There are very many resources on how to succeed in real estate on the internet. There are also many great deals available online. However, there are also very many scams that are out to steal from real estate entrepreneurs.
Zack Childress scam warning tips take you through some of the common ways fraudster try to get your cash and how to avoid them.
This is the rarest type of fraud but the most devastating of all. The fraudster gains the title documents from the real owner of the property, forges the documents, and then transfers the ownership to his own name. Using the forget documents, the fraudster takes a mortgage or any other line of credit and leaves with the cash.
Title fraud is prevalent with homes that are free from mortgage and owned by old people. These people do not know how to protect themselves from identity theft.
To avoid falling victim, avoid sharing the critical property documents with the third parties until the final stages of the transfer of title. You can also take title insurance.
Foreclosure or home-equity fraud
If you are short on funds, you may use the property to get some cash to cover your expenses. Criminals approach the funds-stripped house owners and promise to consolidate the loans as he holds the title for the property. The criminal then fails to make payments as agreed. He also keeps all the payments that are made by the client. After sometime, the criminal reportages the property and disappears with the cash. The house owner is left in debts without the property.
Be wary of agents who promise good deals in exchange for the property equity. Leveraging properties is always very risky. However, if you must do it, consider using a lawyer and your financial advisor.
Property investment courses and seminars
It is important that you educate yourself on real estate. However, ensure that you do the research on the suitability and the accuracy of the courses before enrolling into the programs.
Seminars where the speakers try to sell their properties are scams. Likewise, avoid workshops, which charge excessively but have no proven success against their claims. If you got to a seminar where you are forced to buy a book or a program as a requisite to earn from the information, it is likely to be fraud. Genuine courses give tons of free valuable information and only charge for the exclusive information for the attendees.
Protecting your asset from creditor claims is no easy thing, you have to be vigilant every step of the way. Business entities use asset protection methods to lock up creditors’ access to some valuable assets while working within the limits of the debtor-creditor law, individuals need to plan right and follow certain important rules for building asset protection. The interventions involved fluctuate as creditors are concerned about the strategies and techniques of collection, while debtors show up protecting their most valuable assets from potential creditors.
Start early and keep it simple
Act before a claim arises! To show up after a claim or when liability arises is not going to be very effective. Analyze nook and corner to figure out the negativities on your side and be ready for it before not later. This is because what you do subsequent to a claim rises could be undone by “fraudulent transfer” law. So, always remember to start early and finish it off before the problem could show up.
Don’t procrastinate, because it will have an adverse effect
Scheduling for asset protection subsequent to a claim can make things worse. It is generally misinterpreted that the only thing an arbitrator can do is to unwind a deceitful transfer, leaving a defaulter who in vain tried late preparation no worse off than if he had done nothing. Conversely, both the defaulter and whoever supported in the counterfeit transfer can turn out to be liable for the creditor’s attorney fees, and the defaulter can lose the hope of getting liberation in economic failure.
Always remember,personal assets are for trusts and business assets are for business entities which include corporations, partnerships, and LLCs; these are meant to be vehicles for commercial operations. Don’t mix personal assets and business assets, when you do so, the possibility for the unit to be cut by a creditor on some theory or another is exponentially high.
Know the functioning of asset protection planning and tax & estate planning
Habitually asset protection planning and real estate planning toil as one, however occasionally they are on the outs and what is considered as a good idea for estate planning may not be the same for asset protection, it can be contradictory. So, plan for it separately, take a legal counsel when you think it’s necessary.
It is not a replacement for insurance
The concept of asset protection planning should not be a surrogate for liability and insurance, but rather should supplement insurance. It is a falsehood that asset protection strategy always scare away plaintiffs, and an asset protection plan doesn’t pay officially permitted fees to protect against a lawsuit.
Hope you found this article to be helpful. If you wanted to unveil some more profound knowledge about asset protection techniques, see Zack Childress asset protection riches which will help you know more. Educating realtors, Zack Childress real estate reviews are a blessing to beginners who wanted to make quick cash in the field of real estate.
A question might arise as to why entrepreneurs should go for investment in the first place. The reply to this question is that we need to acquire sufficient money to eke out a living when we no longer desire to work, or not in a position to work. For us to attain that money, we have to gather sufficient money to beat inflation and taxes that deplete our savings. To serve the purpose, real estate is the best option.
