AMERICAN LEGAL PROBLEMS: 5 STEPS THAT COULD SAVE YOU A FORTUNE

By Fred Reilly, American Attorney and English Solicitor

To many Europeans, the United States represents the land of opportunity – a vibrant place to live, work and profit. Some call it “Paradise.” But when a legal problem strikes across the pond, Paradise becomes the land of many sleepless nights. Anger, confusion and panic are just a few of the emotions experienced by an expat who suddenly learns that they must contend with an American legal problem. After the initial shock wears off, an expat with a legal problem in a foreign land often concludes: “I  don’t even know where to begin!”

Just because you’ve heard the horror stories doesn’t mean that you’re destined to become one. Begin by taking control. This article highlights five specific steps that you can take to get a grip on your American legal problem. Following these steps will make it far easier to resolve the problem and could save you a fortune in legal fees and expenses.

A. Where Do You Stand? When a legal problem strikes, people are often caught flat-footed. It’s difficult to seek solutions when the problem is shrouded by uncertainties. The first step to resolving your legal problem is to eliminate as many uncertainties as possible. Once you determine where you stand, its far easier to choose the correct path for solving the problem. Start with the basics of any legal problem – who, what, where, when and how. It may seem obvious, but it is extremely difficult for anyone to begin a meaningful analysis of a legal problem unless these basic facts are readily available.

Real estate disputes (i.e., mortgage foreclosures, homeowners association violations, disputes with a property management company, etc.) are common and provide a good example of how to approach an American legal problem. Suppose that you’re back home in Europe and a neighbor in Florida calls to say that she’s heard a rumour that a foreclosure action has been filed against your Orlando vacation home. How can you compile the basic information related to your foreclosure case? Start with the Internet. Conduct an online search of civil court records to determine the status of the foreclosure case. For example, the Orange County Clerk of the Court maintains a site ( which allows visitors to search civil court records by name and case number. Unless you know the status of your case, it is extremely easy to miss crucial deadlines or make procedural mistakes which could completely compromise both your rights and ability to defend a lawsuit.

What if you were concerned that a lien or some other encumbrance had been filed against your property? Conduct a search of official records online at the same County Clerk of the Court web site.

Maybe you forgot to pay your property taxes last year. Conduct a search of the Property Appraiser’s online site for the county where your real estate is located. For example, the Orange County Property Appraiser’s site ( allows visitors to search by parcel identification number, owner’s name, address, property name, Plat Book and Page, subdivision name, condo/timeshare name and other criteria.

Bear in mind that online resources have limitations, namely the records are not always 110% accurate, must be updated constantly and are subject to errors or omissions. Despite these limitations, online resources can provide immediate and invaluable information, especially if you happen to be four thousand miles and five time zones away from the legal problem.

B. Get Qualified Assistance. When an American legal problem arises, immediately consider the benefits of obtaining competent, qualified assistance. Depending upon the specific facts and nature of your legal problem, it may be necessary to hire an attorney. Let’s face it, America has a reputation as a litigious society. But not all legal issues justify the expense of hiring an attorney. Some minor legal problems may be easily resolved without the assistance of an attorney. Other seemingly simple legal problems can spin out of control and intensify rapidly. Unfortunately for a layman, it’s often difficult to know the difference between the two.

A telephone consultation with an attorney possessing the background and qualifications necessary to discuss your problem and point you in the right direction could be the best, most cost-effective call you ever made. You immediately place yourself in the position to make an informed decision and dramatically increase the likelihood of obtaining a favorable resolution. Rather than making an open-ended commitment to pay the attorney’s hourly fee, you simply pay a flat fee for the consultation. Later if you determine that the problem cannot be resolved without the assistance of legal counsel, you’ll at least be in a position to call an attorney who is already familiar with your situation.

