I read once that if you took all the real estate lawyers in Illinois and laid them end to end along the equator – it would be a good idea to leave them there. That’s what I read. What do you suppose that means?I have written before about the need to exercise due diligence when purchasing commercial real estate. The need to investigate, before Closing, every significant aspect of the property you are acquiring. The importance of evaluating each commercial real estate transaction with a mindset that once the Closing occurs, there is no going back. The Seller has your money and is gone. If post-Closing problems arise, Seller’s contract representations and warranties will, at best, mean expensive litigation. CAVEAT EMPTOR! “Let the buyer beware!”Paying extra attention at the beginning of a commercial real estate transaction to “get it right” can save tens of thousands of dollars when the deal goes bad. It’s like the old Fram® oil filter slogan during the 1970′s: “You can pay me now – or pay me later”. In commercial real estate, however, “later” may be too late.Buying commercial real estate is NOT like buying a home. It is not. It is not. It is NOT.In Illinois, and many other states, virtually every residential real estate closing requires a lawyer for the buyer and a lawyer for the seller. This is probably smart. It is good consumer protection.The “problem” this causes, however, is that every lawyer handling residential real estate transactions considers himself or herself a “real estate lawyer”, capable of handling any real estate transaction that may arise.We learned in law school that there are only two kinds of property: real estate and personal property. Therefore – we intuit – if we are competent to handle a residential real estate closing, we must be competent to handle a commercial real estate closing. They are each “real estate”, right?ANSWER: Yes, they are each real estate. No, they are not the same.The legal issues and risks in a commercial real estate transaction are remarkably different from the legal issues and risks in a residential real estate transaction. Most are not even remotely similar. Attorneys concentrating their practice handling residential real estate closings do not face the same issues as attorneys concentrating their practice in commercial real estate.It is a matter of experience. You either know the issues and risks inherent in commercial real estate transactions – and know how to deal with them – or you don’t.A key point to remember is that the myriad consumer protection laws that protect residential home buyers have no application to – and provide no protection for – buyers of commercial real estate.Competent commercial real estate practice requires focused and concentrated investigation of all issues material to the transaction by someone who knows what they are looking for. In short, it requires the exercise of “due diligence”.I admit – the exercise of due diligence is not cheap, but the failure to exercise due diligence can create a financial disaster for the commercial real estate investor. Don’t be “penny wise and pound foolish”.If you are buying a home, hire an attorney who regularly represents home buyers. If you are buying commercial real estate, hire an attorney who regularly represents commercial real estate buyers.Years ago I stopped handling residential real estate transactions. As an active commercial real estate attorney, even I hire residential real estate counsel for my own home purchases. I do that because residential real estate practice is fundamentally different from commercial real estate.Maybe I do “harp” on the need for competent counsel experienced in commercial real estate transactions. I genuinely believe it. I believe it is essential. I believe if you are going to invest in commercial real estate, you must apply your critical thinking skills and be smart.POP QUIZ: Here’s is a simple test of YOUR critical thinking skills:Please read the following Scenarios and answer the questions TRUE or FALSE:Scenario No. 1: It’s Valentine’s Day. You are in hot pursuit of the love of your life. A few weeks ago, she confided in you that all she ever dreamed of for Valentine’s Day was that her lover would show up at her door, dressed in a white tuxedo with tails and a top hat, and present her with a beautiful bouquet of flowers. You’ve rented the tuxedo, but now you are concerned about how much money you are spending.TRUE OR FALSE: Since flowers are pretty much all the same, it is OK for you to skip the roses and show up with a bouquet of fresh yellow dandelions.Scenario No. 2: For several years you eyesight deteriorated to the point where you can barely see your alarm clock. You are now considering corrective eye surgery so you won’t need glasses. Your sister-in-law had corrective eye surgery and has had spectacular results. She recommends her eye surgeon, but mentions the cost is about $5,700 for both eyes and that the surgery is not covered by insurance. A few years ago, you had surgery to correct your hemorrhoids and it cost you only eight hundred bucks.TRUE OR FALSE: Since surgeons all went to medical school and are all medical doctors, you are being frugal and wise by asking the surgeon who performed your hemorrhoid surgery to perform your corrective eye surgery.Scenario No. 3: Several years ago, when you first got married, you asked a former classmate who is a lawyer to represent you in the purchase of your townhome. The cost was only $375. A year later, you started a family and decided you needed a Will. The same attorney prepared Wills for you and your wife for a total cost of $700. You started your own business and your attorney friend formed a corporation for you and charged you only $600 plus the cost of the corporate minute book. Years later, when your son was arrested for misdemeanor reckless driving, your attorney friend handled the criminal case and got your son off with supervision for only $1,500.Your business has been successful and you have built a pretty sizable nest egg, but you are tired of working for every dime and want to try investing in real estate. You have your eye on a strip shopping center. It includes a grocery store, bank, hardware store, dry cleaners (on a month to month tenancy), a couple of fast food restaurants, a gift shop, dental office, bowling alley (with a lease about to expire), and wraps behind a gas station/mini-mart on the corner. The purchase price is $8,000,000, but the net operating income looks pretty good. You figure if you turn the bowling alley into a full service restaurant/banquet facility, and convert the dry cleaners into a 24-hour coin laundry, the net operating income will increase and the shopping center will turn into a spectacular investment. You plan to pull together much of your life savings and put down $2,000,000 to buy this strip shopping center, borrowing the balance of $6,000,000. You remember that your lawyer friend handled the purchase of your home several years ago, so you know he handles real estate.TRUE OR FALSE: Commercial real estate is the same as residential real estate [Hey, its all dirt, isn't it (?)], so you are being a shrewd businessman by hiring your lawyer friend who will charge much less than a lawyer who handles shopping center purchases several time a year. [What is this "due diligence" stuff anyway?]ANSWERS:If you answered “TRUE” for any of the foregoing ScenariosSTOP!The Quiz is over.Please find a quite place to reflect upon your life and consider whether the decisions you make consistently give you the results you desire.If, on the other hand, you understand that the answer to each of the foregoing questions is FALSE, I am available to help you in Scenario No. 3.For Scenario No. 2, you should follow your sister-in-law’s suggestion and contact her eye surgeon, or some other eye surgeon with equal skill.For Scenario No. 1, you are on your own. [But, if you answered TRUE for Scenario No. 1, you may be FOREVER on you own.]Investing in commercial real estate can be profitable and rewarding – but it requires good critical thinking skills and competent counsel.You have a have a brain. It is strongly recommended that you use it.
