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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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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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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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Why Professional Stock Traders are Terrified

According to the VIX index — which is known as the “Fear Gauge” — investors are feeling calmer about the stock market than they have in 25 years.

This “Fear Gauge” is at it’s lowest since 1993.

And professional traders are scared out of their mind.

Why would that be?

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Retiring on $1 Million is Not Enough

When it comes to getting rich, so-called experts are full of advice on how to save your way there.  There’s no shortage of articles about couples who saved their way to $1 million or “expert” tips on how to save more money.

And these articles are true.  You can save more money following their advice.  But you have to consider the cost.  Because the saver mindset is a very different and dangerous mindset about money than how the rich think about money.

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12 Books to Read if You Want to Get Rich

Read More BooksResearch shows that 88% of wealthy people devote at least 30 minutes a day to reading.  If it works for them, it could work for you.

Below, we’ve rounded up 12 of our favorite books, from personal finance classics to new releases.  Here’s to a prosperous year!
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The Real Estate Professional Tax Loophole

Real-Estate-Tax-Loopholes

The Real Estate Professional status is a designation given by the IRS based on the number of hours that you work in real estate activities versus other activities.

It doesn’t mean that you have to become a real estate sales agent or broker.  You don’t need to drive around showing people houses or putting out “for sale” signs.

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Decide If You Want to Be Secure, Comfortable, or Rich

Before you can become rich, you must decide whether you want to be secure, comfortable, or rich.  These are called core values, or the reasons you want to invest.

The first reason most people invest is because they want to feel more secure.  That’s why Social Security or a retirement plan is very popular with people whose core value is the need for security.  Security is a very important aspect of investing.  You don’t want to be a destitute out on the streets with nobody taking care of you.

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Where to Start with a Fixer-Upper

When you buy a fixer-upper, you know that there will be hours of work ahead. But it can be hard to know where to start. Not everyone is born a Joanna Gaines — the design mastermind behind HGTV’s Fixer Upper — but that doesn’t mean you’re doomed to a dilapidated dwelling. Here’s a handy list of initial steps to ensure that your DIY approach to home-ownership is a success.

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3 Business Structure Mistakes Real Estate Investors Make

Let’s start with: Why have an LLC?

There are mainly two reasons why you want any kind of business structure:

Pay less tax, and protect your assets.

Before you jump into creating your LLCs for your real estate holdings, there are a few things to consider.  Do NOT make these three mistakes.

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Inflation, Low Rates, and Home Appreciation

The combination of inflation and low mortgage rates usually leads to much higher compounded rates of home appreciation.  For owners of property, high rates of inflation and appreciation are welcomed and appreciated.  For buyers or tenants, however, the skyrocketing purchase and rental prices are not liked much at all.

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Demographic Strategies for Real Estate Investors

Sweeping changes in the nation’s demographic makeup will have profound effects on the nation’s housing industry, according to “Big Shifts Ahead: Demographic Clarity for Businesses,” a new book by authors John Burns and Chris Porter.

They argue that broad demographic shifts will reshape housing in America in the next decade, creating new opportunities for businesses of all kinds.  Rising numbers of female executives, affluent immigrants, growing numbers of younger and older workers and a ballooning retiree population will have a profound influence on residential real estate in the U.S. over the next 10 years, according to Burns and Porter.

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17 Things Very Successful People Never Stop Doing

Think about the most successful people you know.  Here are 17 things I’ll bet they’re constantly doing.

Think of the most successful person you know.  Maybe we’re talking about a work colleague or a mentor.  Maybe this is someone you knew growing up or in school — and you can’t believe how much he or she has achieved since then.

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