Zack Childress Guidelines for Historic Real Estate Scams

zack childress guidelines for historic real estate scams

Zack Childress guidelines explains the real estate scandals recorded in the history in this article.

1.The Enron Company

It is located at Texas was started in the year in 1985 which was filed under bankrupt in 2001. The corporation was considered to be one among the 5 largest audit companies and later it got renamed as one of the biggest company that faced an audit failure. The SEC commenced its investigation procedures and accepted to sign a deal with the company which later failed on December 2, 2001. The assets possessed by the bank were 64 billion worth.  The financial statements confused the analysts, economists and investors which led to the downfall of the company.  The former president of the country was sentenced imprisonment for 24 years.

2.The Ponzi scheme

It is a fraudulent operation where income is generated through the new investors and the collected revenue is paid to senior investors.

3.How it worked?

The promoter takes all the money once he gets all the invested money. The scheme stops or halts temporarily when the revenue generated slows down as high returns are required throughout.  The activity recorded worth 65 billion became widely popular which happened in the year 2008 and was given a 150 year imprisonment.

4.Lehman Brothers

An investment bank Lehman which had accumulated assets for 600 billion worth faced a bankrupt on September 15, 2008 and it is considered to be one of the largest ever scam  in the history of real estate, and still there is no accusation filed on any of them.

5.Cendant

A collaborative effort of CUC international and HFS made it possible to start a company called Cendant in December 1997 which dealt mainly with real estate and tourism. The fraudulent activity took place for about a decade and a massive sum of money was accounted under scam. The estimated cost was about 14 billion dollars. The scandal took place immediately after the collaboration and recorded to be largest fraudulent activity in 1990’s. The accused was charged for imprisonment. In October 2005, the collaboration got broke up officially.

6.MF global

It was formerly known as Man official and faced a bankrupt on October 31, 2011. The company dealt with trading, foreign exchange and betting. In December 2014, the company agreed to pay 1.2 billion dollars and 100 million dollar fine as customers faced financial loss. They had 41 billion worth assets.

Zack Childress Real Estate Terms

7.WorldCom

It is newly renamed as MCI; it is a telecommunications company which is considered to be the second-largest phone company. They paid 750 million dollars to SEC owing to the bankrupt filed in 2002 and many investors were affected due to the scam. Around 11,000 employees were laid off. The company has nearly 103 billion worth assets. The CEO got convicted and was kept in a federal prison.

Fannie Mae is actually FNMA paid 400 million dollars to SEC as their financial statements got misinterpreted until 2004.

To know more about historic scams, check out part 2 in REI quick cash system

Zack Childress Tips-How to Avoid Real Estate Investment Risk?

Zack Childress Tips-How to Avoid Real Estate Investment Risk

Zack Childress tips the obstacles that an investor faces while making a real estate investment.

  1. Population: The baby boomers require retirement homes or multi-generational housing, as a result the need for housing units increased. Instead of retail, more health care centers were necessary.
  2. Students often take home loans to stay in an apartment; they shoulder the responsibility of paying debts on time. Their parents are in trouble when they fail to miss out on mortgage payment.
  3. Public or crowd-funding have increased off late to improve infrastructure and quality of life. They have replaced the federal funding.
  4. Demand for office setup: The commercial as well as IT sector is growing drastically and need for space has also increased. Due to this, the work from home policy started as youngsters preferred to work in their comfort zone.
  5. Similarly e-commerce has reduced the demand for retail market space. The consumers have switched over to online shopping as it is easy to pick the products of their choice, wide range of collections, brands and chosen based on their affordability.
  6. Liquidity: The number of lenders is less than number loans to be refinanced. This has made the number of borrowers less and eventually capital gain is becoming low.
  7. Equity trap: unable to sell a property at your desired price. In other words, your cash is in use in another property.To avoid getting trapped, invest in properties that have positive cash flow.
  8. The energy efficient home, conservation on energy, light, water theme has become stronger in order to achieve sustainability in commercial real estate.
  9. Commercial real estate prices on the other hand started to see a rise in the value.
  10. When your properties are not diversified in geography, the overall effect is magnificent. That is, if the properties are wide-spread and when property value declines, the effect is negligible else disastrous.

