Discover how Eli Karp, founder of Hello Living, built a $500M real estate empire from scratch-and what happened when it all began to collapse.

From Special Ed Teacher to Real Estate Empire: Eli Karp’s Rise, Fall & Fight to Rebuild

Building from $25,000 to a Half Billion: The Hello Living Story

How does a special ed teacher with zero real estate experience build a $500 million real estate empire? In the latest episode of Confronting the Impossible, Leo Jacobs sits down with Eli Karp, founder and CEO of Hello Living, for an extraordinary journey through grit, growth, betrayal and the relentless pursuit of vision.

From humble beginnings in Brooklyn to developing one of the most recognizable residential brands in New York real estate, Eli shares how he built not just buildings-but entire communities.

The Genesis: From Traffic Jams to Visionary Development

It all began in 2005, with Eli commuting through run-down Brooklyn neighborhoods as a special education teacher. Inspired by the empty lots and aging storefronts he passed daily, Eli took a leap of faith. He scraped together $25,000 - even borrowing from credit cards meant for debt payments - to lock in his first property: 925 Pacific Street.

He had no architecture experience. No real estate resume. Just a passion for creating - and an idea: build luxury where no one else dared.

The success of his first project, Pacific Blue, wasn’t just about floor plans. Eli’s obsession with shared amenities, community-building, and unique architectural design led to the birth of Hello Living - a new kind of residential experience.

While most developers stuck to cookie-cutter units, Eli built high-ceiling, flow-through apartments with a communal vision: "Say Hello to a New Way of Living."

As blogs and publications started recognizing his impact, Eli didn't just build homes - he built a brand. Residents, investors, and even local business owners began following his developments. Some investors even used Hello Living projects as beacons for their own commercial ventures nearby.

And it worked. Prices skyrocketed. Buildings sold for $600–$650 per foot, outpacing the original projections by nearly double.

The Price of Partnership: Freedom vs. Control

Not everything was smooth. Eli’s first major investor -"Tony"- funded his dream but later tried to control it, treating Eli as an employee rather than a partner. Eli eventually walked away from properties, profits, and partnerships - buying his freedom to reclaim his vision.

Lesson? Never start without a signed agreement, no matter how excited they seem.

Hello Living Expands - and So Does the Risk

From 2012 to 2020, Hello Living exploded across Brooklyn - Crown Heights, Prospect Lefferts Gardens, Downtown Brooklyn - developing up to 15-story buildings with private elevators, shared amenities, and units designed down to the square inch.

The podcast takes a sobering turn as Eli reveals the darker side of real estate finance-predatory lenders, note-buying, and alleged strategic defaults.

One lender, Madison Realty Capital, allegedly bought his performing loans, delayed funding, and then backdated a default, demanding millions more in interest. This triggered legal and financial chaos, jeopardizing years of work.

This episode isn’t just about real estate-it’s a case study in entrepreneurship, resilience, and the emotional cost of ambition.

✅ Great brands are born from great vision

✅ Bad contracts can destroy good businesses

✅ Debt is not just money-it’s leverage, risk, and control

✅ Success means nothing if you can’t protect it

Whether you're just starting out or managing a portfolio worth millions, this conversation will challenge how you think about growth, risk, and resilience.

🎧 Watch the full episode for a rare, brutally honest look behind the curtain of New York real estate and what it takes to build something that lasts.

PODCAST - Confronting the Impossible with Leo Jacobs.

Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.

If you would like to join the podcast email requests to pr@jacobspc.com 

Facing challenges? Reach out to experienced professionals early, prepare for the unexpected, and always approach negotiations with clarity and strength.

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From Fifth Avenue to the Trenches: Leo Jacobs of Jacobs PC Redefines Real Estate Resilience

In the heart of New York City, where deals shape skylines, Leo Jacobs, Founder and CEO of Jacobs PC, stands as a wartime general in the legal real estate battlefield. From his perch atop 717 Fifth Avenue—with the iconic Trump Building and St. Patrick’s Cathedral framing his backdrop—Leo specializes in restructuring debt, equity, litigation, and advising top real estate clients navigating some of the industry’s toughest storms. Representing 15 million square feet of distressed assets across the city, his firm doesn’t chase the glitzy headlines of billion-dollar trades. Instead, Jacobs PC thrives in the shadows of distress, turning negative tides into legacies of triumph.

