Zack Childress - Pros and Cons in Retail Real Estate Investment

I will now be talking about the retail real estate in which the investors can invest. The beginners might ask this question, “What is a retail real estate?”

The answer to this question is simple. It simply means retail properties that are used in the market to sell customer goods and services. Supermarkets, shops, offices, dry-cleaners, cafes, etc. come under retail real estate category. Other retail properties are stand-alone retail buildings, restaurants, retail within offices, industrial and residential developments.

 Retail property investment offers solid returns to the investors.  Zack Childress has mentioned about its pros and cons.

Pros and cons in retail real estate investment

The Retail real estate investment gets the customer to your doorstep and enables you to sell your products to them. Shopping malls are the main attraction in the city as it has all the products under one roof. Below are the pros and cons about retail real estate investment.

Pros

1. High Returns – Investors go for the retail business as they get more yields in this business. It is calculated as the percentage of annual rental income/Price paid for the property. It offers 5 to 6% to the investors who prefer an income-stream based income over capital gains.
2. Long Leases – Retail leases provides longer leases than residential leases to the tenants. They are signed for at least 5 years, which gives the security to the landlords. Most of them also include annual rent increases, which is very often tied to customer price index (CPI). The turnover rents give the percentage of the gross annual income to the landlords, which can be a good motivation for the retail real estate investors.
3. Low maintenance – Retail leases have the tendency to be net leases as the expenses like real estate taxes, insurance, utility bills and maintenance costs as the tenants have to bear them. If you are the owner of the real estate property and renting it out, you get tax benefits.

Cons

1. Retail can be tough business – The retail industry is very sensitive to economy state. If the economy is down, it affects the retail sectors and businesses might fail. If you decide to invest in retail real estate, you should be prepared for the long vacancy periods during the economic crunch. You need to find out about the prospective tenants before signing the lease.
2.  High Investment – This is the major obstacle for the investors as they have to deposit at least 30% and pay the high interest rate.
3. Changing consumer patterns & demographies – As far as real estate property is concerned, location plays a critical role. It should be easily accessible for the tenants with respect to parking, public transportation, grocery, clinics, hospitals and pharmacies.

Conclusion

Retail property attracts more investors. It is more suited for private buyers, overseas investors and property trusts. A-REIT’s are suitable for the small investors as it is the easiest way for them to start their business in retail real estate.

Zack Childress’ Real Estate Scam Victims

Real estate investment is a very good way to make money. The quickest and easiest way to make money is by Zack Childress’ concept called co-wholesaling real estate investing system. When you surf for this information, there are many attractive offers but most of them are just too good to be true.

Zack Childress cautions every real estate entrepreneurs against the scams. A fraudster has numerous ways to extract cash. However, there are common ways in which a fraudster tries to get money from you. 

Title fraud

Though this type of fraud is rare, it is the most scary thing. It has got to do more with your identity than cash. In this type of fraud, the fraudster acquires the secured loan in your name by forging with the documents and gets the cash, but it is the real owner who has to pay these loans. 

Title fraud is common with the homes that are not mortgaged under any individual or party to get a loan. Once they go with the cash, the fraudsters are likely to target those homes that are either free from the mortgage or the homeowner has redeemed their house from the mortgage company paying all the loan installments.There are many ways to avoid this type of scam but the two suggested and the recommended ways are to take title insurance and avoid issuing vital property documents till the last stages of transferring the ownership to them. Title insurance protects the homeowner against this fraud. It guards against the new owner from existing liens against the property’s title such as unpaid debts, from utilities, mortgages and unpaid property taxes like wealth tax. The other way is to focus on protecting your personal data. Taking appropriate precautions avoids identity related theft losses.

Loan Modification

If the homeowner have mortgaged or pledged the house to the mortgage company & are struggling to repay the loans due to high interest, there is a tendency to approach the agency to help them to save their house. This is the weakest moment for them where the agencies take advantage of the situation & exploit them. If the lender is a fraudster, they will give foreclosure options like reduced mortgage payments to access your bank account.

