You are a real estate investor looking for a piece of land to buy and develop a multi-family apartment building. The number of apartment units will be dictated by many factors, including whether it is raw ground, whether you buy an existing building to renovate, or what local zoning rules provide.
There are real estate acquisition obstacles to be navigated, including equity and debt financing, environmental issues, historic preservation issues, zoning issues, affordable housing issues, construction and property management contracts, and “soft trade” agreements that include the architect, mechanical, electrical and plumbing engineers, and so forth.
Operating agreements with your equity partner and debt lender need to be negotiated and finalized. All of these decision points have to be meticulously addressed before putting a shovel in the ground. Then, construction begins. Perhaps six to eighteen months later, assuming no unforeseen circumstances, a new project is delivered and ready for occupancy.
What could go WRONG:
In this particular situation, there are a wide range of challenges that may be encountered:
The RIGHT CHOICE:
As a former real estate investor and an experienced commercial litigator who represents those in the profession who experience disputes, one thing is certain: Disputes will happen.
The question is, how will those disputes be resolved? If the agreements that govern the parties’ behaviors and conduct do not resolve the dispute, the legal process may be necessary to make that call.
Whether breaches of contract or business tort claims, the Right Choice begins by identifying the complexity of a given real estate transaction or project so that the problem can successfully be dissected and understood. This is the critical first step in order to ensure effective legal representation in the form of a multi-pronged strategy for each client’s case.