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10 Rules of Successful Real Estate Investing

10-Rules-Successful-Real-Estate-Investing

I came up with the following rules of successful real estate investing over my many years of successes and failures. These are the same rules I follow today and share with our clients at Norada Real Estate Investments.

1. Educate Yourself

Knowledge is the new currency. Without it you are doomed to follow other people’s advice without knowing if it’s good or bad. Knowledge will also help take you from being a “good” investor to becoming a great investor, and that knowledge will help provide a passive stream of income for you or your family.

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Top 10 Real Estate Investing Books

There are literally thousands of books on real estate investing.  I myself have one of the largest collections of them known to mankind!  But seriously now, I do own a rather large bookshelf jammed full of real estate books, tapes, CDs and DVDs.

So I thought I would share my top 10 real estate investing books with you.  That’s not to say that I only have 10 favorites, because I could easily add another 10.  But for those of you looking for some good book recommendations they are:

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2017 Think Realty Honors Winners

Each year, Think Realty honors the leaders and change-makers of real estate who represent the best the industry has to offer.  These individuals are nominated by their peers, and the finalists are determined by an independent panel of judges who are former Think Realty Honors recipients themselves.

Their stories range from new investors just beginning (and exponentially growing) to true industry veterans with decades of experience, from single-family investors focused on just a few neighborhoods to multifamily moguls buying millions of dollars’ worth of real estate at a time, and from major industry players employing hundreds of real estate experts to one-man (or -woman) operations making a difference with just the energy of the CEO alone.

This year, Norada Real Estate’s very own founder and CEO, Marco Santarelli, was awarded Think Realty’s highest honor of Master Investor of the Year.
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Urgent – New IRS Rules for LLCs and LPs

The IRS has instituted new audit rules which require every LLC Operating Agreement and Limited Partnership (LP) Agreement to be amended.  While we have never experienced such a dramatic requirement, it is important to make document amendments before December 31, 2017.  The IRS likes to penalize non-compliance.

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Fannie Mae Study: More Baby Boomers To Enter Retirement With Mortgages

Recent studies have found that saving for retirement has become a bit of a financial afterthought, as more Americans are actually saving for an upcoming vacation than they are for economic security in their golden years. In fact, a 2017 NerdWallet survey found that 56% of young women between the ages of 18 and 34 aren’t saving for retirement at all.

But having a lack of fiscal foresight isn’t limited to the young; a newly released Fannie Mae study has found there’s been an increase in set-to-retire Baby Boomers who have outstanding mortgage debts to worry about.

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Six Basic Rules of Investing

One of the things I love most about my work is seeing people move from the left side of the CashFlow Quadrant to the right side of the quadrant.

The process of moving from being an employee or self-employed to a business owner or sophisticated investor is a bit like that of a caterpillar turning into a beautiful butterfly. It takes time, and often requires a total transformation in mindset and behavior.

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Cities Offer Tax Breaks To Amazon As HQ2 Competition Draws To A Close

Online retail giant Amazon Inc. has received multiple offers of tax breaks as a part of the company’s national competition for Amazon’s second headquarters. According to Reuters, the HQ2 competition came to an end on Thursday, October 19, and will include up to 50,000 new jobs and a $5 billion investment for the winning city. Not only that, but housing prices in the chosen land are expected to rise considerably.

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Single-Family vs Multi-Family Renters

Single-family home renters earn more money, have more kids, and are more likely to be married than multifamily renters.

Comparing the 16 million single-family renter households to the 28 million multifamily rental households:
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6 Reasons Why Money Doesn’t Make You Rich

If you made $108 million dollars, would all your money problems be solved?

If you answered yes to this question, there’s a chance you don’t understand that having more money doesn’t solve your money problems.  It just brings new ones.

Take for instance the story of Antoine Walker. In 1996, he was drafted by the Boston Celtics and had a storied career.

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2 Smart Ways to Improve Your Vacation Rental Property During the Off Season

It’s no secret that Americans love camping and spending time outdoors. Whether roughing it in a tent or enjoying a luxury cabin, campers in 2011 spent 534.9 million days camping, an average of 12.6 days per person. And as the primary camping season starts to wind down, those who own and manage vacation rental properties have the ability to revamp their cabins and cottages and reevaluate their marketing strategies. Here are just a few ways to maintain or improve the quality of your vacation rental property during the off-season.
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Renters Having Difficulties Finding New Homes After Hurricane Irma

After Hurricane Irma, Florida residents who rent their homes are facing a variety of obstacles: paying rent for uninhabitable homes, difficulties getting refunds on rent deposits, and struggling to find new housing in a strained rental market.