If the problem dictates that you retain an attorney, make certain that you find one who is professional, ethical and dedicated to resolving your problem in a cost-effective manner. At first glance, this may appear to be an inconsistent recommendation. Put aside the negative stereotype that every attorney’s sole interest is making money at their client’s expense. The vast majority of attorneys are ethical professionals who put their client’s best interests ahead of their own. During an initial consultation, ask probing questions that will reveal whether the attorney is truly interested in helping you solve your problem or is focused on prolonging the problem and making it worse to justify additional billable hours.

Find an attorney who makes it easy to communicate. An attorney who caters to foreign clients will already possess the technology to exchange documents as scanned, plain text or Microsoft Word files. The tech savvy attorney will also utilize emerging technology such as Skype ( to make and receive inexpensive international telephone calls via their computer.

In an ideal world, get legal assistance before you desperately need it. For example, if you will be traveling to America on an inspection flight to consider a vacation home, contact an attorney before you ever depart for the States. Let’s face it, you’ll likely be dealing with sophisticated, commission-oriented salespeople who are highly motivated to get your binding commitment. Doesn’t it make sense to get briefed on potential legal pitfalls before you’re forced into a high-pressure situation?

C. Prepare Your Case. Before you contact an attorney, organize all relevant documents and write a chronology of events. This simple step can result in substantial savings of time, effort and money. It may sound cliche, but the devil really is in the details. Many clients gloss over this important step because they desperately want to discuss their case with someone – the sooner the better. Although a seasoned attorney can make an initial evaluation of your case without reviewing documents or a chronology, it is far easier to make specific recommendations and provide concrete advice when documentation is readily available for evaluation.

The chronology doesn’t have to be extensive, but a concise explanation of the key events will prove very insightful to the attorney evaluating your case. Whenever possible, strive for clarity so important points do not get lost in translation. The speed and convenience of the Internet have made email the preferred method of international communication. Be sure to include your chronology in the body of an email rather than attached it to the email as a file (which may be difficult to open).

Once you’ve organized your documentation, be prepared to send the documents as a scanned attachment to an email or a fax. If voluminous documents will be involved, it may be preferable to send an express mail package.

Here’s an important issue that may save you from a very awkward situation. When the legal problem arises, make a list of the full names and addresses of all parties involved so the attorney can immediately conduct an internal conflict of interest search. An ethical attorney must ensure that no conflict exists prior to discussing your legal problem and strategies for resolving it.

D. Issues To Raise During Your Initial Consultation. The initial consultation with an attorney is crucial to resolving your legal problem. It is important that both the client and the attorney understand each other and build the foundation for a solid working relationship. Raising the following six issues will help get the relationship started on the right track.

1. What is your desired outcome? If you’ve provided the attorney with relevant documents and a chronology of events, you’ll be in a position to discuss this issue which is the crux of your case – how to resolve the problem. Be prepared to explain your rationale for seeking a specific resolution. This information will be crucial to your attorney who wants to both win the case and satisfy their client.
2. What will be the fees and expenses associated with the attorney’s efforts to obtain the desired outcome? Attorneys respect clients who addresses the issue of fees and expenses. But bear in mind, you wouldn’t dare walk into a doctor’s office, declare that you’re sick and ask how much it will cost to cure you. You can’t expect to tell an attorney that you’ve got a legal problem and then ask how much it will cost to resolve the problem.
3. What are your budget limitations? Granted, everyone wants to minimize their attorney fees and out-of-pocket expenses. Based on the scope of the legal problem and the desired outcome, discuss any relevant budget constraints. Addressing this issue will spare both the client and attorney from an unpleasant surprise in the future.
4. Which attorney at a law firm will actually be handling your case? If more than one attorney will be handling your case, be certain to discuss the chain of command, communication protocols and how decisions will be reached.
5. What can the client do to reduce the total attorney fee? There are certain tasks that the client can handle instead of burning the attorney’s time. For example, most attorneys would be eternally grateful if the client in a homeowners association dispute offered to obtain the relevant documentation such as the association’s Articles of Incorporation, Bylaws, covenants and deed restrictions.
6. Is the fee negotiable? Wow! What a novel concept. Attorneys are also business people. Under certain circumstances, they may be willing to negotiate a flat fee instead of an hourly fee or the amount of the retainer. You’ll never know unless you ask.

