---
# System prepended metadata

title: 'graph TDA[Value] –> B[Assessed'

---

Example dashboard: 

![PNG image copy example dashboard](https://hackmd.io/_uploads/Hy9JYqBtC.png)

Or:

https://onefact.github.io/american-community-survey/new-york-area/income-by-race

Or:

https://onefact.github.io/healthcare-data/

Or catastrophic risk bonds, as new york city is self-funded for flood risk insurance and banks refuse to underwrite mortgages in flood prone areas (think: the next sandy):

https://docs.google.com/document/d/1Fojz2Wx-b7d7HEyADPpCsIJHeRZYQkYXh1ocPLdq8MU/edit?usp=sharing

Also, investors bank, citizens bank, ny community bank, hsbc have all failed or needed bail-outs in the past 12 months due to 40% occupancy of corporate real estate, and due to COVID work-from-home restrictions, corporate landlords being unable to pay back their mortgages. That leads to the only liquidity being held by private equity, meaning they can speculate on "distressed assets"; read: multi-family residential units often in poorer parts of the city where more banks have failed! It's dark.


Claude prompt:

```
hey claude im chillen with my friend jess and we need your help! 

create a mermaid.live diagram but only the raw code for what goes into a tax lot such as pigs beach. we have all of the tax lots up at https://onefact.github.io/new-york-real-estate/

please create a single markdown block summarizing the contents for the shortest amount of tokens possible that contains the maximal code (but extremely short). debug it. proceed step-by-step as an elite site reliability/devops/L20 principal warez engineer at google, returning as few tokens as possible, to debug this task. give the complete corrected code!

Understood. I'll create a concise Mermaid diagram for a tax lot, debug it, and provide the corrected code. Let's proceed step-by-step:

    Create initial diagram:

mermaid

graph TD
    A[Tax Lot] --> B[Location]
    A --> C[Owner]
    A --> D[Value]
    A --> E[Size]
    A --> F[Zoning]

    Debug:
        The diagram is simple and should work.
        No obvious errors in syntax.
        Covers basic tax lot information.
    Optimize:
        Remove unnecessary newlines.
        Use shortest node names possible.
    Final code:

mermaid

graph TD
A[Lot]-->B[Loc]
A-->C[Own]
A-->D[Val]
A-->E[Size]
A-->F[Zone]

This concise code should work in Mermaid. Would you like me to explain or break down the code?
Claude does not have the ability to run the code it generates yet.
J

what is value in this context? respond only in a mermaid.live diagram. 

please create a single markdown block summarizing the contents for the shortest amount of tokens possible that contains the maximal code (but extremely short). debug it. proceed step-by-step as an elite site reliability/devops/L20 principal warez engineer at google, returning as few tokens as possible, to debug this task. give the complete corrected code!

Let's create a concise Mermaid diagram explaining "value" in the context of a tax lot:

    Initial diagram:

mermaid

graph TD
    A[Value] --> B[Assessed]
    A --> C[Market]
    B --> D[Tax Base]
    C --> E[Sale Price]

    Debug:
        Diagram structure is correct.
        No syntax errors.
        Covers key value concepts.
    Optimize:
        Shorten node names.
        Remove unnecessary spaces.
    Final code:

mermaid

graph TD
A[Val]-->B[Asd]
A-->C[Mkt]
B-->D[Tax]
C-->E[Sale]

This optimized code should work in Mermaid. Would you like me to explain or break down the code?
Claude does not have the ability to run the code it generates yet.
```

```mermaid
graph TD
    A[Value] --> B[Assessed]
    A --> C[Market]
    B --> D[Tax Base]
    C --> E[Sale Price]
```

```mermaid
graph TD
A[Val]-->B[Asd]
A-->C[Mkt]
B-->D[Tax]
C-->E[Sale]
```

