures and required more documentation than ordinary real estate transactions. This was primarily due to the family's extensive property holdings and the highly intricate ownership and management structures they employed.

Moreover, it must be said that the asking price of $35 did indeed cause dissatisfaction among his cousins ​​and nephews, because the spendthrift Astor III immediately lowered the prestige of the Astor family, a century-old dynasty.

Henry Astor III received numerous warnings and admonitions from his family against selling the family property, but Astor III retorted with a single sentence.
"I need money! If you think you sold it too cheaply and lowered your property prices, then lend me $50!"

The moment those words were spoken, the world fell silent.

The other members of the Astor family were anxious and angry, but they couldn't buy the property themselves because the ownership among the families was too complicated. Even if they bought it, the ownership would still belong to that old spendthrift, and it would be impossible to distinguish the ownership. So they might as well just lend him the money!

Of course, when it comes to borrowing money! The other members of the Astor family said he could sell to whomever he wanted!
Disgracing the family is a minor matter; lending money is absolutely out of the question!

On Saturday, the buyer and seller formally completed the property transaction at the renowned "White Shoes" law firm in New York.

At this time, lawyers play an extremely central role in land and real estate transactions in New York. So-called "white shoe law firms" are essentially full-time non-litigation lawyers specializing in real estate title investigations, title changes, contract drafting, and payment settlement.

Goldman Sachs acted as the matchmaker in this matter. Henry Goldman first found two law firms with friendly relations for the two companies, and then handled the very troublesome preliminary work such as title investigation.

Ultimately, the lawyers for both the buyer and seller determined that the land sold by Henry Astor III was neither involved in litigation nor in any title disputes, and could be separated independently from other family properties. The wealthy man had full and indisputable ownership of the two four-story properties and their attached land, while the ownership of the corner plot and his shops could be perfectly separated simply by signing an agreement with Waldorf Astor IV.

The most troublesome part of this transaction was actually the land title confirmation, but with Goldman Sachs' involvement and Mr. Porter's thorough understanding of real estate transactions, the process went very smoothly.

Saturday's main activities included signing sales contracts and transferring land deeds and property titles.

Larry was only responsible for providing the money; Mr. Potter was the one who spearheaded the project.

On the other hand, Henry Astor III, with a frown, hunched his plump body in a high-backed chair and forced himself to accompany the signing ceremony.

The lawyers representing both the buyer and seller conducted a meticulous and lengthy property title confirmation process. Afterward, the seller's lawyer, representing the wealthy elderly man, presented the tax payment certificate for the property and land. The buyer's lawyer then carefully verified the total area of ​​the two properties and the land beneath them based on the survey map. The two properties occupied 1.48 acres of land, while the commercial property occupied 0.62 acres.

It is exactly 2.1 acres in total.

Then comes the transfer of property ownership, which is another very complicated procedure.

However, the data shows that the total area of ​​the property is 6.1421 square feet, of which the two buildings together account for 4 square feet; the street-facing shops are two-story structures, totaling 2.1421 square feet.

When the exact area was calculated, even Mr. Porter was quite surprised...

He found a moment when Larry was in the bathroom and, after confirming that no one was there, said to Larry with a delighted expression,
"My God! Larry, I have no idea how Goldman Sachs negotiated the price! How did they manage to get this land, including the buildings, down to $35? You know, the current price for land on Fifth Avenue is $22 per acre. It's like we paid $35 for 2.1 acres of land that should have been $44, and the buildings were practically free!"

Mr. Potter's voice trembled, and his face flushed with excitement.

Larry smiled slightly. To be honest, he was also very curious about how Mr. Goldman had managed to drive the price of this land down so low. But as Mr. Goldman had said, "Everyone has weaknesses." If Larry paid $1500 to satisfy his curiosity, he would expose his weaknesses to the Goldman Sachs people.

Never mind, as long as I benefit from it, that's all that matters.

Mr. Potter was so excited that he even washed his face under the tap before he calmed down and returned to the law firm with Larry.

The next steps are signing the contract, making payments, and closing the deal.

Henry III had been waiting for this moment. He hastily signed his name on the sales contract, told his steward to stay there, and then hurriedly left with the other servants.

When the old tycoon left, he didn't even look at Mr. Porter and Larry, but pointed meaningfully at Henry Goldman of Goldman Sachs.

The latter hurriedly bowed and said goodbye.

Then Larry and Mr. Porter signed their names on the document.

Subsequently, the lawyers for both parties exchanged and confirmed the contract again, and will go to the New York City Register of Property Office in the afternoon to complete the transfer and registration of the real estate title.

Larry thought that was the end of it, but what followed was another surprise: the two four-story buildings and the 2.14 square feet of street-facing property still had lease agreements to be handed over!
Larry was completely ignorant about the law in his previous life, and after being reborn, he understands even less about the complex relationships within the Anglo-American legal system...

It turns out that after the property ownership is transferred, the seller also needs to transfer the lease agreements of the businesses that are currently renting the property. In other words, starting today, the rent generated by those two properties and the street-facing shops will go to Larry and Mr. Porter.

Larry never expected that this house could generate cash flow, so he quickly grabbed the agreement to take a look...

Wow!

