Philadelphia Real Estate Blog

How limited partnerships work in real estate

On behalf of Avallone Law Associates posted in Commercial Real Estate on Friday, July 19, 2019.

Big commercial rebuilding projects can be complex matters and will likely require large transactions of money to fund the building materials, tools and vehicles needed for the job. But to get to this point, building owners and investors may need to pool a sizable amount of financing to make the project go forward. This is why Pennsylvania entrepreneurs sometimes form limited partnerships to finance a new construction project.

Chron.com explains that limited partnerships are created between a general partner and a limited partner. A general partner has the responsibility of managing the business while the limited partner, commonly referred to as a silent partner, contributes financially to the partnership but does not have any active responsibilities in running the business. The silent partner also enjoys limited liability for decisions made by the business, although silent partners can lose their investments in the business in the event of bankruptcy or civil litigation.

Yes, the government could really take your home

On behalf of Avallone Law Associates posted in Eminent Domain on Friday, June 28, 2019.

Residents of Pennsylvania may have heard the story of the artist in Philadelphia who fought the city to keep his home and won. The city allegedly used eminent domain to attempt to evict the world-renowned artist so they could build a supermarket. It then offered just $600,000 for the studio, which was once appraised for $2 million. At another point, they offered an additional $40,000 and then a land swap.

The artist raised awareness of his plight, built a team of supporters and professionals, took on the city and beat its claim to eminent domain. How often is this the result for residents who many not own fancy studios or have resources worldwide to pull from? Not often enough.

5 tips for buying a foreclosure for property investors

On behalf of Avallone Law Associates on Friday, June 21, 2019.

While the Philadelphia real estate market may not be as hot as it was two years ago, real estate investors are still looking for properties to buy as rentals or to flip and sell. Buying a foreclosure is one way to increase your profit, by getting a cheaper property and fixing it up as a modern rental or to sell to a new owner.

Pros and cons of buying a short sale property

On behalf of Avallone Law Associates posted in Residential Real Estate on Thursday, June 20, 2019.

Short sales in Pennsylvania offer a great opportunity to obtain property at a fraction of their actual value. However, short sales do present some risks. For starters, Redfin, a real estate brokerage firm, reminds buyers that short sales are rarely short. Thus, one of the main cons of short sales is that buyers may need a few months' worth of patience when making an offer. It takes a long time for the sale to be finalized and all the paperwork to be processed. This is not a good option for people who may need to move soon.

This does create the advantage of less competition for the home. Most homebuyers are not willing to wait for long stretches of time to secure property, even when they are only purchasing it for investment purposes. Less competition also helps to keep the price lower as the current owner and the bank may be motivated to sell the home before it gets stale on the market.

You want to grow your family, but are you sure you should adopt?

On behalf of Avallone Law Associates on Thursday, June 13, 2019.

Many people choose to expand their family unit through various means. And as nontraditional families become more common, you might find yourself faced with the option to adopt a child.

In some cases, you might consider adopting a blood relative whose biological parents, for whatever reason, cannot raise them. Or in cases of infertility, you may opt for an open adoption with a birth mother in your community. Whatever the reason or type of adoption you consider, there are some questions you would be wise to ask yourself before moving forward with the process.

Turning real estate into wealth

On behalf of Avallone Law Associates posted in Commercial Real Estate on Wednesday, June 12, 2019.

Some people in Pennsylvania may argue that real estate is already wealth. This is not necessarily true. Wealth requires proper debt management to increase net worth. The property itself will also need to be properly managed or an investor may find themselves paying a monthly mortgage with no return on that investment.

A common piece of advice is that it is important to have a lot of money saved to create return on investment. Buying real estate with as little debt as possible certainly helps with turning a profit, but it is possible to make a profit with very little money. Here are some tips.

Can I buy an investment property with an FHA?

On behalf of Avallone Law Associates on Saturday, June 8, 2019.

Investing in real estate can be an extremely profitable alternative to stock markets. However, the barriers to entry in this market can be much higher.

But this is not always the case. Utilizing finance tools can help you purchase an investment property without a huge down payment or a high credit score. One financing option that is popular for many first-time investors is an Federal Housing Administration (FHA) loan.

Do I need an inspection before selling my home?

On behalf of Avallone Law Associates posted in Residential Real Estate on Wednesday, June 5, 2019.

Most people associate home inspections with buying a home. However, it's recommended that people selling their homes have an inspection conducted before listing the property. U.S. News & World Report offers a few reasons why you should have an inspection before trying to sell your home.

Those small problems plaguing your home probably aren't a huge deal to you. To a buyer, they could be a dealbreaker, so it's best to have a good understanding of everything wrong. An inspection may also uncover issues you're unaware of, which must be addressed before you try to sell your home. Keep in mind, you will need to make decisions about any problems discovered during an inspection. For instance, you can choose to make repairs on your own if you believe it will improve your chances of selling.

What can you do if your Philadelphia zoning permit is denied?

On behalf of Avallone Law Associates on Thursday, May 30, 2019.

Finding success in the real estate business is often about recognizing potential. Nearly anyone can see what already exists, but it takes vision to recognize when you can transform an existing building or plot of land into something far more valuable.

Vision isn’t enough, however. You also need zoning and use permits to realize your vision. And the potential troubles with these permits were recently highlighted by the controversy surrounding the approval of a storage building just north of Philadelphia’s City Hall.

How the government and gas companies abuse eminent domain

On behalf of Avallone Law Associates posted in Eminent Domain on Friday, May 10, 2019.

As natural gas production only continues to increase in Philadelphia, many residents have worried about losing their land to natural gas companies via eminent domain. According to Forbes, eminent domain is typically reserved for governmental use. This allows the government to build roads or other infrastructure that serves the public interest. In these instances, people receive payment for allowing the use of their property.

However, under the Natural Gas Act, even privately owned natural-gas companies may now use eminent domain to seize land for running pipelines. What is worse is that some natural-gas companies are exploiting the law to take land immediately. In some instances, they may even lapse on paying the families affected by the land grab. In this instance, homeowners may file a claim against the company regarding the abuse of eminent domain.