Naperville, IL 60563
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Recent Blog Posts
Common Challenges in Real Estate Development
Real estate development can build your wealth and investment portfolio, but only if you play your cards right. There are numerous challenges, potential pitfalls, and unique obstacles that must be faced. Failure to account for any one of them can result in a delay or even complete loss in your project. Learn more about these challenges and how you can mitigate them with help from the following information.
Difficulty Seeing the Bigger Picture
Government projects often move quickly, but private real estate development usually take much longer. There are numerous reasons for this, and each development project is unique, but the lesson is that patience is crucial. Developers also need a certain amount of vision – an ability to see the bigger picture – to be successful over the long-term. So, before you purchase a property, consider some of the following questions:
Steps to Take Before Buying Commercial Real Estate
Stepping into real estate investment and development industry can be a smart choice. It can It is also an extremely risky industry, full of esoteric laws and complexities. There are regulatory hurdles and fewer lenders than there used to be. Thankfully, there are some ways to mitigate against these risks. The following explains how.
Look at Long-Term and Short-Term Issues
Although real estate investment can (and often does) offer a long-term payout and tax deductions for things like utilities, insurance, and other related expenses, there are also some short-term financial drawbacks that you must consider. For example, it is important to understand that you will have less liquidity once your money is invested in real estate. There are also costs associated with investing, like inspection fees, purchasing taxes, and more.
Rent Withholding – What Every Tenant Should Know About the Right to Repair Act
Although most landlords work hard to keep their properties safe and habitable, some do not. The Residential Tenants’ Right to Repair Act outlines the recourse that tenants have in such situations. It also provides detailed information on the limitations of the Act, which must be followed to ensure the protection of your tenant rights. If you are experiencing poor living conditions or are struggling to have essential repairs made, the following can help you understand how this Act may apply to your situation.
Deducting Repairs from Rent Due
Under the Tenants’ Right to Repair Act, tenants have the right to use a portion of their rent to pay for necessary and reasonable repairs to their dwelling. This right is not without limitations, however. The tenant cannot simply make the repair. Instead, they must notify the landlord, in writing, by registered or certified mail. If a response is not received and the repair has not been made within 14 days of the receipt of the notice, the tenant may then pay a tradesperson to complete the repair. It should be noted that the amount cannot exceed $500 or one-half of the tenant's monthly rent (whichever is lesser). Further, the damage cannot have been caused by the deliberate or negligent acts of the tenant or their animals or visitors.
Common but Potentially Devastating New Investor Mistakes
Real estate investment can be a lucrative business or hobby, but it should not be embarked upon lightly. The world of real estate investing – be it residential or commercial – is complex and full of potential pitfalls. Fall into any one of these traps and you could be at risk for a financial loss. In contrast, you can increase your chances of turning a profit by avoiding these common new investor mistakes.
Not Having a Plan Prior to Purchase
All too often, new investors get excited about an opportunity and jump on a property before they even have a plan. This is not how real estate investing should work. Rather than purchase a property and then decide what to do with it, you should know what you want to do and then search for a property that fits that vision.
Expecting to Get Rich Quick
How Easements and Right of Ways Can Impact Your Land Development Project
Land development is a process full of confusing terms, esoteric laws, and complex requirements. Easements and right of ways are no exception. In fact, these specific issues can have a significant impact on your land development project. Learn more about them, and how you can strive to either avoid them entirely or effectively navigate through them, with help from the following information.
What is an Easement?
Easements are predetermined land use agreements. Most often, these agreements are in place to protect wildlife, farmland, or landscape. Yet there are situations in which landowners add them to obtain tax credits. Regardless, you must understand what they are, and how they may affect your development project. This may be determined by looking at the two specific types of easements: gross easements and appurtenant easements.
Are Distressed Properties Worth the Investment?
Distressed properties may come at a discount, but that savings comes at a cost. They require a great deal of time, money, and energy. Even then, there are no guarantees that the property will turn into a valuable asset. That means investors must ask themselves one very important question before purchasing distressed property: is it really worth the investment? The following can help guide your decision, and offers some strategies to improve the chances you will be able to turn your distressed property into a valuable asset.
