Category: Jacob A Kupp

Jacob A. Kupp of Orlando, FL Warns Against These Common Mistakes When Purchasing Commercial Real Estate

With many states ending their COVID-19 restrictions, American businesses are once again flourishing. With a successful business comes expansion, and today, thousands of companies are now looking for that next commercial real estate property with lucrative earning opportunities. In order to fully take advantage of these opportunities, however, investors and business owners must know the best practices for purchasing commercial real estate and which mistakes to avoid. As an experienced attorney with in-depth knowledge of Florida’s commercial real estate market, Jacob A. Kupp of Orlando, FL is uniquely qualified to help clients with this complex process. Before purchasing a commercial real estate property, potential investors and business owners are encouraged to read the following most common mistakes that individuals make when purchasing commercial real estate.

Not Fully Surveying the Property

Sellers will typically show you only the best parts of the building or commercial lot during property viewings. As a buyer, you must push to see all of the property to ensure it is free of damages or structural issues. For properties that serve an industrial purpose, buyers are encouraged to thoroughly inspect the property’s warehouse to ensure the absence of water and fire damage. Typically, warehouses are the worst-kept area of a property, and so buyers should be thorough before purchasing a property that may need an expensive renovation. Additionally, if the building was recently renovated, it is important to ensure that the renovation was completed up to code to avoid further renovation costs.

Environmental Laws and Limitations

Depending on the zone or locality where the commercial property resides, environmental laws may be applicable. Oftentimes, the seller of the broker of the property will not mention these laws during the purchasing process. It is up to the buyer to ask if the property is subjected to environmental laws. Unfortunately, investors often purchase a commercial property to carry out a certain type of business and later find out that the activity is not allowed within the locality. For this reason, Orlando, FL resident Jacob A. Kupp recommends that investors hire an expert and cross-check with a neutral broker within the area.

Hidden Charges

Similar to purchasing a residential property, there can be hidden fees and charges hidden in the property documents and sale terms by the seller of commercial properties. These fees and charges can also include statutory and local taxes, which the seller may be responsible for paying. In addition to fees, property repairs can also be transferred to the buyer if the building is scheduled for impending repairs. Finally, one of the most common unexpected charges involves insurance. If the seller has purchased insurance for the building, they can continue the policy after selling the property and charge the seller for the premium. For these reasons, it is essential that buyers research hidden charges and thoroughly read through their commercial property’s contract.

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Orlando, FL, Resident Jacob Kupp Discusses Things to Consider Before Purchasing a Home in Florida

Between 2016 and 2017, more than 145,000 people relocated to the sunshine state, more than any other state in the two-year span. Florida’s tropical weather, pristine beaches, and low taxes have made the state extremely popular with Boomers and an ideal retirement destination. While Florida offers residents an excellent quality of life, those considering moving to Florida are encouraged to thoroughly research its housing market to ensure there are no surprises come moving day. Jacob A. Kupp, an Orlando, Florida, resident and real-estate attorney, understands the ins and outs of the Florida market and the less-known aspects of purchasing a Florida home. Below, Jacob Kupp of Orlando, Florida, will provide readers with an overview of what to expect when purchasing a home in Florida.

Homeowners Insurance in Florida

Florida may be known as a paradise, but that does not mean the weather stays sunny all year round. The sunshine state also experiences its fair share of downpours, floods, and hurricanes. This means that families looking to purchase a home in Florida will need to look for a home that can withstand high force winds and flooding and invest in excellent homeowner’s insurance. If you purchase a Florida home built in 2002 or newer, insurance costs will often be lower as the home was built to the latest building code regulations. However, it is always a good idea to factor in home insurance to your house budget when looking for a home on the coastline.

Prepare for Closing Costs

Today, Florida has among the highest closing costs of any state in the US. When budgeting, families are encouraged to either budget for this added expense or look for other ways to reduce closing costs. Some ways to avoid these costs include paying in cash, negotiating with the seller to cover a portion of the costs, or rolling the costs into the mortgage.

