Frank Jermusek discovered his interest in law while in college at The University of St. Thomas in St. Paul. While studying Business at St. Thomas, Frank Jermusek was at the same time working for the Minnesota Investment Firm, Baker Investments. While his main work consisted of managing investments of the company, Frank began working on complex commercial transactions.
About Frank Jermusek
The Jermusek Law Firm, LLC
After studying law at William Mitchell, Frank Jermusek was hired immediately to work as an attorney at Leonard, Street and Deinard. In 2006, he founded his own law firm, The Jermusek Law Firm, LLC, which is based out of Minnesota.
The company is focused on providing sophisticated, creative, and practical solutions for clients dealing with real estate, business, and lending matters. Frank Jermusek has mainly focused his legal practice on business, real estate, lending, and golf/hospitality matters.
SVN | Northco
Working closely with his other Business, SVN | Northco, a real estate and investment firm also operating in the Minnesota area and Twin Cities, Frank Jermusek’s law firm will help individuals and companies across the greater Midwest handle legal work and strategies for real estate transactions, business transactions, and litigation for both.
In terms of real estate, Frank Jermusek’s firm will provide a practical solution to legal matters in purchase & sales, development & construction, debt & equity finance, leasing & property management, loan workouts & restructuring, commercial lending, 1031 Exchange, and, another speciality, Golf Course & Hospitality. In business, his firm will handle the legal work for business formation, contracts, mergers & acquisitions, and corporate finance.
In his work as a legal consultant and attorney at law, Frank Jermusek hopes to provide his clients with planning and preparation that will maximize the profit for their business or institution, and deliver the best possible results for that individual company or service.
Connect with Frank Jermusek
From an outside perspective, it may not be obvious the integral role the law plays in the real estate industry. Even still, the two go hand in hand, and without the order and structure of law processes, the real estate sector would be in disarray. Coming from a law background, I can’t help but see all the connections. For those new to the commercial real estate sector though, there are a few laws you can’t afford to forget about no matter the property or location.
If a property is incorrectly zoned, investors can face a lengthy and expensive process to change the zoning through local legislation. Variances are often an easier solution for local boards to grant rather than permanently rezoning a property forever. Given that zoning and land use laws change from state to state, it’s essential for real estate executives to be well-versed on local laws and thoroughly investigate the land use options for a property before investing. As Matt Faustman says, “In addition to determining taxation, these regulations determine how a property (commercial or otherwise) can be used. Zoning regulations dictate whether a property can be used for retail operations and sometimes even what sort of retail operations can take place.“ This is particularly important for investors looking to lease commercial spaces. While an office may be an option, a store may not be. It all depends on the zoning.
Commercial property contracts are typically more nuanced than residential ones considering the long durations, lock-in periods and renewal basis. As Kunal Moktan further explains, “The tenant can vacate at any time whereas the landlord cannot ask them to leave for the lease period. There can also be a lock-in period (generally 3 years) during which the tenant cannot vacate the property. While analyzing an investment, the investor has to understand how the lease is structured and the inherent risks involved. In general, the longer the lock-in, the better it is for the investor.”
Landlord & Tenant Laws
The landlord-tenant relationship should be a mutually beneficial one. A strong contract can make or break an investor’s profits though when working with imperfect tenants. If a tenant finds a loophole that allows them to break a lease or not be held responsible for damages, those expenses associated with lost revenue and renovations would then fall on the owner. Many states have their own laws specifically intended to protect both landlords and tenants. As Angela Colley says, “Nearly every state in the U.S. has adopted a version of the Landlord and Tenant Act. The act governs what you, as a tenant, need to do and what the landlord must do for you. It covers everything from moving in and paying a security deposit, to privacy and evictions. While there are minor differences from state to state, most laws are universal.”
The commercial industry lacks a lot of the conformity, normalcy and often predictability associated with residential real estate. As a result, when selling a commercial piece of real estate, it becomes extremely important to work with an experienced professional and pay attention to the small details. Resorts, on the other hand, bring an added set of eccentricities considering that in addition to selling a piece of real estate, you are also selling an established company. As described by the National Association of Realtors, “The resort and second-home market differs in a number of ways from the primary residential market. Buyer interest ranges from small, rustic getaways to luxury properties, and includes an international clientele and the investment and retirement markets.” These nuances in turn influence how you and your real estate professional will ultimately market and sell the resort space.
Many commercial resort buyers aren’t necessarily from the area so photos will become their initial inside look at the property and their first step in evaluating whether the property meets their needs. Then they can plan to actually go and visit the property. While there are tons of magnificent resorts on the market, if their photos do the listing a disservice, then problems with bringing in potential buyers will only persist. Often times people say the location or amenities speak for themselves, but people have to see it to understand the value there. The listing photos need to be strong enough to get them onsite. While many management companies and resort staff have access to photos from brochures or websites, make sure the photos are an accurate portrayal as well. If you need new ones, enlist a professional photographer or the help of your agent or broker for guidance. In many cases, your agent can spearhead this mission with minimal hassle on your end.
Know the Market
While you yourself might not know the specifics of your local or the global market, ensure that your real estate professional is cognizant of it. This will help you define the right price that will sell your resort for the optimal value without spending too much time on the market and becoming stale. It’s a balance and one that your realtor should be able to strike. If you aren’t confident in their expertise, don’t be afraid to survey multiple options. At the end of the day, it’s your investment and you want to ensure it pays off.
Quality over Quantity
In commercial real estate, it’s not uncommon for properties to spend a bit more time on the market since they typically require a very specific type of buyer since it’s not a property, but rather an interconnected set of businesses. Brokers help to align the right potential buyers with resort listings in order to alleviate some of the problems that occur with over publicizing or opening up a listing to anyone. Brokers are more capable of keeping things professional and private. They can vet people before touring the grounds and have a better knowledge of which listing sites will open you up to leads as opposed to putting it on display for gawkers without any real progress derived from the time and exposure.
The SVN Northco Difference
When it comes to selling a resort, you aren’t just selling the property or land, but rather a hub of multiple profit centers. At SVN Northco, we focus on selling our resorts as businesses rather than a piece of property. A typical commercial or even residential property has valuations based on the home or facility and the assets themselves.
A business like a resort, on the other hand, brings in multiple revenue streams and as a result requires an experienced real estate broker in order to properly evaluate the resort and in turn handle the mergers and acquisition process. Of course, the real estate itself matters, but that valuation is only one factor in the price. Instead, we factor in all of the valuable assets involved like profit centers or revenue streams so the price properly reflects the business value.