How Might the President’s Immigration Plan Affect the Commercial Real Estate Market?

Illinois commercial real estate lawyersAs the political environment in America heats up, and individuals begin to consider how the proposed government changes may impact their personal lives, it becomes more clear that everyone has a reason to be concerned. For those in the commercial real estate (CRE) market, the major concern is President’s proposed immigration party. Learn more about why the two are connected and discover how an experienced real estate lawyer can help you mitigate against any possible problems in your next commercial project.

Proposed Immigration Plan Could Impact CRE Market

Last month, President Trump announced that the number of immigrants allowed into the United States would decrease drastically over the next decade – to about half. Unfortunately, such a plan could negatively affect the CRE market is several ways. First, it could hurt the labor market. That, in turn, could impact the housing market. Secondly, the budding area of Chicago and its surrounding suburbs may be in trouble if the President’s legislation passes. Families may opt for another place to live. Businesses may leave. Worst of all, Illinois – a state that has been struggling tremendously with budgets and fiscal decisions – may never fully recover.

Protecting Your Financial Investment in Uncertain Times

Although individuals could simply move forward with their real estate transactions, despite the president’s proposed immigration cuts, doing so could be dangerous. For example, if an investor fails to consider the potential decline in new residents to a subdivision, they could struggle to sell their developed property, or they may lose money on it. Thankfully, it is possible to mitigate against the possible damage and risks of economic declines caused by politics and other factors.

First, land developers and real estate investors are encouraged to practice their due diligence before ever purchasing a property. The assistance of an attorney – before, during, and after this process – can help ensure that all factors have been considered. An attorney can also negotiate better deals and help you plan for the unexpected. Lastly, a lawyer can give you the time and energy you need to focus on the project at hand, which can improve the overall outcome.

Contact Our Naperville Real Estate Lawyers

Although it might be easy to look at the President’s proposed changes with disdain, the truth is that the real estate market is constantly changing and evolving. Lindell & Tessitore, P.C. can help you stay ahead of the curve. Dedicated and experienced, our Naperville real estate lawyers will do everything possible to help you make the right choices and decisions. Schedule a personalized consultation to get started. Call 630-778-3818 today.

Source:

http://www.nreionline.com/finance-investment/three-ways-trump-s-immigration-plan-could-affect-cre-industry

Five Things to Consider Before Purchasing That Investment Property

Naperville real estate lawyersThe real estate investment industry can be lucrative for the financially savvy, but it can also ruin investors that refuse to do their homework. Furthermore, there are several potential pitfalls that one must avoid when first entering the industry. Learn how to avoid them, and discover how an experienced real estate lawyer can assist with the transaction on your next investment home purchase.

Condition of the Property

While some investment properties may have little to no damage, others may have serious issues. These properties, which are often referred to as distressed properties, can give you more return on your investment (ROI), but only if you are realistic about the time and money it will take to make the necessary repairs. It is also critical that you consider what repairs must be made before anyone moves in since you will not be collecting rent at that time.

Location, Location, Location

The location of a property is crucial to its long-term ROI. Homes located in a declining or stressed area may be less likely to rent (unless you are willing to work with persons who have less than perfect credit and limited funds to improve a community) at a rate that offers a return. However, up and coming areas may cost you more upfront. In short, it is important that you take the time to consider all the pros and cons of an area before making a purchase.

Does the Property Adhere to the 1 Percent Rule?

There is a hard and fast rule in the investment industry, and that is that homes must adhere to the 1 percent rule. Essentially, it means that a property must be able to pull in one percent of its total cost each month. So, for example, if you purchase a home for $100,000, you need to be able to rent it out for at least $1,000 per month. If the home cannot pull that much in, then it may be best to walk away and find a different property.

Who Will Manage the Property?

Being an investor does not automatically make you an exceptional landlord, and being an exceptional landlord does not necessarily make you a smart investor. Instead, these aspects of the business are often separated; the investor invests and owns the property, and a property management company may handle the day-to-day landlord duties, such as late-night phone calls over plumbing issues. While you can manage the property yourself, it is important to consider if you are willing to do so. Investors are also encouraged to consider whether self-management may hinder their ability to expand their portfolio.