Ask about HOA/Deed Restrictions

It is common for Florida communities to have their own Home Owners Association (HOA) and deed restrictions. While this means Florida communities will have restrictions for what residents can do to the exterior of their property and how they can use their property, it also means there may be hidden homeowners association costs associated with your property. Before purchasing a home, Jacob A. Kupp recommends researching any potential community’s HOA fees and rules and deciding whether or not these fees are within budget and what restrictions may be in place for the home.

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Jacob A. Kupp Orlando, FL Real Estate Attorney Discusses the Most Common Causes of Real Estate Litigation

Purchasing property is one of the most significant financial decisions a person can make in their lifetime and often comes with its own unique risks and challenges. Each year, thousands of new homeowners find themselves pursuing real estate litigation, whether it be due to a seller failing to disclose a property defect, a specific performance failure, or some other litigation cause. Since joining legal group Shutts and Bowen, Orlando-based real estate attorney Jacob A. Kupp has helped hundreds of homeowners navigate the complex field of real estate litigation. Today, Jacob Kupp of Orlando, FL will discuss some of the most common causes of real estate litigation to help homeowners prevent future lawsuits.

Failure to Disclose a Defect on the Property

If a property seller does not disclose to a buyer any defects that could affect the value of a home before closing, the buyer can pursue legal action against the seller. However, most states require that the buyer prove that the defendant knew about the defect and hid the fact in order to sell the property. Some of the most common property defects that are not disclosed include holes in the roof, mold in the walls, leaks, and any home improvement that never received the proper permits.

Boundary Dispute

The most common cause of real estate litigation remains boundary disputes. When different parties in a real estate transaction have not correctly recorded property lines, real estate litigation will often take place. While there are instances of property boundaries not being accurately documented, the most common boundary dispute is when a person builds a physical barrier that is not consistent with the legally registered property line. The best way to avoid real estate litigation in regards to property boundaries is o research the legal boundaries of a property before purchase.

Specific Performance Failure

When a party involved in a real estate transaction fails to perform obligations required in the contract by an agreed-upon date, the other party has a right to pursue real estate litigation. If this occurs, the individual who has been wronged can file a specific performance lawsuit in order to force the other party to comply with the contract’s terms. If you are a buyer or seller in a real estate transaction and the other party pursues legal action due to your lack of completion of contract terms, it is essential to speak to a real estate attorney as soon as possible.

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Jacob A. Kupp of Orlando Florida Discusses What the Current Market Means for Buyers

Jacob A. Kupp of Orlando, FL has spent much of the past year studying the impact the COVID-19 pandemic has had on his area’s real estate market. Central Florida, like many other areas, has reported a sustained growth in real estate demand since the beginning of the health crisis. This has been to the benefit of sellers looking to take advantage of the booming real-estate market. While these developments in the market have been great for those participating in the seller’s market, there are a host of complications that this growth in demand can have for individuals looking to buy. Here, Jacob Kupp of Orlando, FL discusses what the housing boom means for buyers and what they may need to do to remain competitive when purchasing.

Low Inventory

According to an estimate from the Orlando Regional Realtor Association, 5,394 homes were on the market in January of 2020. January of 2021 marked a decrease in this figure, with just 2,592 available for Orlando home buyers. Jacob A. Kupp of Orlando, FL notes that this decrease in inventory has several implications for families that are exploring the real estate market at this time. One of the biggest is that potential buyers may end up compromising on what they are looking for in a house to make a quick decision, as houses that go up for sale are receiving offers almost immediately. The low inventory can affect homeowners that are looking to sell their properties as well, Jacob Kupp of Orlando FL reasons. This is because, with houses selling quickly, they will need to ensure that they can secure a place to move after the sale of their property.

High Competition Among Buyers

Linked to the low inventory of available houses in the Central Florida area, Jacob Kupp of Orlando FL notes that there is an extremely competitive environment in the real estate sector. Those that are looking to buy a house in Central Florida will need to have documents such as their pre-qualification letter ready to even be considered by sellers. Many properties have multiple offers, and this means that there is additional competition for buyers- meaning that they lack the leverage to negotiate costs. All the factors contributing to Central Florida’s booming real estate market ensure that buyers need to be ready to move quickly when exploring real estate, and this may lead to some compromises along the way. For some, the location and surrounding areas of properties may play more of a role in the decision to buy versus factors such as the layout or design of the home.