Leo Jacobs didn’t stumble into the legal world—he was forged in it. His career began in the gritty streets of Bushwick, Brooklyn, as general counsel for a fix-and-flip shop. At age 26, he cut his teeth dismissing residential mortgages, working on properties ranging from $1 million to $3 million. “We made a lot of money there,” he told Traded, reflecting on those early days under a boss who scooped up distressed one- to twenty-family buildings. That experience wasn’t just a job but a masterclass in resilience, negotiation, and the raw mechanics of real estate recovery.

Leo transitioned to the commercial sphere from those humble beginnings, scaling his expertise to tackle $50 million mortgages and beyond. Today, Jacobs PC occupies a 10,000-square-foot powerhouse on Fifth Avenue, with three divisions—bankruptcy, restructuring, and litigation—serving as a lifeline for clients facing financial upheaval. “The inspiration was practical,” Leo explained. “I was good at what I did in a residential context, so I transferred my skills to a commercial context and built something bigger.” That “something bigger” is now a firm that doesn’t just fix problems—it restores the legacies of the giants of New York City real estate.

New York real estate is a game of extremes—dizzying highs and crushing lows. While Traded often celebrates the “zero to one” victories—multibillion-dollar deals lighting up Fifth, Sixth, and Eighth Avenues—Leo Jacobs operates in the uncharted territory of “negative one to zero.” His clients aren’t buying trophy towers but fighting to keep them. “We don’t do what you advertise and post,” he told Traded, “You’ve got TradedNY posting all real estate transactions and deals and highlighting people and their work most compellingly; we’ve got Traded Bankruptcy.”

Jacobs PC steps in where others falter, offering what Leo calls “leverage.” Whether it’s restructuring a $200 million upside-down skyscraper or negotiating a borrower modification, Leo bridges litigation and transactions with a surgeon’s precision. “You go from macro—wiping out negative $100 million—to micro, where the devil is in the details,” he said. It’s a tightrope walk between a litigious stance and a handshake, and Leo walks it masterfully.

Leo’s proudest moments aren’t measured in headlines but in legacies preserved. He shared two standout cases with Traded.

First, a $110 million out-of-court restructuring for a stalled rental development project in Brooklyn, where his team restructured the debt and equity stack to ensure that the sponsor could carry its legacy forward.

Second is a $100M stalled condo construction project in Manhattan, where Jacobs PC accomplished an in-court restructuring where they brokered a modification between borrower and lender, securing the family dynasty’s future for decades. “We’re not here to quit when the going gets tough,” Leo affirmed. “We’re here to make the tough count.”

These victories underscore his philosophy: real estate isn’t just about buildings—it’s about people, their dreams, and their legacies.

   Running a boutique firm in New York City has taught Leo lessons no textbook could. “Ego will         destroy results,” he warned, a mantra born from watching clients cling to being “right” even            when the path is wrong.

   The real skill? Guiding them to see the solution as their own. “It’s less ego, more handholding,”       he said.

   Another revelation: the skills that take you from zero to one—building wealth—don’t work when      you’re clawing back from negative one to zero. “Billionaires don’t realize they’re playing a                negatively amortized game,” he explained. “What got them rich yesterday won’t save them             today.”

Perhaps his most poignant advice to developers, landlords, and lenders facing disputes: “Put your ego in your pocket, hire a wartime general, and make tough choices now, not later.” In a market rife with self-sabotage, Leo is the steady hand steering clients away from their analysis paralysis and swiftly toward resolution.

   Leo’s career isn’t without its wildcards. He recounted a negotiation transcending contracts and      courthouses: a neurosurgeon client, owner of a 20,000-square-foot multi-specialty facility,             texting him from the edge of despair.

   “He said, ‘I want to jump off my building today,’” Leo recalled. In a matter of minutes, he and his     partner Robert Sasloff, raced to 42nd Street, driver in tow, to talk the doctor down—not just            from the ledge, but from a mental abyss. “Negotiating a person’s state of mind is the hardest         thing,” he said. “A soul must be motivated to find an alternative to death.” They succeeded, a          testament to Leo’s ability to wield power over distressed mindsets.

   As the real estate landscape evolves, Leo sees technology accelerating processes—appraisals,     write-ups, and advice delivered faster than ever. “Generative AI is getting us there,” he noted,        “but we’re not at intuitive AI yet.” While data-driven analysis sharpens his toolkit, he’s adamant:     “AI can’t replace human intuition.

   Feeling and emotion are thus disabused from AI.” If he weren’t a lawyer, Leo would be on the          business side, snapping up distressed buildings and restructuring them—a natural extension of     his current mission.