E. Control Costs. One of the biggest fears associated with legal problems is that legal fees and expenses will become excessive. No one wants to get gouged. Although attorneys have professional and ethical obligations to act in the best interests of their client, some unscrupulous attorneys disregard or play the angles when it comes to this obligation. There are a variety of ways that unscrupulous attorneys gouge clients. Ignore these at your peril. Some of the most common methods are:

1. Exploit the inherent difference in bargaining power when the client is from a foreign country, unfamiliar with the applicable laws and desperate to resolve the legal problem at any cost.
2. Exaggerate the time necessary to accomplish certain tasks and otherwise pads the bill.
3. Prey on the client’s insecurities and lack of knowledge about the legal system in the United States.
4. Convince the client that it is absolutely necessary to contest every point.
5. Make the legal problem as acrimonious as possible, thus ensuring that most basic issues are hotly contested.

What constitutes an appropriate or fair attorney fee is ultimately an individual decision. As the client, you have the ability to seek legal services from a variety of attorneys practicing in a particular marketplace. But bear in mind that an attorney is a businessperson and is generally not obligated to accept you or anyone else as a client unless they can earn a fair profit from the representation.

Some clients make the (incorrect or misguided) assumption that the attorney who charges a hefty fee must be worth it. Occasionally, they’re chagrined to learn that they paid through the nose for some incredibly average services. Most of the time, they’re oblivious to the reality that they got gouged. So how do you determine when you’re receiving value for your money?

1. Focus on effectiveness.
2. Consider the attorney’s reputation among clients and the legal community.
3. Shop around.

F. A Final Word. Most legal problems only get worse (and more costly to solve) due to inattention. Don’t be an ostrich and hide your head in the sand. Take action to resolve your legal problems in the most cost-effective and expeditious manner. The steps outlined above will give you a great start.

Some of the best advice ever dispensed is anticipate problems and be prepared to take preemptive action. If you do so on a consistent basis, many potential legal problems will never materialize “across the pond.”

DISCLAIMER: This article and its content are intended to provide general information on legal topics and shall not serve as a solicitation for services in any jurisdiction where prohibited by law. This article is not, nor is it intended to be used as a substitute for legal advice. You should consult an attorney for individual advice concerning your own situation. Sending an email to the owner of this website, and receiving any response thereto, does not, in and of itself, create an attorney-client relationship.

© Copyright 2007 by Fred Reilly. All rights reserved.

9 WAYS TO SLASH YOUR EXPOSURE TO LAWSUITS

By Fred Reilly, American Attorney and English Solicitor

For most Plaintiffs and Defendants, lawsuits quickly become nightmares. But it doesn’t stop there. Lawsuits have become so commonplace, that the threat of litigation casts an exceptionally dark cloud over people. Once you become embroiled in litigation, the process takes on a life of their own and tends to drag on forever – depleting assets and sapping your energy to move forward. Like a cancer patient whose life depends on the next doctor’s appointment, the litigant’s life revolves around the next motion, deposition, hearing and appointment with their counsel.

The purpose of this article is to provide you with nine specific precautions you can take to reduce your exposure to future lawsuits. By no means is this article a silver bullet. But the points discussed below should provide insight into specific action that can decrease the threat of future litigation.