To know more about risk management, investors can have a look at REI quick cash system.

How to mitigate real estate investment risk?

  1. Improve the prediction: when you are sure that risk is about to happen, then make a strong prediction
  2. Operating expenses should be assumed firmly.
  3. Diversification in terms of stock, risk profile, holding period
  4. Insurance contract: The investor can spend on insurance premium so that if a major loss occurs, the insurance will cover up.
  5. Triple net (NNN), two-party contract are few lease structures that can be taken up to avoid risk
  6. Fixed debt has higher ROI than Floating debt.
  7. One of the frequently used Hedging techniques is allocating funds for future. The reserved funds are used to cover up any unexpected expenses.
  8. Tenants may damage your property; screening will help you to choose the best tenant.
  9. Use cash-on-cash returns and IRR (internal rates of return) which are similar to cap rate.
  10. Be clear with the legislature, follow the law and order.
  11. Stay away from scam. The risks are unavoidable and necessary measures are to be taken at the right time.

Zack Childress Exclusive Guide on How to Buy Distressed Properties (Part 1)

zack childress exclusive guide on how to buy distressed properties-part 1

Zack childress foreclosed properties are becoming more preferable for investors with a calculative mind.Zack Childress’s educates the fellow investors with this comprehensive guide on how to purchase foreclosed home, brings out the positive features of the distressed homes.

These homes are considered to be non-performing assets which is disposed very quickly by bank or any organization holding it because the holding cost is high. The bank chooses the first bidder and usually follows first come first serve basis and avoids multiple offer situations to avoid confusion.

When distressed homes are sold through auction, the buyer pays only 5 to 10 percent of the down payment as well as low monthly mortgage repayment.

The value appreciates right after the repairs are made and sold at a price similar to a newly constructed home when it is bought a location that attracts the buyers. The buyers can fetch the amount spent on repairs when the property is sold.

To prevent from scam and to know more about foreclosed properties, investors can make use of Zack Childress REI quick cash system.

The following are the real estate guidelines that the investor must keep in mind while purchasing a foreclosed home

  1. Where to find these properties?
  2. Banks, insurance companies display the recently available foreclosed homes for sale. Many property portals and real estate websites provide property listings exclusively for people who search for properties online.

  3. Home inspection
  4. As you know it’s a distressed property, the damage can either be minor or major. Depending on which, the cost of the repair is estimated. If repair costs are too high, many would not prefer. While you go for inspecting the property, check the walls, plumbing and sewage. Scrutinizing the property will help you to find whether it’s worth or not.  The maximum time should be 30 days for finishing the repair work.

  5. Location
  6. If the property is at a developing area or at an area where there is constant appreciation in value, then its worth. Your property should be free from natural calamities and hazards.

  7. Negotiate
  8. Negotiate on the deal by comparing the prices of foreclosed homes in that area or in the vicinity.

  9. Be smart
  10. When you want to be a part of the race, you need to be little smart than others. Get approved and qualified in prior from the mortgage lender so that you are edge above the others.

  11. Down payment
  12. Sellers or any firms consider the buyer who makes largest down payment for distressed home sale. So buyers should be ready with some initial amount for the down payment to compete.

  13. CTS
  14. Contract to sell is easier and faster than mortgage loan which is complicated and takes a month long time.

  15. Fixed ROI
  16. Choose the interest cap rate that has fixed ROI (rate of interest) to avoid from fluctuating ROI market.

These homes when upgraded can be used as luxury mansions or starter home or however you want to redesign for quick home sale.