   What fuels Leo Jacobs? It’s a question that elicits a poet’s response. “I like to empower myself       by empowering others,” he told Traded, reading a phrase he’d penned earlier that day. It’s an          alliteration of purpose—a drive to sacrifice short-term wins for long-term legacies.

   “You find out who you are not in an ocean of gold but in the heat of the Sahara Desert,” he              added. For Leo, strength emerges when there’s no choice but to be strong.

   That lion artwork behind him during the interview? It’s no coincidence. Proud, strong-willed, and    relentless, Leo embodies the predator’s instinct—not to prey but to protect and preserve. “My       practice tests the limits of my clients when they seemingly have nothing,” he said. “It’s a self-         developmental journey—for them and me.”

Leo Jacobs isn’t just restructuring debt or settling disputes—he’s reshaping how we view resilience in real estate. From Fifth Avenue’s gilded heights to the trenches of bankruptcy, he’s a steward of legacies, a master of leverage, and a poet of power. As Jacobs PC gears up for a $15 billion year, one thing is clear: Leo’s story isn’t just inspiring—it’s a blueprint for surviving the Sahara and emerging as a chameleon with new stripes and strengths.

We’ll be watching as this lion continues to roar.

Always consult with legal experts. If you have any concerns or questions, please contact us today to speak with one of our expert business law attorneys.

Understanding Bankruptcy Beyond the Stigma. On this episode of Confronting the Impossible, Leo Jacobs sits down with Robert Sasloff to discuss Bankruptcy. 

Bankruptcy, Business, and Billionaires: Hard Truths from the Frontlines

Understanding Bankruptcy Beyond the Stigma

Bankruptcy is a word that sends shivers down the spine of business owners—whether they’re running a family-owned shop or a billion-dollar empire. But in a riveting conversation between Jacobs PC Business & Bankruptcy Attorneys and partner Robert Sasloff, the real story behind financial restructuring was laid bare. The conversation was raw, unfiltered, and packed with valuable insights for business owners at every level.

This isn’t just about legal strategies—it’s about human nature, decision-making under pressure, and the harsh reality of financial distress.

The Ego and Psychology Behind Bankruptcy Decisions

One of the most fascinating takeaways from the discussion was the role ego plays in financial collapse. Whether it’s a small business owner or a billionaire real estate tycoon, the fear of losing reputation often trumps financial logic. The attorneys at Jacobs PC described it bluntly—many business owners refuse to acknowledge when they’re sinking, much like the captain of the Titanic who chooses to go down with the ship.

Instead of acting strategically, they often operate in denial, convinced that the market or their relationships will turn in their favor. They fail to recognize that bankruptcy is a business tool, not a death sentence.

Billionaires Who Can’t Afford a Cup of Coffee

A standout moment in the conversation was the discussion around what it truly means to be bankrupt. The attorneys described cases where individuals control billions in assets but lack the liquidity to pay their daily bills. These "paper billionaires" own entire city blocks but struggle to afford a simple transaction at their local coffee shop.

The podcast tackled an important distinction—being broke doesn’t always mean having no money. It often means not having the cash flow to meet financial obligations as they come due. This is where strategic restructuring and legal expertise come into play.

The Decision Paralysis That Kills Businesses

Many business owners hesitate when faced with financial distress. They either:

Overleverage – Taking out more loans, mortgaging properties, or borrowing from friends and family to keep their sinking ship afloat.

Hold On Too Long – Refusing to let go of a failed venture, leading to more financial bleeding.

Ignore the Problem – Pretending it doesn’t exist, hoping things will magically turn around.

The attorneys discussed real-life cases where wealthy individuals refused to sell even a fraction of their assets to pay debts. Despite having artwork worth millions or patents worth half a billion dollars, they clung to them while drowning in financial obligations.

One of the most crucial takeaways was how sophisticated business owners use bankruptcy as a strategic move. Some of the smartest entrepreneurs recognize when it’s time to cut losses, restructure, and come back stronger.

The attorneys highlighted the case of a billionaire hotel owner who made a tough decision: instead of going bankrupt, he sold 50% of his future returns to an investor. It wasn’t an easy choice, but it preserved his legacy and kept his business alive.

The Lender’s Perspective: The Unforgiving Reality

Another major highlight of the podcast was the role of lenders. Business owners often assume they have time to figure things out, but lenders aren’t patient. They have their own investors to answer to, and once a loan goes into default, they aggressively seek to recover their money.