Taxes, Insurance, and Unexpected Expenses

The expenses of an investment property go well beyond repairs, maintenance, closing costs, appraisal fees, and attorney fees. There are also taxes, insurance, and other unexpected expenses that may crop up along the way. Investors are encouraged to consider these costs carefully and to ensure they have a budget and additional money set aside for any additional expenses that cannot be reasonably planned for in advance.

Contact Our Naperville Real Estate Attorneys

At Lindell & Tessitore, P.C., we understand the importance of a smart investment. Dedicated and experienced, our Naperville real estate lawyers can assist you through the entire transaction process, from start to finish. Skilled in handling even the most complex of real estate transactions, we can protect your financial future and your investment portfolio. Schedule your personalized consultation with us to get started. Call 630-778-3818 today.

Source:

https://www.forbes.com/sites/forbesrealestatecouncil/2017/09/11/seven-things-to-consider-when-buying-an-investment-rental-property/#111087c66dad

Are Solar Farms the Next Big Land Development Boom?

Will County real estate lawyersTo be successful as a commercial land developer, one must know how to recognize trends. A dose of creativity helps too, but it is trends – or the possibility of them – that can make or break you. Based on all the new solar farms going up around Will County, it is easy to assume that they will be the next big land development boom. Is this assumption correct? What are the potential risks of getting into solar farm development? The following explains, and it provides you with details on finding assistance with your land development project.

Farmers Trading in Their Crops for Solar

Farming is a respectable profession – one that takes a lot of hard work and dedication. It also does not pay very well, which is why some farmers are eager to turn their farm land (or at least some of the unused portions) into money-making solar farms. The impact to the land and surrounding area is minimal, and farmers who convert their land stand to make four times as much with solar as they would with crops. Solar farms also give back to the community (including schools), and they decrease our reliance on fossil fuels.

Land Developers and Solar Farms

Although the companies are contacting mostly farmers about converting their land into a place for solar power, land developers stand to benefit as well. Say, for example, you find a patch of land that at a steal (possibly because it has limitations on its use or zoning, or because it is not in a prime location) of a price. If you were to use it for a shopping center or small community, you may lose out on money. If, however, you turned that land into a place for solar power, you could make money from it, every single month.

Factors to Consider Before Making an Investment

In an article from the Chicago Tribune, it was revealed that solar farm owners stand to make about $800 per acre of converted land. Though this amount might be great for areas that might not pull a profit any other way, it may not be the best use of all land parcels. There has also been a lack of interest in the community, which could cut this land development boom short. However, some experts believe that the lack of support is only temporary; perhaps the message has not reached enough people just yet. In either case, land developers should weigh their options carefully before leasing a parcel for solar power.

Our Naperville Real Estate Lawyers Can Help

As with any land development project, it is advised that you conduct your due diligence prior to purchasing. Lindell & Tessitore, P.C. can help with this process. We can also advise you on the potential risks and benefits of leasing your land for a solar farm. Seasoned and experienced, our Naperville real estate lawyers will protect your interests at every turn. Get started by scheduling a personalized consultation. Call 630-778-3818 today.

Source:

http://www.chicagotribune.com/suburbs/daily-southtown/news/ct-sta-will-solar-farms-st-0903-20170901-story.html

Examining the Pros and Cons of Commercial Real Estate Investment

Naperville commercial real estate lawyersCommercial real estate investment is one of the biggest and most lucrative markets in America, but how do you know if it is the right option for you? First, you must determine if you have an interest in the market itself. Then, you must weigh the potential advantages and disadvantages to determine if you or your company may be a good candidate. Learn more about these pros and cons of commercial real estate investing with help from the following information, and discover how an experienced real estate attorney can help you get started off in the right direction.

Income Potential versus Financial Risk

One of the best reasons to start investing in commercial real estate is the earning potential. Whereas the annual return on residential properties typically ranges from only about 1 to 4 percent, commercial real estate has a return of about 6 to 12 percent. However, there are also some serious financial risks in the commercial real estate market. For example, commercial real estate properties typically require a much larger investment than residential properties.