Zack Childress Overview on Real Estate Crowd Funding

zack childress overview on real estate crowd funding

Zack childress,the 21st century has paved way for new innovations and inventions in the real estate marketing. In 2013, Crowd funding emerged in the market and gained its popularity among the investors. New investors are starting their career with crowd funding methodology as it offers various opportunities ranging from commercial real estate, residential plots, office buildings etc. it allows individual investors to   collaborate with other investors to use all their funds in an investment.

The REI quick cash system founded by Zack Childress throws light on how to do crowd funding where investors are getting benefited.

Crowd funding introduced flexibility factor as investors can purchase multiple properties at a time, this in turn eases out cash flow easily. The technique has widened the boundaries for the investors as they can market their properties across the country. Various types of investments are possible through which you can diversify your portfolio. The crowd funding sites does most of the work like finding buyers and assessing their risk.

Types of Crowd Funding

  1. Debt
  2. equity investment

Zack Childress complaints points out about retirees who cannot indulge in home flipping. As well as, it is an art that takes long time to master as rehabbing is not an easy task. For those, automated wholesaling system is a great way to learn about co-wholesaling. Later, he must be in a position to predict the unexpected expenses that can arise during rehabbing.

Zack Childress reviews talks about Pros and cons of crowd funding.

  • No connect with industry to make investment; private investors can make use of this opportunity to the fullest.
  • After screening, the most profitable and legitimate investments are selected. The investors are informed about the process and crowd funding companies track the performance and investments of the investor.
  • Provides an opportunity to select the investment according to your portfolio.
  • You can own either single or multiple properties.
  • The returns are around 8 to 12 percent

Cons

  • Only accredited investors are allowed to invest.
  • Fees are collected from the investors for accessing the information.
  • If there are many people involved in an investment, you need to share your profit equally with all.
  • In the campaign, developer plays the key role in managing the property.
  • Liquidity: These investments are illiquid.
  • The financial loss is incurred by the investors only; the investor doesn’t realize the fact that his money is being utilized by a developer.
  • These properties are not traded. At times of emergency, you can expect cash flow easily.
  • Standardization cannot be expected as these campaigns are not regulated.
  • There are no core investments for diversification of portfolio.
  • Fragmentation, most sites are restricted to open investments.
  • To get access to open investments, you need to sign up.

There are various possibilities through which scam can happen while investing in a crowd funding campaign; you can prevent yourself from scam by learning on how to tackle those situations beforehand.

Zack Childress Real Estate Eye Crowd Funding To Attract Investors

Real estate companies that are in need of seed funding now have a new destination: Crowdfunding web sites.

    • Zack childress real estate-The Wall Street Journal has reported on the rising number of crowdfunding web sites that banks on the promise of easy online investing. According to The Journal’s estimates, these crowdfunding companies have raised “over $135 million in debt and equity for real estate transactions.”
    • A report on Entrepreneur.com meanwhile stated that Realty Mogul received a $9 million funding from venture capital firm Canaan Partners. Within the week, RealCrowd, another real estate crowdfunding platform, also raised $1.6 million funding from real estate developers, Y Combinator, and the Data Collective.
    • Fundrise, another fast-growing crowdfunding web site, also made headlines in June when it received $31 million seed funding from $31 Chinese social media company Renren, and real estate companies Ackman-Ziff, and Silverstein Properties.
    • Citing Crowdnetic data, a Sacramento Bee report noted that while the amount is nowhere near the $700 billion market valuations of publicly traded real estate investment trusts (REITs), the segment is rapidly growing in the crowdfunding space.
    • Among top real estate crowdfunding web sites are Fundrise, Realty Mogul, Realty Shares, CrowdStreet, Collaperty, GroundBreaker, CrowdBaron, iFunding, Prodigy Network, and Patch of Land, according to a report on the Crowd Crux website.
  • Zack Childress Overview on Real Estate Crowd Funding

    Crowdfunding investing is not without challenges, however, the Sacramento Bee report noted.

