Good morning. It's Sunday, Mar. 1, and in this week's edition, we're covering FinCEN's new beneficial ownership rule hitting this weekend, a Fed president pushing back on rate cuts, and how Trammell Crow built a $13 billion empire by giving more than he had to.
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FinCEN's new residential real estate rule kicks in March 1, and it's a big deal for anyone buying property through LLCs, trusts, or other entities with cash. The rule requires full beneficial ownership disclosure on non-financed transactions, targeting the estimated 20-30% of U.S. deals done without a lender (and the anti-money laundering checks that come with one). There are carve-outs for 1031 exchanges, bankruptcy transfers, and no-consideration deeds into grantor trusts, but the compliance burden just got heavier for entity-based buyers. CRE investors structuring acquisitions through SPEs should be looping in counsel now if they haven't already.
🔗 The $23 Billion Vegas Family Business Destroyed From Within: Steve Wynn built a casino empire (The Mirage, Bellagio, Wynn, Encore) and lost it all through two divorces, misconduct allegations, and an eight-year legal war. A masterclass in how partnership and personal risk can unravel even a $17 billion business. Watch here
🔗 How One Real Estate Mogul Melded Concrete With Crypto: Grant Cardone breaks down his hybrid portfolio strategy combining real estate and Bitcoin. Whether you're crypto-curious or skeptical, it's a worthwhile look at how one of the bigger names in the space is thinking about diversification. Watch here
Kansas City Fed President Jeffrey Schmid isn't ready to declare victory on inflation, telling the Economic Club of Colorado the central bank still has "work to do" even as the labor market holds steady. Schmid (a known skeptic of last year's rate cuts to the 3.5-3.75% range) didn't tip his hand on next moves, but did drop an interesting nugget: the Fed's mortgage bond holdings are keeping home borrowing costs 75-100 basis points lower than they'd otherwise be.
CRE Impact: Don't bank on aggressive cuts anytime soon, and the Fed's balance sheet is quietly subsidizing housing finance whether policymakers like it or not.
Fairness begets fairness. Loyalty begets loyalty. Generosity begets generosity.
I just got back from India.
Jet-lagged and inspired, sitting on my couch at 2am, I fell into a video about a man named Trammell Crow.
If you haven't studied him, you should. I honestly don't know why he's not idolized like Sam Zell or other real estate legends.
His story is that good.
He built a $13 billion empire, nearly lost everything (twice), and rebuilt it both times.
But the most interesting part is how he did it.
Crow didn't win with golden handcuffs structures or clever equity waterfalls designed to keep people just motivated enough.
He went the other direction entirely and always gave more than he had to.
New partners got 20% ownership on day one (not after hitting milestones, or after proving themselves). He believed that "the person paid a salary won't do the same job as the one who owns part of the deal."
When dissolving a long-time partnership, two accountants valued the business (one said $14M, the other $16M). His partner used the lower number to buy him out, trying to be fair to Crow.
Crow insisted on paying the higher price to be fair to his partner. Two men arguing over who got to be more generous.
Later, Crow reflected: "Over the years, I probably gave more than I needed to. But on the whole, I wouldn't change it. The more you give, the more you get back."
When his empire nearly collapsed ($433M in liabilities, the Fed on watch), his partners weren't legally required to do anything.
They sold their own assets anyway to save him.
That's what happens when you spend decades elevating everyone around you. It comes back.
Every dollar of generosity compounds quietly in your partners, your tenants, your team, and your buildings.
Crow's real legacy wasn't the 140 million square feet. It was the hundreds of people he left better than he found them.
And if you want to go deeper, his partners wrote a raw, honest 101-page document in 1989 confessing every mistake they made with real names attached. It's one of the most valuable things ever written in CRE.
Crow's story got me thinking about a bigger question, one I'll leave with you:
What higher purpose drives your business beyond creating wealth?
I believe most of you have one, and I'd genuinely love to hear it.
Hit reply. I read every single email.
LET ME HEAR IT
Until next Sunday.
Be well,
Saul
P.S. Missed my podcast with Graham Storey? Here is the full episode.
Videos & podcasts: I publish them weekly. Subscribe on YouTube, Apple Podcast or Spotify.
Random Saul Fact: Last week, I was in India with an incredible group of friends. That’s the Taj Mahal in the background.
