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Mortgage Vs. Outright Purchase of Real Estate Property In Florida

Mortgage Vs. Outright Purchase of Real Estate Property In Florida

Mortgage and outright purchase are two legal options for acquiring a real estate property in Florida. Debt is often considered a bad idea in our present-day society, and debtors are classified as people of a low standard, and paying in full cash can be burdensome. 

Consequently, many people are usually confused about the best way to acquire real estate properties. Below is a quick overview of what you get when you mortgage Vs. Buy off real estate property in Florida

The benefit of Outright Purchase of Real Estate Property

One of the benefits of buying a property outrightly is that there will not be a need to pay any form of interest on any loan in purchasing such property.

Another advantage is that you don’t get to pay other fees like the mortgage origination fee, any form of lender fee payable, such as insurance charges from a mortgage lender, appraisal fee, or any closing cost associated with the close of the purchase.

Usually, outright payments are more attractive to sellers since they won’t be bothered with the risk of not eventually recovering their funds or worry that their application to receive financing will be denied. 

Hence, outright purchase deals can close faster than property purchases with a mortgage since you don’t have to apply for a mortgage or paperwork. Also, you don’t have to wait for the lender to approve or process your loan.

When buying property outrightly, the buyer has an edge in bargaining. They have more leverage in negotiating the purchase price since the seller is assured of the transaction’s closing. Generally, they buy at a lower price and receive a cash discount.

The benefit of Mortgage Purchase of Real Estate Property 

Conversely, financing a real estate property through a mortgage also has significant benefits. It provides a more relaxed purchase option than dumping huge funds by buying real estate property outright. 

Buying a property outright has some tax implications; on the other hand, mortgage interest payments are often tax-deductible, and it reduces the tax burden. A buyer might be worse off paying outrightly for a real estate property than if the purchase was financed when the tax deduction is considered, together with the possibility of getting greater interest and dividends if those funds were invested.

Making A Decision

Are you considering buying real estate outright or financing the purchase through a mortgage? Do not hesitate to seek the advice of an experienced real estate attorney today to help you make the best decision and walk you through the processes. 

Is It Better To Buy Or Rent A Business Location

One of the biggest decisions you will make as a business owner is choosing between buying a property for your place of business or renting.

The decision will impact your business in several ways, for better or worse, when it comes to flexibility, tax benefits, upfront and long-term costs, and many other considerations.

If you are planning on either option in the South Florida market, it’s always a good idea to discuss your ideas with an experienced Fort Lauderdale commercial real estate attorney to ensure you make the best decision.

Below are some tips to help you get started:

Compare the cost of both

It’s a good idea to perform a full financial analysis on the entire rough cost of leasing or buying. As many will tell you, the top benefit of leasing is the fact that you won’t have to spend nearly as much money upfront.

In the long term, you will likely end up paying more, however, especially if you plan on being in your location for several years. If you purchase, you do have more upfront costs and frequently maintenance responsibilities, but you get to enjoy appreciation on the property and tax benefits.

Are you a new or established business?

If your business is relatively new, it’s often a good idea to consider leasing a location first that is well within your budget. This way you can gather some financials, minimize your upfront risk, and determine what type of location will suit your business best.

Purchasing a property requires a long-term commitment to get the most out of your investment, along with the expenses mentioned above. It can also be riskier to make a commercial property purchase when you aren’t 100% sure that it’s a location you will want to stay at 3-5 years down the road.

Do you want more control over the property?

If you are planning on making substantial upgrades or renovations to the property, in many cases you may have no other option than to purchase it. When you own the property you won’t have a landlord looking over your shoulder for every change, you’ll only have to deal with licensing and zoning, etc.

However, some agreements may also allow you to make modifications to the property, sometimes extensive.

There are many points to consider, and in any case, it’s always wise to meet with an experienced commercial real estate attorney in Fort Lauderdale to help you make a final choice.

Call Schecter Law today at (954) 779-7009 with any questions you may have about deciding between buying or leasing for your business location in South Florida.

If your company has started to grow, congratulations! It is an exciting time, and you might be looking for a new space in the near future.

If you’re looking to expand to South Florida, there are many potential options, and it can be challenging to narrow them down.

Below are a few things to consider as you go about your search, and an experienced Florida commercial real estate lawyer can advise you on any of them, or help with negotiating your lease, which will determine your monthly expenses, options to move and other important terms:

#1 – Does it have enough room for an expanded operation?

If you plan on staying in your current space for 3-5 years, a common length for many commercial real estate leases, you will want to consider your anticipated space needs.

Is there an option to add extra space for additional meeting rooms or desks if needed? Are you allowed any flexibility with modifying the current space?

