A competent real estate attorney can save your commission! Okay, not in all instances but there are many times when a “dead deal” can be resurrected by an attorney that comes up with creative solutions to keep a deal on track, such as:
1. Making sure the Closing process is handled timely (in accordance with the dates set out in the contract/s) and properly with solid legal documents including: assignment of leases; bill of sale; deed of trust; promissory note; private placement memorandum; operating agreement; closing instruction letter; title objection letter; escrow holdback agreement; asset management agreement; property management agreement; authorizing resolutions; CCRs; development approvals; tax incentive approvals; and more.
2. Finding provisions in the contract, under the statutes, and based on case law that can force the opposing party to get sober and become reasonable, bringing the deal back to life and crafting a new lens for the parties to consider.
3. Throwing cold water on heated personalities by poking holes in arguments, removing emotion, and ultimately, mediating the peace to find a win-win solution.
4. Fixing legal problems that are killing a deal such as: clearing up clouds on title; maneuvering through city and governmental zoning/development/permitting challenges; misrepresentations and breach of contract, and more.
5. Crafting post-closing documents to get things closed (and you paid) when timelines do not allow for construction or utility work, pending entitlements, (some) title issues, and possible remedies via the survivability of representations and warranties.
6. Mitigating tax impact to bridge gaps between the parties via methods such as 1031 exchanges, cost segregation, Tenant-in-Common “Drop and Swap”, Seller financing, LLC membership interest buyouts, tax appeals, and more.
7. Solving partner fights such as through LLC membership interest buyouts, puts, calls, options, mediation, buy-sell agreements, and other analytical strategies to properly vet the facts to decipher fact v. fiction and propose real solutions.
8. Restructuring the assets via lease modifications, creative financing, syndications, TICS, subdivision and rezoning, and more.
9. Opening up a network of vendors, professionals, capital and debt partners, and other experts that can – and do – close on transactions just like yours. (Ever had a buyer back out and wish there was a second buyer ready to take over the flailing contract and save the day? We might have that second buyer in our stable of contacts.)
10. Filling the gap in the capital stack via expert guidance navigating economic development incentives (such as property tax abatement, sales tax exemptions, and jobs credits.)
11. BONUS: a competent attorney can limit the risks to your client (and your liability) through expertise concerning insurance, taxes, contract provisions, deal structure, governmental issues, securities regulations, and a myriad of other areas that can protect you in the event of a lawsuit.
The Author
Ferd Niemann
Ferd Niemann is a real estate investor and business-minded lawyer, as well as a trained financial analyst and an experienced entrepreneur. His experience includes mobile home park investments and turnarounds, retail development and redevelopment, residential investments, and real estate law. In addition to his investments as an operator, Ferd has invested in storage, apartments, restaurants, medical startups, and a handful of other ventures.
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