All Forum Posts by: Stanley Bronstein

@Lee S. - With all due respect, there probably are labor issues here (but I'm not a labor attorney). I agree with @Jaysen Medhurst.

Part of the problem might be your use of the word employee. Employees are NOT independent contractors and they are usually paid salary. Independent contractors can be commission only.

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

@Au Jia You need to hire a securities lawyer to put your deal together for you. It's going to cost a little money, but in my opinion, this is way too complex of a subject, with way too many traps and potholes for you to do it on your own.

If the original poster's forms an LLC in a state other than Texas, and then the LLC is doing business in Texas by operating an income producing property in Texas, it's still going to need to be registered in Texas (as a Foreign LLC). That's increases the formation costs and ongoing costs, as the LLC is now registered in 2 states.

If the original poster's forms an LLC in a state other than Texas, and then the LLC is doing business in Texas by operating an income producing property in Texas, it's still going to need to be registered in Texas (as a Foreign LLC). That's increases the formation costs and ongoing costs, as the LLC is now registered in 2 states.

@Stephanie Choi If you are based in Texas and you are going to be investing in Texas, my recommendation (especially while you're starting out) would be to form your LLCs in Texas. LLCs in Texas don't pay any annual taxes unless your revenue gets above a threshold amount of $1,130,000. You still file an annual franchise tax return in Texas, but no tax will be due in most circumstances (unless you're making quite a bit of money).

@John Moorhouse At the age of 15, no one is going to want to enter into a contract with you, as you are a minor. Do your research now and try to intern with someone now to start learning from them.

@Joel Owens And in commercial there can also be sellers who do not disclose known problems (or problems the seller and brokers should have know about) with their properties that you only discover mid-deal, after the Buyer has done a ton of extensive & expensive due diligence.

This then forces the Buyer to either try and negotiate a price reduction, or bail out of the deal and start all over again.

I've had buyers give engineering reports to sellers about the major problems with their property. After the deal dies, the sellers (and their brokers) put the property back on the market and ultimately sell it to someone else (who probably does NOT do as much due diligence). While I don't know for certain, I often wonder whether or not these sellers and brokers disclosed the problems to the new buyers that my clients made them aware of.

It's not just sellers (and their brokers) who remember the deal that didn't happen. It happens to buyers (and their brokers) too.

 As in any profession !

Just for the record, I am NOT one those types of attorneys. Grin ...

@Edward Liu - Section 1(e) of the Contract you linked to states:

In the event of a breach of this Contract by Seller, the Earnest Money Deposit shall be refunded to Buyer, upon Buyer's request, but such return shall not affect any other remedies available to Buyer for such breach.

Failing to close is a breach by Buyer. The contract does NOT specifically state you can sue for Specific Performance, but it also doesn't say you can't. In my opinion (but I'm not your lawyer), Specific Performance is one of those other remedies available to Buyer for such breach - in the absence of the contract NOT saying you can sue for Specific Performance.

If you want that property, my advice is to get a local attorney and to get them NOW !