For business owners who think they can "buy time" by stalling, the attorneys offered a warning—time is not always on your side. Interest rates, legal fees, and lender pressure only increase with delay. Sometimes, quick action is the best way to preserve as much of a business as possible.

The conversation also touched on a crucial distinction—bankruptcy is not a tool for fraudsters. Some business owners lie, cheat, and steal to keep their businesses afloat, but the law doesn’t look kindly on those who commit financial fraud and then try to use bankruptcy as an escape.

Fraudulent activity—such as lying about assets or misleading lenders—can lead to debts that are not dischargeable in bankruptcy. That means even after filing, those debts remain, and legal consequences can follow.

The Emotional Toll: When Business Owners Hit Rock Bottom

Perhaps the most emotional part of the discussion was about business owners facing extreme stress—some even contemplating suicide. The pressure of financial collapse, the fear of public perception, and the guilt of letting down employees and family can push people to their breaking point.

The attorneys emphasized the importance of separating personal identity from business success. A failing business is not a failing life. Seeking legal guidance early, understanding available options, and—when needed—getting professional mental health support are crucial steps in navigating financial distress.

Final Thoughts: Why Business Owners Need to Listen

This podcast episode was more than just legal talk—it was a masterclass in financial decision-making. Whether you’re a small business owner, a real estate mogul, or someone navigating financial uncertainty, the conversation delivered powerful lessons:

Bankruptcy is a strategic tool, not a failure.

Decision paralysis and ego can destroy businesses faster than financial distress itself.

Timing is everything—delaying action often makes things worse.

Fraud doesn’t get washed away in bankruptcy.

Mental health is just as important as financial health in times of crisis.

For those facing financial difficulties, this episode is a must-listen. Understanding how high-stakes financial decisions play out in real life can make the difference between survival and collapse.

🎧 Watch the full episode for more real-world insights from the frontlines of business and bankruptcy law.

Explore the intricacies of bankruptcy fraud with this comprehensive CLE webinar. Learn to navigate the "Looking Glass World" of bankruptcy, identify pre- and post-bankruptcy fraud schemes, and develop strategies for detecting and responding to fraudulent actions.

Fighting Fraud: Strategies for Detecting and Dealing with Bankruptcy Fraud

The program covers civil consequences, effective methods for addressing fraudsters, and essential precautions for practitioners. Equip yourself with practical tools to handle bankruptcy fraud cases with confidence and precision.

Bankruptcy - The “Looking Glass World”

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Speakers: Wayne M. Greenwald, Senior Counsel | Jacobs P.C.

Wayne M. Greenwald represents the entire spectrum of parties in interest in debtor-creditor matters and cases under the U.S. Bankruptcy Code. He has extensive experience in business and commercial litigation and assists clients at all phases of dispute resolution, including pre-claim negotiations, mediation, arbitration, and trial.

Wayne Greenwald has been concentrating on debtor-creditor law for more than 30 years. He was the assistant chair of the Defense Research Institute’s Special Litigation Group on Creditors’ Rights and Bankruptcy. He formerly served as co-chair of the American Bankruptcy Institute’s commercial fraud task force.

Mr. Greenwald lectures frequently and has published or edited articles, treatises, and books on bankruptcy and creditors’ rights, including Criminal Practice/Bankruptcy Proceedings. He is highly regarded in the legal community and has been included in 2007 – 2008, 2010 – 2011, 2014 – 2020 New York Super Lawyers.

Wayne’s core competencies: Entrepreneur Rescue, Chapter 11 Bankruptcy, Individual Chapter 11, Commercial Litigation, Bankruptcy and Criminality, Chapter 7 & 13 Bankruptcy, Subchapter V Bankruptcy, Involuntary Bankruptcy, Bankruptcy Appeals, and Clawback Litigation.

Highlights: Federal Bar Association – Member and Chair – SDNY Bankruptcy Committee. Member of the American Bankruptcy Institute. Member of the Defense Research Institute. Chair of the American Bankruptcy Institute, Commercial Fraud Task Force Committee. Fellow at the Center for International Legal Studies. AV Peer Review Rating – Martindale-Hubbell. Super Lawyer – New York Super Lawyers (2007 – 2008, 2010 – 2011, 2014 – 2020).

Law firm Jacobs P.C. is moving its New York City headquarters to 717 Fifth Avenue.

