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In economic theory, supply and demand are two laws, not one. The law of supply is one principle; the law of demand is another. But you don’t need to have received an A in Econ 101 to know that supply and demand are intimately related – and that together they have a great effect on price. This is certainly true in the area of real estate, as we will discuss in this post. What are some of the supply-and-demand factors that are affecting real estate investment and development in Los Angeles? National (and global) trends Nationally, U.S. commercial real estate has been on a strong run for the last six years. Prices have been climbing steadily every since the 2008 crash. Today the Wall Street Journal reported that a plateau on prices appears to be in site. There are complex forces behind this, relating more to global stock markets than anything to do with particular real estate deals. These global trends are starting to affect interest rates. Bonds that are backed up by commercial mortgages are expected to decline significantly this year compared to a year ago. But there is still a lot of momentum in the market. Banks and insurance companies have money to lend and are often willing to do so. Real estate is still an attractive investment in many cases, often through the vehicle of a real estate investment trust (REIT). The market in Southern California Here in Southern California, the national and global trends we outlined above play out in a context of a real estate market that remains very dynamic. To put it in the simplest terms, it’s still pretty hot. One way this is reflected is a highly competitive market for residential housing. In general, there is more supply than demand – especially for homes that are not on the high end of the market. This has been reflected in scenarios involving all-cash offers and bidding wars in some cases. How is this likely to affect real estate investment and commercial real estate? Let’s take one clear example: the strength of REITs. The benefits of REITs include ease of purchase and the receipt of quarterly dividend income. And with an REIT, these benefits are available without the burden of actively managing the property. Pursing and protecting your interests Of course, it’s important to get sound legal and financial counsel before investing in an REIT or any other real estate project. The laws of supply and demand create many opportunities for rich returns. But to get the best results it’s best to get guidance from trusted professionals who know how to help you pursue and protect your interests.

In economic theory, supply and demand are two laws, not one. The law of supply is one principle; the law of demand is another. But you don’t need to have received an A in Econ 101 to know that supply and demand are intimately related – and that together they have a great effect on price. This is certainly true in the area of real estate, as we will discuss in this post. What are some of the supply-and-demand factors that are affecting real estate investment and development in Los Angeles? National (and global) trends Nationally, U.S. commercial real estate has been on a strong run for the last six years. Prices have been climbing steadily every since the 2008 crash. Today the Wall Street Journal reported that a plateau on prices appears to be in site. There are complex forces behind this, relating more to global stock markets than anything to do with particular real estate deals. These global trends are starting to affect interest rates. Bonds that are backed up by commercial mortgages are expected to decline significantly this year compared to a year ago. But there is still a lot of momentum in the market. Banks and insurance companies have money to lend and are often willing to do so. Real estate is still an attractive investment in many cases, often through the vehicle of a real estate investment trust (REIT). The market in Southern California Here in Southern California, the national and global trends we outlined above play out in a context of a real estate market that remains very dynamic. To put it in the simplest terms, it’s still pretty hot. One way this is reflected is a highly competitive market for residential housing. In general, there is more supply than demand – especially for homes that are not on the high end of the market. This has been reflected in scenarios involving all-cash offers and bidding wars in some cases. How is this likely to affect real estate investment and commercial real estate? Let’s take one clear example: the strength of REITs. The benefits of REITs include ease of purchase and the receipt of quarterly dividend income. And with an REIT, these benefits are available without the burden of actively managing the property. Pursing and protecting your interests Of course, it’s important to get sound legal and financial counsel before investing in an REIT or any other real estate project. The laws of supply and demand create many opportunities for rich returns. But to get the best results it’s best to get guidance from trusted professionals who know how to help you pursue and protect your interests.

Selecting the right business partner is essential for the success of any shared business venture. However, even with the best of intentions and due diligence, things can go wrong, and you might realize that you’ve made a mistake in choosing your business partner. This can be a critical error that means the business will fail. It could also mean you’re more likely to find yourself engaged in partnership disputes. That’s why it’s so important to identify red flags in advance. WHAT RED FLAGS SHOULD YOU LOOK FOR? You want your business to run smoothly. To help, here are some signs that might indicate that you have the wrong business partner: Lack of shared vision and values: If your partner’s vision and values don’t align with yours, it can create conflicts and hinder the growth of the business. You may even feel like you’re working against each other, rather than working together as partners. Poor communication: Communication is key in any partnership. If your partner doesn’t communicate effectively, misunderstandings can occur, leading to problems down the line. Lack of communication also makes disputes far more likely since you both may make incorrect assumptions. Different work ethics: If your partner is not as committed or hardworking as you are, it can create resentment and lead to a lack of trust. You need to work with someone who values the business the way that you do and who puts in the same time and effort. Financial issues and disagreements: Money, pay and financing are often top sources of conflict in business partnerships. If your partner has different financial goals or is not transparent about finances, it can be a red flag. One important thing for partners to talk about when starting a business is just how much they are expected to invest and how much they will be paid. It’s best to have all financial decisions in writing. Lack of complementary skills: A successful partnership requires complementary skills. If your partner doesn’t bring the necessary skills to the table, it can hinder the growth of the business. For example, your business is stronger with one person who is good at product development and one who is good at sales, rather than two salespeople who don’t have a good product – or two excellent designers who can’t sell the products they’ve made. When starting your business partnership or trying to navigate a dispute, be sure you know what legal steps you need to take. Addressing these issues up front often makes things go smoothly and can lead to better protection of your interests and your company as you move forward.

