Investing in Strip Malls

With Online Businesses Going Strong, Are Strip Malls A Dying Breed?

It is the era of technological advancement. Most of the people, especially the youngsters are extremely tech savvy. No doubt it is the reason why online or virtual is the new real. Consumers and potential customers lack time. They do not have the time to roam about in the markets. Hence, for their convenience, the virtual market or the online business options have come into being.

Now, the question is, whether the online market places or shopping sites will take over the traditional markets, or the traditional markets and the culture of malls will survive?

When investing in strip malls, don’t forget the location, location, location rule. It still applies for commercial real estate investing.

Importance of the malls:

The strip malls on the busy streets of a city, once were the icon of trend and fashion. People considered it to be a fashion trend to shop from the malls. They are home to a number of brands, designer outlets and in most cases, supermarkets. Hence, those, who wanted to be a little extravagant, always visited the malls.

Another important aspect of the strip malls is the food court. The air conditioned malls often, nowadays, is a place where only window shopper congregate to spend leisure time. They buy some food at the food court and sit with their friends in the air condition. Some just roam about in the mall from one floor to the other, window shopping. There is no need to pay money to enter the malls and one can spend a few hours there, hanging out with friends.

Benefits of the online business:

The online businesses or shopping sites on the other hand, have become extremely popular and sometimes even more popular than the strip malls. The reasons are –

  • The online shopping sites are open 24x7x365 days. Hence, those, who work in odd hours and do not get time to go for shopping, can be benefited with the online businesses.
  • One can get additional discounts from the sites that the malls hardly offer. In fact, you can get discounts on all brands and items at the same time. Hence, there is no need to find the one suitable for you.
  • The online shops often sell a number of brands under the same virtual roof. So, just with a single click, you can browse through the options.

The strip malls, failing to provide these facilities, are gradually losing their popularity. The investors and builders of the malls are backing out from investments because of the huge amount of cost being engaged in maintenance and electricity. Still, the revenue and profit margins are not meeting up to their desired standards. If this trend continues, the concept and culture of strip malls will soon lose its charm and popularity.

What Is a Wrap Around Mortgage

Wrap around mortgage is an instance of creative financing. It is the type of secondary financing during the purchase of a property. The seller offers a secondary mortgage to wrap around all the other mortgages secured during the purchase. It is in addition to the superior mortgages. Under the wrap, the seller accepts promissory note which is secured from the buyer to cover the amount due on underlying mortgage plus the amount which is due for the remaining purchase balance. The purchaser has to make monthly payments to the seller who in turn makes further payment for the mortgages. If the purchaser proves a defaulter or fails to pay the seller, the seller has the right to overtake the property or bears the right of foreclosure.

What happens in the wrap around payment?

When it is wrap-around mortgage, the title of the property and the mortgage remains in the hand of the seller. In fact, it is the seller who makes a payment for the original mortgages. The seller and the buyer arrive on a down payment and it is the buyer who has to pay the difference between the down payment and the sale price with regular scheduled payments. This schedule payment includes the payments and interest to cover original mortgage.

Is the wrap around payment advantageous to the buyer?

Yes, it is beneficial. With the wrap around payment, the credit is just ‘so-so’. In the tight real estate market, it is tough for the buyer to qualify for the conventional loans. When it is wrap around mortgage, the buyer does not need to pay closing costs.

The benefit to the seller

Wrap around mortgage makes it easy for the seller to sell the property. In this recessional phase, it is difficult to secure a buyer who qualifies for the conventional mortgage loan. However, the seller can easily sell the property with wrap-around. The seller will set an interest rate which needs to be paid by the buyer. This result in the profit after the original loan is cleared.

Should you consider wrap around payment?

Default is the major risk associated with wrap around. If the buyer is unable to make the payment and even the seller cannot arrange for payment on original mortgage then the lender can go for foreclosure, seizing the property. The foreclosure can take place despite the fact that the property is in the name of the seller.

Are you in a hurry to sell your property? Why not consider wrap around. Seller financing is the fantastic way to assist the two parties involved in the transaction. The seller enjoys equity on the property. It is greatly advantageous from buyer’s perspective as well. Borrower may be credit worthy but the non-liquid credit market offers loans to only those who have a good credit score. The seller can call the shots when it comes to who can buy the property and who cannot. When direct bank financing is not the option, the wrap around payment is the only option.