1. Negotiate clarity. Many civil lawsuits are the result of one or both parties failing to adequately achieve clarity in their contractual negotiations. Without clarity, it’s understandable that rationale people could reach different conclusions in their interpretation of rights and obligations and how such rights and obligations should be performed. Notice my choice of words -  “rationale people.” In today’s world, there are many irrational people and it’s even more crucial to achieve clarity when you’re dealing with an individual who may become unreasonable, combative or belligerent if there’s the slightest provocation.
2. Don’t commit when you can’t comply. I realize that this point is incredibly obvious, but I’ve seen it time and again. Most civil lawsuits are the result of “promises made and promises broken.” If you never make the promise in the first place, it’s generally difficult to penalize you for not performing it.
3. Mitigate. If you realize in advance that you cannot fulfill an obligation, take action to mitigate the impact of your inability to perform. Mitigation can substantially decrease your exposure to damages because it forces the other party to take stock of their own position. Don’t be an ostrich and hide your head in the sand – the problem rarely disappears on its own. It only gets worse.
4. Document problems (with one very important caution). Many lawsuits are swearing matches – the only evidence submitted is the testimony of witnesses. In these types of cases, the parties didn’t commit their legal positions to writing and the merits of the case are largely decided by the judge’s assessment of the credibility and consistency of the witness testimony. By documenting a problem, you produce a paper trail that can be extremely helpful when a dispute is being litigating. Documenting a problem comes with one very important caution – there is a significant risk that you may inadvertently compromise your position, make an admission or otherwise undermine your legal position. That’s why it is very important to consult an attorney before taking any action that may negatively impact your case in the event that litigation is necessary to resolve your dispute.
5. Email communications. As an attorney, I’m very mindful of the countless ways in which clients unwittingly undermine their own position through their email communications. Let’s face it, the Internet makes it easy to communicate and we’ve grown accustomed to firing off an email reply via a Blackberry or some other form of PDA – it’s convenient, responsive and can be devastating evidence later in the event of litigation. I advise clients to be very careful about the content of their communications, but especially emails which can be taken out of context with great ease.
6. Alternative dispute resolution. Litigation through the judicial system is not the only option for resolving a dispute. If you enter a relationship or transaction that is likely to end in a dispute, consider the merits of including a mediation or arbitration provision into your agreement. Although these alternative dispute resolution methods don’t necessarily fit all circumstances, they are ideal for situations where the parties want to avoid the lengthy procedural delays and public scrutiny that occur when disputes are litigated in the court system.
7. Include an attorney fees and costs provision in contracts. A certain degree of deterrence can be achieved by the inclusion of a contractual provision that requires the losing party in litigation to pay for the prevailing party’s attorney fees and costs. Most people don’t want to pay one attorney, much less two. This provision forces a potential litigant to address the merits of their case and the possibility they may not prevail.
8. Address problems without delay. Many civil lawsuits are the result of the Plaintiff reaching the conclusion that the Defendant is unwilling to address a legal problem. When a lawsuit is filed, litigants dig in their heels and seek vindication. Left unresolved minor problems have an amazing tendency to become major problems. Take the responsibility to initiate action to solve your own legal problems at the earliest possible time.
9. Get preventative legal advice. This recommendation may appear self-serving, but it is certainly not intended to be. No doubt you’ve heard the phrase “the best defense is a great offense.” As an attorney and Solicitor, I can honestly say that I’m in a far better position to reduce or eliminate a client’s legal problem if they seek my advice long before litigation is ever initiated. Lock the barn door before the horse leaves, not afterwards. No one likes uncertainty. If you’ve ever been involved in litigation, you no doubt recall the lengthy periods of uncertainty. Obtaining legal advice when a problem first arises is important for another reason – the client will know where they stand, can better evaluate the risks and has more flexibility to fashion a reasonable resolution they can accept. Finally, preventative legal advice helps to reduce the acute anxiety that’s associated with nightmares.

DISCLAIMER: This article and its content are intended to provide general information on legal topics and shall not serve as a solicitation for services in any jurisdiction where prohibited by law. This article is not, nor is it intended to be used as a substitute for legal advice. You should consult an attorney for individual advice concerning your own situation. Sending an email to the owner of this website, and receiving any response thereto, does not, in and of itself, create an attorney-client relationship.

© Copyright 2007 by Fred Reilly. All rights reserved.

