Started the PE-backed loan conversations with a few banks.
Applied for developer tickets for breakpoint (solana lisbon).
Compound (https://app.withcompound.com/accounts) is a mint alternative, optimized for tech folks (PE, crypto, etc).
fuse.js is the fuzzy search lib.
QC spa on governer’s island: https://www.qcny.com/en
Assure is probably the most popular SPV platform. Sydecar is another. Easy to get funding as a founder, easy to invest as an investor, helps with fund administration, more.
GDP report showed economy shrank by 0.2% in Q2 (Q1 was 0.4%).
Securitization: merging various assets into a group and then issuing an instrument for it.
Standard: securitizing companies. That’s what equity is.
Relevant: securitizing debt. Like a loan ETF. These are called CDOs: collateralized debt obligations.
Example: I’m a bank and I manage a ton of mortgages and personal loans and credit lines. I create a diversified portfolio of all this debt and then create a Brian token which represents a stake in the pool. Then I sell the debt to various investors. They’re basically funding the loans, and then they’re getting a guaranteed return from the interest (diversified, customized, etc). I’m the aggregator, the pool, the originator; I’m not the lender. I charge origination fees, not interest. The investor basically takes the role of the lender. And I can take the assets off my balance sheet, which means I have more cap space (under liability threshold) to underwrite additional loans and bring more TAM in.
This is exactly how mortgage-backed securities work. Banks group all mortgages into buckets by risk level (tranches) and then sell them as bonds to investors. (of course – veiling the assets backing the security, as in 07-09, can lead to large problems).
Exposes opportunities to investors in ways that might not be available otherwise. In a fractional way, with lower barrier to entry. While being beneficial to the originator to reduce books.
Watched the AWS+Datadog webinar on how to observe k8s envs.
Specifically EKS Blueprints. Basically IaC specs for full deployments. Interfaces with terraform and aws cdk.
Stripe sitting just below the 3 hectacorns (140b, 127b, 100b respectively) at 95b.
Paste with no formatting when copying between the wordpress and gdoc editors. Otherwise the indentation is trashed.
Continued motorcycle storage pursuit.
The garages are great for access (security, maintenance areas, etc) but are basically full.
Did some research on storage lockers. Some do allow motorcycles.
Local Locker does not allow gas. Manhattan Mini Storage doesn’t either.
Talked to Public Storage and Local Locker.
Got quotes from a few others. $300-400/mo. Same (if not more) as a regular garage. Plus you can’t access it, and you have to drain the gas and oil. Not worth it.
Overall extremely annoyed; I don’t have hours to waste on finding alternate parking like this. Motorcycles should be easy, but NY is much worse than CA for this.
Remember I applied to cyclegarage and risingwolf a couple weeks ago. No reply.
Reached out to rydersalley, VAX moto, machina cycles. All via both phone and email. Some bounced. The ones that went through didn’t get replies.
Icon parking continues to be unhelpful – website shows tons of facilities with motorcycle availability, but I called ~5 and pissed off attendants just said they’re full.
Finally met someone helpful! Motorgrrl. <$200/mo, comparable to current. They have space (albeit may be tight). I’ll bring it in fri or sat. They say climate-controlled and safe, so assume covered and secure. A little worried about driving over the bridge before maintenance, but will take it easy.
Revisited IRS section 83(i). Defer income from the exercise of an RSU or ISO for up to 5 years, namely deferring AMT. This was to accommodate employees at companies without/infrequent tender offers, since they don’t have liquidity to pay the taxes on the exercise.
MSFT +5%.
Choco taco is being discontinued??
Russia withdrawing from the ISS in 2024, leaving US / Japan / Europe / Canada.
Remember figure. Crypto-backed loans. APRs 6-8%. Up to 3M. Can also do mortgages, helocs, refinances, and personal loans (smaller maximums, but faster process).
Remember that Leverage=1/(1-LTV) is the case for infinite rounds of supply->borrow. This only really applies to the crypto case. A fiat lender wouldn’t allow you to rehypothecate (especially back to them) the funds they let you borrow. In that case, it’s just raw LTV. Put up 3M collateral at 33% LTV, get 1M liquidity (1.33x leverage vs 1.5x if you could keep re-collateralizing).
Lots of research in securities law.
409A appraisals for private company valuation. Alternative: last raise round.
Trust usually 3 party, LLC 2 party.
There are definitely restrictions on shareholders (diff by class too) for what they can do with that equity (no transfer, etc etc).
Shares can of course be certificated (usually older, paper).
Perfecting the loan agreement is when you file the UCC-1, publicizing the transfer of ownership (when pledging private shares).
Uniform Commercial Code.
Stock power = ability to transfer ownership, of course.
Security interest = lien = the lender’s claim on the asset(s) used to back a loan.
The lender is the liener or lien holder. The borrower is the lienee.
Business formation background.
Form 8832 for entity classification election.
Form 1120 for corporate income tax.
LLC does not tax, no double, passthrough. Forwards to members, like an s-corp. C corps obviously tax at both the corp and the individual.
SPVs (manifesting as LLCs usually) are good to have in place for fast deals. Quickly isolate funding (without risk of other assets) and perform due diligence later. Or to do something like shield a home sale where the cap gains on selling an SPV (holding the home asset) are less than the tax on property sales of the home directly. Wrap the real estate in a business.
Delaware, Nevada, Wyoming more favorable (taxes, legal, speed, more).
Actual legal entities.
Sole proprietorship.
Same as my person. Blog = website, EIN = SSN, business name = legal name. Don’t need any business-specific licenses.
Trust.
Created the full estate plan, not just (revocable) living trust. Schedule of assets, certification of trust, last will & testament, hipaa authorization, living will, power of attorney.
Delaware, trust&will, 480 to file after promo code and 39/yr to maintain.
LLC.
Created the LLC, customized operating agreement, filed, got EIN. Didn’t do most the unnecessary peripheral services. Obv registered agent.
Delaware, zenbusiness, 413 to file and 199/yr to maintain.
Security-based swaps. Some research on precedent, esp for tokenized shares. Heavily linked to PE. Regulated by SEC. Need to be executed with eligible contract participants, need to have registration statements, and need to be national securities exchange.
Tokenized stocks:
Company can issue a digital stock in order to fundraise themselves.
Third party can issue tokenized stock, back by their own holdings of the fiat stock.
Perpetuals are useful for illiquid assets like PE. Don’t have to rollover at expiration date like futures, used pretty widely in crypto.
You can make calls between echos to have conversations across rooms in houses! “Alexa drop in to living room”. You can also do it from your phone to have a conversation with your house while you’re out.
Did the math since I’m blowing through packs for the aquarium. Worse than sharkeez. It’s just under 2 cents per sheet of paper towel.
My water utility is on a master meter for the building that gets divided evenly (or by co-op shares); my portion does not goes up proportionally by my individual unit’s usage.
Power is tracked per unit by baycity metering.
Difference between creditor and investor. Duh.
Creditor = provides capital and they get principal+interest back. Like a loan.
Investor = provides capital for some return (revenue, interest, whatever).
Three arrows went bankrupt.
They’re a hedge fund. 3AC.
They owe ~3.5b to other people who won’t be getting it back. Blockchain.com is out a few hundred million…
Genesis was the biggest creditor. They’re out ~2.3b.
Founders Zhu Su and Kyle Davies are currently unlocateable.