The best aspect about realty is that even if the economic scenario is bad, it will perform better than stocks. In fact, land is a finite resource. People require vicinity where they can live, attend to work, go for shopping and also have time for games.
The positive aspect about realty is that, even during a time of financial crunch, it will have appreciation value. As a matter of fact, it is the most viable option to make a fortune, and an investor does not require being a genius or an affluent person to make a success out of real estate.
Here are some directives for entrepreneurs on starting up and attaining successful results in real estate investing.
Sketch out a plan regarding financial goals
Before purchasing the first property, or before making the first study, you have to be sure of what you want from your investments. Make sure of your financial goals. We often go for a discussion of the ‘time vs. money’ concept. The more you have of time or money the lesser you need the other. One should not restrain from allocating time to make out the goals. Also one should ascertain that each and every investment is a step toward attaining them. If one is not very sure about fixing financing goals, a meeting with financial advisor is a wonderful initial step.
Do not spend a huge chunk of money on books or seminars
Before going into investing, you have to study some basics. Be sure that you do some analysis, but do not allow buying and collecting data become your ultimate resort. Entertaining goals will make it much more easy and direct. It is very easy to be bound in the phase of research that you actually do not go for action. Jot down particular questions for which you want an answer or the aim that you want to attain before skimming through the latest seminar or book.
Skim through a number of properties
Do not go for the first property on which you throw a glance. Many investors go for purchase of property because they are appeasing to look at. Some investors just do not want to put in efforts to find out what is there. One has to remember that he or she is not opting to live there. So, it is not a suitable option to make decision on investment based on personal choices. You should not stagnate with just analyzing and should thoroughly browse through the properties. You have to allow yourself to skim through a number of choices, and then zero in on them based on the aims you want to attain.
Do not delay investment program by just waiting for the ideal deal
Many people are stagnant and wait for the best deal. This can have negative results, and many positive options may be lost just because you wait for a better choice. You may feel that the job is very arduous if the property is the first one, but one must know that the ideal deal does not exist in most of the cases. It is preferable to go for a deal that adheres to most of your expectations, than just waiting for a deal that does not come your way.
Doing a complete financial study
One has to take up a realistic approach. One should skim through different choices to zero in on what works out financially. One should never purchase a property at a huge price or on less alluring terms. One should be cautious of sellers who give a try to overestimating the value of the property via the estimated data. Browse through last years’ maintenance records, tax returns, and property-tax bills to get a better vision of the actually existing income and expenses.
Do not go for a property that the seller less prefers to sell
If the seller has a motivation to sell, one cannot get the amount catering to the financial aims. A question may arise as to why the seller is motivated to sell. One has to look at the asking price. For instance, is the property had stayed on the market for a value of $200, 000 with a scant price reduction, the seller does not have any idea to dispose the property. However, it the property had stayed in the market for a year, and the price has gone down, the seller would prefer to dispose the property quickly. A question arises as to how one could find motivated sellers. There are different kinds of approaches, and few may work. It depends on the property that you purchase.
The few reliable methods are:
- Attending to open residences
- Wait for vacant and less alluring properties that are for sale.
- Making people aware of your presence and making them aware of your requirements.
- Go through the option of browsing the classifieds in the newspaper.
Make out the difference between investing in real estate and the real estate business
Assuming the garb of an entrepreneur, you already possess a business, and real estate investments are best for sustaining the business and not replacing it. Do not go for transactions that your actual business fails to execute. If such a thing happens, you many lose control and resuming stability will take a longer time.
If you do not want to bear the brunt of taxes and inflation while making your future more safe, real estate investment comes to your aid.
Zack Childress, who is a real estate entrepreneur and also a mentor, has given a number of seminars. One may go through these online to get a clear idea regarding investment in real estate.
As one who is buying a property, we would have gone through the Floor Area Ratio or the FAR. The FAR is sometimes changed for a particular city. One has to have an understanding about FAR and the way it carries impact over purchasing property.
To be simple, any city has got a particular capacity to accommodate. It does not augur well if there is added stress. This aspect has the short form called the FAR.
