Alternative Commercial Real Estate Financing
Frustrated by disapproval of a conventional bank loan? Annoyed by the lack of creative financing options for your commercial real estate investments? Real estate developers and investors should consider the benefits gained from alternate real estate financing options before pursing their next development. While traditional mortgages remain the most common financing option for commercial real estate projects, developers and investors have started to rely on alternative financing options to either supplement or altogether replace traditional financing options. When pursuing your next commercial real estate project, you may want to consider one of the following alternative options: Installment Land Sales Contracts. [...]
Two California Residential Rental Property Disclosure Laws You May Have Missed
There are dozens of laws requiring California landlords and property managers to give residential tenants written warnings about hazards and potential hazards associated with the housing environment. In the last twelve months legislation for two more of these laws has taken effect. New Flood Hazard Area Disclosure Effective July 1, 2018, California Government Code section 8589.45 was amended to require that a residential landlord with actual knowledge that his or her rental property is in a flood hazard zone or area for potential flooding to disclose the hazard to the tenant in the rental agreement. A landlord is presumed to [...]
The Benefits of Holding Title to Your Real Estate Investment In a LLC
Owning residential or commercial property you rent to others comes with an inherent risk of liability. While maintaining adequate insurance can protect landlords against many conceivable risks, it cannot completely insulate the landlord from liability. All insurance policies have limits, exceptions and carve-outs. In some cases injuries to tenants or guests, for example, could result in damage awards that far exceed insurance coverage limits. If the property is held in your individual name then the injured party has the ability to go after your personal assets. Instead, we advise our clients to own investment property in a California Limited Liability [...]
Have You Updated Your Privacy Policies? How the European Union’s GDP Regulation is Impacting U.S. Businesses
Over the past several weeks, you have probably been receiving e-mail from various online service providers announcing updates to their privacy policies. While these e-mails often claim that they are being done because the organization values your privacy, there is actually a deeper root. On May 25, 2018, the European Union’s General Data Protection Regulation (GDPR) became effective. With the implementation of the GDPR, the EU has now enacted the most stringent and far-reaching restrictions and privacy shields on the collection of personal data from EU residents. Previously, the United States set the standard for privacy regulation and as long [...]
Employee or Independent Contractor? A New Test
In Dynamex Operations West, Inc. v. the Superior Court of Los Angeles County, the California Supreme Court adopted a new standard to determine whether a worker is properly classified as an employee or an independent contractor. The simplified standard, known as the ABC test, looks at three required factors to determine a valid independent contractor who would not be subject to one of California’s wage orders and other employer obligations: (A) First, that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the work and in practice; (B) Second, that the worker performs work that is outside the usual course of the hiring [...]
Business Planning After the Flood-Legal and Financial Implications
Three months after the devastating Thomas Fire and Montecito mudslides, we continue to see questions regarding disaster recovery, especially from business owners. Last month’s Advisor covered insurance issues; this month, I want to focus on other strategies for weathering the aftermath of what has been a tough six months for our community. While insurance is important – for Montecito residents alone, almost $422 million in claims have been filed since January 9 – property values have plummeted over $1.3 billion, and Santa Barbara County estimates that this will generate a combined revenue loss of $21 million in property taxes. It [...]