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Naperville commercial real estate lawyersPartnerships in the commercial real estate (CRE) industry can either make or break your business. Most savvy investors understand this, but they may not fully understand what factors may lead them to a path of success. Learn more in the following sections, including how the assistance of a seasoned commercial real estate lawyer can help improve your chances of growing a healthy and profitable business now, and in the years to come.

Partnering Out of Financial Convenience

Partnerships that are born out of financial convenience (i.e. because you lack capital or cannot afford to hire someone for the job) are rarely profitable. That is partly because only one person is bringing in the money, but there are other issues that can cause these partnerships to fail as well. For example, if you partner with someone who does not have the business sense to keep up, you may find yourself doing all the hard work with very little payback. You could also find yourself liable for the mistakes they make along the way. Alternatively, if you partner has capital but you have all the ideas, you risk them stealing your ideas and profiting from them on their own. Avoid such matters by ensuring you only partner with someone who can bring more than money to the table, and always ensure you have a contract that clearly outlines the duties and responsibilities of each party.

Not Developing an Exit Strategy for the Business

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Naperville residential real estate lawyersHouse-flipping, defined as a house that is bought, revamped, and then sold within a 12-month period, is now sitting at a 10-year high. Experts say popular television shows are at least partially responsible for this hike. Unfortunately, such shows do not give an accurate portrayal of the industry and the challenges that house-flippers may face during the house-flipping process. Educate yourself on the process, and discover how a seasoned real estate lawyer may be able to help mitigate the risks and potential issues you may deal with along the way.

The Pros and Cons of House-Flipping

Under the right circumstances, house-flipping can be a lucrative market. Unfortunately, all the professionals that are needed to complete the process - real estate agents and brokers, builders, construction crews, etc - cut into your bottom line. You can increase your profits by learning more about the industry and expanding your knowledge (i.e. becoming a real estate agent), but one cannot realistically handle all aspects of their deals.

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Naperville commercial real estate lawyersThere is only one true constant in the commercial real estate market: prices change and fluctuate on a regular basis. Unfortunately, those changes in the market can dramatically affect the success of a project. Consider those who are currently under contract and facing price hikes from the recently imposed tariffs; many are starting to realize that they cannot complete their projects within their proposed budgets, so they may be forced to either abandon their ventures or hope that the losses can be made up elsewhere. However, there are some benefits to the tariffs for existing real estate developers, and those that are facing challenges because of the tariffs can mitigate the issues. Learn more, including how a skilled real estate attorney can help.

Tariffs and New Project Budgets

Cost is a critical factor for real estate developers - and not just because of how it affects their bottom line. Some projects, like low-income housing and other government projects, must be completed within the budget amount. Exceeding one's budget can also place a developer at serious risk for a financial loss because it requires one to pass the costs onto the buyer.

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Naperville commercial real estate lawyersAccording to data from the National Association of Realtors (NAR), nearly one-fifth of realtors closed a sale with an international client in the year 2017. Moreover, a total of 35 percent of realtors stated that they have seen an increase in the number of international clients over the past five years. What does all this mean for local commercial real estate investors, and how can you ensure future growth of your real estate portfolio? The following information explains.

Foreign Investing - Good or Bad for Local Investors? 

At first glance, it might appear that foreign investments are negatively impacting local investors, but that is not necessarily the case. Market trends showed an acceleration for the last quarter, with a 9.1 percent increase in sales volume. Granted, investors are still concerned over the shortages of available inventory, and wide pricing gaps between buyers and sellers are still an issue. Yet, when one considers that cap rates closed at 10 basis points higher than 2016, it becomes clear that the CRE market is still growing and expanding. In short, the uptick in foreign investment may mean more competition in the CRE industry, but the savvy investor could potentially use this influx to his or her advantage.

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Naperville commercial real estate lawyersConsumers have more choices than ever, and thanks to the constant and rapid evolution of technology, those options can be researched and accessed in a matter of seconds. Because of this, companies are having to work even harder to maintain their competitive edge - and that includes commercial real estate businesses. Environmental experience is one of the key, creative elements that they are using to draw in and maintain a strong, thriving customer base. Learn more about how you can incorporate this element into your commercial real estate business, and discover how a seasoned commercial real estate lawyer can help to further increase your profits.

What CRE Investors Can Learn from Theme Parks

Theme parks base their entire business on experience. They combine sights, sounds, and even smells to create an immersive experience that both entices and entertains their consumers. Their shops and stores are the bi-product that drives profits, but it is the experience that encourages consumers to spend. They are in an alternate world, and they want to hold onto their experience forever. Of course, this is an overt and blatant example - one that is unlikely to be seen in an office building or high-rise condo, so one must think more creatively in the commercial real estate industry.

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