How Important is Price in a Commercial Real Estate Transaction?

Naperville CRE lawyersWhen it comes to investing in commercial real estate, there are many factors that determine your final return – but just how important is the price of a property? Perhaps not as much as you think. Learn why in the following sections, and discover how our seasoned Naperville commercial real estate lawyers can provide you with additional leverage in your next CRE transaction.

Examining the Relevancy of Price in a CRE Transaction

While, ultimately, price does have an impact your bottom line in a real estate transaction, it may be far from the most important factor. Instead, matters like taxation, the potential long-term return on investment (ROI), utility costs, and other relevant issues may ultimately trump the importance of price on an investment property. As an example, consider the growth of Wham!, which started out at around $2.5 million for 50,000 square feet of space, but now weighs in around $11.5 million. If the investors who started out in this industry had been concerned about price in the beginning, they might have missed out on a highly profitable opportunity.

Other Factors That May Trump Price in a CRE Transaction

Investments like Wham! can and do occur in the CRE world, but lightening strikes like it tend to be few and far between. Still, that does not mean that price should be your primary focus in a CRE transaction. Instead, consider some of the other factors that may trump the price, such as:

When purchasing commercial real estate, you can either look at the immediate costs, or you can consider the space’s long-term utilization opportunity. Many business owners will consider their long-term growth and would rather find a space that can fit their expansion needs, over time. To them, this may be preferable to renting out a smaller space and risking stymied growth while trying to search for a bigger location. These are the companies that you want to appeal to as a CRE investor.

Taxes can take a significant chunk of any profits you may reap after selling a property, which is another reason you should carefully consider the long-term utility of a space before your purchase. You might also be able to reap the tax benefits of depreciation in certain situations, which can save you tremendously over time.

Contact Our Naperville Commercial Real Estate Lawyers

When it comes to real estate investment, there are many factors that can impact your bottom line. At Lindell & Tessitore, P.C., we assist you in examining them all. Seasoned and experienced, our Naperville commercial real estate attorneys are the ones to call before you invest. Schedule an appointment with our offices by dialing 630-778-3818 today.



Should You Sell Your Home to an iBuyer? Examining the Potential Pros and Cons

Illinois real estate attorneysAs technology advances, the way we handle everyday tasks changes. One prime example is the way that home buying has changed over the last few years. Long gone are the days when you must spend days (perhaps even weeks) viewing houses in person. Instead, you can take a virtual tour using drones and cameras. You can even complete your entire real estate transaction using technology.

One emerging technology trend in real estate is the iBuyer. This option allows homeowners to quickly and almost seamlessly sell their homes without the fanfare that is typically seen in a more “traditional” real estate transactions. Yet, like most things in life, there are some drawbacks to selling your home to an iBuyer. Learn more about them in the following sections, and discover how a seasoned real estate lawyer can help protect your interests, regardless of how you decide to sell your home.

iBuying in the Real Estate Industry – How Does it Work?

When you sell your home to an iBuyer, you are able to skip all of the regular hassle of selling a home. You do not need a real estate agent or sales rep; you do not even have to show your home or complete the negotiation process. Instead, you express your interest in selling your home to an investor (generally through a website), and they make an offer on your home, based on various factors. If you say yes to their offer, they handle all of the details from there. All you have to do is sit and wait for the money to hit your bank. Of course, there is a major drawback to selling your home this way – and it can significantly impact your financial future.

Understanding the Risks of Selling Your Home to an iBuyer 

Although selling your home to an iBuyer can expedite the process, it is important that you first understand the potential risks. First and foremost, you are likely to take a major financial hit on the sale of your home. Most iBuyers rely on sellers who wish to complete their deal quickly and have little to no knowledge of the true value in their home. They then turn around and resell the home at a significant markup, meaning they are turning a hefty profit on your house.

Traditional home buying processes, though more lengthy and complicated, protect your financial interests – especially when you employ the assistance of a skilled real estate lawyer. Able to handle the legal aspects of the process so that you can focus on your own life, an attorney can decrease the chances of a financial loss on your home sale transaction.

Contact Our Naperville Residential Real Estate Lawyers

At Lindell & Tessitore, P.C., we safeguard the financial well-being of our clients, and we aim to make the home sale process as seamless as possible. Turn to some of the most trusted Naperville real estate lawyers in the state. Call 630-778-3818 for a consultation.



Landlord-Tenant Laws – Understanding the Basics of Tenant Rights

Oak Brook landlord-tenant dispute lawyersRenting out residential property out can give you a steady stream of income and increase your ability to build your wealth or a nest egg for your retirement. There are some risks involved, however.

Tenants may default on their rent or cause damage to the property. You could even be subject to a costly lawsuit if you violate the landlord-tenant laws imposed by local, state, or federal municipalities. Thankfully, by being educated and ensuring you have the right protections in place, you can decrease your risk of such issues. Learn more in the following sections.

Federal Landlord-Tenant Laws 

While most landlord-tenant laws are imposed at the state level, the federal government oversees two of the most basic and well-known ones:

The Fair Housing Credit Act - Restricts landlords from discriminating tenants based on their race, national origin, color, religion, sexual orientation or status, or status of disability. It is important to note that this law extends beyond the rental criteria or approval process; it also restricts landlords from making discriminatory remarks in their marketing or advertising; and

The Fair Credit Reporting Act - Dictates how a landlord can use the information that they may obtain during the rental screening process. Landlords must also gain the approval of a prospective tenant before obtaining their information for the purpose of checking their credit or background history. If a tenant is declined because of their credit or background, the landlord must also inform of the reasoning behind it, or give them a way to obtain information regarding the reason they were declined.

