Zack Childress Co-wholesaling Methods of Calculating Capitalization Rate

zack childress co-wholesaling methods of calculating capitalization rate

The real estate investors must know to determine the value at the time of purchasing the property. In order to do so, he must know the capitalization rate, in addition to that there are different mathematical methods used by the investors to analyze the performance of the properties

Zack real estate reviews talks about how to calculate Capitalization rate, its uses, pros and cons.

 

To calculate the capitalization rate, net operating income and properties sold off-late are considered so as to calculate the current price. This method is very much preferred as it is easy to compare similar properties. Capitalization rate is an income property valuation method and it is important for new investors as it helps their economic growth. The investor must also consider the net operating income (NOI) because it should not exceed your cash flow and profit. Capitalization rate is known as cap rate.

 

The two ways to use and determine cap rate are

 

  • To determine the price of the property while selling using the current cap rate.
  • Used while purchasing a property, cap rates are considered while asking price has to be decided.

When you are comparing similar properties which has been sold in your area recently, it is difficult to find NOI as it may or may not be published in the listing. At that time, real estate agents can help you out. Cap rate can be calculated after getting the NOI of different properties. This is done so as to get the best deal while you purchase a property.

When the investor wants to buy a property, he always thinks whether it is worth to invest. He even thinks whether the seller is giving a correct price or overpriced.

 

Pros:

 

CAP rates are widely used in commercial properties as well as multi-family properties. Cap rate is the rate of return on a real investment property based on the generation of the income of the property and it is used to estimate the investor potential return.

It is helpful as it streamlines the real estate investment and used to track it to check on the performance measure. When cap rates start declining, it is better to sell off the property and re-invest somewhere else which would give you either cash flow or good returns.

It is a good tool to compare the properties quickly, find better deals and make wise investments.

Investors prefer low cap rate while making an investment, whereas during potential investment cap rates of different investments are compared with personal cap rate.

Cap rates are helpful in determining the payback period as some investments take a pretty long time to complete.

 

Cons:

 

They are not preferred for short term investments. Cap rate is sometimes termed as NOI/Original price, this is not suitable when property is given as gift or inherited property as cap rate will be zero.

 

How to calculate the current price?

 

Divide the net operating income by cap rate.

In other words, cap rate= NOI/current value

NOI/CAP RATE

Checking whether the company is licensed or not is the first step to protect yourself from scam.
Interested investors can visit Zack Childress quick REI cash System which has many more articles in detail about Cap rate.

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Dc Fawcett Scam avoid technique – How to Avoid Real Estate Scams

Dc Fawcett Scam

Dc Fawcett Technology started evolving as soon as computers came into existence. The industries considered to be a boon as it reduced manpower and saved lot of time, likewise real estate industry started to flourish with the emergence and evolution of several technologies.

Dc Fawcett Scam avoid technique 10 timely tips to help you avoid scams

 

  • Internet
  • Emerging Technologies

1.Internet:

The availability and access to internet from any remote place has helped the investors to monitor the market real time using the mobile applications created by the real estate brokers and agents. The drawback is that it has reduced face-to-face meetings between a buyer and seller, as well as the cost spent to improve and invent technology is extremely high and more matured professionals find it difficult to use these mobile applications as they couldn’t cope with this bandwagon.

2.Emerging Technologies:

Drones have helped to find property listing from above the tree top; they can capture spectacular aerial images and videos of home amenities which would help the investors looking out for a property. There have been constant improvements in manufacturing drones like controlling it over a smart phone and take high resolution images and serve as one of the best way to advertise a property. Beacon technology can replace the age old real estate agents. Virtual touring with the help of virtual reality has made the work of the seller and buyer easier as they can view the property and conclude to proceed or not further.

Big data analytics and digital marketing can forecast the next move of the buyer. People will give more priority to a household enabled with smart technology and keep them engaged by providing information similar to their preferences. Smart technology can be in the form of energy efficient housing, functional improvement, smart home is when everything can be controlled and monitored using a smart phone. For sale sign is an upcoming technology where buyers can get the entire information about the property without fixing an appointment with the realtor as they walk by. Machine learning will help to enhance your search results while looking for an apartment.

Technology is advancing, it will not stop and it is better to learn and make use of the technology in the right way as there are many scams have been taking place quite recently.

