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Commercial real estate investing is not the same thing as residential real estate investing. Just because both property types have four walls and a roof does not mean they have the same investment strategy. Commercial deals and contracts are subject to different regulations than residential properties. Residential real estate investors looking to invest in commercial real estate should be aware of the different facets of commercial deals and contracts.

Shawn Yesner, of Yesner Law Firm of Tampa, specializes in real estate law. After getting his start in real estate law representing lenders, Shawn began his own law firm in 2004 representing homeowners. Shawn has since expanded his firm to encompass all aspects of real estate law, representing property owners in a variety of legal processes. Shawn discusses some important points for investors to consider when completing commercial deals and contracts.

• Contracts
  • Residential real estate uses one contract template – FARBAR (FL Assos. of Realtors + FL Bar Assos.)
  • Attorneys specialized in commercial real estate should draft commercial contracts
  • Only clauses that meet buyer/seller agreement should be introduced
• Tenant Leases
  • Make sure tenants are current on lease payments
  • Track lease deposits
  • Keep leasing contracts in same format
• Tax-Deferred Opportunities (1031 Exchange) 
  • Strict timelines and regulations to be aware of
  • Seek assistance from CPA or certified agent
  • Be able to prove constructive receipt of funds; don’t get stuck with tax liability
• “As Is” Contracts
  • Seller should always disclose state of property
  • in FL, Johnson v Davis sets “as is” precedence: Seller must disclose anything material to purchase of property and/or anything that might not be found after a reasonable inspection
• Assignments
  • Buyers may choose to assign ownership of property to LLC or other business name
  • Contracts should hold original buyers liable
• Buy/Sell Authority
  • FL recently changed LLC laws
  • Sellers should be aware of who holds legal authority to make buying or selling descisions
  • Title companies can do bulk of research on this
• Incomplete Agreements
  • A detailed contract should outline purchase agreements
  • Sellers should not leave any gray areas to argue incomplete agreements
• Zoning
  • Make sure you know your property’s zoning authorizations
  • Zoning can be changed, but make sure your property can accommodate changes
• Environmental Issues
  • May pose big concern for environmental properties
  • Owners may be responsible for environmental factors that occurred prior to purchase
  • Buyers should complete phase I assessments of properties for any red flags during due diligence process

To contact Shawn for any real estate law needs, visit his website!

Shawn also hosts a podcast covering many legal topics in real estate investing and ownership. Check out Yesner Law Podcast on iTunes, Stitcher or your favorite major podcast platform!

The post Ep. 94 Shawn Yesner: 10 Important Items You Will Want to Know About Commercial Deals and Contracts appeared first on Real Estate Investing in Florida.

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Things are happening in the Miami real estate market… Well things are always happening in the Miami real estate market, but BIG things are happening right now. Miami has long been the focal point for real estate investors due to the density and scale of development and the investment opportunity for a variety of asset classes. Real estate investors all over Florida have looked towards the Miami real estate market as a forecast for current and future conditions throughout the state.

Tom Blazejack, of Blazejack & Company knows all of the ins and outs of the Miami real estate market. In addition to nearly 40 years’ experience as a real estate appraiser and analyst, Tom is also a native of Miami. Tom’s extensive appraisal knowledge of commercial and residential properties and intimate knowledge of the Miami real estate market make his consultation highly sought after by investors. This episode, Tom gives us an overview of the Miami real estate market, including development highlights and what investors should expect.