There is a simple formula to calculate FAR. The entire covered area that is divided by the area that the plot occupies.
The FAR varies with cities and also with the type of construction that is raised. This is due to the fact that the features as population, construction activities differ from city to city. Also, hugely government rules and regulations play an important role.
In case the planning entity hikes the FAR, the value in the market may shoot up. But, the owner of the land does not have influence on the price.
When the FAR is raised, it does imply that the residents are in a building with high density. One who has purchased building with lower far can raise more construction and have high returns. There is yet another side to this. When a person purchases a building with lower FAR, the resale value is likely to shoot up.
When the norms are not adhered to, it has serious effects. During times of catastrophe FAR violation will prove a hindrance to the special task force.
In certain cities the FAR value does not go beyond 2.5. But the same value is not applicable to all the areas. When the FAR value is as much as 4, it means that the living is extremely dense.
The FAR value plays an important role in the growth of the country. When FAR value is less, it means that it would prove hindrance to construction. The realtors are looking forward to a rise in FAR so that accommodation could be given to many people.
If one calculates as per the norms of the developers, a hike in the FAR means that more construction could be raised, more selling could be done, and project prices would have a steep fall. A discreet usage would cater to requirements of all.
The violation of the FAR comes to light when the developer of the construction receives the completion certificate. That is the reason why one should go through the completion certificate before buying the property.
There is a common misconception that it is impossible to go vertical if the FAR value is low. When a low FAR value is suggested, it is for the individual’s safety. During times of catastrophe, dense constructions are at risk. Appropriate open space elevates the safety, wherever be it.
Yet another misconception is that when the FAR value goes up, the value of the property reduces. There is another wrong notion that lesser FAR values prove a deterrent to construction employment.
There is also a lingering notion which is untrue. The notion is that construction projects would be hit when there are not higher FAR values.
Housing flipping is one of the easiest ways to make money in the field of real estate, however, worthy things doesn’t come that easy. There are chances for you to make deadly mistakes in this technique that will leave you insolvent. So, before you could take next step, be familiar with the don’ts, amateurs need to be even more careful.
Underestimating the cost and paying too much is the prime mistake that you can ever make in house flipping! During such a large purchase, it is easy to make emotional decisions where improper negotiation will give the flipside result. Hence, it is imperative to have a close look at the current home sales in that neighborhood and a comparative analysis would help.
Remaining uninformed about the neighborhood is another sin
Despite the fact that, being ahead in attaining insights about real estate in your vicinity can help in determining the accuracy of the price, being informed about the neighborhood will let you know whether the home buyers will find a desirable area or not. Flipping homes delimited by hideous houses and yards will make it very easier said than done to sell the home.
Undervaluing the time commitment
To flip a house is easier said than done and it takes a lot of time and commitment than you may think, approximately it may take months to years to spot the right property then comes the renovation part and flipping process. While, it may take several months, this process demands more commitment and time. So, by no means undervalue time and commitment when you are into house flipping process for it takes up a lot of your personal time. Well, if you are multi-tasking, then you may have to wait for your less busy time to do the flipping.
Investing too much
One more familiar wealth issue is investing too much of your own finances into the possessions as a whole. Even if you got the home at a big price, it’s easy to keep piling money into the venture until your life savings are gone. Remember, it’s not worth the risk you undertake, so you can consider seeking out for loans to back your venture.
Overlooking permits and ordinances
As with any business there are certain rules and state regulations, similarly, in real estate, the rules are countless and confusing. With every city and state having its own ordinances, when you overlook them, you will be fined hefty which sometimes can be even worse. For the uninitiated, this might cause flipside results so it is always good, to begin with brushing up on city building laws and permits which are said to help in the long run.
Deteriorating to stage the real estate
One of the common mistakes you could ever commit is holding an open house with an empty house, i.e. amateur house sellers may not understand that staged homes, which charge around $3500 to set up, sell more rapidly and for additional riches, which means you will get that money right back and more.
Zack Childress is a real estate professional, his articles and reviews will help you instruct yourself on many real estate training topics ranging from foreclosure to wholesaling, rehabbing and much more.
Zack Childress, the real estate entrepreneur, has related his story of how he turned a successful real estate professional. His web seminars throw light on the existing real estate scenario.