    “If you look back at online stock trading 20 years ago, all of the same kind of early adopter concerns people raised are the same here. Will there be fraud? Will people know how do to it? Will they adopt it?” EarlyShares executive Joanna Schwartz told Sacramento Bee.

    But Schwartz believes that crowdfunding website’s ease of use and money-saving features will succeed in luring investors in.

    “Going direct, there are a lot of fees we are saving for both sides here,” she said.

        1. Real estate companies looking into signing up for crowdfunding platforms can position themselves to be more attractive to investors through disruptive marketing technologies. One company that offers this kind of technology is RealBiz Media Group, Inc. (OTCQB: RBIZ).
        2. RealBiz Media is a digital media company that develops real estate technologies that allow agents and brokers to market their listings to untapped markets.
        3. RealBiz Media is rapidly expanding, forging a series of key partnerships with real estate and technology companies that include forms software developer zipLogix, and Atlanta-based Coldwell Banking Residential Coverage. Its clients include nationally-recognized real estate firms Keller Williams, Era Real Estate, Century 21, and Prudential Select Properties.
        4. As proof of its steady growth, RealBiz Media recently acquired real estate social media marketing platform ReachFactor to beef up its marketing platforms.

    Zack Childress Overview on Real Estate Crowd Funding

    RealBiz Media also runs a video on demand channel under the Home Tour Network, according to the Stock Lama website.

Zack Childress List of Real Estate Investing Trends in 2017

Zack Childress List of Real Estate Investing Trends in 2017

Zack childress,the real estate industry is growing rapidly with advancements in technology, increased demography, and urbanization. Zack Childress real estate reviews throws light on statistics and trends in real estate for the year 2017.

  • Most of the homes are purchased for investment purpose and renting out properties became predominant.
  • Drones and augmented reality are emerging; more advanced drone technology is likely to be introduced from next year. These drones help to capture high resolution aerial pictures of the house from the top which can be posted on social media to attract buyers.
  • Non-bank lending and treasury yield moved up more than 50 basis points.
  • Less financial regulations will be easier.
  • Real estate crowd funding is considered to be evolving industry and expected to grow in capital. It is attractive for investors who want to purchase a property with minimum capital investment. Due to its liquidity, it moved to institutional areas where you need to be carefully approached. With a strong base of solid investors, you can flourish. It focuses on non-accredited investors.
  • There is still abundant amount of belief that home ownership will continue to improve in the forthcoming years. Millennial and technology advancement go hand in hand as millennial population is enormous and has strong base among tenants.
  • If there is an increase in interest rate also, there is not going to be much difference. The causes of increase in rate of the interest are to be identified.
  • Economy and job growth has not seen much rise for past a decade. As to have a better economy, the rate of interest has to be low.
  • Job growth is needed because when salary of an individual increase, the affordability price of the housing also increases.
  • With low interest rate, one doesn’t indulge in buying home as he/she is concerned about the welfare.
  • Entry level buyers face a difficult situation as there are very less or no properties within their price margin. The single family homes are bought by the renters instead of homebuyers which results in high returns for investor landlords.
  • The trend shows that the demand is high but supply is low. There is an issue that it takes very long time to finish building the properties.
  • Markets are getting strengthened owing to good location. The real estate market is likewise, there can be rise and fall. The value of the land may appreciate or depreciate, it depends on the location. Considering all these factors, cash flow will be regular and steady. Streamlining the cash flow is essential.
  • Population growth, job growth, job diversity, cities with 5 or 10 year plans are the key areas to be invested. Along with hike in interest rate, mortgage rate also increases proportionally.
  • Outsourcing and startup culture have started to emerge, this results in requirement of space for conferences in central locations.
  • Tech-geeks need space too like Uber, Snap chat have spent in billions funding for their office setup or go for lease option.

Zack Childress quick REI cash system throws light on how to prevent from scam and Zack Childress automated wholesaling system can be used for co-wholesaling

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Zack Childress Real Estate Guidelines on Land Lordship

zack childress real estate guidelines on land lordship

 

Zack childress once you have become landlord, there are certain things that you need to know and follow. There are certain perks and peril that you need to know before you do anything.