Dc Fawcett Scam – Completely false and baseless

Dc Fawcett real estate

The hackers get through the e-mail account of the real estate professionals to know their transactions; they install malicious software on their computer. The latest scam is that hacker obtains the realtor e-signature and login information by phishing which resembles like an authenticated realtor providing information. Hackers inject malicious virus by sending e-mail attached with Google drive links without sender’s name.

Dc Fawcett Scam avoid technique

Dc Fawcett Scam avoid technique – How to Avoid Real Estate Scams

Dc Fawcett automated wholesaling system helps the new investors to do real estate investments and co-wholesaling without using credit or cash. Zack Childress REI quick cash system consists of articles on technology trends which will help to bridge the gap between the new investors and professionals, in addition to that webinars on how to prevent from scams happening around.

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Co-Wholesaling:Zack Childress Reviews The Bonuses Of Dual Agency

Zack-Childress-Reviews-The-Bonuses-Of-Dual-Agency

Introduction

What is dual agency? An agent who works with both the buyer and the seller is called a dual agent. Also, if the sellers and the buyer’s agents are from the same broker firm, then it is called as dual agency again. Dual agency has its share of advantages and disadvantages. In here, Zack Childress, a million dollar real estate investor and mentor reviews the bonuses of dual agency.

Simple and quick real estate process:

 

Everything in the transaction takes place through the same agent. Thus it becomes easy and rapid to schedule everything.

The buyer may be lucky enough to buy the same home that his agent lists:

Suppose the buyer finds a home and he is really impressed by it and wants to purchase it. It so happens that the buyer’s real estate agent is listing the same home. Then doesn’t it make things easy?

The home sells more easily:

Since the seller’s agent is representing both the seller and the other side, he has a higher drive to sell the home.

The home finds buyers easily:

A seller may find a buyer before even the home gets listed. This happens since the same agent is working for both sides.

The chances of getting all the information increases:

Real estate professionals are required to get all the information with regards to a transaction and if he does not, then he is blamed. They cannot instill confidence in their clients unless they reveal all the information. But, sometimes real estate agents are unable to get hold of complete information. This inability is termed as inefficiency and it affects the reputation of the real estate agent. On the other hand, dual agency removes this problem. When the same person is the agent for both the parties, it becomes easier. For instance: the seller’s agent may not disclose certain things to the buyer’s agent. But in the case of dual agency, he already knows it.

The agent fees may be lower:

The agent may agree for a lower fee since he does not have to share the commission with anyone. Thus the seller may save potentially and utilize this amount for something else.

Negotiations become easier for the buyer:

Since the seller and the buyer are both handled by the same agent, price negotiations for the buyer become easier.

Real estate agents working from the same agency:

Sometimes dual agency is feared since people believe that dual agents are not effective. This is because they represent both parties are said to not work for the interests of both properly. But, this is not the case when two different agents from the same agency represent both sides. They communicate easily, negotiate well, provide complete information and represent the interests of both the parties fairly.

Conclusion

These are some of the pros of dual agents as reviewed by Zack Childress. Zack Childress is an expert real estate investor and guru. He is a whizz in areas such as real estate wholesaling, co-habbing and short sales.

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Co-Wholesaling:Zack Childress – The Main Reasons Why Purchasers Require New Homes

Zack-Childress-Main-Reasons-Why-Purchasers-Require-New-Homes

co-wholesaling-There is an existing notion that majority of the Americans are inclined more to purchasing a new home than the old ones. And there is a considerable difference in the reasons. Besides the fact that new homes emerge with a large list of advantages, there are aspects for which buyers are willing to pay an amount. Let us skim through the reasons why majority of the purchasers want a brand new property.

The plus points in buying new residences:

Here is information regarding the five major advantages one will attain if he or she is purchasing a brand new home instead of a used one. Do not be taken in by the so-called beautiful house. Here are the major reasons to take into account when deciding on purchasing a new residence.

Raise your dream home:

 

If you get the chance to purchase a residence that is being raised from the beginning, then you happen to be a good purchaser. That is for sure. You would mostly get the option to personalize it in the way you desire from the beginning. Make the right choices depending on the personal fancies. Choose the fixtures in the kitchen or the lighting that you desire to have. Purchase the house that best represents you, the house that is in your dreams.