Selecting the right business partner is essential for the success of any shared business venture. However, even with the best of intentions and due diligence, things can go wrong, and you might realize that you’ve made a mistake in choosing your business partner. This can be a critical error that means the business will fail. It could also mean you’re more likely to find yourself engaged in partnership disputes. That’s why it’s so important to identify red flags in advance. WHAT RED FLAGS SHOULD YOU LOOK FOR? You want your business to run smoothly. To help, here are some signs that might indicate that you have the wrong business partner: Lack of shared vision and values: If your partner’s vision and values don’t align with yours, it can create conflicts and hinder the growth of the business. You may even feel like you’re working against each other, rather than working together as partners. Poor communication: Communication is key in any partnership. If your partner doesn’t communicate effectively, misunderstandings can occur, leading to problems down the line. Lack of communication also makes disputes far more likely since you both may make incorrect assumptions. Different work ethics: If your partner is not as committed or hardworking as you are, it can create resentment and lead to a lack of trust. You need to work with someone who values the business the way that you do and who puts in the same time and effort. Financial issues and disagreements: Money, pay and financing are often top sources of conflict in business partnerships. If your partner has different financial goals or is not transparent about finances, it can be a red flag. One important thing for partners to talk about when starting a business is just how much they are expected to invest and how much they will be paid. It’s best to have all financial decisions in writing. Lack of complementary skills: A successful partnership requires complementary skills. If your partner doesn’t bring the necessary skills to the table, it can hinder the growth of the business. For example, your business is stronger with one person who is good at product development and one who is good at sales, rather than two salespeople who don’t have a good product – or two excellent designers who can’t sell the products they’ve made. When starting your business partnership or trying to navigate a dispute, be sure you know what legal steps you need to take. Addressing these issues up front often makes things go smoothly and can lead to better protection of your interests and your company as you move forward.

If you are looking to expand your commercial real estate portfolio, at some point you may consider taking on an investment partner. There are pros and cons to business partnerships, but they can prove lucrative for both parties when they succeed. Below are some tips for selecting the best partner for your commercial endeavors. THEY ARE TRUSTWORTHY You should never have to worry about your business partner’s integrity in any given situation. Being able to trust your partner is the cornerstone of your business partnership, so be as sure as possible when selecting a partner. YOU SHARE THE SAME VISION While it’s handy to have complementary skills, you and your potential partner should share the same vision of your business partnership goals. For instance, if one partner intends to reinvest the profits and the other plans to buy a yacht, the two could clash over their apparent commitment levels. YOU EACH APPRECIATE THE OTHER’S ROLE Some of the best partnerships are where the venture is funded by one partner who takes a hands-off approach to the day-to-day operations. The other’s commitment is proven by their sweat equity, i.e., the actual labor and time invested in the partnership. YOU BOTH HAVE A PASSION Passion ignites drive, and it is important for both partners to be equally driven and committed to meeting shared goals. If one partner is sacrificing time and effort and the other is “phoning it in,” problems arise. PLAN NOW HOW TO END A PARTNERSHIP Many problems between partners can be averted by a clearly defined partnership agreement that details how the partnership can be dissolved under a variety of circumstances.

If you are looking to expand your commercial real estate portfolio, at some point you may consider taking on an investment partner. There are pros and cons to business partnerships, but they can prove lucrative for both parties when they succeed. Below are some tips for selecting the best partner for your commercial endeavors. THEY ARE TRUSTWORTHY You should never have to worry about your business partner’s integrity in any given situation. Being able to trust your partner is the cornerstone of your business partnership, so be as sure as possible when selecting a partner. YOU SHARE THE SAME VISION While it’s handy to have complementary skills, you and your potential partner should share the same vision of your business partnership goals. For instance, if one partner intends to reinvest the profits and the other plans to buy a yacht, the two could clash over their apparent commitment levels. YOU EACH APPRECIATE THE OTHER’S ROLE Some of the best partnerships are where the venture is funded by one partner who takes a hands-off approach to the day-to-day operations. The other’s commitment is proven by their sweat equity, i.e., the actual labor and time invested in the partnership. YOU BOTH HAVE A PASSION Passion ignites drive, and it is important for both partners to be equally driven and committed to meeting shared goals. If one partner is sacrificing time and effort and the other is “phoning it in,” problems arise. PLAN NOW HOW TO END A PARTNERSHIP Many problems between partners can be averted by a clearly defined partnership agreement that details how the partnership can be dissolved under a variety of circumstances.