If you are stuck with a specific layout without any upgrade options, it may be better to find a more flexible building and lease, especially if you anticipate growth.

#2 – Does it offer multi-purpose functionality?

It’s getting tougher than ever for employers to attract quality talent. One of the biggest influencers are the amenities that a particular workplace has to offer.

The same boring cubicle office layout of prior decades often doesn’t attract top talent today. To make your company more competitive in this area, consider adding multi-purpose functionality to your workplace.

Maybe you can have a small gym area, all-purpose spaces for get-togethers or even yoga instruction. A small kitchen is a nice selling point as well. Of course, it depends on the size of your company and anticipated growth, but consider what your employees might want in the workplace.

#3 – Can you meet with current tenants?

It’s always a golden opportunity if you can meet with any current tenants. You’ll find out the good and bad when it comes to the landlord and how they deal with inevitable issues. Knowing this is of the utmost importance when you are signing a multi-year lease.

Few things will be as telling as current tenant experiences, and most of them will be happy to share their positive or negative experiences to help guide a fellow business owner into making the right decision on a space. Don’t just take the word of the landlord – make a call to a current tenant or stop by and ask for their input.

There are many other things to consider as you prepare for your next big space upgrade. Leah Mayersohn at Schecter Law help review your lease or point you in the right direction for the best type of commercial real estate in South Florida for your business.

Contact Schecter Law today at (954) 779-7009 to schedule a consultation.

Are you in the process of launching a for-profit corporation (C-Corp) in Florida? This state requires you to include your articles of incorporation which is used to identify certain basic information about the company and its operating characteristics.

This document is not something you will want to make a mistake on, and the state recommends that filers get assistance from a Florida business attorney prior to filing.

This ensures that the document is not lacking any important sections and that it complies with the legal requirements of the state of Florida.

Required Sections of the Articles of Incorporation

Florida requires specific sections in your articles of incorporation including the following:

There are additional items that may need to be included such as more extensive details about stock options, the powers of the corporation, dissolution procedures, indemnification clauses and other sections.

Therefore, you don’t necessarily want to only include the minimum information, and meeting with a business formation attorney can ensure that your articles of incorporation include everything needed for your specific situation.

Florida Corporation Bylaws

In addition, you will also need to create the corporation’s bylaws, and although they do not need to be filed with the Division of Corporations, they will cover important information such as when and how shareholder meetings will be held, the ability to issue stock certificates, the size of the board of directors, how the board will function, corporate office responsibilities and more.

Again, this is another area where the advice of your attorney will prove to be helpful.

Templates Are Often Lacking

You might find a template for your articles of incorporation, but mistakes can be quite easy to make when trying to modify a template for your business. This can result in delays in the processing of your business filing, compliance issues, and potential complications in the future.

Even if you have a business formation attorney in Florida simply overlook your articles of incorporation before you file them, it is much better than sending them out without any review at all.

You can also get advice regarding concerns such as business licensing, contracts, legal liabilities, copyright concerns, and any other pressing legal matters if you work with an attorney.

If you are in the process of launching a business in Florida, you likely have several questions on the above-mentioned matters and others. Contact Schecter Law today at (954) 779-7009.

Starting A Business In Florida? What Questions Should You Ask Your Lawyer?

Being proactive can make all of the difference with ensuring the success of any new business venture in Florida. As you prepare for your next business, it’s always a good decision to meet with a South Florida business formation lawyer to discuss a few key areas of concern:

What Are My Legal Risks and How Do I Minimize Them?

Every business carries a variety of potential legal risks, and understanding them along with the applicable laws that govern your industry is necessary in order to avoid litigation, fines or penalties. If you don’t fully understand these laws, it will be challenging for your business to stay in compliance.

That’s why it’s essential to meet with your attorney ahead of time to get a full picture of your legal risks and the practices and strategies you should adopt to minimize them – from training, to insurance, handbooks, payments, contracts, hiring procedures, business operations, logistics and more.

What Contracts Do I Need?

Nearly every business will need to have customized contracts drafted for it, from lease agreements, to employee and independent contractor agreements, to vendor agreements, terms of service and more.

This is perhaps one of the most important questions to address with your attorney – any mistakes in the terms of your contracts can expose you to a range of legal and financial risks unnecessarily.

Well written contracts should address your potential risks with protective clauses and will help to eliminate the potential of future disputes. They should outline what might occur if one party fails to hold up their end of the deal and the obligations of both parties so that there is clarity and reasonable expectations with each agreement your business enters into.

What Business Structure Should I Choose?

As we have previously discussed on this blog, your choice of business structure has major ramifications on your liability, taxation, annual requirements and more.

You might be tempted to choose a simple entity such as a sole proprietorship, but with this structure there is no separate protection for your personal assets.