https://onefact.github.io/new-york-real-estate/

Rough notes: 

```
big sports fan -> reinvestment 

121 exemption - broad eligibility 
1031 exchange. 

Elongated ways to have gains delayed
If you decide not to do a 1031 exchange; if you keep doing an exchange - active or passive, that bill of taxes will not come true. If they decide to sell, they lock in the basis. 
Property in trust, most trusts are social security of investors. Doesn’t look at how entity is held - single member LLC, taxpayer is individual or couple, you’re still ultimate payer. 

Usually trust is to ensure assets don’t go thru probate. 
Specific to circumstances. 
Applying for refund on property taxes (which are usually assessed incorrectly) is usually the right thing to do and surprisingly easy to do and very successful. 

Easiest way to cash out is refinancing and increase liquidity - important - always refinance after doing a sale. 

Look at all of line items that drive net operating income. 

Where is sustainable net positive migration happening? 
Huntsville, headquarters of nasa and Boeing. 

Get rid of the nit or get rid of the tax bracket - recapture on depreciation right away, other problems. As alternatives to 1031 exchange. Specifically for real estate. 

DST - Delaware statutory trust - passive investment qualifies for specific replacement property - fractional ownership in a trust that owns multi family industrial self storage (3 most popular). Large commercial, allows 1031 exchange. Layering but still paying a tax at some point when you decided to pull out of… 

architect - working around cities. prev. with EDC
mermaid aneesh: 

rent is growing faster than expenses for a long time.

the us has the most deep and liquid capital markets in the world, specifically for residential real estate.

significant tax advantages related to investing in reale state - not manny asset classes that offer this. 

take benefit of a bunch of rules to write off depreciation and defer capital gains by using 1031 exchanges. 

justin:

most beneficial but least beneficial - what is a 1031 exchange? 

it's something that's been in tax code for well over 100 years. re profs, avg investors, option available for estate planning, swat 2 drop (opportunity to defer capital gains task from the sale - business or investment used property - into a like kind asset, i.e. another business/investment used property)

cycles. 

ultimately beneficiaries and heirs would get a step up in basis and not have to pay the tax. definitely something to think about when you start your portfolio in real estate.

akasha:

one of the reasons 1031 is successful, you can take that capital and reinvest it.

re is 2/3 of global wealth; around 3/4 of all net worth that was developed and grown has been through real estate. frontier: housing prices have tripled, that far outpaces any kind of investment in stocks/bonds. consistent basis (shill for real estate). 

legacy planning - very important when you are thinking about an asset that is so long term - providing income on a regular basis, wealth that not just you can use but that others can use. 

second point about covid: 

has been so disruptive. 

leaving cities -> suburbs pipeline. stickiness of what that looks like; these people are gonna move back / trend accelerate. 

denver houston new york, san francisco - people moving to urban periphery. 

what percentage of multi-family residential have more than 2 bedroom? 
- 8% -> forced into a single-family home. 
- people want bonus room, home office/inlaws.
- still multi, still makes sense, a lot of the trends are in space.
- frictionless trace structure, want a mortgage - continue to optimize the asset including on the . 
  - 150 process points or decision points per property.
  - giving people the power to invest, but taking away all the difficulty to invest, etc. 

global qualified intermediary: mediary between selling and ultimate purchase of replacement property or properties. 
- if i'm selling plot of land, and you hear the term "like kind" exchange or "third exchange", sell & buy transaction (so i have to buy that similar asset type). helps move from commercial building into a single family home, can get real creative and innovative. 
  - also different types of 1031 exchange:
    - o exchange
    - reverse exchange (operating in reverse order of the standard 1031 exchange: purchase an investment property before selling an existing property. allows them to purchase a property within the 6 month timeframe, then sell the existing property. exchange timeline is 180 days, starts at the day that you sell your relinquished property. your first 45 days is the identification phase. our exchangerrs are looking to reinvest, what types of properties to identify and complete their transaction, a tedious time for people who aren't figured out.
    - the day i love talking aoubt is day zero
    - if i already properties and i'm planning to distribute - get a CPA and distribute, the more planning you can do around the sale, whatever is on the last will be set in stone for 45 days. you're ultimately looking to fully defer those capital gains on doing that.