Jacobs P.C. Moves HQ to 9K SF at 717 Fifth Avenue

Jacobs, which specializes in commercial litigation and bankruptcy, has signed a five-year lease for 8,844 square feet on the entire 17th floor of the 26-story Midtown office tower, according to broker CBRE (CBRE).

The asking rent was not provided, but asking rents at the building range from $95 to $135 per square foot, CBRE said.

The deal represents a relocation and expansion for Jacobs, which has already left its roughly 3,100-square-foot office at 595 Madison Avenue for its new space two blocks away at 717 Fifth, according to CBRE.

Jacobs is working on a different floor of the building for roughly the next three months until work on its new 17th-floor space is completed, CBRE said.

Chinese insurance giant Anbang bought the 353,000-square-foot office building between East 55th and East 56th streets — also known as the Corning Glass Building — from Blackstone in 2015 for $415 million, as Commercial Observer previously reported.

Anbang has since been taken over by asset management financial conglomerate Dajia Insurance Group, CO reported.

CBRE’s Arkady Smolyansky and Jacob Rosenthal brokered the deal for Jacobs, while David Hollander, Nick Hilton and Maxwell Tarter — also from CBRE — represented the ownership.

Other office tenants of 717 Fifth Avenue include the nonprofit Central Park Conservancy and real estate agency NAI Global.

The lease comes after French luxury group Kering — which owns brands Gucci, Balenciaga and Yves Saint Laurent — bought the 115,000-square-foot retail condominium at 715-717 Fifth Avenue from Wharton Properties and SL Green Realty for $963 million last January, as CO previously reported.

Italian luxury fashion brands Giorgio Armani and Dolce & Gabbana are the current tenants in the ground-floor retail space.

Amy Rossetti 
R[AR]E Public Relations 
amy@rarepublicrelations.com 
310.779.6025

From complex litigation to innovative bankruptcy solutions, our team delivered outstanding results for our clients, protecting their interests and securing positive outcomes in challenging circumstances

2024 Year in Review: A Year of Legal Excellence and Client Advocacy

As we close out 2024, we reflect on a year filled with impactful legal achievements. From complex litigation to innovative bankruptcy solutions, our team delivered outstanding results for our clients, protecting their interests and securing positive outcomes in challenging circumstances. Here's an overview of this year’s highlights:

Major Counterclaims in Loan Agreement Disputes
We pursued significant counterclaims, including one for $250 million and another for millions of dollars, in cases involving breaches of loan agreements. These actions defended our clients’ rights and challenged lender overreach, preserving vital financial interests.

Corporate Disputes in Renewable Energy
We filed a derivative action involving one of the largest solar farms in the United States, addressing failures to convey shares critical to the project's success and ensuring our clients’ equity interests were protected.

High-Stakes Legal Malpractice and Defamation Cases

Initiated a $55 million legal malpractice suit against a law firm, holding them accountable for professional lapses.

Pursued a $30 million defamation claim to protect our client’s reputation and business standing within the competitive real estate industry.

2024

Real Estate Development: Filed multiple Chapter 11 cases for real estate developers, addressing debts ranging from under $1 million to over $75 million. In one case, we confirmed a reorganization plan that fully paid creditors and returned equity to the owner. In another, we delayed adverse creditor actions for nearly a year, forcing an alternative resolution.

Church Refinancing: Represented a church in Chapter 11 with $1 million in debt and an imminent foreclosure sale. We are finalizing refinancing to preserve its $3.8 million property.

Wholesale Business: Guided a wholesale business with over $14 million in debt through Chapter 11, preparing a consensual reorganization plan to restructure liabilities and keep the business operational.

Restaurant: Resolved a Chapter 11 case for a restaurant with $1.2 million in arrears by negotiating a settlement with the landlord, enabling continued operations and dismissing the bankruptcy.

Tax Debt Relief Through Chapter 7
Assisted a client in discharging over $300,000 in tax debts incurred from a 401k scam. By initiating adversary proceedings, we secured a full discharge, providing significant financial relief.

2024 Achievements

A Year of Strategic Counsel and Positive Outcomes

This year demonstrated our ability to handle high-stakes legal challenges with precision and dedication. From defending clients in litigation to restructuring businesses and preserving assets, our focus remains on delivering results that matter.

1. Interest Rate Impacts
Higher borrowing costs have spurred creative financing solutions and intensified scrutiny of deal structures. Understanding these dynamics is critical to ensuring compliance and mitigating risk.

2. Zoning and Land Use Challenges
Local governments are adapting to increased demand for mixed-use and affordable housing developments, presenting new regulatory hurdles for developers and investors.

