Understanding legals on debt and equity side
Newbie in RE, just graduated (London). Currently working in real estate debt and I want to learn about the legal side of REPE and RED which is of course very important. For example, the use of SPVs and guarantors, default proceeds where lenders are/arnt parri, Back leverage/syndications legalities, equity charges and general term sheet/facility agreement lingo. Is there a good book /video/podcasts that I can watch that will educate me a lot on the legal aspects for equity & debt.
More than willing to pay someone to give me lessons too. I’m just a hungry grad, looking to understand RE. Any help would be appreciated!
This isn't something that's particularly easy to learn from a book or informal lessons and more something you'll pick up throughout your career as you read more and more documents and spend time in meetings with counsel and your leadership team.
The best approach is read absolutely every document that comes across your desk and list out questions for stuff you don't understand (whether mechanically/in terms of language or the logic underlying something) and sit down with your boss and/or somebody on your legal team when they have time to run through them.
There is one useful textbook to pick up the basics - A Practical Guide to Commercial Real Estate Transactions.
EDIT: Also, if you're at the analyst level, I would recommend focusing way more of your time on getting excellent at what your current role entails before you get bogged down in the legal side of things. That will come later.
Thank you very very much, amazing answer
I second this. In the early stages, you are expected to know very little on the legal side, mostly due to the fact the only way to gain expertise is through deal experience. Read every legal document you can and look up the general purpose of each as you go, this will not only help answer your questions but also help you understand the deal process better. Something I did that helped me a lot was note any significant changes my boss would make in redlined documents and ask why they did so.
Agree as well. You learn the legal aspect on the job by reading everything and speaking with lawyers.
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