What is Fueling the Demand in Floridian Real Estate?

Jacob Kupp of Orlando, FL speaks to the fact that there are several reasons for the sustained growth in demand for Central Florida’s real estate. Perhaps that largest reason for the growth is the migration of homebuyers from high-tax and high cost of living areas. Some of these individuals are tired of things such as high-income taxes, snow, or the handling of the COVID crisis in their home areas. In response to some of the factors the pandemic has introduced to real estate, Jacob A Kupp of Orlando, FL recognizes that businesses and individuals are on the lookout for property in areas that are less dense and boast a lower cost of living.

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Jacob Kupp Acknowledges a Boom in Rural Florida’s Real Estate Market

Jacob Kupp of Orlando Florida has previously spoken on the changes COVID-19 has spurred in the Florida real estate market, acknowledging the impact that the pandemic has had on everything from how buyers purchase homes to how agents sell them. One notable shift referenced by Florida-based real estate agents recently is the new tendency for buyers to prefer housing tucked away in rural areas as opposed to cities. To give a more wholistic view of why this shift is happening amid the health crisis, Jacob Kupp of Orlando Florida provides a deeper look into the mindsets of prospective home buyers and what has pushed them towards this decision.

When asking new buyers for a bit of insight into why they are making the switch form city living to more rural locales, many have mentioned that the proximity to neighbors and passerby’s during the pandemic influenced their decision. As one of the hardest hit states by COVID-19, many Floridians are hoping to keep their distance to avoid transmitting the virus as they wait for the crisis to improve over the coming months. Jacob Kupp of Orlando Florida notes that these changing social behavior trends have inspired people to move from places such as Orlando to more rural areas such as Marion County. Prior to current events, many more home buyers found proximity to others as preferable, as it was usually indicative of being closer to entertainment and conveniences found within the city. Now, buyers are less hesitant to choose housing that is a bit more out of the way in the interest of their continued safety and security.

Buyers previously from larger cities are also finding themselves tempted by the rural Floridian real estate market due to the space rural homes can offer. Since the beginning stages of social distancing and self-quarantine measures, apartment dwellers and those in smaller, urban homes have spoken on the negative effects that spending long periods of time in smaller spaces can have on one’s mental state. With the crisis still very much alive and the future of the virus’s eb and flow still unclear, many are readily accepting rural housing as a fitting alternative to their prior living arrangements. Florida home buyers recognize that, should they feel the need to get stricter with social distancing before the virus is beaten, having more space to spread out within is preferable to feeling confined in smaller areas.

Jacob Kupp, Orlando Florida-based real estate expert, acknowledges that rural Floridian homes can also offer more bang for buyers’ buck than homes based in big cities. For $225,000, buyers can often find brand new homes that contain four bedrooms, two baths, and a garage on a quarter-acre of land. Of course, it would be much less likely to find a similar offer in one of Florida’s cities. In our present reality, Jacob Kupp realizes that consumers are much more interested in getting the most out of their money, as spending more for housing will mean less cash to contend with the various financial hurdles the pandemic has created for citizens.

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Jacob Kupp Explains How COVID-19 Is Affecting Real Estate in Central Florida

The COVID-19 crisis has had a profound effect on a myriad of industries, and real estate has certainly experienced an observable impact due to the adaptations the market has had to make. Jacob Kupp of Orlando FL, as an attorney with years of experience in the commercial real estate space, has noticed that both commercial and residential real estate have seen shifts over the course of the past few months. For the benefit of individuals scouting trends in the Central Florida market, Kupp discusses some of the biggest ways that COVID-19 is currently impacting the industry.

Realtors Have Implemented Digital Solutions for Safety

Just as many industries have gravitated towards remote work and digital strategies to keep employees and clients safe during the COVID-19 health crisis, real estate agencies have implemented similar solutions for the time being. Jacob Kupp of Orlando FL notes that many agencies in the state are utilizing virtual portals to facilitate property tours, showings, open houses, and meetings between buyers and sellers. Realtors have become adept at utilizing technology that they already have on hand to videotape listings or perform virtual walk throughs to show to prospective buyers what listed properties have to offer. Buyers can also get an understanding for properties via 3D virtual real estate tours, which have risen in popularity due to the pandemic. With these tours, potential buyers can virtually traverse the space and get a better feel for the flow of the property than through pictures alone.