Investing in Rental Housing

Rental property can bring your tons of benefits

In today’s world, there are only finite things that you can invest your money upon. You either save your money with the banks or invest in the market. However, with the former one providing slow returns, and the latter one being risky, people always tend to look for other avenues of investment.

One such investment channel is, of course, buying a rental house. The rental house is a place or an establishment which you buy never to live in it. It is taken for the sole purpose of renting out. This makes the whole package quite interesting, and it makes the concept quite appealing to people who want to make the most of their money.

However, many people are quite apprehensive about rental house investment. They believe it can cause more damage than it can bring benefits or monetary profits. Well, they may be ill-informed as today we are going to talk to you about the benefits of buying a rental house for investment purposes.  Let’s find out;

Rental houses provide tons of benefits

Once you purchase a place for rental purposes, first of all, you own a piece of property. Now you might believe that owning a piece of property is not substantial but come to think of the scenario it is actually one of the smartest moves that you can make. The property will not only be yours, but it will also provide you with an income—a substantial amount of income at that. But the game here is all about what property you buy. Well, before you eat the benefits, you must first make sure that you are buying the right rental property. A good property can provide you growth, tax help and benefit and also cash flow.

Value will go up all the time

Most people purchase rental apartments or houses for appreciation purposes. Buying rental property is one of the best ways to make quick, secure, substantial, smart, and periodical big money. For instance, if you are going to purchase a 400,000 dollar property, and after a year the value of the same property becomes 500,000 dollars, then you make 100,000 dollars in a year on a 400,000 investment. That’s a 25 % growth, outright!  Even if you take a loan initially to buy the property, then also you’d make net monetary benefit on it as the rate of interests won’t be as much as the rate of growth.

Of course, everything will depend on the selection of the rental house. If you buy a property which is on a decline, then you’d lose more.

Income and cash flow

Imagine you give that 400,000 dollar property up for rent. And, if you save money on the rent, after settling all the operating and running expenses, then that money would be deemed as net income! Yup, you’d actually make extra money from the property itself.  Apart from this, you’d also make tons of tax benefits too.

So, if you have some extra money to spend or invest or if you are willing to take a loan, then please try to invest in a rental property.

Should I Have An Environmental Review On Some Apartments I Am Buying?

One should basically have an idea about what actually is the concept of the environmental review.

If one is determined on getting an apartment or a land for self then getting the environmental review done is the best way to remain safe legally and environmentally both.

What Exactly Is An Environmental Review?

An environmental review is the assessment of the environment around a location or a property. It determines the safety of the area. It is generally done any specified and certified engineering company who follows the rules set by the government. These standards are generally set by the U.S. Environmental Protection Agency (EPA). There are many levels to this particular assessment.

Real Estate

At the very first comes the phase I assessment. This particular assessment is done to reveal the presence of the most common types of dangers in terms of chemicals and petroleum. This is basically the very basic step in finding the hazardous materials. If this particular step is not cleared then by no means can the property be acquired in legal terms. It can be given a thought though if one takes the responsibility of getting the area cleared.

Next comes the phase II. In this step one can get a bit deeper into the review. This particular phase deals with the various means like that of water or that of soil. This particular step is very much important as according to this step one can actually decide that the property is safe in terms of basic livelihood or not. After all these steps one can consider getting the area cleaned if it can be and is in need of. Or else they can opt not to buy the property at all.

How Does An Environmental Assessment Help Anyways?

An environmental review or assessment can help in more than one possible ways. Firstly oje should know that getting the assessment done is a legal procedure and no good citizen wants to desperately be in a legal soup due to such a mere reason. The very next point is that if the assessment is done, the person would immediately come to know that how safe the area is for them or anyone else in the first place.

This way they can decide to invest their money on the property or not. The very next point is that if the buyer wants to re sell the property then high chances are that the new seller may be accustomed to the concept of environment review. If the review id done in the first place then there is nothing to worry about. If the new buyer finds some kind of flaws with the review then there are high possible chances that the property may not get sold at all and the legal action may be implied on one.


Depending on this particular article it can be very easily concluded that the environmental review is the most necessary step that needs to be accomplished before one thinks of buying the apartments. This way one can assure safety of the people and their health.