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The importance of preapproval in commercial property deals

Only 30 percent of commercial real estate purchases around the country are made in cash according to the 2017 Commercial Real Estate Lending Trends Survey. As a general rule, it is important that buyers have financing in place before making an offer on a Missouri property. This is because a seller will feel more confident about completing a deal with someone who is more likely to follow through with the purchase.

Getting preapproved for a loan generally means going through a thorough vetting process. Those who are going to own or manage at least 20 percent of the property will have to divulge information such as their net worth and income. A lender will also look at a buyer or manager's ownership history and personal credit score. If a group is buying a property, each person in that group will need to pass muster. In some cases, a person may need to be removed from a group to help it obtain financing.

YouTube producer embroiled in costly contract dispute

A YouTube video producer popular among fans in Missouri and across the country has filed a counterclaim against a firearms manufacturer that had earlier agreed to sponsor the producer's online work. The video channel's filing claimed that Radian Weapons is in breach of its contract because the company decided that it no longer wanted to bear the costs of video sponsorship. The YouTube producer also claimed that the company actually waged an online campaign against its videos, generating an "excessive" number of thumbs-down or "dislikes" on the producer's work. This campaign disrupted the YouTuber's contracts with other sponsors according to the complaint.

The YouTube video channel focuses on demonstrations of guns or other weapons and, like much online content, partially supports its work through sponsorships and paid advertising from relevant brands. The weapons manufacturer had agreed to pay 3 cents for each view of a specific YouTube video over a 6-month period. After the video producer demanded payment, the company refused, claiming that the video was not posted properly and that the producer did not inform them of YouTube policy changes.

Sources of commercial real estate loans

Missouri residents who want to open a small business have several options when it comes to obtaining financing to buy a commercial property. However, it's important that an entrepreneur knows where to look for commercial real estate loans and how to improve their chances of getting approved.

A commercial real estate loan is a mortgage loan for any property that generates business income. Business owners can use commercial loans for retail stores, office locations and other related types of buildings.

Cardi B countersues in contract dispute

Missouri residents who enjoy hip-hop may be familiar with the music of Cardi B. She is currently in a dispute with WorldStar Marketing Group owned by a man known as Shaft. He claims that the company had an exclusive one-year deal with the rapper with the option to represent her for four more years. According to the lawsuit, Worldwide Marketing was entitled to 20 percent of Cardi B's income.

However, representatives for Cardi B say that she terminated the contract by the end of February 2018 and did so in compliance with a written notice requirement. The singer claims that she was the victim of fraud and a material breach of the contract by Shaft. It was alleged that there were side deals being made by Shaft that led to Cardi B potentially losing money. An attorney for Cardi B claims that she should be entitled to any income lost because of those deals.

Legal options for addressing construction defects

Property owners invest considerable resources in remodeling and construction projects. Therefore, financial damages can be substantial when things go wrong with a job. Denying final payment to a contractor might not solve the problem if the contractor retaliates with a mechanic's lien. People in Missouri confronted by shoddy work, defective materials, contractor disputes and abandoned work sites have a variety of options for filing complaints and seeking a resolution.

A person experiencing trouble with a licensed contractor can complain to the state's contractor licensing board. The organization might try to solve the problem. Ideally, a complaint filed by a property owner would include a timeline of events, photographs, canceled checks and copies of work contracts.

Using technology to resolve construction disputes

The complex nature of many construction disputes in Missouri means that many issues can be costly to resolve and stretch out over a long period of time. Indeed, the average construction dispute across the country can take around 14 months to reach a resolution. Two of the most common issues raised in legal battles over construction projects are errors and omissions and unsubstantiated claims, and building information modeling can play a role in helping to resolve some of these issues.

Many contractors and designers use BIM to plan and envision a project. This type of modeling can save significantly on construction costs by allowing a range of stakeholders in a project to create and manage 3D images of the project throughout its life. Indeed, the use of BIM is mandatory for government contractors in the United Kingdom because the cost savings generated can be so substantial by helping to streamline workflows and identify points of concern.

About construction contracts

There are many different types of construction contracts Missouri builders can use. However, there are a few that they prefer to use more than others.

A construction contract is a legally binding agreement in which the builder and the owner agree that a certain amount of compensation will be paid for the execution of a job. The contract will also detail in which manner the owner will disburse compensation.

Defects can happen at any stage of construction

A Missouri builder could be liable for various types of construction defects. For example, a company may be held responsible for an issue with the design of a home, how it was put together or for lack of oversight while construction occurred. Liability issues can also ensue if there are problems with the home's electrical system, doors or windows.

Even if the home is built properly by skilled professionals, the choice of poor building materials could make a structure unsuitable to live in. For example, if shingles are defective, they might allow water to seep into a home. This can also occur if there are problems with drywall or if windows are not properly flashed. A cracked foundation or wall is generally considered to be a construction defect as opposed to a material defect.

American market ripe for foreign investment

Missouri residents may have heard about a potential trade war that could bring negative consequences. However, the United States is still a preferred market for many foreign investors. In fact, foreign countries directly invested $450 billion in the United States in 2016, according to the Bureau of Economic Analysis. Typically, foreign investors like to put their money into commercial properties. Since 2010, $365 billion has been invested in this sector, and the money tends to go toward properties located in large cities.

Roughly 20 percent of commercial real estate investments made by foreigners were for properties in Manhattan. This doesn't mean that there aren't opportunities in smaller markets. Investors with smaller capital reserves may find that investing in an suburban office building better meets their needs. The reason why foreign investors like the American commercial real estate market is because the United States economy is growing stronger. Furthermore, there is more stability compared to markets in Europe that are still dealing with the fallout from Brexit.

Contract disputes disrupt craft beer business

Entering contracts may be an essential part of doing business, but a breach of contract can destroy what had been a promising relationship between Missouri business owners. One contract dispute in the beer industry is currently drawing attention after craft brewery Monkey Paw was put back on the market in May. This comes less than one year after larger beer manufacturer Coronado had purchased a majority stake in the brewery, pledging to expand its offerings and distribution.

The action to put its interest on the market comes less than one month after a brewery founder filed a breach of contract lawsuit against the business. He alleges that he was promised a payment of more than $1,000 each month beginning in October 2017 according to a promissory note from the company signed in September of that year. However, he alleges that he never received any of the payments. He resigned as an adviser to the company in January 2018 and filed suit, seeking $33,534 in damages as well as interest. The plaintiff in the contract dispute is still a minority owner in the brewing company.

Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

Board of Directors - Plaza Gardens on the Lake Condominium Owners’ Association Lake of the Ozarks, MO

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