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Saint Paul Estate Planning Law Blog

3 tips for getting the right commercial property

Commercial real estate can give you a great option for investing in a stable financial future. You may choose to purchase a factory, shopping mall or other commercial property, all of which can then be rented or eventually sold for a profit.

In most cases, the purchase of a commercial property as an income property can work out in your favor, but there are a few things you need to do before you buy. Here are three tips to help you get the right property for your goals.

Choosing a mortgage loan: 3 popular options

Getting the right mortgage makes a world of difference when you purchase a property. You need to know about the different options you have before you decide on the right mortgage for you, though.

Like buying a home, picking the right mortgage is a process. It's likely the largest debt you will have in your life, and it may take you many years to repay. Depending on the mortgage you choose, you could pay a few thousand to many thousands in interest on that loan.

Make sure you have a legal confidentiality agreement

Confidentiality is a way of life when you run a business. If your secrets get out, then other businesses could steal the things you've learned and created for yourself, giving them an edge over you and eventually putting you out of business. To avoid having this happen, it's a good idea to get a confidentiality agreement with anyone you hire. That agreement would hold them personally accountable if they gave away company secrets.

When you create a confidentiality agreement, you have to make sure it's legal. For instance, if you make an agreement that is too broad, the court may not be able to uphold it. What would be better is to create a very specific agreement in which you state exactly what kinds of information your employees or contractors may or may not share.

Start your business right with these first 2 steps

Forming a business may have been a dream for you since you were young, and it's important that you get the start you need to get your business moving and growing. The U.S. Small Business Administration (SBA) loves to see entrepreneurs start their businesses and it published 10 steps to start your business the right way.

At the very beginning of these steps are two vital components to starting your business. They are research and your business plan. Here's more about these two first steps that you should take.

Clear-to-close buyers are in a great position

One phrase you need to know if you plan to purchase a home is when you're "clear to close." Many people have heard of closing but may not know that it's necessary to get clearance before a closing can move forward.

Being clear to close is vital. It means you've satisfied the conditions your mortgage lender put into place, like providing updated bank statements and meeting closing cost and down payment requirements.

Minnesota won't change taxes to match federal guidelines

You may have heard, if you're interested in commercial real estate, that the omnibus tax bill was vetoed in a recent session. The Minnesota Legislature did enact a number of property-related laws, but the bill that could have impacted commercial property owners was vetoed. The omnibus tax bill would have made the state's income tax arrangement fall in line with the federal Tax Cut and Jobs Act of 2017, but it would have eliminated Minnesota's current addback and subtractions.

The interesting thing about this is that the omnibus tax bill was supported by legislative leaders, but it was other factors that resulted in its failure. If it had passed, it would have allowed for bonus depreciation and Section 179 expensing, the current federal standards.

Understand your mortgage loan options

When you look into purchasing a home, one of the things you need to decide on is the kind of mortgage you want. There are several options, and depending on your situation, one could be better than another.

The first thing to learn about are common kinds of mortgages such as fixed-rate mortgages and variable-rate mortgages. Fixed-rate mortgages typically come with lower interest but higher monthly payments when they're set for a shorter time span. Longer loans have lower monthly payments with more interest, in most cases.

Buying out a company: What you should consider

If you're in the position to buy out a company, you probably want to make sure you make the right decision on which company you purchase and why. For most people, the answer is as simple as choosing the company that is in competition with them, so they can eliminate a competitor. For others, the goal is to purchase a particular building or to merge products by absorbing the company into their own.

Company buyouts are popular when interest rates are low, because there is a chance of a higher return. For companies that no longer have room to expand, a buyout can add a new branch to their business and quickly increase profits.

What are deceptive trade practices in business law?

If you're in business, one thing you may be interested in knowing more about is what a deceptive trade practice is. Deceptive trade practices are activities by businesses or individuals that mislead the public or consumers. This action misleads them in a way that encourages them to buy a product that then does not do what it's intended to do.

The most common type of deceptive trade practice that most people know about is false advertising. You've probably seen businesses say that their vitamins or new products can cure disease or illnesses, help provide people with more energy or even help them complete tasks more easily than they could before. The reality is that most of these claims are false, or else more people would be thrilled about the products. These false claims hinder consumers by asking them to purchase things that do not do what they're supposed to do.

Mortgage rates increase in mid-June

If you've become interested in purchasing real estate, now may not be the time due to rising mortgage rates. For several weeks, mortgage rates dropped, making it a good time to buy, but now, as of June 14, those rates are on the rise again. That means that you'll be more likely to spend greater amounts for less house.

Data released by Freddie Mac indicated that the 30-year fixed-rate average jumped up to 4.62 percent, whereas it was 4.54 percent just last week. In 2017, its rate was 3.91 percent, showing how much more people will spend in interest today than in the past.