Or you might consider a limited liability company which is a popular option because of its flexibility, limited personal liability and tax benefits, and minimized formalities.

However, C corporations may be a good option for those who are seeking venture capital, or who want to create a business structure that is easy to sell at a future date.

Other scenarios where this structure may be useful is for those who anticipate profit-sharing among multiple owners or who want to give their employees stock options.

These are just a few of the many questions that need to be addressed for a new business. The right decision on these questions and many others will be clear once you meet with a business formation lawyer in South Florida. Contact Schecter Law today at (954) 779-7009 for any questions you may have about forming a business in Florida.

As you plan the formation of a new business, there are several legal issues to consider, which is why it can be very helpful to work with a Fort Lauderdale business formation attorney. Below are some common issues that can arise, but it’s always best to meet with your attorney for specific guidance:

Trademarks and Copyright Issues

Your logo, website, and business name will all be integral to your company’s brand and identity. If you work in a particularly competitive industry, you will want to perform a thorough trademark search of your potential business name before registering it.

Your attorney can conduct a search with the U.S. Patent and Trademark office as well as a Florida state search to ensure there are no similar names and avoid a potentially costly legal issue in the future.

Licenses

Your business will need a license and possibly permits in order to operate legally. The permits that you need can vary from one city to another. Your attorney can assist you with obtaining the proper local permits and licenses and also answer any questions you may have about obtaining them.

Contracts

From employee contracts, to vendor agreements, terms of service, and office leases, there are several legal agreements that you may need to have your attorney draft or review. At the very least, it’s essential to have a business formation attorney review your contracts to catch any terms that you may have missed or areas that could unnecessarily increase your liabilities.

Non-Disclosure Agreements

Non-disclosure agreements are commonly necessary for a wide range of different businesses, especially startups and tech companies that often share important trade secrets with contractors and other parties. To ensure that your business’s important confidential information is properly protected, it’s essential to have a well-structured NDA that is written with the necessary terms so that it is enforceable.

Business Structure

We have previously discussed in detail why it’s necessary to hire a business attorney to choose the right business structure. There are a variety of tax, liability, shareholder and other implications based on the type of business structure you choose. This step should not be overlooked for any serious venture, and a quick meeting with your attorney will help you determine which structure is right for you.

Plenty of other legal questions or concerns may arise during the formation of your business such as legal liability issues, zoning and commercial real estate leases, regulations and more. Contact Leah Mayersohn at Schecter Law today at (954) 779-7009 with any questions you may have on your startup.

Business Formation Advice

As you prepare to launch your next business in South Florida, it’s well worth your time to meet with a business formation attorney to discuss some of the potential ways they can help.

It’s often advisable to get legal assistance with crucial steps like drafting your operating agreement and contracts, choosing the proper business structure, obtaining business licenses and more.

Here are just a few of the many ways that a business formation attorney can help:

Choosing the Proper Business Structure

We have discussed the importance of selecting the proper business structure on this blog in the past; doing so is of the utmost importance from the beginning.

It affects your liability, how you are taxed, your level of control and more. You’ll want the advice of a business formation attorney to decide on your structure, and the earlier that you consult with one the better.

Business Licenses in Florida

Permits and business licenses are required for most businesses in Florida. If your experience with your particular business is limited, you may not know which exact licenses you need among other requirements.

Regardless of where you are planning on launching your business in South Florida, it’s helpful to meet with an attorney to get advice or assistance with the specific licenses you’ll need.

Drafting Contracts

There are a variety of contracts that every business may need from the very beginning including employee and contractor agreements, terms of service for customers, corporate or privacy policies, vendor agreements and more.

It’s essential for these legal agreements to be properly drafted to reduce the liability of the business owners as much as possible and ensure that every necessary term is included.

Have an attorney draft your agreements or review them at the very least. Avoid trying to handle this area on your own to avoid a variety of potentially messy and costly legal situations.

Finding a Top Location

For many businesses, finding the right location is half the battle. It’s another area where an experienced business formation attorney with a background in commercial real estate can help.

With plenty of considerations such as zoning, neighborhood, traffic, visibility, competition, lease structure, and a variety of lease negotiation points, it’s always helpful to get the assistance of a qualified South Florida business formation attorney on this step.

Your attorney can help with many other areas including drafting your operating agreement, bylaws, filing any necessary documents, and other specific advice for your situation.

If you plan on starting a business in South Florida soon, contact Schecter Law today at (954) 779-7009  for a consultation.

When you’re ready to lease a new space for your business, you’ll likely have many questions and concerns, even if you are experienced with the process.

There are multiple lease structures, each one having a different impact on your business and cost liability, and they can be quite complicated in their terms.