3. ESG Regulations in Real Estate
Environmental, Social, and Governance (ESG) standards have become integral to investment decisions. Navigating green building requirements and sustainability obligations is now essential for long-term success.

4. Emerging Technologies
Proptech advancements, from blockchain-based transactions to AI-powered property management, bring new opportunities but also new legal considerations.

1. Legislative Developments
Anticipated changes in federal and state tax laws could impact real estate transactions and ownership structures. Jacobs PC is closely monitoring these developments to keep our clients informed and prepared.

2. Market Resilience
Despite ongoing economic uncertainty, real estate remains a stable asset class. As institutional investors continue to re-enter the market, opportunities for growth and innovation will follow.

3. Evolving Client Needs
With an increasing focus on diversification and adaptive reuse of properties, we foresee more complex deal negotiations that require strategic legal insight.

As we look ahead to 2025, we are committed to building on these successes, continuing to advocate for our clients, and driving meaningful outcomes in every case we take on.

Here’s to another year of collaboration and achievement!

Leo Jacobs, speaks with Phil Rosen, Partner at Shutts & Bowen LLP, at the Real Deal forum. They stress the importance of protective measures in forbearance agreements and the strategic need to be "dangerous" enough to stand firm in negotiations.

Real Estate Slowdown and Strategic Counsel

Insights from Phil Rosen at Shutts & Bowen

At the Real Deal forum in South Florida, Leo Jacobs sat down with Phil Rosen, Partner at Shutts & Bowen LLP, to discuss the current state of the real estate market and the critical role of strategic counsel in navigating challenging times. The conversation shed light on the market's slow transaction pace for large multifamily assets and the increasing patience of banks with distressed borrowers.

You can watch the full interview below to gain further insight:

Despite media narratives suggesting widespread distress in the real estate market, Rosen emphasized that this is not as pervasive as reported. "Things are happening, but they’re happening slowly," he explained. Banks are demonstrating notable patience, often allowing borrowers to extend deadlines by six to twelve months, a level of leniency that has exceeded expectations.

Transactional Counsel as a Problem Solver

The discussion delved into the importance of effective transactional counsel in protecting real estate investments. Jacobs, speaking from his experience in bankruptcy and litigation, highlighted the pitfalls of inadequate counsel. Rosen agreed, noting that the details in forbearance agreements are critical to safeguarding a client’s future. His team at Shutts & Bowen takes a proactive approach, fostering partnerships with lenders and focusing on problem-solving rather than placing blame.

"Forbearance agreements are about thinking two steps ahead," Rosen explained. "We insert provisions that might allow lenders to bring in new capital or facilitate a loan buyout, ensuring the client’s bottom line remains protected."

Balancing Collaboration and Assertiveness

Both speakers underscored the importance of collaboration in negotiations while maintaining enough leverage to stand firm. As Jacobs put it, “Engaging with the lender is essential, but you also have to be ‘dangerous’ enough to show you’re capable of standing your ground.” Rosen agreed, highlighting the delicate balance required in these negotiations. "If you owe the bank a little money, it’s your problem. But if you owe the bank a lot of money, it’s the bank’s problem," he quipped.

The conversation between Jacobs and Rosen showcased the evolving dynamics of the real estate market and the strategic thinking required to navigate it successfully. As transactions for large multifamily assets slow and banks exercise patience, the role of experienced counsel becomes even more vital.

Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon.

Interview with Ruben Izgelov, CEO and Founder of WeLend

Continuing our interview series, this discussion focuses on how investor sentiment in the real estate market has shifted from caution to confidence following the Trump administration's win. Previously hesitant investors are now eager to increase their stakes, signaling bullish market momentum. Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon. They also assert the need for updated policies to keep pace with evolving market dynamics, predicting a positive trajectory for the sector.

Watch the full interview for key insights and takeaways:

Leo Jacobs: What are the effects of a Trump administration on the commercial real estate side and the residential real estate side? A lot of our investors in our fund today have been, I would say, a little bearish on the market for some time. But what I’ve learned is that many of them are now ready to increase their investment. The sentiment has changed.

Ruben Izgelov: Absolutely. Thanks for having me, Leo. It’s a pleasure to be here with you.

Leo Jacobs: Pleasure’s all mine, Ruben. From what I understand, there are about 700-800 people here. That’s amazing. Out of all those people, I’m standing here with the one and only Ruben Izgelov, CEO and founder of WeLend, a direct lender. Your face and name are everywhere as one of the lead sponsors of this event. So, a lot of credit to you for that. Keep doing what you’re doing. You’re doing an amazing job.