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Don’t Blame The Millennials: Seniors Who Age In Place May Be Contributing To Housing Recovery Issues

The aging in place movement has prompted many seniors to look to the future and make changes so that they can remain in their homes and live full, uninterrupted lives. But even though the movement has allowed many seniors to have a better quality of life, it’s arguably had another unintentional effect: it may be having a negative impact on the U.S. housing market. And Millennials are taking the brunt of the blame.

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How to Sell Your Home Fast: A Visual Guide

How to Sell Your Home FastHow to Sell Your Home Fast

If you’re a real estate investor, you know how important it is to be able to sell a house fast. Anything can happen in a short period of time, and you don’t want to risk losing value in your property just because it takes a long time to find a buyer to meet your asking price.

When you’re flipping a house, you need to make sure that you do the proper renovations to increase the value of your property, but timing is of the essence because you need to be selling homes just as fast as you’re buying them. There are always a variety of changes you can consider to make your house more marketable.

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4 Real Estate Investment Strategies For New Investors

What are the best ways for beginner investors to get started in real estate? There is more than one way to invest in real estate. What you choose may depend on your immediate needs, long term goals, your aptitudes, and resources.

The following info-graphic by Offer Climb Houston and Offer Climb Phoenix breaks down these options in an easy to analyze way, followed by more in-depth examples, and sources for empowering new property investors to get started.

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The Top 3 Residential Real Estate Trends of 2017

The Top 3 Residential Real Estate Trends of 2017Due to seasonal changes in demand, the housing market is difficult to pin down. And with today’s ever-changing political and economic climate, it’s even more exhausting trying to get a clear picture of what’s to come.

That being said, so far in 2017 one thing has been very clear: supply is low, demand is high.

According to Forbes, there are a few more facts we can ascertain based on past trends and new housing market research.

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Is Crowdfunding the Future of Real Estate Investment?

Since the Great Recession, crowdsourcing and the sharing economy have become increasingly popular, especially among younger people who were especially hard hit by the collapse. Millennials have been using crowdsourcing to fund artistic endeavors, art projects, and now — real estate.

New commercial real estate crowdfunding firms have emerged with a bang, with estimates placing the industry’s income around $3.5 billion in 2016, just years after it began to appear.

The principal tool for crowdfunded real estate is Electronic Real Estate Investment Trusts, which have allowed companies to greatly expand their pool of investors.

Traditionally, real estate has been a very popular investment vehicle, but often cost prohibitive for young people. However, among those who have invested in real estate, 96% credit it with their financial success. But for most people, securing enough financing for the down payment alone, which can be as high as 25% the cost of the property, can be a challenge.

For a long time, non-traded REITs were the best bet for lower income investors to diversify their portfolio with real estate. The high front-end fees, which can range from 10% to 15%, still discouraged many investors from buying in.

Now, eREITs have a significant advantage. Because their online platform allows them to cut out the middleman, crowdfunded real estate firms are able to significantly lower the fees required, or eliminate them all together.

For crowdfunded firms, the ability to appeal to lower income investors might represent the key to success. Real estate investor Jay Maddox told National Real Estate Investor Online that while institutional investors shy away from crowdfunded real estate, the sector is on the brink of massive expansion.

“I also think it is really going to be the best fit for properties that are well below institutional investor’s radar screen.”

That means that, in order for crowdfunded real estate businesses to thrive, they will need to pick their targets carefully. A Florida based business, for instance, might not be able to compete in the major Florida destinations towns like Miami or Orlando, but there are still 1,200 miles of sand beach and 1,800 miles of coastline for them to find a less competitive space to develop.

The proliferation of crowdfunded real estate firms has been beneficial for more people than just the investors, or even those in the real estate industry. The rapid acceleration of online investment platforms has also been a boon for the information and technology industry, which is responsible for the design, operation, and security of such sites.

At the same time, there have been signs of trouble within the industry. Crowdfunding platform iFunding, in particular, has garnered a great deal of negative attention lately, with investors and real estate professions bemoaning the poor organization structure and operations.

Still, the future looks bright for crowdfunded real estate. Tore Steen, CEO and co-founder of CrowdStreet Inc, is especially optimistic.

When speaking to National Real Estate Investor Online, he said, “There could be a day down the road where players that have traditionally raised money for institutional investors could be looking at this retail channel as a supplement, or even as an alternative when it gets big enough.”


Top Ten Tax Deductions for Real Estate Investors

I wanted to take the time to write about the top ten tax deductions available for real estate investors.  Though some of this may seem relatively elementary, I’ve included a few gold nuggets for even our most experienced clients.

Real estate investors are always asking what expenses landlords can deduct.  Because the answer to that question can quite literally be endless, we often tell our clients to record everything.  For those expenses that our clients are unsure about, we ask them to create an “ask my accountant” category or account in their bookkeeping solution which they can discuss during a short call.

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