Another factor to consider is the risk of litigation in commercial real estate. Typically, commercial properties have more visitors. If any of those visitors are injured, the investor may be held liable. Vandalism and damage to property (done by tenants, patrons, or vandals) are also important considerations in commercial real estate investment.

Finding a Tenant – Commercial versus Residential

All across the country, prospective residential tenants wait for the right home to pop up. Some may even spend weeks or months on a waiting list, just to find a place to live. In short, there is almost always another residential tenant that is just waiting for a property. In contrast, commercial real estate investment tenants can be few and far between. Knowing your market, your area and the local economy are all crucial to commercial investment success.

Complexity of Commercial Real Estate Investment

Residential investment can be a nuanced issue, but thousands of average people purchase residential properties each day – some without the aid of a professional. The same cannot be said of the commercial real estate property. In this investment market, legal counsel is not just recommended, it is practically required. Why? Because an attorney can ensure that due diligence is done. They can also reduce your risk of zoning or land use issues, and can even safeguard your investment by helping you create effective and well-planned agreements.

At Lindell & Tessitore, P.C., we strive to protect our clients’ financial futures and investments. Dedicated and experienced, we can assist with your commercial or residential real estate investment needs. To learn more, contact our Naperville real estate attorneys for a personalized consultation. Call 630-778-3818 today.

Source:

http://homeguides.sfgate.com/commercial-vs-residential-real-estate-investing-59968.html

Resolving a Commercial Real Estate Dispute

Naperville commercial real estate lawyersCommercial real estate disputes can be frustrating, complex, extremely costly. Thankfully, there may be ways to solve issues with less stress, money, and effort. Learn more about resolving your commercial real estate dispute, including when to seek assistance from a legal professional, with help from the following information.

Types of Commercial Real Estate Disputes

Disputes in commercial real estate are, most often, related to contracts, development, land use, or title issues. For example, land developers may experience arguments or potential litigation over:

  • Tenant’s breach of a commercial lease;
  • Tenant’s use of property;
  • Fair market value of the home;
  • Construction development contracts;
  • Worksite personal injury cases;
  • Easements preventing the intended use of land or property;
  • Zoning violations;
  • Development contracts;
  • Contamination of property; and
  • Environmental issues.

When faced with such issues, it is important to act quickly. Some matters can escalate, which can increase the overall cost of your commercial real estate development project.

An Ounce of Prevention

When it comes to commercial real estate disputes, an ounce of prevention can go a long way towards avoiding litigation. For example, an experienced real estate lawyer can examine and draft pertinent contracts to protect your development business. A lawyer can also assist you with the due diligence process before purchasing a parcel to reduce the risk of zoning violations and environmental issues. Unfortunately, not every developer is aware that an attorney can help prevent disputes, and they may only consider a lawyer once problems arise.

Dealing with Disputes

If you are currently facing a commercial real estate dispute, do not wait until matters start to spiral out of control. Instead, find representation as soon as possible and increase your chances of resolving the matter with a negotiation, arbitration, or other low-level dispute resolution option. If, however, litigation is imminent or necessary, an attorney can help you navigate the process more efficiently. Depending on the situation, they may even be able to help mitigate any damage that a dispute may have on your development project, bottom line, or reputation. Just please do so as early as possible to ensure you have the most protection available.

Contact Our Naperville Real Estate Lawyers

At Lindell & Tessitore, P.C., we strive to protect the best interest of our clients and their businesses. Skilled and experienced, we can assist with your commercial real estate dispute matter in a professional and efficient manner. Call 630-778-3818 and schedule a personalized consultation with our Naperville real estate lawyers today.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=532

http://cases.justia.com/illinois/court-of-appeals-first-appellate-district/2015-1-14-0088.pdf?ts=1426010816

http://www.naperville.il.us/globalassets/media/permits-and-licenses/petition-for-development-approval.pdf

http://www.naperville.il.us/contentassets/f6f4d1b8766c4564bde31277f00f444b/pzc-by-laws-4.3.17—approved.pdf