  1. Fundamental steps
  2. Make it legal
  3. Rent collection
  4. Taxable income
  5. Maintenance
  6. Common areas
  7. Décor
  8. Law and regulations
  9. Vacating
  10. Long term tenants
  11. Security deposit
  12. First time landlord
  13. Screening process

Fundamental steps

With good amount of saving, choose the right property at the right location and become a landlord.

Make it legal

You cannot rent out a space just like that, you need to get approval from the government and other legal procedures are to be carried out. Insurance has to be applied for all the units in a household. Later you cannot claim if any damage happens.

Rent collection

Know the method to collect your rent. Fix up the deadline date and mode of payment.

Taxable income

You must provide receipts to your tenants and file tax returns, so entire rental income doesn’t come to your pocket. You need to pay appropriate amount of tax at regular intervals.

Maintenance

You need to be aware that yearly once or bi-yearly you need to spend on repair work. Appliance repairs, home maintenance are part of landlord life. Allocate funds for such expenses.

Common areas

There are some common areas and things in housing, like parking, elevator. These must be taken utmost care and all expenses spent on these things should be shared by both tenants and owners. You can enhance in whatever way you feel to ensure privacy and safety.

Décor

Don’t spend much on décor as it is waste of money and ensure all amenities are provided.

Law and regulations

As a landlord you must be aware of all the rules, regulations and laws. There may be amendments from time to time. So the landlord should keep him/herself updated.

Vacating

The landlord must inform in prior if the tenants have to vacate the place. 2 months prior notice can be given before lease ends. You need to paint the walls and make necessary home improvements before the new tenant enters.

Long term tenants

You can build good rapport as well as it is cheap on longer run.

Security deposit

You should keep yourself informed about the first and last month payment amount of the tenant, the tenant should pay the security deposit to the landlord which would be repaid at the time of tenant vacating the place. The security deposit is used for repairs and maintenance purpose; it is used when unexpected damage or repair takes place.

First time landlord

You can take help of the real estate agent/ realtor /property managers in assessing the tenants, though you need to pay them, you can get good tenants.

Screening process

Before the tenants occupy, selection of tenant takes place by screening process. This is done to get to know about the background information of your tenant. Depending on which you can choose the reasonable tenant.

Beware and not bargain, there are many types of scam going around. Scammers may approach you in form of tenants and betray you. Investigate properly before letting anyone in.

To know more about land lordship, investors can check out Zack Childress quick REI cash system.

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Zack Childress Real Estate No Money Down Strategies

zack childress real estate no money down strategies

Zack childress real estate many potential real estate investors face a depressing situation when a deal couldn’t be afforded owing to poor financial status.Zack Childress automated wholesaling system allows the new investors to co-wholesale without using credit or cash.

Zack Childress reviews suggest some strategies where you can purchase properties in different ways.

  1. Lenders
  2. Mortgage
  3. Lease
  4. Down Payment
  5. Personal Property
  6. Exchange Skill Sets
  7. Partnering

Lenders:

Borrowing the down payment is the simplest way to purchase a property without using your money. In order to do so, you must find a suitable lender who offers cash with low interest rate or home equity or LOC (line of credit) which includes tax benefits of mortgage. You can also lend from real estate brokers to make your down payment.

Mortgage:

Making use of seller’s financing partially for purchasing your property, it would be great if it has low interest rate. As a result, the buyer is entitled to have ownership in his name for paying the mortgage of the seller. The other way is to combine the mortgages, i.e. if you own a property already and you are availing mortgage, and you can take second mortgage for the currently purchased property.

