6 Commercial Investments That Tend to Get Overlooked

What crosses your mind when you hear the term “Commercial Real Estate”? Oftentimes we think of a high-rise office building, shopping mall, or even an old grocery store building. While these Continue reading “6 Commercial Investments That Tend to Get Overlooked”

Florida Amended Lease Requirements- Bill Signed into Law!

At the begining of the year, the Florida legislature passed a bill amending Florida Statutes § 689.01 which eliminated the requirement of having two witnesses for the execution of a lease on real property.

On June 27, 2020, Governor De Santis signed this bill into law. Until such time, Florida law has clearly stated that a lease for a term of more than one year could be created only by an instrument in writing signed in the presence of two subscribing witnesses.

Under the new amended law, which is now in effect, no subscribing witnesses will be required for leases of real property in Florida.

As a firm who has assisted both Landlords and Tenants in drafting and reviewing commercial and residential leases, we pride ourselves on keeping current with changing requirements and ensuring that no Landlord or Tenant is left executing a lease which is unclear or subject to contesting. 

Should you find yourself entering into a lease, whether commercial or residential, it is highly recommended that you obtain legal counsel to guide you through the complex particulars and ensure that the financial obligation you are about to embark on is drafted specific to your needs and in your interest. For any questions or assistance, please contact us as we would be happy to guide you.

Business legal document concept : Pen and glasses on a lease agreement form. Lease agreement is a contract between a lessor and a lessee that allow lessee rights to use of a property owned by lessor

Is Commercial Real Estate a Worthwhile Investment?

If you have been investing in residential real estate for some time now, you might have been considering commercial investments.  The absolute best way to get involved with investments is by doing research, getting advice, and contrasting the familiarity’s with some of the differences.  Knowing the pros and cons before getting involved in a big purchase can help you weigh your options and find out what is best for you.

One major difference between commercial and residential real estate is how the bank values them.  Commercial bank loans tend to require a higher down payment that can easily be more than 30 percent.  Check with your lending institution to find out if they deal with commercial real estate. We have a list of commercial lenders we have worked with in the past, just contact us today and we will be happy to provide them to you!


Commercial real estate offers the potential for increased cash flow and higher stability.  Renting out several spaces in a multi-unit property means more income, and the return is usually higher per square foot if you’re getting the full potential out of the property.  This can also mean less risk. If one of several tenants leaves, you will only lose a portion of the return.  Commercial leases offer steady income because they are also usually much longer in duration.

As with both residential and commercial investments, it is always important to ask questions and do your research.  There are many parts to look into when purchasing commercial real estate specifically.  Some of these include questions about former management, lease renewals, population income, and the seller’s cash flow statements, among others.  See our Top 10 Do’s and Don’ts of Purchasing Commercial Real Estate- click here.

Source: Entrepreneur Article 


A Few Things to Consider When Applying for Small Business Loan

For developing entrepreneurs, one of the most pertinent obstacles encountered when starting a small business is obtaining the funds. Money is always a major concern for those who desire to be successful throughout the ups and downs of business.  When applying for a business loan, there are a few things to consider:

Fitting the Criteria

Depending on which bank you are using to apply for a loan, there are several staple criterion they may consider.  Here are a few things they may look for when reviewing your application for a small business loan:

  1. The purpose behind it.  For a loan guaranteed by the Small Business Administration (“SBA”), this could include how you will use the loan proceeds, the size of the business, and the type of business dealings you will be associated with.  Unsound business practices such as lending, pyramid sales, and gambling will not qualify for a loan in almost all cases.
  2. How able you are to pay back the loan.  Banks strongly prefer that the loan be fully secured, however this may not be a make-or-break factor.  Providing strong collateral through personal and business assets as well as holding personal investments in the business may prove your capacity to return on investment.
  3. Character and experience.  Providing a favorable and stable credit history both personally and within your business may reflect a responsible and accountable attitude.

Providing the Proper Information

There are going to be a least a few necessary documents when going in for a loan.  Although this may vary depending on the bank, obtain these basic documents to be the most prepared:

  1. A clear and detailed business plan.  This may include personal information such as past education, employment, experience, and all other information relevant to your business.
  2. A credit history of all present and previous businesses as well as personal history of all partners.
  3. Financial statements (past, present, and projected). Includes both personal and those of owned and shared businesses.
  4. Projections of income for 1 to up to 5 years.
  5. Personal guarantee of all business owners.
  6. All legal documents pertaining to your business (copies of contracts with third parties, franchise agreements, commercial leases). Gulati Law can help you through this process. 

Begin the Process Wisely

Before going into the bank and asking for a loan, there are a few basic steps to take to educate you on how to go about the process.  This means doing your research.

  1. Choosing which lending institution benefits you the most.  The smaller the business (especially in start-up phase), the less likely a large bank will grant your loan request.  Small businesses tend to be less profitable for them, yet require the same amount of servicing and underwriting.
  2. Speak with other small business owners that you trust.  Chances are many people starting out with their own businesses have gone through the same steps you are now preparing for.  Getting honest advice could prepare you for any unexpected obstacles and lead you in the right direction.
  3. Approach your current lending institution or ones you have worked with in the past.  They may be more willing to work with you one on one and provide helpful tips and information.
  4. Look into local community banks and credit unions.  These smaller lending institutions frequently get overlooked and may offer a better option for your business.
  5. Speak with your legal counsel, they may be able to connect you with resources you were unaware of.

If you have any questions or concerns regarding your start-up business or obtaining a business loan, contact us today we would be happy to help.

Source: Small Business Administration


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