Trade Stock for Condo?
Started by Apt_Boy
almost 14 years ago
Posts: 675
Member since: Apr 2008
Discussion about
Let's say I have $4mm in restricted stock that vests 25% per year for the next 4 years. Would a condo seller accept that and $300k cash for a condo worth approx. $3.3mm? So, for their troubles, they are getting stock worth $1mm more than the condo is worth today, with the risk/benefit of the stock over the next 4 years (assume major financial firm stock) Would you take this deal?
Forgeting the risk of stock over 4 years for a moment, I think most condo sellers would be too paranoid about being grifted.
Wondering what is/are the tax scenario/implications for such a deal...
can you even barter without trigerring a gift/capital gain tax?
no can do. restricted stock has vesting conditions that would not be transferable.
So what is it....Tesla Motors? ..... AIG?
would opinion change if it were GS vs. citi? and let's assume the structure has been vetted by the issuer and has their blessing ie waiving various conditions that would make this impratical ie must be employed for the full 4 years
Wouldnt touch Citi with a ten foot pole.
In fact Citi hitting $5 inspired me to dump all my stock everywhere else. Other than my 401K which I don't manage, I am now stockless.
assuming conditions would be waived, and thats a very big leap of faith - terrible deal unless you price in a hedge which will be more expensive then the "premium" you would receive for the shares. regardless of the issuer. if the issuer is even somewhat unstable, then its even worse.....
but citi would need to go to 3.75 just to match the current selling price
Pre-2008 people got loans against their restricted stock, but I don't know how that is working nowadays. I don't think any condo seller wants to take a restricted stock position you seem eager to sell at a discount. If it were a diversified stock portfolio, that would be a lot more attractive.
http://www.huffingtonpost.com/2011/01/13/citigroup-was-on-the-verg_n_808721.html
And still is insolvent. special investment "conduit" (i love the term: finance people haven't figured out it's a small bowel derivation for treatment of ...bladder cancer), off balance sheet vehicles are loaded with junk. Only repudiation of FASB rules (2009), allowing for mark to model,permit City to even trade.
Woa.get a new job.City is a ZOMBIE
Aptboy, have you tried JG Wentworth?
Assuming your company unconditionally guarantees the transfer of stock title (only in your dreams), I still would not take it as I can not hedge it by shorting the stock due to margin calls.
Hey...I hit the big time...thread posted on Curbed and Brickunderground...do I least get a t-shirt for my troubles??
Would you trade that t-shirt for a coupon for 4 pair of gold toe sweat socks reedemable once a year for the next 4 years?