Why The Net Is Your Best Bet for Business News
If you need to stay up to date with all the latest happenings and occurrences in the world of business, there’s no better way that to log onto the internet. The World Wide Web is indeed a goldmine for general company news, stock market trends and even emerging sector overviews. Put simply, to stay ahead of the game, get online.The great thing about the net is that there’s so much choice. Literally millions of different websites exist, and that means you can get the lo-down on pretty much any story, no matter how recent or far-fetched. Whether you want to know about a new CEO, an orange crop report or even the newest location of your favourite burger franchise, 5 minutes in cyberspace is all you need.Obviously the major news networks will have a greater scope to cover stories, but having said that you should never discount smaller or more niche oriented websites as they often have their ears closer to the ground. If someone makes it their business to know about a particular area, there’s a greater chance of finding more detail than at a larger authority site which is more concerned with the general facts. The best option however is to read a mixture, as that way you’ll never be left in the dark.Whatever type of industry you’re in, and whatever your job description might be, there’s no doubt that knowledge is power. From finance to marketing, law to politics, the more you know, the better off you’ll be. You might be the chairman of the board, or simply holding down the fort in an entry level position, but taking the time to read up on a variety of topics, related to your company or otherwise, is the key to success.Technology is definitely a wonderful thing, and these days you can receive all sorts of updates on your computer or smart phone from web based sources. Apps, emails, widgets and even real time tickers mean you’ll never miss a beat, and that’s a far cry from a few years ago when reading newspapers was the norm. Business itself has changed because of the web, and the exact opposite is true as well. It’s a perfect marriage that benefits regular individuals massively.Quite plainly then, the information highway is a real goldmine when it comes to staying up to date with pretty much anything these days. Having all the facts in one easily accessible place means you’ll be incredibly well informed and always able to make the right decisions. Log on and start surfing today- it’ll be the best thing you ever do from a career perspective!
Online Finance Education – More Than Just a Finance Certificate
It is no doubt that knowledge and skills is what today’s world need the most. The economic recession has just exposed how ill equipped most of us are in managing their finances. This ill equipment ranges from personal finances to business finances. It no wonder that many people especially in America have been caught pants down with lives that were just but borrowed. How else would you call the huge credit card bills that are taking down gigantic economies such as the USA and Europe?Finance education has to be redefined from the traditional finance for picking mistakes in accounting to a contemporary finance education that allows you to be have skills to better manage personal finances or business finances.The revolution brought about by the information technology (IT) is an opportunity through which finance education has been revolutionized. The emergence of online finance education propelled by the linkages between students and tutors via the internet has made it easier to share facts on finance education. In addition, people are now able to ask questions that build their daily skills through asking or providing answers that have practical solutions. This can be achieved though blogging.Online finance education also has the benefit of providing templates from which the practical application of finance theories can be based. For example, a budget planner can be customized to calculate allowable expenses to what proportions.The traditional training in finance can also be delivered using the online finance education. There are now available e-business degrees that cover training in accounting, business management, actuarial sciences, human resource management, insurance, and international business management among others.The demand for online training opportunity has fuelled the growth of online colleges or universities. The challenge in enrolling in online colleges is that you have almost no chance of ascertaining the authenticity and quality of service. At most, you can only view information about the college from the websites. The websites are however easy to manipulate to present incorrect information in a seemingly correct form.As you search for the information on where to find online college or education to improve your financial knowledge, check for an institution that will provide more than just a certificate. You should be able to learn tips on how to get out of credit card debts, how to make the most from your mortgage investments and much more contemporary financial needs.