All Forum Posts by: Chris K.

@Jaden Adams

When it comes to degrees, I think you should look at least two factors: 

1. Value of Your Degree. Certain fields give you more qualifications and "valuable" skills than others. Architecture is probably not a bad degree although it's my understanding that the job market is pretty competitive. It's also my understanding that it's kind of like law school --- what you learn in school doesn't always prepare you for "real life" as an architect. That's different than say a doctor who gets an incredible amount of hands-on training during their education process.

That said, my construction company does a lot of work with amazing architects that make a very good living. And I know many investors that had an architect background. They were able to leverage their skills, experience, and connections to do what they wanted to do. Not saying it's absolutely necessary. But good architects have skills that many serious players in the real-estate world consider valuable. 

2. Prestige/Cost. Not sure what school you go to. But some schools have such a "prestige" factor that it might be worth the costs. Many folks describe it as a polite way to ask for your IQ. Being a Harvard graduate, for example, tells many folks you meet in life that you are probably a smart/hardworking person. Likewise, my degree at a so-called T14 school gave me more opportunities. Not saying degrees are everything but there is a value to a prestigious degree. 

Now if you don't go to such a school (and that's okay), then you may want to figure out what is the most cost-efficient way to get your degree. I had a really "dumb" undergraduate degree from a value perspective. But the fact that I basically had a full-ride scholarship made it alright in the long run. 

Aside from the above, I would note that you can become an entrepreneur at any time. But most successful entrepreneurs I know could call themselves an "expert" in at least one field. It's incidentally why I think many successful entrepreneurs can get right back to where they were even after a total bankruptcy. Any entrepreneur --- by definition --- takes more risk than an average person. Because of this, it's not uncommon for many entrepreneurs to "fail." But while creditors can take all your assets during bankruptcy, they cannot really take away your experience, skills, and work ethic. Thus, it's not surprising that many people come back to find success again.

Take a look at a book called "So Good They Can't Ignore You" by Cal Newport. Not saying it's the bible but it has a lot of good thoughts on what you are thinking about. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Dwight S.

Aside from what other folks wrote, I would strongly consider house hacking if it is something that your lifestyle allows. I would probably avoid out-of-state investing unless it's like a proper syndication deal. Out of town deals can work but it can also become a major hassle.

In general, I would look at your current skills and other assets (e.g. family connections, friends, professional connections, etc.). From there, try to think about how you can synergize what you already have with your investments. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Manny Montilla

I have no idea what the exact laws are. But I would expect the City will charge you for the garbage removal if you rent out a single-family residence. Typically exemption from these kinds of fees requires you to use the property as a primary residence. Do you know the answer @Steve Babiak or @Joe White?

I also have my doubts about whether you would to hire a lawyer for this kind of matter. Assuming you only have a single property in Philadelphia, it's hard to see this being worth your money and time to fight even if you are right. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Manny Montilla

You may want to be a bit more specific about what you would need the attorney to do. As you may know, the legal world is getting very specialized in all realm. So an attorney that I would use for a zoning matter may not be the same attorney I would use for purchasing. Likewise, certain types of legal matters may benefit from a local attorney versus a non-local attorney. 

It may also help to specify what size of a law firm you are looking for. For example, engaging a multi-office or multi-state law firm can be helpful in certain situations. I use an international firm for some of my matters since I have matters in two countries. The downside is that the costs are much higher than a smaller firm. But sometimes you need that expertise for various reasons. 

I really don't do too much work as an attorney anymore since I'm more focused on other ventures. But I would be happy to find your leads if you can narrow down your criteria. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Steven Lowe

Take a look at the ConsensusDOCS to see if they may work for you. It's similar to the AIA system but less "architect" focused. 

Being an attorney and a construction company owner, I sometime question the value of custom forms. I've seen and written some draconian contracts. But in practice, almost all projects default backs to something like the AIA system. This makes sense since the idea behind AIA is to create contracts that actually reflect proper industry practice.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Dennis M.