Ruben Izgelov: Thank you, Leo. I really appreciate it.

Leo Jacobs: So, let’s get into it. We’ve been walking around and getting a feel for the market’s temperature after the Trump administration’s win. Now, whether you’re for him or against him, that’s not the discussion here. We’re here to talk about the facts. What’s the impact of a Trump administration on commercial and residential real estate? You’re a lender with a lot of activity in the tri-state area and nationally. How is this administration going to affect your business judgment in the first, second, and third quarters?

Ruben Izgelov: Great question, Leo. Here’s what I’ve experienced over the past few days. Our investors, especially those in our fund, were somewhat bearish during the prior administration. Their whole viewpoint was “wait and see.” But with Trump’s win, I’ve seen a shift. Just yesterday, I was running around Florida meeting with investors. Many of them are now ready to increase their investment. They’re more bullish on what’s to come. I’d say the sentiment has definitely shifted to a more positive outlook.

Leo Jacobs: That’s amazing. So you’ve decided, from a business judgment standpoint, that you’re ready to invest more because the sentiment is positive. But what about those people who don’t agree with the policy decisions? What’s their perspective?

Ruben Izgelov: Honestly, Leo, most of the people in our corner are aligned with the positive sentiment. There’s always a group that’s not happy with the administration—for their own reasons—but I’ve noticed that those individuals tend to stay quiet or "lick their wounds in the corner," so to speak. On our end, both investors and borrowers are very bullish on what’s ahead. We’re seeing more deals and higher levels of investment activity. In fact, while we’re talking right now, I’m pretty sure my phone’s blowing up with calls from brokers, borrowers, or investors looking to deploy capital.

Leo Jacobs: Sounds like a lot of action is happening. Let’s shift to the Fed. Everyone’s curious about what the Fed’s next move will be. They’re set to speak in about an hour and a half. What’s your take on how the Fed is going to react to all of this?

Ruben Izgelov: Oh, that’s a big one, Leo. You’re right—it’s political, but it’s crucial. Look, when you have positivity in the market and strong economic sentiment, you inevitably get inflation. The Fed’s challenge is managing that inflation. They’ll have to decide how to adjust rates based on the administration’s future policies. Trump’s background in real estate gives him insight into the industry’s dynamics, and I think that’s going to influence how things play out. We’re seeing other countries, like Europe, cutting rates—25 basis points just the other day. The Fed might follow suit with a similar reduction. But it’s also possible they’ll hold steady and wait.

Leo Jacobs: So you’re thinking the Fed might be influenced by this positive sentiment and could reduce rates by 25 basis points, following Europe’s lead?

Ruben Izgelov: It’s possible. The sentiment is strong, and there’s pressure on the Fed to support economic momentum. If they see global central banks cutting rates, they’ll likely consider it too. But they’ll also be mindful of inflation—they don’t want it to get out of hand.

Leo Jacobs: Last question for you, Ruben. Assuming the market keeps trending in a positive direction, what changes do you think need to happen for business decisions to become faster and stronger?

Ruben Izgelov: That’s a great point, Leo. We’re a New York-based company, so I’ll speak from that perspective. The policies that worked in the past may not work today or tomorrow. I think the "red wave" we’re seeing now is a sign that it’s time for policy changes. New times require new strategies. Business leaders and policymakers alike need to recognize that what worked before isn’t necessarily effective now. If we’re going to speed up decision-making and drive stronger growth, we’ll need to adapt to the new environment.

Leo Jacobs: Well, let’s hope the Trump administration’s approach works out. It seems like the world’s sentiment is shifting in that direction, and it’s encouraging to hear your perspective.

Ruben Izgelov: Absolutely, Leo. No matter which side of the aisle you’re on, there’s no denying that the world’s moving in a positive direction. I’m excited to be part of it and to see what’s next.

Leo Jacobs: Ruben, thank you so much for your time. It’s been a pleasure talking with you.

Ruben Izgelov: Pleasure’s mine, Leo. Thank you.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated.

Navigating the Challenges of Opening a Business in Miami: Insights from Hospitability Expert, Felix Bendersky.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated. In a recent interview, Leo Jacobs sat down with Felix Bendersky, a prominent figure in hospitality brokerage and the owner of F+B Hospitality Leasing Brokerage, to discuss the challenges faced by entrepreneurs, especially those aiming to open restaurants and bars in the area.