You need to watch out certain aspects such as advance fee, redirect the payments from the mortgage company to their agency, guarantees to save your house from foreclosure & asks for your bank account information. To be on a safer side, consulting an advocate or financial advisor would be even better. If you are buying the house for the first time, then you are ought to be more careful from the fraudsters.

There is a proverb saying,“Prevention is better than cure.” It is always better to be on your guard rather than regretting later. If you have become a victim to these scams, contact Sheriff Station police station or the Attorney’s office and give them a written explanation about the incident.

Reverse Mortgages – Pros and Cons

What is reverse mortgage?

With intent to keep older Americans in their homes, the Congress passed the Reverse Mortgage bill during 1988, which endorsed the Federal Housing Authority (FHA) and the United States Dept. of Housing and Urban Development to promise lenders who made home equity conversion mortgages. Classified under the category of specialized loans, individuals who are 62 years or older than that are bound to have this reverse mortgage loans available by their primary residence, and for a mortgage sum that provides a satisfactory equity so that at prime of life the loan may be reimbursed.

This type of loan can also be used on single family homes, condominiums and certain manufactured homes. The borrower is still responsible for other fees and should remain up to date on property taxes, homeowners insurance and homeowner’s association dues (if applicable).

In simple, reverse mortgage also known as home equity conversion mortgage is a type of loan that requires no monthly mortgage payments, however the borrower is held responsible for taxes and insurances that have to be paid for that particular mortgage. Now let us have a look at the pros and cons associated with reverse mortgages. 

Pros and cons of reverse mortgage

Pros:

• The homeowner can enjoy staying in the home without having to pay any monthly mortgage payments
• Heirs take over remaining home equity after paying off the reverse mortgage loan
• Legatee are not legally responsible if payoff balance surpasses home value
• Interest rates may be lower when compared to other available options
• Flexible payment options (i.e. monthly or line of credit)
• Exclusion of existing mortgage
• Proceeds are tax-free

Cons:

• The worth of property inheritance may diminish over time as proceeds are used up
• The concept of reverse mortgage is not well understood by many.
• Even though a reverse mortgage loan normally does not have an effect on eligibility for Social Security and Medicare, according to the extent to which it is needed government programs such as Medicaid may be affected.

Reverse mortgage guidelines

To be qualified for a reverse mortgage loan or Home Equity Conversion Mortgage, the Federal Housing Administration requires that you be a property holder 62 years of age or older, own your home out-and-out, or have a small mortgage outstanding that can be paid off at closing with profits from the reverse loan, have the fiscal possessions to shell out ongoing property charges together with taxes and insurance, and you must reside in the home.

To know more about reverse mortgage rules and requirements read Zack Childress real estate reviews on reverse mortgages. Guiding the aspiring realtors practically, Zack is working on the key concepts of real estate that will help you generate quick cash in this competitive field. Throwing light and educating so many aspiring realtors and real estate enthusiasts, if you are looking to achieve more investing in real estate, consider signing up for Zack Childress real estate riches seminar and you are sure to uncover the real tactics.

Zack Childress co-wholesaling software review 

 

Investing in real estate with co-wholesaling is an art when done right, it is rewarding at the same time, it is said to bring in a whole lot of risks and loss when done incorrectly.

This way of wholesaling properties by forming a joint venture with other wholesalers is a great strategy to earn quick money, however, nothing great ever came that easy. There involves a lot of complex things in order to be successful in this particular method of making money, but not with Zack Childress co-wholesaling software.

The best part about this software is that it will cut your time spent on bringing in profits in half! Involving 8 modules, the easy to follow techniques is a complete plan for wholesaling your way to financial freedom.

This software comes with everything that you need to keep going with, meaning, this training system comes with documents, spreadsheets, easy to follow call scripts and marketing templates that are aimed at getting you started in the art of wholesaling real estate.

Simply said, your real estate proposals could be made in seconds’, irrespective of the experience you hold in this field whether a novice or an expert, both will find this to be beneficial. Get it now and sign up for Zack Childress other programs to have a bright future in the field of real estate and make money.

 

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