While I would probably like to retire somewhere warmer, I have to say Lancaster has done an amazing job with the city. The area now has an "Amish-Hipster" vibe to it. I can see it being a nice place to retire. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Morgan Wells

Ask the attorney to break down the costs for you if they haven't already. If I gave you a $5,000 bill, I would typically break it down by dates, hours, and a short description of what I did during those hours. Not all lawyers do it that way but that's how I learned. 

Below is a decent article from the ABA on proper billing practices. Admittedly, the steps below are not always easy to do if you are a solo practitioner or part of a small law firm. But I would say none of them are impossible to do.  

https://www.americanbar.org/groups/litigation/committees/young-advocates/practice/2017/billing-tips-for-young-lawyers-how-not-to-let-billing-become-the-bane-of-your-existence

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

1. It depends on what you are looking to do. For example, many folks incorporate in Delaware if the end goal is to go public. Delaware is also popular amongst mega-corporations due to the Court of Chancery. Think about it as a special court that only deals with corporate/shareholder matters. It's a very well-respected court. If your business generates a lot of taxable income at the state level, all three have low-to-zero rates.

Now the real question is whether any of that would benefit the average real estate investor. That's a harder question to answer. Reasonable people can disagree but I personally don't see a meaningful benefit.

For what it's worth, I incorporate my real-estate-holding LLC in the state where the property is. For almost every other entity, I use a Pennsylvania LLC. I do so since that's where I (and most of my business partners) live.

We did create a Delaware LLC once. But we didn't have any fancy reason. The main reason was that the members came from various locations on the East Coast. Delaware was a "neutral" enough jurisdiction for everyone involved. Due to the Court of Chancery, the caselaw there is generally reasonable. And it's remote enough that it's annoying for everyone to bring silly lawsuits against each other.

2. It depends. I think it's better to register with the Commonwealth even if you don't need to. That's especially true if you will need the ability to sue someone (or bring a counterclaim if you get sued). But it's not required in some situations.

I'm not sure about Philly-specific requirements. I would think it would depend on what the underlying business is. I'm sure they make some businesses register with the city.

3. It depends on what the business is. Commonwealth issues licenses for some businesses. Philly may have it's own license requirements as well depending on the business.

4. It depends on your business and personal situation. I'm generally against trusts until it is absolutely necessary. Pennsylvania had many unscrupulous lawyers that tried to sell trusts as a cure-all for all issues and then got into a lot of trouble. So I might just be jaded on this particular topic.

In any event, this is one area where you really need to think about why you need it. For example, saying "liability protection" is not enough. You have to go one step deeper and ask what kind of liability you are trying to protect from.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Many people have tried to create such a website. Many have failed because they fail to provide value. One reason they fail is that most folks are incapable of identifying a "good" contractor. For example, if you asked me to review my doctor, I would struggle to do so. Maybe I can talk about their bedside manners. But I would struggle to talk about whether the doctor knows what he or she is doing. That's because I don't know enough about being a doctor. Hence, it's very hard for me to review someone about a topic that I know little about.

Another problem with these websites is that the customers do not review the same service. For example, consider a burger restaurant. People walk in there to get a burger and other items that you typically find in a burger shop. Once in a while, you will have customers with dietary restrictions. But the playing field is more or less even. You pay money; the restaurant gives you food. If it tastes good and/or service was good, write a good review. If it tastes bad and/or service was terrible, write a bad one. Yes, some crazy people will leave crazy reviews. But the fact that you can get hundreds and thousands of reviews means that the public can trust the review more. It's essentially how websites like Yelp works.

That's not the case for most professional services. Sometimes you have customers who come in with easy problems. Other times, they come in with difficult issues. Some people come with reasonable expectations and others don't. The professional has little control over the underlying situation. If customers come in impossible situations, the professional has limited options.

This is a reason why most prestigious honors for professionals tend to come from their colleagues. It's also another reason why most referrals/references are the best way to get clients in this realm.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Julian Suriel

There are some big-time investors in that neck of the woods doing interesting projects. I have no idea, however, what it is like for the average investor. I never personally had interest going down to Hazleton due to the distance. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.