Before reviewing or signing any commercial lease, it’s always advisable to meet with an experienced Fort Lauderdale commercial real estate attorney so you understand your obligations and negotiate favorable terms.

Below is a brief overview of the major types of commercial leases:

Net Leases

Net leases require the tenant to pay one or more of property taxes, insurance, and maintenance costs for the property along with their rent.

Many of them can heavily favor the landlord if they are not modified. The terms single, double and triple net refer to the following types of leases:

Gross Leases/Full-Service Leases

In a gross or full-service lease, the agreed upon rent covers all operating expenses related to the property including common area maintenance, taxes, insurance, utilities, services, etc.

Tenants may prefer this type of lease for its simplicity, as they don’t have to be involved with the daily operations of the building’s maintenance.

These agreements can be quite favorable to a tenant, as many expenses may increase over time while the rent stays fixed.

Modified Gross/Net Leases

Modified gross/net leases allow for a compromise between the two types. Modified leases allow both the tenant and landlord to take on certain expenses, distributing the responsibility.

Around this time of year many entrepreneurs plan on launching new businesses in Florida and are often eager to get started.

However, taking a bit of time to meet with professionals to get some expert advice is always advisable before the customers start rolling in.

Before You Start A Business You’ll Want To Meet With:

A  Business Formation Attorney

Every business has some level of liability, from contract risks, to compliance, disputes, regulatory concerns and more.

No matter what type of company you plan on starting, you’ll want to meet with South Florida business formation attorney to discuss what types of risks you will be exposed to and how to limit it as much as possible.

Your attorney will help you choose the appropriate business structure to limit your liability and can help you prepare any of your initial paperwork, obtain licenses, draft partnership agreements, operating agreements and more.

An Accountant

It’s just as important to consult with an experienced accountant to understand your new tax implications.

Other areas will need to be addressed, for example an accountant can advise you on the best system for the easiest recordkeeping and financial reporting.

They’ll help you minimize your tax burden for the highest profit potential, can teach you how to review your financial statements and more.

An Advisor

Getting advice from someone who has worked in the industry you are launching a business is always wise. Even if you aren’t well connected yet, it can be as simple as going to a networking event and sparking up a conversation or reaching out to someone in the industry online.

Even paying an expert for an hour consultation can pay off immensely, especially when you get a detailed analysis of your potential business idea, its flaws, strengths, and overall potential. In any case, you’ll want to choose someone with a proven track record.

Other Professionals

Of course, you may also want to meet with other professionals such as a loan office at your bank, other advisors, or potential investors who may be able to provide you with seed capital. You may want to recruit experts in your industry to be on an advisory board or provide ongoing advice.

Meeting a South Florida business formation attorney and accountant at the very least will help you set the foundation for your business and hit the ground running.

Call Schecter Law today at (954) 779-7009 to learn more about starting a business in South Florida or to ask any questions you may have at all.

When you’re starting a new business in Florida you may be caught between deciding to launch as a sole proprietor or as a single member LLC. Launching a sole proprietorship is not as complicated as an LLC and there is less paperwork required. But, it doesn’t offer the same protections as an LLC and there are other significant disadvantages. Meeting with a South Florida business formation attorney briefly to learn about the differences between the t

 

wo entities is a wise decision, and some of the most important benefits and disadvantages are described below.

A Florida LLC limits your personal liability

A Florida LLC limits your personal liability substantially, and that is one of the main reasons why you may consider using this entity over a sole proprietorship. As a sole proprietor you and your business are viewed as one and the same. That means that you can be sued for your business’s liabilities and your personal assets such as your home or your checking account may be at risk for unpaid debts related to your business. However, a Florida LLC separates many of those liabilities from you as the owner and protects your personal assets from many risks.

Sole proprietorships can be easier to launch

A main reason why some entrepreneurs prefer a sole proprietorship is because of the fact that it’s a lot easier to launch. There are lower startup costs because you won’t have to hire a South Florida business formation lawyer to create an operating agreement or draft articles of incorporation. You won’t need to file any legal documents with the Florida Department of State if you run the sole proprietorship under your legal name. However, if you plan on operating your business with a different name (DBA) you will need to register it.

Sole proprietorships are very limited

Although they are somewhat easier to start, a sole proprietorship exposes you to significant personal liability. A Florida LLC is not going to protect you from every liability, but it goes much further in terms of limiting your personal liability for the debts of your business in many circumstances. Many individual business owners are better off launching as a single member LLC.

Leah Mayersohn is a highly experienced South Florida business formation attorney who can outline some of the most important differences between the two entities in detail for you if you have any questions about them at all. Contact Leah Mayersohn at (954) 779-7009 for a consultation regarding your business today.