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Anyone who’s tried to invest in real estate in recent years knows that property goes fast—especially in the Bay Area. That means that when you find the perfect commercial space or investment property, you have to move quickly.
Moving fast, however, comes with a few problems. In an effort to beat out other buyers, some investors neglect due diligence; they don’t thoroughly investigate the contract’s terms or even the property. As a result, their investment isn’t as profitable as they’d hoped, and they may even struggle with leasing or flipping in the future.
Luckily, there is a way to speed up the process of both acquisition and disposition while making sure everything is exactly what it seems. A talented real estate attorney can put you in prime position to invest and sell by using a number of tried and true strategies. Keep reading to find out how a real estate acquisition & disposition attorney can help you.
At Estavillo Law Group, we specialize in helping clients achieve their real estate goals. Need help? Our lawyers are standing by, so there’s no reason to wait! Give us a call at (510) 630-2582 to schedule a case evaluation today.
Our Real Estate Services
Our real estate practice provides numerous services to clients in San Francisco, Oakland, Palo Alto, San Jose, San Mateo, Santa Clara and more. Among our many offerings, we can assist in the following real estate matters:
- Reviewing documents. These documents include those related to purchase agreements, as well as mortgage, title and transfer documents.
- Providing in-person representation. Our real estate lawyers can attend purchase closings for both buyers and sellers.
- Ensuring compliance. Our attorneys make sure that all real estate transactions comply with laws outlined by local and state jurisdictions.
- Completing miscellaneous purchase-related tasks. This could include writing title insurance policies, conducting title searches on the property and handling the transfer of funds.
- Resolving real estate disputes. An experienced attorney can resolve chain of title issues, lot line problems and other contract disputes.
- Representing clients in courtroom disputes. To bring both parties to a resolution, a real estate lawyer can obtain pertinent information from both sides and potentially hire a surveyor or title company to assist in the resolution.
These are just some of the ways in which the real estate attorneys at Estavillo Law Group can assist in achieving your real estate goals. Keep reading to learn the specific benefits we offer during the acquisition and disposition process.
What Are Real Estate Acquisitions & Dispositions?
“Acquisitions” and “dispositions” are two words you’ll hear a lot in the real estate industry. Although they sound complex, they really just refer to the processes of acquiring (the acquisition of) or selling (disposing of) a real property.
Real Estate Acquisitions
When someone refers to real estate acquisition, they are talking about gaining ownership or control over a real estate property. Contrary to what you might think, this process is a lot more complicated than simply signing a contract and transferring funds.
The Acquisition Process
When it comes to property acquisition, there are several factors to consider. The most important are marketing, lead processing, due diligence and closing. Here’s what they each entail:
- Marketing. This first stage employs strategies that are designed to generate responses from motivated sellers. The primary goal is to find properties that would provide ideal investment opportunities.
- Lead processing. This process means compiling all relevant responses from prospective sellers and evaluating them to make an informed offer.
- Due diligence. Due diligence involves making sure there aren’t any aspects of the transaction that could limit the buyer’s ability to profit from the investment. This information could include rent rolls, property zoning, profit and loss statements, conversations with contractors, appraisers, inspectors and more.
- Closing. This final stage occurs after due diligence is completed and is the most essential one in which to involve a legal professional.
The ultimate goal of most acquisitions is to one day sell the property in order to benefit from the investment. As a result, acquisition is the necessary precursor to disposition.
Four Types of Acquisitions
In terms of real estate, acquisitions are typically divided into four types. These commercial real estate investments are sometimes referred to as the “core four” and include the following divisions:
- Office buildings. From low-rise to high-rise, commercial office spaces can differ drastically and are generally differentiated by height, location and use.
- Industrial properties. Industrial real estate is typically used for manufacturing, distribution or storage and is typically categorized by use.
- Retail centers. Retail buildings can range from single-business structures, such as a pharmacy, to large, mixed-use buildings like shopping centers containing multiple businesses.
- Multi-family real estate. Multi-family properties can vary drastically by size and shape, ranging from tall urban apartment buildings to resort-style condominiums.
Regardless of which type of real estate acquisition you’re pursuing, an experienced real estate attorney is an essential player in achieving your goals.
Real Estate Disposition Process
Disposition is generally considered the last stage in the real estate investment process, the point at which you sell your property. With help from a real estate expert, you’ll work to find a buyer with the mission of liquidating your asset and eventually investing in another property.
Disposition Strategies
There’s no right way to go about disposition of real property (although there are several wrong ways); the best strategy for you will depend on your specific situation. Your decision will likely fall into one of the following three approaches:
- Traditional sale. If you decide on a traditional sale, you’ll probably work with a broker to determine the property value and market it for sale. In this scenario, you’ll likely be working with a buyer who can pay cash or get traditional financing.
- Owner financing. With owner financing, the investor won’t rely on traditional financial institutions. Instead, they will act as the lender and allow the investor to make payments to them over time. If you decide on this strategy, it will be critical to work with a real estate finance expert to draft the necessary legal documents.
- 1031 exchange. This approach is generally used as a strategy by which to defer tax liability. It allows you to use the proceeds from your sale to invest in similar property types, meaning you won’t actually receive any taxable proceeds from the sale transactions. Despite their benefits, 1031 exchanges are subject to many complex stipulations and should be handled with assistance from an attorney.
At the end of the day, there are many viable options for investing in and selling real estate property, and each one benefits from legal expertise. Regardless of whether you’re interested in acquisition or disposition, it’s a good idea to partner with an experienced legal professional before beginning your transaction.
Estavillo Law Group: Premier Real Estate Acquisition Attorneys in Oakland, California
At Estavillo Law Group, we take pride in providing the best legal services to real estate investors in the Oakland area and beyond. With extensive experience and a vast knowledge of California real estate law, our team of skilled attorneys can help clients maximize their profits in even the most competitive markets.
In addition to acquisitions and dispositions, our legal team can assist with all of your real property ventures and issues, from foreclosures to real estate development, easements, partnerships, land use, joint ventures, sale agreements and more—we do it all!
Ready to partner with our law firm? We’d love to hear from you! Contact us online to schedule a meeting or give us a call at (510) 630-2582 to set up a free phone consultation today.