Commercial Real Estate is in Flux

Experts such as Jacob Kupp of Orlando FL and members of the National Association of Realtors acknowledge that the outlook for commercial real estate is not as poor as it appeared earlier in the pandemic. It is expected that demand for retail and office space will fall over the next year, as offices have continued with work from home practices and citizens have been visiting brick-and-mortar establishments less amidst the current landscape. Still, Jacob Kupp realizes that some employers for industries that are not currently working remotely (or may begin in-person work schedules soon) will be on the lookout for larger office spaces. These larger offices will accommodate social distancing measures much easier than smaller spaces are able to.

Lower Inventory of Median Priced Homes

Jacob Kupp of Orlando FL acknowledges that listings and pending sales have begun to increase after taking a hit during the beginning of the pandemic, but both are still down when compared to a year. The inventory shortage in Central Florida has made the landscape a seller’s market especially for homes within the median value. The median list price of a home in Orlando Florida was up 7% in May of 2020 when compared to May of last year and is still on the rise. Experts say that homes that are priced fairly in this market will likely be sold fast, and if a seller were to list in this market they could expect offers within a week or even less. While Jacob Kupp of Orlando FL recognizes that there is an inventory shortage for homes within the median and above, there is notably an oversupply of houses within the $1 million-plus market. This could be linked to a few potential reasons, such as buyers being less likely to buy a home over the median price range sight unseen when compared to lower priced housing options.

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COVID-19’s Impact on Commercial Real Estate a Mixed Bag, says Jacob A. Kupp of Orlando

The demise of demand for commercial real estate (CRE) due to COVID-19 has been greatly exaggerated. That’s the latest from those in the CRE industry, including Jacob A. Kupp of Orlando, and the foundation remains strong despite some headlines that are stirring up unwarranted concern. The coronavirus has taken a toll on businesses from California to Connecticut and with storefronts shuttered, paying the monthly mortgage on a commercial property has been particularly painful for business owners. Jacob A. Kupp, an attorney with hands-on experience in Florida’s CRE sector, says that this too shall pass – the doors will one day re-open and regular business hours will resume.

According to an April 2020 article from Florida Trend, the state’s industrial market “could benefit in the long-term from many of the behavioral changes spurred by the crisis.” More specifically, experts here predict a shift in manufacturing away from China and back into the U.S. and this will drive the need for warehouses. Business Observer adds that Florida’s trend toward new e-commerce facilities is likely to ramp up and “industrial fulfillment centers in key locations will flourish nationwide, following a temporary slowdown.” A spike in online shopping is almost guaranteed due to two motivating factors: Apprehension from the general public about entering public places as the coronavirus recedes and convenience of having these orders sent directly to their homes instead. Jacob A. Kupp of Orlando believes those two factors will be a boost for the CRE sector in Florida and beyond.

In other parts of the country, the future of commercial spaces looks to be a bit less rosy. The New York Times on May 13, 2020 reported that Manhattan could face a “reckoning” if work-from-home protocols become the new norm. Squeezed for space, the bustling New York borough can’t bank on sprawling warehouses like Florida can. That’s why Jacob A. Kupp read with interest about the city – which has “the largest business district in the country” – seeing international brands opt to let employees work from home indefinitely and simultaneously reduce the size of their office footprints. This will slam New York’s tax coffers and equally hurt local businesses that these employees once frequented Monday through Friday.

We’re not out of the coronavirus woods yet, but the “new normal” is quickly coming into view. Jacob A. Kupp of Orlando has worked with buildings and parcels of land of all types and sizes; the variety here has taught him that no two customers are in search of the same product. His background in legal matters has also allowed him to help clients looking for new ventures and wanting to close on a “for lease” unit as soon as possible. All told, 2020 could be a year of CRE opportunity for those who act smart and fact.