Violation of either of these acts can result in legal action against the landlord, which may threaten their business.

State Landlord-Tenant Laws 

Each state imposes their own protections for tenants, so if you have properties in multiple states, it is important to become familiar with each state’s landlord-tenant laws. Thankfully, though, these laws generally pertain to practical issues, such as the return of a deposit or the amount of time you must give before evicting a tenant for non-payment of their rent. Most states also have habitat condition laws, which require you to maintain the property so that it remains safe and livable for current and future tenants.

Protecting Your Real Estate Business from Loss and Lawsuits 

State and federal landlord-tenant laws are complex and nuanced matters, and since failure to comply can cost you greatly – both in money and reputation – it is important to have legal assistance and protection on your side. Contact Lindell & Tessitore, P.C., where your financial interests are a top priority. Our Naperville residential real estate lawyers are some of the most trusted in the state. We can even help you in the middle of a dispute. Call 630-778-3818 and schedule a personaized consultation with our offices today.



Zoning and Entitlements in the Commercial Real Estate Development Industry

Oak Brook zoning and land use attorneysFew things in life are as satisfying as the purchase of an undeveloped plot of land. It is, essentially, a blank slate, an opportunity to build your vision. Land development requires more than just an idea, however. Investors must also navigate through a complex set of nuanced rules and regulations. Overseen and enforced by local, state, and even federal municipalities, the laws of greatest concern relate to how the land can be used. Learn more about zoning and entitlements in the commercial real estate industry (CRE) in the following sections.

Zoning and Entitlements – What Are These Laws and Why Do They Matter?

New CRE investors are often surprised to discover just how important zoning and entitlements are to their real estate projects. Able to bring a development project to a complete standstill, zoning and entitlement issues can hike up costs and threaten a project’s completion. So what, exactly, are these laws, and how can you avoid them in your investment projects?

Entitlements are seen as the backbone of land development. In their simplest form, they are a set of laws that govern how a plot of land can be used. They may restrict everything from the building of a road to the addition of utilities and landscaping. Zoning laws are a subset of entitlement laws, and they specifically cover issues like the height of buildings, parking spaces, and other design specifics related to the land development process.

Land developers who are familiar with zoning and entitlement laws may assume that they can easily overcome challenges using variances, permits, and re-zoning measures, but this approach can increase costs and the chances of a delay. Instead, it is generally more prudent for developers to avoid zoning and entitlement issues.

Preventing Zoning and Entitlement Issues in Your CRE Project

While it is unlikely that you will ever find the “perfect” plot of land, you can avoid many of the common zoning and entitlement issues by conducting your due diligence. This measure allows you to examine the current zoning allowances for a particular plot of land. From there, you can determine if re-zoning is necessary and possible. However, it is important to keep in mind that these laws are exceptionally complex and ever-changing. As such, it is highly advised that developers seek out the assistance of a seasoned real estate lawyer before purchasing an undeveloped plot of land – especially if they are new to the investment game.

Contact Our Seasoned Oak Brook Commercial Real Estate Lawyers

Whether you are a seasoned investor or new to the game, Lindell & Tessitore, P.C. is the firm to trust. As one of the most reputable real estate firms in the state, our Naperville commercial real estate attorneys have the skills and experience you need for your next investment project. Schedule a personalized consultation by calling 630-228-2555 today.



CRE Investment Basics – Should You Wait for the Next Real Estate Crash to Make Your Move?

Illinois real estate attorneysTariffs, shortages within the construction industry, and the increasing costs associated with purchasing or renting a property point to the possibility of an impending real estate down cycle. It might be tempting to wait out this cycle, in hopes of making it big in commercial real estate (CRE) like many others did during the Great Recession, but is it a sound strategy? The following sections highlight the potential downfalls of holding out until the next market crash, and it explains how you can begin to take immediate steps toward successfully breaking into the CRE investment market.

Waiting to Invest in Commercial Real Estate – Sound Strategy or Major Mistake?

For those who have not yet entered the CRE investing market, waiting may seem like a sound strategy. However, seasoned investors know the truth: breaking into the market takes time. Knowledge must be acquired, and relationships must be built. These resources are all critical to success for investors, and if you wait to break into the market, you may struggle to find the ones that you need the most. Part of that is due to the changes that happen within the market when a crash occurs. Banks and lenders may merge, or they may tighten their lending criteria. Others may disappear entirely, even after approving your loan, leaving you without proper funding. In short, if you want to invest in the commercial real estate market, the time to get started is now.

Making Your First Moves in the CRE Market

Since waiting is not a sound strategy, potential investors are encouraged to obtain seasoned information and guidance as soon as they are ready to start. Find a mentor – someone who already has at least a moderate level of success. Then start building your relationships. Talk to potential banks and lenders, and get to know the movers and shakers in your chosen industry. Just remember to seek out the assistance of a seasoned attorney before moving on your first transaction, as this can significantly improve your ability to yield a healthy return-on-investment.

Contact Our Naperville Commercial Real Estate Lawyers

Able to assist you with everything from negotiations to zoning and land use issues, Lindell & Tessitore, P.C. is one of the most trusted names in Illinois’ commercial real estate industry. Start building or diversifying your portfolio today. Call 630-778-3818 and schedule a personalized consultation with our skilled and competent Naperville commercial real estate attorneys today.