    - come to day 45, definitely have had a lot of war stories: i'm only gonna identify one, fully confident i can close it in 45 days, seller took it off the market, now kinda screwed paying taxes. 
    - improvement exchange operates similarly to reverse exchange: our goal will take title of replacement property, but instead of using all of the funds, the funds are used to fund a new development. by purchasing less than the amount need to satisfy the 1031 goals, use the funds to improve an established asset, or build a new one. 

what's happening in the community? 
zoning, restrictions influences what you operate. if you build multi-family, can you use airbnb? can you use hotel? what does code allow?
what are future potentials? 
upzoned. 
flood and other risk.
incentives from state and national. 
opportunity zones: incentives attached to certain kinds of neighborhoods and doing that. 


tertiary cities.

identify 3 houses that were a good match for him (peak of earning careers), that he was able to immediately flip into.

if you are considering now or ever, having a professional to navigate, there are so many pieces to that process you can trip up.

a lot of QIs putting funds in illiquid assets. security, transparency, regulatiry compliance - streamlined requirements for 1031 exchanges. utmost security thorugohout lifecycle - get dedicated exchange account, not tied to their books/accounting records, client still has access to those funds and tehir exchange was viable. 

private equity in opportunity zones. protect people's funds but eliminate headaches. 

do not touch the funds at any point during the transaction. constructed receipt of those funds, that is a failed exchange. month before their close, they say great, they sold the property, they clased yesterday - ready to do a 1031 exchange. it's hit their bank account, they received the check, however they construct the funds. need to be engaged with your qualifiied intermediary, with QI and broker prior to selling of relinquished asset. 

any delta between those will be regular tax. sometimes investors dont wanna take on debt, the goal is to defer all of the capital gains tax, knowing those types of pitfalls is important. planning to engage the 1031.

take advantage of distressed assets that are avaliable right now.

there are two trades at opositte ends of the spectrum:

- in case you don't know, we have a chronic housing shortage. it's not getting solved, it's growing. everything across the supply chain is broken. it's difficult to entitle land. for every lot. not just because the overhead of covid, glass is a huge problem - gave our production away to china. finnish glass coming in is too slow, immigration. younger generation doesn't want to work. robotics? not there yet. supply is constrained, households growing tremendously.
focus on types of returns if you buy in the right markets will far outstrip the government projects and the fancy things that you see promising you can make lots of returns. 

we bulk insure, so we pass on insurance savings. tend to do a better job of managing tenants, repairs, to deliver institutional scaling.

turning personal residence into investment property. dip your feet into it. potential tax advantage solutions: 121 exemption, 500k if you're married, on sale of personal residence in first 5 years, then if it's an investment property take advantage of 1031 exchanges at time of sale. 

part of the american dream is buying home is a primary home that you have a relationship with. many people are buying investment properties before buying a primary home. what is the balance between realizing the benefits of real estate investment while trying to save up for a down payment? switching primary to an investment, or renting for a lot longer when you do have kid? 

you can move into that home after the 2 year period. using 1031 for that home after the period is fine.

personal risk, perceived risk. act of god? 
FEMA has defined maps. flooding zone X and Y, certain amount of financing to do it - city also takes some risk outside of it - 100-year storm, precedence, then city bears risk. 
homeowners forget that. 

"this is really cheap but it's not going to flood"

trade-offs, disasters, bonds that mitigate for it, reflection of personal finances - who are you willing to put in the capital if it requires. building on stilts. 

natural disasters are inputs to algorithms - insurance premiums are going up. build those into cash flows. harder to get payouts. they do that for their members. singapore: portfolio with us assets, cash flow really well - storm->tree->tenants not paying rent and other stuff. tree lifted, insurance assessors will fight you. 
data-driven combination of reserves and credit. 
mechanism uses data to say what is the long term cost of these key items - how are we going to get to that long term shock. pay out and they become the risk-bearing entity.

does this map onto the thing? the ACO model? ??????!!!

Charge 1.5% MER 
```