The ground-floor shops of just two buildings, namely the trading company and the French restaurant, generate $1.14 in rent per year, while the street-front shops generate $6700 in rent per year. This does not even include the income from the apartments. The commercial property area alone can contribute $1.81 in cash flow.

Of course, the first quarter of this year has already passed, so the rent for the remaining three quarters of these commercial properties belongs to Larry and Mr. Porter.

Larry did some mental calculations and realized that the properties he had bought, including the apartments, could have generated at least $2 in rental income for the wealthy man each year.

How could this spendthrift old man bear to sell such a juicy piece of meat?
Isn't this killing the goose that lays the golden eggs? If this happened to Larry, he would sell everything he owned to keep this goose that lays the golden eggs. How could he possibly sell it at a loss?
Larry became increasingly curious about what the Goldman Sachs people had said to the old millionaire…

Mr. Porter leaned closer and did a quick calculation with Larry. Even disregarding the potential profits from reselling these properties, just collecting rent would recoup the $35 they'd paid in 18 years…

This time, not only was Mr. Potter unsettled, but Larry was also unable to calm himself down.

Then comes the final payment.

Larry had previously agreed with Mr. Potter that Larry would pay the amount on Mr. Potter's behalf first, and the two of them would settle the rest privately later.

Larry took out a $35 bank draft from the National City Bank of New York from his suitcase.

Previously, he had $103.68 in his account at National City Bank in New York. He issued a bank draft for $25 to buy New England Railroad stock and also issued a check for $4.7 to Mr. Wallace to repay the money he had advanced to buy a 20% stake in Ford Motor Company.

There is still $73 left in the account.

They have now issued another $35 bank draft, and there is still $38 in the account.

In addition, Larry withdrew another $3 in cash to cover miscellaneous expenses such as legal fees, sales tax, and stamp duty.

Finally, as darkness fell, the lengthy yet surprising real estate sales contract signing and property transfer were completed.

除了支付35万美元给老富翁，拉里还交了合同总金额4%的契税，一共1.4万美元；0.05%的印花税175美元；

The title search and registration fee, as well as the title insurance fee, totaled US$2000.

In addition, 0.7% of the total transaction price, or $2450, must be paid to the lawyer.

The total is $18625.

Larry had $3 in cash, and all these expenses were paid in cash.

Henry Goldman sat there silently watching the deal go through, and Larry could see a smile playing on his lips.

But thinking about it, it makes sense. Given the conflict between Goldman and Sachs, Goldman was eager to prove himself, and now that he's completed such a big deal in just one week, he's naturally very happy.

When Astor III’s butler left, the other party paid Goldman a commission of $1.25.

Mr. Potter glanced at Larry and whispered, "Give him the right amount, but don't give him too much, otherwise they'll overcharge you next time they hire someone..."

Larry nodded to indicate that he understood.

After a while, Goldman came over to Larry and said, "Mr. Livingston, remember to register your property tax with the tax office before June this year. It's about 2.2% of the total value. Also, I suggest you buy fire insurance, and buy as much as possible, because many street-front properties have wooden structures, and a fire is no joke."

"Thank you very much, Mr. Goldman!"

Larry pulled him aside, took out his remaining cash, first pulling out $7500 to make up the $2 brokerage fee he had promised Goldman, and then pulling out $1.3, which was the total price of $15 that the other party had negotiated down, Larry's promised "rebate for the price reduction".

The total is $2.05.

Larry not only spent all $3 he had withdrawn, but also emptied his wallet of all the cash and gave it all to Mr. Goldman.

After paying, Larry had only $124 left in his wallet!
Larry showed him his empty wallet and said with a wry smile, "Look, I gave you all the money I had, and I don't even have enough left to buy a bicycle..."

Goldman first thanked Larry, then squinted at the thick wad of $3.3 in his hand, and said with a smile,
"Sir, I'm not trying to be rude, but you got a great deal on this order!"

“You’re right,” Larry nodded in agreement. It was all obvious, and he appreciated the favor.

With a smile on her face, Gao Man continued,
"Of course, I also made some money from this deal. But I hope this is just the beginning... If you have any requests in the future, feel free to come to me again. I'll say it again: we have connections at both the top and bottom levels in New York City. What others can do, Goldman Sachs can do too; what others can't do, Goldman Sachs might be able to do... You understand what I mean?"

Larry smiled, extended his hand to shake Larry's, and said casually, "Great! I like people like you. I'll remember Goldman Sachs!"

Goldman glanced at Larry and said, "I thought you were going to ask me how I got Mr. Astor III..."

Larry gave a wry smile and opened his wallet again. "I can't afford that consultation fee!"

Goldman smiled but remained silent. After a while, he said to Larry, "Oh, by the way! Mr. Livingston, you mentioned last time that you wanted to open a futures account. I'd like to introduce you to Lehman Brothers. Is that alright?"

“Okay! When can you take me to open an account?” Larry nodded.

“Tomorrow is fine, they don’t rest on Sundays either, but the agency fee is…” Goldman looked at the money in Larry’s wallet and said, “Just consider it making friends, $100 is fine!”

Larry looked at Goldman with a smile, thinking to himself, "Fine, you're going to make a profit from the last $100 in my wallet!"

This guy! He's got talent!
(End of this chapter)