Examining the Potential Benefits of Distressed Property
Because they are offered at a lower price, distressed properties have the potential to turn over a higher yield. That is what makes them so appealing to investors. Did you know, though, that stabilizing the property can even further multiply your profits? In addition, you may be able to increase the overall marketability of surrounding properties. If you happen to own any of them, this could further increase your propensity to turn a profit.
Landlords Need to Heed Illinois Lead Laws
Lead can have a devastating impact on the mental and physical development of children. Sadly, the state of Illinois has one of the highest rates of lead poisoning in the nation. In fact, Cook County alone had more than 4,500 children who tested positive for lead poisoning last year. Some of these cases may have been the result of a lack of disclosure. This is allegedly the situation for one landlord who is now facing litigation.
Illinois Landlord Faces Litigation
In May of 2015, news reporters covered a story about two young children who had suffered from lead poisoning. Investigations from the Illinois Attorney General revealed that the lead had allegedly come from their apartment home. Their landlord had reportedly failed to take appropriate action, as required by the Cook County Public Health Department. Because of that, the Attorney General is filing suit against the landlord. This could ultimately result in a temporary closure of the property and hefty fines for any failure to comply with the stipulations for reopening the property.
Overcoming the Challenges in Commercial Real Estate Development
If you have any experience at all in the commercial real estate development sector, you know there are challenges at every turn. There are burdensome, ever-changing, and multi-layered regulations that can slow down or even halt your project. Financial complications are also common, especially when using a commercial lender. How can you overcome these challenges and improve the chances of a favorable outcome in your development project? The following explains, and provides some detailed information on how a real estate attorney can help.
Government Regulations Before you can begin your project, you must meet all zoning, land use, and permit requirements. In order to complete this step, you must be prepared to submit detailed designs and an in-depth plan for your project. It must meet all state, county, and federal requirements. This includes fire codes, plumbing codes, electrical codes, waste disposal standards, energy conservation codes, and stormwater management requirements. Certain projects, such as those that may endanger a species or are to be developed near wetlands, may need to obtain additional clearance through the Environmental Protection Agency.
Bars, Taverns, and Restaurants Need to Consider Location Carefully
Opening a new business, or expanding on a current one, can be an exciting and rewarding venture. It is also a journey that may be riddled with hurdles and obstacles - some of which may seem insurmountable. Thankfully, a little preparation and due diligence is often able to smooth out some of the wrinkles. For some businesses, though, this best business practice is absolutely critical. The licensing and zoning issues that bars, taverns, restaurants, and other alcohol-selling establishments may face serves as a prime example.
Zoning Laws and Liquor Licenses Any business can experience zoning issues, but businesses that sell alcohol are at an extremely high risk. If unable to gain zoning approval to gain the proper licensing, this can seriously cut into the profits of food establishments. Those that make their profits mostly or solely from alcohol may be unable to open at all. If they have already spent the money to open their business, entered into a contractual agreement with a landlord, or otherwise invested into the location, moving the business may be difficult - if not impossible.
Overcoming Zoning Issues Can be an Arduous Task, Especially for Smaller Businesses
When renting or purchasing commercial property, there are many factors to consider. Will there be enough space? Are there renovations to be made? Is there a need or interest in the space or business? Of course, none of these issues matter if you cannot obtain the appropriate permits. For many, this comes down to whether it will be possible to overcome any zoning and land use issues. A complex and arduous task - particularly for small businesses - these matters can cost you time, money, and often result in added stress. The following explains further.
Small Businesses Are Especially at Risk While any landowner, business owner, or investor may be at risk for financial loss in the face of a land use or zoning issue, small business owners often experience the highest level of risk. This is because most do not have a reserve for handling expensive repairs or modifications. They may even experience unexpected issues while trying to obtain zoning or land use permits. If the cost is prohibitive enough, they may go under completely. For this reason, it is absolutely critical that small business owners seek guidance and assistance before a lease or purchase agreement is signed.
1730 Park Street, Suite 117, Naperville, IL 60563
630-778-3818