12 FATAL SINS REAL ESTATE INVESTORS MAKE

By Fred Reilly, American Attorney and English Solicitor

Experience is essential to making a sound real estate investment. Investors can dramatically improve their investment decisions by avoiding the twelve fatal sins outlined below. Knowledge of these sins is especially important to foreign investors who must also content with the unfamiliarity of another country.

1. Paying too much. Ensure your profit margin when you acquire an investment property by purchasing at a rational price. Do not count on the market to bail you out at a later date. Many people who bought investment properties at the height of the market in 2005 are now learning the hard way that they overpaid – in some cases by tens of thousands of dollars. Seasoned investors target properties that are discounted or undervalued by ten to thirty percent. It is not impossible to identify these properties in any market, but it does take hard work, persistence and a willingness to seek the best information available.
2. Failure to practice strategic fundamentals. Investors frequently fail to formulate an investment strategy for purchasing a property. Will you be buying the property with no money down, a ten percent mortgage or should you ask the owner to hold paper? Is your intention to flip the property within a one-year period, upgrade the property to command a better tenant or change the zoning to a higher, more valuable classification? Buying an investment property because someone has touted it as “a good investment” is not a sound business strategy.
3. Falling in love with a property. I think it’s very healthy from an investment standpoint to have an attraction to a particular property for rational reasons. I am very concerned when an investor falls in love with a property because emotional involvement tends to cloud a person’s business judgment.
4. False assumptions. By doing your homework, you can substantially eliminate the tendency of inexperienced investors to rely on false assumptions. Identify the factors that make the property attractive from an investment point of view, then confirm the existence and accuracy of each factor. You’ll be surprised by the number of times that your assumptions were less than perfect.
5. Failure to conduct appropriate Due Diligence. This sin is unforgivable. When negotiating the contract to purchase an investment property, include a specific time period (i.e., 30 to 90 days) to conduct due diligence. During this period, your deposit should be refundable for any reason. The purpose of the due diligence period is to confirm the status of the real property and address all issues that will impact your intended use of the property. For example, an investor with a pending contract on an apartment building should investigate zoning, construction code, density, hazardous waste, utilities, impact fees, health and safety regulations, structural integrity and related issues. In addition, the investor should review and confirm records that relate to occupancy rate, cash flow, status of current lease agreements, tenant deposits held, service contracts, status of scheduled maintenance and repairs, status of actual or threatened lawsuits and the costs of possible improvements to upgrade the property.
6. Misjudging market dynamics. The real estate market is in a constant state of flux. The economy, interest rates, supply and demand of properties, threats of terrorism, natural disasters, laws, taxes, government policies and politics are just a few of the factors affecting the availability of attractive investment properties in any given market. It’s relatively easy to place emphasis on the wrong factors and ignore the relevant factors when analyzing the investment potential of a prospective purchase. I highly recommend that you spend sufficient time researching a specific sector of investment properties (such as Central Florida condominiums or Los Angeles office buildings under 10,000 square feet) before you take the plunge. The better your understanding of market dynamics, the more likely your focus will be on the factors that really count in a specific market.
7. Misjudging appreciation. Some investors purchase real property under the misguided expectation that it can only increase in value. These investors learn the hard way that property can and does decrease in value. Optimism is an admirable quality, but it should be tempered by reality. If you analyze the sales history of properties in a specific market, you can spot the pricing trends and make good faith projections about the anticipated appreciation. I highly recommend that you compare apples to apples (like kind properties) and use a price per square foot analysis in these comparisons.
8. Misjudging cash flow. There are very few real estate investments that “pay for themselves.” A negative cash flow means that you’ll be subsidizing your investment every month. After you’ve determined that a prospective property has some investment appeal, run the cash flow numbers. Consider all potential expenditures including but not limited to mortgage payments, homeowner’s association fees, real estate taxes, insurance, utilities, waste disposal, maintenance and repair reserves, property management fees and landscaping fees.
9. Failure to assemble a team. It is highly advisable to assemble a team of professionals before you ever pursue real estate investment opportunities. Your team should include a real estate agent, attorney, lender, appraiser and property inspector. These professionals will help reduce your risk and increase the likelihood that your investment strategy will be successful. At the least, have consultation sessions with each of these professionals to explain your basic strategy and pick their brains. Seasoned professionals will have counseled countless investors before you and will be in a position to explain the most common landmines that they’ve encountered. The money that you spend on these consultations usually result in an outstanding return on investment.
10. Failure to control expenses. Runaway expenses can sour any real estate investment. Renovation work is a great example. Contractors are often over-budget and long overdue when it comes to the estimating the actual time to complete a project. If the renovation work is delayed, there’s no rent, diminished opportunities for appreciation and a high likelihood of losing money month after month.
11. No Exit Strategy. Do you intend to hold a modestly appreciating property for a long term? Or are you purchasing a speculative property in a high-growth market where you can get in, make a quick profit and get out in one year. Prior to purchasing an investment property, formulate an Exit Strategy so you have a clear-cut plan for the future. Once you’ve formulated an Exit Strategy, don’t make the mistake of being trapped by it. As circumstances change, you should revisit your Exit Strategy and determine whether new conditions justify a different approach.
12. “Get Rich Quick” schemes. Real estate investment is hard work and requires persistence. Most people who fall prey to “Get Rich Quick” schemes are unwilling to pay their dues in a field that demands it. If it sounds too good to be true, there’s ample reason to be suspicious. If you can’t resist the temptation to pursue potential “Get Rich Quick” schemes, investigate thoroughly and do everything within your power to reduce your risks.