Business partners have a legal obligation to act in the best interests of the partnership and other partners, collectively referred to as fiduciary duties. It is what keeps a partnership alive and running since it enables the partners to work towards a common purpose rather than pursuing individual goals. If you are in a partnership or planning around one, it helps to understand what the law says regarding the duties of each partner. That way, running the partnership and avoiding legal issues will be easier. THE LAW IN CALIFORNIA California’s Corporation Code governs the legal relationship among business partners. It outlines each partner’s fiduciary duties to others and the partnership. The law specifies three main fiduciary duties of partners in a business partnership, as explained below. The duty of loyalty requires partners to avoid engaging in any actions that would harm the partnership. This duty includes a requirement to disclose any conflicts of interest and to refrain from competing with the partnership or using it for personal gain. The duty of care requires partners to exercise reasonable care and skill in managing the partnership’s affairs. This duty includes a requirement to make informed decisions and to act prudently and diligently. The duty of good faith and fair dealing requires partners to act honestly, in alignment with the partnership’s rules, purpose and mission. It is worth noting that fiduciary duties cannot be waived by agreement or otherwise. They remain in place as long as the partnership exists. In addition, the non-breaching parties are entitled to a remedy for a breach of fiduciary duty by a partner. DEALING WITH A PARTNER BREACH OF FIDUCIARY DUTY When a partner violates their fiduciary duty, it can hurt the company. The business could lose money or miss out on opportunities due to the selfish actions of a few. Every situation is different. The most crucial thing is that you respond appropriately and promptly. Therefore, it is essential to seek legal help on how best to deal with such a situation and protect your business interests.

Business partners have a legal obligation to act in the best interests of the partnership and other partners, collectively referred to as fiduciary duties. It is what keeps a partnership alive and running since it enables the partners to work towards a common purpose rather than pursuing individual goals. If you are in a partnership or planning around one, it helps to understand what the law says regarding the duties of each partner. That way, running the partnership and avoiding legal issues will be easier. THE LAW IN CALIFORNIA California’s Corporation Code governs the legal relationship among business partners. It outlines each partner’s fiduciary duties to others and the partnership. The law specifies three main fiduciary duties of partners in a business partnership, as explained below. The duty of loyalty requires partners to avoid engaging in any actions that would harm the partnership. This duty includes a requirement to disclose any conflicts of interest and to refrain from competing with the partnership or using it for personal gain. The duty of care requires partners to exercise reasonable care and skill in managing the partnership’s affairs. This duty includes a requirement to make informed decisions and to act prudently and diligently. The duty of good faith and fair dealing requires partners to act honestly, in alignment with the partnership’s rules, purpose and mission. It is worth noting that fiduciary duties cannot be waived by agreement or otherwise. They remain in place as long as the partnership exists. In addition, the non-breaching parties are entitled to a remedy for a breach of fiduciary duty by a partner. DEALING WITH A PARTNER BREACH OF FIDUCIARY DUTY When a partner violates their fiduciary duty, it can hurt the company. The business could lose money or miss out on opportunities due to the selfish actions of a few. Every situation is different. The most crucial thing is that you respond appropriately and promptly. Therefore, it is essential to seek legal help on how best to deal with such a situation and protect your business interests.

Investing in real estate has been one of the most encouraged and profitable business ventures for years. You can invest in a vast range of options, depending on your preferences and goals. Further, you can go for a project alone or with a partner(s). This guide discusses three benefits of investment partnerships in real estate. LARGER INVESTMENT When you are in a partnership, every developer will contribute to the capital. This means you can put your money on a larger investment than you would have. A larger investment also translates to a higher return. With more capital, you may also invest in a diversified portfolio of investments. Thus, people with high capital in real estate development are at an advantage. MORE TALENT When you have partners, you bring different talents to the table. Your strength may lie in an area where another one is weak, and vice versa. This balance can give you a competitive edge in the industry, as you will always have new ways of doing things and solving obstacles. EXPANDED NETWORK Networking is crucial when investing in real estate. It’s essential to connect with buyers, sellers, realtors, inspectors, contractors, architects, lawyers and other professionals. Further, you should attend networking events to meet professionals and learn more about the industry from other developers. When investors partner, the chances are each will come with a network to the table. One may come with a list of clients, and another may have a close relationship with a real estate firm that has reliable agents. Partners may also be courageous to interact at events, as they can motivate each other to go around the room and find contacts. Investment partnerships are beneficial, but they can work to your disadvantage. You should get legal help to craft a protective agreement and minimize risks.

