LLC Managers Are Not Above The Law (Or Equity)
In an earlier series of posts, I flagged several mistakes frequently made by real estate LLCs. One of those mistakes is ignoring member rights and duties. That…
Alterations Don’t Always Render a Deed Void (or How NOT to do Foreclosure Investing)
Most real estate investors assume that when a deed is altered by someone other than the grantor, without the grantor’s knowledge or consent, before it is recorded,…
Guarantor Waivers Can Only Go So Far
As I mentioned in a prior post, guarantors are usually in a tough position defending litigation by the lender because most guarantor defenses are lawfully waived…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #7: Sinking Profits on Messy “Business Divorce” (Judicial Dissolution)
We’ve come full circle from MISTAKE #1: Choosing the Wrong Business Partners. Often, choosing the wrong business partners ends in messy divorce, otherwise known as judicial…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #6: Failing to Protect Trade Secrets
It’s not just technology companies that have intellectual property. As I’ve written about before, real estate companies have I.P. too! Trade secrets are a form of…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #5: Misunderstanding Secured Loan and Guaranty Rights/Liability
Real estate secured loans inspire all sorts of litigation. I see it from both sides of the coin, since I represent developers and investors (who are…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #4: Stepping into “Alter Ego” Liability
California law normally respects the “separateness” of business entities. It is widely accepted that business is conducted through entities as an appropriate way of limiting liability.…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #3: Ignoring Member Rights and Duties
California law is more protective of LLC members than other jurisdictions. If LLC governance in other jurisdictions (like Delaware) seems like a dictatorship, then in California…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #2: Skimping on the Formation and Operating Documents
LLCs are known and loved as a relatively simple business form. You can start and operate them without a lot of advance planning. But taking shortcuts…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #1: Choosing the Wrong Business Partners
This series of seven posts will capture the main points from my October 14, 2014 seminar presentation to clients and friends at the Wendel Rosen Speaker…