DISCLAIMER: This article and its content are intended to provide general information on legal topics and shall not serve as a solicitation for services in any jurisdiction where prohibited by law. This article is not, nor is it intended to be used as a substitute for legal advice. You should consult an attorney for individual advice concerning your own situation. Sending an email to the owner of this website, and receiving any response thereto, does not, in and of itself, create an attorney-client relationship.

© Copyright 2007 by Fred Reilly. All rights reserved.

INTERVIEW – WAYNE KLINE, INTERNATIONAL TRADE EXPERT

Wayne Kline has been involved in international business throughout his career. He’s captained trade missions to Europe, Asia, South America, Central America, the Caribbean Island, Canada and Mexico. Starting in 2005, Wayne has been a Licensed Real Estate Agent in Florida working on commercial and residential real estate projects including the coordination of trade events in London, United Kingdom and Moscow, Russia.

From 1992 until 2005, Wayne was the Vice President of International Trade and Investment for the Central Florida Development Council in Polk County Florida. He provided Central Florida companies with the opportunity to market and sell their products overseas and in turn assisted foreign investors in establishing a presents in Florida through direct investment, expansion or relocation.

For twenty-three years prior to the Central Florida Development Council, Wayne had a career in aviation marketing with the airline industry and the Greater Orlando Aviation Authority with an emphasis on building international clientele and leasing facilities at the Orlando International Airport.

Wayne has taught international marketing at the University and College level.

Wayne’s Educational and Professional credentials are:
Bachelors Degree in Business Administration, Jones College, Jacksonville, FL.
Certified International Trade Specialist, Thunderbird, American Graduate School of International  Management, Glendale, AZ.
Certified Xerox Sales & Marketing School, Marina Del Ray, CA.
Licensed Florida Real Estate Agent

Q: You’ve spent your entire career in international business. How has the international business arena changed during your career?

A: In 1969 when I began my career in the international arena until the early 80’s, it was more a novelty and a fun pursuit for small and medium size companies to be engaged international activities. The real serious players then were the large national companies that could afford the expense of time and money to become successful of shore.

From the mid 80’s forward, it became easier for companies of any size to take part in international business thru the advent of state and federal assistance programs and the internet. More companies today have the attitude that a customer is a customer regardless of where they are located.

Q: Is the global marketplace a positive thing?