Investing in real estate has been one of the most encouraged and profitable business ventures for years. You can invest in a vast range of options, depending on your preferences and goals. Further, you can go for a project alone or with a partner(s). This guide discusses three benefits of investment partnerships in real estate. LARGER INVESTMENT When you are in a partnership, every developer will contribute to the capital. This means you can put your money on a larger investment than you would have. A larger investment also translates to a higher return. With more capital, you may also invest in a diversified portfolio of investments. Thus, people with high capital in real estate development are at an advantage. MORE TALENT When you have partners, you bring different talents to the table. Your strength may lie in an area where another one is weak, and vice versa. This balance can give you a competitive edge in the industry, as you will always have new ways of doing things and solving obstacles. EXPANDED NETWORK Networking is crucial when investing in real estate. It’s essential to connect with buyers, sellers, realtors, inspectors, contractors, architects, lawyers and other professionals. Further, you should attend networking events to meet professionals and learn more about the industry from other developers. When investors partner, the chances are each will come with a network to the table. One may come with a list of clients, and another may have a close relationship with a real estate firm that has reliable agents. Partners may also be courageous to interact at events, as they can motivate each other to go around the room and find contacts. Investment partnerships are beneficial, but they can work to your disadvantage. You should get legal help to craft a protective agreement and minimize risks.

When another company breaches its contract with your business, you may end up scrambling to find an alternate service provider or supplier. Contract breaches can be very expensive. They can delay or complicate operations at one business or force a company into a position where it defaults on an agreement with a third party. When businesses take action over breach of contract issues, the focus is often on recovering losses in the form of damages. However, a company could also request specific performance as part of a breach of contract lawsuit. Specific performance involves a judge ordering a party to fulfill its obligations under the contract. Is specific performance the right solution in your case? THE BEHAVIOR OF THE OTHER PARTY CAN DETERMINE THE BEST OPTION If the other party failed to fulfill their contractual obligations for some technical or complicated reason and would likely still prefer to do business with your company, then an order of specific performance might convince them to absorb the necessary losses caused by their initial failure and move on in their relationship with you. However, litigation and a court order to perform work or deliver certain materials or goods might result in resentful behavior from the other party. You might end up receiving lackluster services or substandard materials from the other party because they begrudged the obligation to fulfill their contract with you. A careful review of what the other party failed to do and their current attitude toward your organization can help you determine if specific performance would be a reasonable solution or likely to result in future disappointment. EVERY CONTRACT DISPUTE IS A UNIQUE CHALLENGE There is no one solution for breach of contract matters that will work for every business dealing with a default or similar breach of contract issue. The nature of your relationship with the other company, the losses you suffered because of the breach of contract and your potential future relationship will all influence the best approach to a breach of contract matter. Sometimes, negotiating a settlement outside of court is the best option. Other times, going to court and asking a judge for a particular solution may be the better choice. Learning more about how the courts help resolve business disputes can facilitate a faster solution for your contract issue.

When another company breaches its contract with your business, you may end up scrambling to find an alternate service provider or supplier. Contract breaches can be very expensive. They can delay or complicate operations at one business or force a company into a position where it defaults on an agreement with a third party. When businesses take action over breach of contract issues, the focus is often on recovering losses in the form of damages. However, a company could also request specific performance as part of a breach of contract lawsuit. Specific performance involves a judge ordering a party to fulfill its obligations under the contract. Is specific performance the right solution in your case? THE BEHAVIOR OF THE OTHER PARTY CAN DETERMINE THE BEST OPTION If the other party failed to fulfill their contractual obligations for some technical or complicated reason and would likely still prefer to do business with your company, then an order of specific performance might convince them to absorb the necessary losses caused by their initial failure and move on in their relationship with you. However, litigation and a court order to perform work or deliver certain materials or goods might result in resentful behavior from the other party. You might end up receiving lackluster services or substandard materials from the other party because they begrudged the obligation to fulfill their contract with you. A careful review of what the other party failed to do and their current attitude toward your organization can help you determine if specific performance would be a reasonable solution or likely to result in future disappointment. EVERY CONTRACT DISPUTE IS A UNIQUE CHALLENGE There is no one solution for breach of contract matters that will work for every business dealing with a default or similar breach of contract issue. The nature of your relationship with the other company, the losses you suffered because of the breach of contract and your potential future relationship will all influence the best approach to a breach of contract matter. Sometimes, negotiating a settlement outside of court is the best option. Other times, going to court and asking a judge for a particular solution may be the better choice. Learning more about how the courts help resolve business disputes can facilitate a faster solution for your contract issue.