Miami Real Estate Market

• 2011 purchase of Miami Herald building for $236 million marks return of market
• Foreign investment and cash-heavy market
  • Foreign investors seeking stable properties to invest cash
• Development spikes
  • New deposit requirements for investors and developers insures accountability
  • Lenders alleviating construction loan costs for developers
  • Projects moving quicker
• Land price increases
  • Miami seeing $200-300/sqf on new commercial developments but even as high as $3000 in some prime locations
  • Residential continues to increase… up to $3/sqf in best projects
• Emerging Markets
  • Development spreading into surrounding Miami
    • Little Havana, Wynwood, Coral Gables all seeing new projects
• Major Projects
  • Brickell City Center – Swire Group
    • $250/$300 sqf for 9 acres in downtown Miami
    • 2 levels underground parking; 2 luxury 400-unit condos; 2 office buildings (1300 sqf); Hotel w/ corporate and extended stay (East Hotel); Retail facilty (500k sqf)
    • Projected cost overview of $1.05 billion
    • Details, visit http://www.miamidda.com/
  • Public/Infrastructre Projects
    • Huge infrastructure projects initiated during recession
    • Kept in budget due to counter-cyclical investment
    • 2 big projects
      • SR 826 and SR 836 Interchange
      • Port of Miami Tunnel
  • High-speed Rail
    • Brightline (previously, All Aboard Florida)
    • Connecting South Florida and Orlando
    • MiamiCentral project in downtown Miami
      • Transit center; retail/mix-use
    • For more info on rail project, check out Invest Florida Show Ep. 52 with V.P. of Business Development for the project, John Guitar

To contact Tom with for an appraisal consultation or for further analysis of the Miami real estate market visit his website. He can also be emailed at tom@blazejack.com

The post Ep 87 Tom Blazejack: Miami Real Estate Market Overview appeared first on Real Estate Investing in Florida.

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When transitioning from residential or simply starting your investment portfolio in commercial real estate, it is important to remember one thing: commercial leases are not the same as residential. Commercial leases are subjected to a much higher percentage of risk if not properly structured.

Elise Batsel has made it her business to ensure landlords are protected in any commercial lease issue from the ground up. As counsel with the Tampa firm Phelps Dunbar, LLP, Elise specializes in commercial real estate land-use and zoning. Elise represents developers and institutional lenders in acquisitions, dispositions, financing and transactions as well as all aspects of commercial leases. In this episode, Elise discusses seven hot-topics all landlords and owner/operators should know about commercial leases.

1. Commercial vs. Residential Leases
   1. Commercial properties have different costs and expenses that can be transferred to tenants: common area maintenance expenses (CAMs)
   2. CAMs may include: utilities, landscaping, management fees and other costs associated with owning and operating commercial properties
2. CAM and Triple Net Leases
   1. Triple Net Lease – For landlords and tenants who want stability; does not account for unanticipated expenses or for properties without a familiar investment history
   2. CAM lease – Serves as umbrella to protect landlord/owner from future costs and expenses incurred from property management; specifies expenses and tenant liabilities
3. Tax Implications
   1. Though not frequently addressed in lease, tax implications are a major tenant-landlord discussion that could be beneficial for both parties
   2. Leases can stipulate landlord ownership over tenant-improvements with proper recompense for tenant
4. Americans With Disabilities Act (ADA)
   1. Commercial real estate considered public accommodations and subject to more ADA compliance regulations
   2. Represents huge liability for landlords not in compliance
5. Sub-letting and Tenant-Assigned Leases
   1. Landlords can address sub-leasing and assigning terms in commercial leases
   2. Landlords entitled to portion of income from tenant leases
6. D-I-Y Leases
   1. Do not attempt to draft generic commercial leases if self-managing property
   2. There are many changing facets to follow when drafting commercial leases
   3. If drafting your own lease, have attorney or specialist review
7. Protection Against Bad Tenants
   1. Always ensure strong deposit from tenant
   2. Small-Claims Court
   3. Write effective demand letter to tenant

For any commercial lease, zoning or land-use issues and questions, Elise can be contacted by phone at 813-472-7564 or through email at elise.batsel@phelps.com

For even more information on commercial leases as well as landlord and tenant relationships, Elise suggests the following articles: Tenant’s Checklist of Silent Lease Issues  and Model Landlord’s Checklist of Silent Lease Issues – S.H. Spencer Compton, Esq. & Joshua Stein, Esq.

The post Ep. 71 Elise Batsel – 7 Things Landlords Should Know About Commercial Leases appeared first on Real Estate Investing in Florida.