A: In my opinion yes because the more diverse a company’s client base is the less susceptible they are to the wows of economic change in a single market and the larger the customer base the better the opportunity for more sales. And as the overall economy of the world grows and people have disposable income, more goods and services can be purchased from the United States.

Q: Are there any specific policies that you’d like the U.S. government to implement to promote international business?

A: I believe a strong review of our trade policies, agreements and sanctions are in order. There are way too many loop holes that favor special interest and political interest groups and they give an unfair competitive edge to some countries and some U.S. companies.

Q: You’ve worked in Florida for the past 38 years. Are there any specific policies that you’d like the State of Florida to implement to promote international business?

A: From time to time Florida has been a strong supporter of international trade, mainly depending on the party and particularly the Governor in office. We would be much better served if policies were put in place and left there regardless of who is in power, similar to those of tourism with dedicated funding so programs could be on going. Florida’s trade dollars now rival those of tourism yet tens of millions of dollars are spent on promoting tourism while at times international trade has been hard pressed to receive a million dollars for promotion.

Q: What do you see as the biggest challenges facing an international company in today’s marketplace?

A: Several things come to mind. One is the ever increasing security demands on both goods and travel. It is understandable that since 9/11 most of these precautions are necessary; however, better implementation needs to happen. The process is flawed and the cost in time and money is too high for the results received. As I mentioned earlier, policies, agreements and sanctions need to be revised to all parties involved. Another constant problem will always be protecting yourself against patent infringements.

Q: What are the biggest opportunities?

A: Opportunities change as the rest of the world catches up. Like it or not we are not the best at everything. As a country’s technology develops and exceeds ours, we can embrace that technology and develop new technology around it. We are still the world leaders in most areas and produce quality products. The best U.S. opportunities will be in technology including specific product areas such as electronics, medical equipment, agriculture and food processing.

Q: Is there a specific trait or mentality that is crucial for success in international business?

A: I think a sense of adventure and a lack of fear of the unknown come into play and those that do not have a “business as usual” attitude. I have seen more type “A” personalities in international trade.

Q: How should a company best position itself for success in the global marketplace?

A: First, have a successful business model in the domestic market. Second, set up a separate profit center for international. Third, put together an international team including legal, accounting, shipping (freight forwarding, customs house broker) and sales and marketing. Fourth, research, research and research.

Q: How would you counsel a British company that was contemplating an expansion into the U.S. market?

A: To engage the services of U.S. professionals, in particular legal and accounting. Although we speak the same language and have the same basis for law, there are differences and a proper business structure and tax implications can be quite different. By all means – research, research, research. I would recommend to start with sales, graduate to distribution and on to manufacturing. In other words, establish yourself and your client base in a positive progression.

Q: By contrast, how would you counsel an American company that was contemplating an expansion into a foreign market?

A: The same as above and make sure the professionals you hire have expertise in international law, accounting etc. or have an affiliation with a firm in the country you are entering.

Q: During your tenure as International Trade Director for the Central Florida Development Council, what were the most common types of legal problems encountered by international companies?

A: The most common two problems involved contracts to provide goods and/or services and employment contracts. And in most cases, the problem was the result of not having the proper or no legal representation before the fact.

Q: What basic recommendations would you give to an international company or individual seeking advice about a legal problem?

A: Do not try and resolve the problem by yourself; you may only make the problem worse. I would then recommend seeking counsul from an international attorney with expertise in the law of the country where your problem exist or has an affiliation with a firm in that country and next time call your attorney first.

Q: In your opinion, what’s the biggest mistake an international company or individual can make when a legal problem arises?

A: Trying to resolve an issue without legal advice with the knowledge that the other party has representation or contacting their real estate or divorce attorney to seek advice for an international law problem.

Q: Do you have any predictions about the future of international business?