Lease:

Many buyers aren’t aware that the buyer who resides in a rental property which is on lease period is eligible to buy the same property when there is a clause in the agreement stating that a particular sum of money has to be paid by both seller and buyer for the use of the property. The lessor (buyer) can purchase the property at the end of the lease period with a fixed price. The rental payments are the source of funding for the property purchase. Either whole or some portion of rental payment is used according to seller’s choice.

Down payment

The buyer is allowed to request the seller to pay the down payments in instalment basis or a balloon payment at the end of the year. You can also take charge of paying the seller debts instead of the down payment for your property or you can opt to pay higher price for the property in instalment and no down payment.

Personal property

The buyer may not be affluent at a point of time, but owns few properties like car, boats, furniture that can be exchanged for down payment.

Exchange skill sets

If the buyer has potential point of contact like lawyers, accountants etc are professionals needed mutually by both seller and buyer. Instead of making down payment, the buyer can exchange the skill sets of these professionals. So the seller will not be paying any money for these professionals.

Partnering

You can take help of financially sound partner; ensure that no mess happens as there would be many people in a deal. In return, you can make the deal for both i.e. the property ownership is shared by both of you.
There are many types of scams going around, for e.g. when the seller exorbitantly charges you with a down payment and call it closing cost or some fees.

To prevent from such scams, visit Zack Childress quick REI cash system where he has described about the strategies for buying real estate free.

Zack Childress Real Estate Ideologies on REIT

zack childress real estate ideologies on REIT

 

zack childress Real estate investment trust (REIT) has been in existence for nearly 2 decades which helps in managing and buying rent producing asset like office and retail outlets. Properties held by REIT can be sold and reinvested and gains will go the holders. Assessing the property will happen once in 6 months. REIT is more profitable for developers who have invested in commercial properties, private equity funds, also helps the investors to purchase large properties which they couldn’t do with their own resources. The main objective of purchasing a property is that it will appreciate in its value in future and REIT helps in cash flow by providing several ways to earn rental income. REIT is more like stocks and trading having limited liquidity.Zack Childress throws light on REIT as follows.

REIT is preferred because

  • Distinguished asset classes and diversified investment
  • When economy is good and stable, returns are high
  • Developers can launch new projects with the funds raised in REIT’s old projects
  • REIT returns are more than mutual funds returns
  • High dividends and historical returns
  • Income stream for retired people
  • Steady payouts
  • Ability to use leverage
  • Tax benefits
  • Publicly traded REIT have high interest rates
  • Long term performance

How to establish REIT?

  • Select low risk cash flow model
  • Legal structure should be assigned properly
  • Markets are created and implemented with robust cash flow model
  • Fund listing and management
  • Determine risk factors before investment

REIT helps you to own portion of real estate (shopping complex, office, and housing) etc and they are volatile in nature.

 

Types of REIT investments

 

  • Retail REIT investments are very profitable and represented to be biggest investment and if tenants don’t pay them, it may lead to bankrupt.
  • Residential REIT own and manage multi-family rental properties, the important factors to keep in mind before investing are population and job growth.
  • Healthcare REIT is steadily making progress as every citizen may fall sick at one point of time. They invest on health care units, nursing facilities etc. The profits and benefits earned through this real estate are directly benefited by the hospital management. The customers must be diversified so that you get to invest on different health care systems. The increase in Medicare services reflects the healthcare REIT growth.
  • Office REIT investments are mostly concerned with office buildings. The rental income from tenants are usually who have contracts for long terms (Lease).
  • Mortgage REIT 10% of REIT investments are from mortgage and it has its own risk involved like when interest rate increase, there is a fall in the mortgage. The money is obtained from secured and unsecured debt offerings. When interest rate increases, the future financing is tougher.

Non-traded REIT is risky and many scams are involved, it is illiquid and not suitable for retired and many fees are involved, acquisition of property in most cases is unknown. If details aren’t provided by your brokers, it can be scam.

To stay scam free, investors can read the blogsin Zack Childress REI quick cash system and new investors can make use of Zack Childress automated wholesaling system  to do co-wholesaling at free of cost.

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