Here’s a closer look at the critical takeaways from the session:

Felix pointed out the number one issue plaguing businesses in Miami-Dade County: the notoriously slow and inefficient permitting system. This, he explained, can delay business openings, leaving entrepreneurs stuck with mounting expenses before even serving their first customer.

The Financial Burden of Permitting Delays

The permitting delays are just one part of the larger problem facing business owners in the hospitality sector. As Felix explained, many restaurateurs and bar owners, after investing significant amounts of money and energy, find themselves unable to open due to the lengthy permitting process. Entrepreneurs often take out loans, use personal savings, or borrow money from friends and family to fund their ventures. But when delays hit, the financial burden grows heavier, and the dream of opening a successful establishment starts to feel out of reach. "We have restaurants that have spent $1.8 million and never opened," Felix revealed.

Felix emphasized the importance of education, advising potential clients about the challenges they will face when opening in Florida. He highlighted the significance of working with professionals who understand the financial and legal terrain. This is where the expertise of lawyers like Leo Jacobs comes in. Jacobs’ firm specializes in helping clients navigate financial turmoil, advising on everything from leases to bankruptcy protection. 

The key, Leo Jacobs noted, is to educate clients upfront about the potential pitfalls, so they are better prepared to face the realities of opening a business in a competitive market like Miami.

Mitigating Risks in Miami's Hospitality Industry

The discussion then shifted to how business owners can mitigate the risks associated with running a restaurant or bar in Miami. Both Felix and Jacobs strongly agreed that success is not just about a great concept; it's about understanding the numbers and having the right team in place. 

"A good running restaurant in Miami is typically running on a 20 to 22 percent profit margin," Felix asserted, underscoring the importance of financial foresight. When an entrepreneur’s margins are slimmer, as is often the case, they may find themselves in a difficult position, particularly when unexpected expenses arise. In response, Jacobs advised clients to carefully assess their leases, particularly the terms surrounding personal guarantees, and to consider strategies like bankruptcy or restructuring when the financial situation becomes untenable.

Despite the challenges, both Felix and Leo believe that with the right support and advice, entrepreneurs can navigate the tumultuous waters of Miami’s hospitality scene. Both experts emphasize the importance of counseling over mere advocacy. While Jacobs' firm offers strong legal advocacy, it is his approach as a counselor that truly sets him apart. 

By providing clients with a realistic understanding of their options and guiding them toward informed decisions, Jacobs ensures they are well-equipped to make it through the most difficult situations. In a fast-paced, high-risk environment like Miami, having a trusted advisor in your corner is invaluable, and with the support of professionals like Felix Bendersky and Leo Jacobs, the path to success may become just a little bit clearer.

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As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

How the New Trump Administration is Shaping the Commercial Real Estate Market

Earlier in November, at The Real Deal Forum in Miami, Leo Jacobs sat down with Nazar Nazarov, CEO of LendIQ, at the Jacobs PC booth. The main topic of the interview was how the new Trump administration could potentially impact the commercial real estate market. As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

Leo:
Good afternoon, everyone. We’re back at Jacob V’s booth here at The Real Deal. I’m joined by Nazar from Lend IQ, and today we want to tackle the elephant in the room. The Trump Administration has won another term. Whether you’re for it or against it, we need to objectively discuss how this will impact the commercial real estate market. Nazar, what’s your take?

Nazar:
Thanks for having me, Leo. I think it’s undeniable that the Trump Administration has been positive for real estate. It’s no secret that Trump himself has been a real estate entrepreneur for over 45 years. His administration’s approach to less regulation and pro-business policies is creating a lot of confidence. You can feel it here in the room—it’s electric.

Leo:
Right. So you’re saying the market is feeding off this confidence. What’s driving that?

Nazar:
It’s about clarity and direction. People are optimistic because they expect less regulation and lower rates, especially with the Federal Reserve meeting happening today at 2:00 PM. The market thrives on predictability, and the Trump Administration projects a business-friendly environment. That kind of stability encourages more transaction volume and capital commitment.

Leo:
So you’re saying that this is empowering the market to make better and faster decisions?

Nazar:
Exactly. The market hates uncertainty. When there’s ambiguity, people hesitate. But with clarity—whether from the government or the Federal Reserve—you’ll see large institutions and family offices deploying more capital. The Trump Administration’s focus on reducing red tape gives investors confidence to move forward.

Leo:
And where does Lend IQ fit into this? How do you help capitalize on this momentum?

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