A: I have an opinion more than a prediction and that is I believe there is great opportunity to be had and that every company should take a serious look at developing international partnerships whether it be to buy or sell. It is truly a world marketplace and becoming a world economy and each of us are touched by international trade. We cannot be separatist and must be aware of the possibilities of doing business overseas when the opportunity arises. On the other hand, I think we should proceed with caution when dealing with China. It is certainly a market with good potential, but with serious pitfalls. It is a market that needs close attention by our government to insure that level playing field that I mentioned earlier.

INVESTING IN AMERICAN REAL PROPERTY IS NOT AS DIFFICULT AS YOU THINK*

By Fred Reilly, American Attorney and English Solicitor

* This article originally appeared in International Residence Magazine (Spring 2007), the official publication of the Moscow International Property Show.

Do you dream of owning a mansion, condominium or investment property in a prestigious American market like Beverly Hills, Las Vegas, Miami and New York? Or maybe a vacation home near Florida’s subtropical beaches. It’s not as difficult as you may think.

Over the past two years, I’ve participated in the Moscow International Property Show four times. Some Russians are surprised by my presence – why would an American attempt to sell United States property to Russians? I will be the first person to say that United States real property isn’t for everyone. But for the sophisticated international real estate investor, the United States represents one of the most stable, prestigious and profitable markets in the world.

The purpose of this article is to correct five of the most common myths that I’ve heard while discussing American real estate with international investors.

Myth #1: The American government places severe restrictions on the ownership of property by international citizens.
Reality: There are very few restrictions on the ownership of United States real property by international investors. The few restrictions are basically governmental reporting requirements for analytical and statistical purposes. There are no residency requirements or prohibitions against foreign ownership of real estate like those imposed by some countries. An international investor can take title to United States property as an individual or in the name of a legal entity (corporation, partnership or limited liability company).

Myth #2: The United States real estate market is only for the wealthiest international investors.
Reality: America has many luxury markets where multi-million dollar homes are the norm. But many middle-class international investors are surprised to learn how some of the most vibrant American markets are within their financial reach. Here are three prime examples that highlight how affordable some markets really are. The median price for a single-family home in Orlando (the number one tourist destination in the world) is $264,110. The median price for a single-family home in Miami is $371,660. In addition, the median price for a single-family home in Los Angeles (which has a very large population of Russians) is $533,740.

Myth #3: Financing is not available. An international investor purchasing American property must pay the entire purchase price at closing.
Reality: American banks will finance an international investor’s purchase of real estate. Typically, the international investor would be expected to make a down payment of 20 to 30 percent of the purchase price and the bank would provide a mortgage for the remaining amount due. For example, an international investor purchasing a $ 2 Million vacation home in Beverly Hills would be required to pay $400,000 at closing and obtain a mortgage for the remaining $1.6 Million. The investor then repays the mortgage by making monthly payments over a 15 to 30 year period.

Myth #4: It is very difficult for an international investor to manage an American investment property.
Reality: Foreign owners typically hire professional management companies to maintain their property. For example, it is commonplace for the owner of an oceanfront condominium to hire a property management company to handle the business affairs. The property manager can find tenants, collect the rental payments, make repairs and monitor the property for a foreign owner. The cost of these property management services range from10 to 15 percent of the property’s monthly rental payment.

Myth #5: It is impossible to obtain a visa to travel to the United States.
Reality: Obtaining a temporary business or tourist visa to the United States is not as difficult as you think. The United States Embassy in Moscow processes applications for temporary tourist or business visas. The Visa Services section of the Embassy’s website (http://moscow.usembassy.gov) has both English and Russian explanations of the procedure for obtaining a visa. The procedure is relatively simple. A Russian investor who wants to visit the United States to investigate a potential property should obtain a letter of invitation from their American real estate broker. When applying for the visa, the Russian applicant must demonstrate that they do not intend to immigrate to the United States and intend to return to Russia. The application fee for a temporary business or tourist visa is $100. Once your visa application has been submitted, you must schedule an interview. The typical wait time for a visa interview at the United States Embassy in Moscow is 14 days.

Don’t allow these common myths to prevent you from realizing your dream of owning real estate in the United States.

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