House with brand new features:

There is a great relief: Nobody would have used the residence or any of the appliances in the residence. One does not require replacing anything or investing more into it. The top of the house, the appliances or the countertops are one among the costly things that one needs to replace in the immediate future. Why should one be complacent with aspects that require replacing or more expenditure when one can get it from the beginning. There are no surprises, just picture it for you to see.

Efficient with regard to energy:

Agents Can Make Money Fast Through Co-wholesaling

Fresh homes usually pop up with appliances that are energy efficient. They are raised as per the latest technologies and give the comfort level one requires with fewer difficulties. Some of the aspects you will be happy with are the ventilation system, the cooling and the heating system, high performance windows and many others.

Comfort level and safety:

New residences give a high level of comfort and safety also. It is not only that they are usually raised in residential communities, but the fact is that they emerge with alarm systems or all kind of features to make you feel safe and secure in a new property.

From yet another point of view, fresh homes are raised and designed sticking to the latest trends and styles. You will mostly get a trendy house that is ready to exceed all the expectations.

Cheap to maintain:

Residing in a fresh house implies that you have many advantages in it. A thing worth mentioning is that you do not require so many things to carry out once you move in and maintaining the property will be easier. What is mentionable is that the influence the new residences have on first time owners is enthralling. It is generally said that if one purchases a used property, one is actually purchasing a property that comes along with your dreams also. If you opt to purchase a freshly built house you practically purchase a personalized residence meant for you alone.

Take into account one thing: The same size does not fit everybody. So make endeavors not to compromise the quality for a few bucks as it may lead to exorbitant cost in the future.

Zack Childress, an entrepreneur, real estate investor, and a multifaceted realty kingpin has held a number of seminars which can give you awareness about the existing real estate scenario. You can listen to his seminars to know why purchasing new residence is the best option.

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Co-Wholesaling:What Every Real Estate Investor Need To Know About REIT-Zack Childress

Zack-Childress-What-Every-Real-Estate-Investor-Need-To-Know-About-REIT

Co-wholesaling-REIT- real estate investment trust… REITs’ are companies that have possession of income-producing real estate …Without much trumpet call, real estate investment trusts, or REITs, have turn out to be one of the past decade’s fastest-growing investments. To make it more clear, in the recent years, real-estate investment trusts that invest in all types of commercial real estate, have been contributing adequately for investors and there are certain things that you need to know about REIT’s and this article will reveal what every real estate investor should know about REIT.

Volatility: REITs aren’t lackluster, steady investments, but they do fluctuate meaning they go up and down and sometimes stridently move in and out of good turn with investors.

Not like buying a house: Some people have a mistaken impression that REIT’s are like buying a house, but the fact is that they are nothing like traditional homeownership. To put it simple, it is much like a specialized mutual fund that may invest in any of an extensive assortment of companies that put up, own and manage commercial real estate.

Strong long-term performance: As a matter of fact, REIT’s had a long history of producing good returns and from 1975 through 2014 there have been favorable market conditions.

Short-term performance effect: While strong long-term performances are said to have a favorable circumstance for real estate investors, short-term performances of REIT’s can have adverse effects.
REIT qualifications

As a professional real estate investor, you should know about the qualifications of a real estate investment trust. For a company to make the grade as a REIT it must be an entity that is taxable as a conglomerate and a bare minimum of at least 75% of the company’s total assets should be invested in real estate. In addition, it should draw from it, at least 75 percent of its gross earnings from rents from real property, interest on mortgages financing real property or from sales of real estate. With that said, it should have a minimum of 100 shareholders and shall pay at least at least 90 percent of its taxable income in the form of shareholder dividends each year, while not having more than 50% of its shares held by more than four or fewer individuals which should be administered by a board of directors or trustees. The aforesaid eligibility criteria’s sometimes differ according to state laws and rules.

Hope this article was helpful. If you are looking to learn more about real estate concepts in detail, then without further ado consider attending Zack Childress’s seminar which will be helpful to you by all means. Zack Childress is a real estate mentor who helps aspiring realtors to become more successful by teaching them real estate principles, markets, and finance. If you ever wanted to excel by building your knowledge and skills, keep tuned to Zack Childress seminars and camps that will help you to build your skill base and take a client-oriented approach to your business.

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