Marco Santarelli, Author at Norada Real Estate Investments

Real Estate Mortgage Notes: Investing For Higher Returns 2021

December 22, 2020 by Marco Santarelli

Mortgage note investing is one of the best real estate investment opportunities available but it is rarely discussed. In this article, we shall discuss the various types of mortgage notes and how to invest in them. Real estate or mortgage note investing is owning real estate without property management or without becoming a landlord where the homeowner pays the investor instead of the bank.

It is an inexpensive way to invest in real estate. It is an incredible vehicle for building passive income but there are many things that you should be aware of. Mortgage notes are also known as real estate lien notes and borrower’s notes. They have become a popular asset class over the past few years.

Investing in mortgage notes has many benefits such as — rates of return that are higher than the bank's traditional low yield bonds; and higher than most stock dividends. Notes are available through note exchanges, note brokers, and organizations. Consider using a mortgage broker or an investment advisor to help you find the best options. If you are experienced enough, you can potentially find and purchase your own mortgage notes.

[Read more…]

California Real Estate Market: Prices | Trends | Forecast 2021

December 21, 2020 by Marco Santarelli

Despite high unemployment and rising restrictions due to COVID-19, the California housing market remains very competitive as homes are selling quickly with a minimal price reduction. The statewide sales-price-to-list-price ratio was 100.5 percent in November 2020 and 98.4 percent in November 2019.

The California real estate market showed the highest level of home sales in November in nearly 15 years, according to the California Association of Realtors (C.A.R.). The home sales broke the 500,000 sales benchmark for the first time since January 2009 and reaching the highest level in 15 years.

Existing, single-family home sales totaled 508,820 in November on a seasonally adjusted annualized rate, up 5.0 percent from October and up 26.3 percent from November 2019. In addition to strong closed sales in November, pending sales also remained above 2019 levels by double digits. Despite a minor month-on-month sales decline in October, the consistent V-shaped recovery points to the housing strength for several more months.

[Read more…]

How To Find Investment Properties For Sale?

December 20, 2020 by Marco Santarelli

Most newbie investors are perplexed with the question of how to find investment properties for sale? This page will focus on how to find a profitable real estate investment property. A good investment property often has very different characteristics than one’s dream home. For some, investment properties are those that are cheaper than average yet command average or above-average rents.

This might be a “distressed single-family” home or a small apartment building. In other cases, the investment property is the one in desperate need of repairs or renovations. You buy it for a low price, invest in repairs and strategic upgrades, and then sell the property.

Fix-and-rent is a hybrid of these two approaches, buying homes in need of repair, making the needed renovations and repairs, and then renting out your newly desirable rental property. You need to look for areas with high growth, higher rental yield, and low vacancy rates. You make the money when you rent it. The challenge for many is finding the right properties to buy.

[Read more…]

How To Make Money In Real Estate And Get Rich In 2021?

December 19, 2020 by Marco Santarelli

There is no short cut to make money or to get rich quickly, but you can slowly and steadily build wealth by investing in real estate. There are many different ways to get rich but one of the most popular ways to get rich has always been real estate investing. However, making money in real estate takes the right advice, systems, and determination.

Investing in real estate stands out as a tried and tested approach to make money but like every other business, it has some risks associated with it. If done the right way, real estate can be a great source to build wealth if you take the time to educate yourself about the process and the best ways to get great returns.

In this article, we'll show you how to make money in real estate, and avoid the most common mistakes. The most popular way is to buy an investment property and slowly build up your portfolio. Generally, there are two primary ways to make money from real estate assets — appreciation, which is an increase in property value over a period of time, and rental income collected by renting out the property to tenants.

[Read more…]

1031 Exchange Rules: How To Do A 1031 Exchange In 2021?

December 18, 2020 by Marco Santarelli

Taxes rarely make for exciting reading material, but if you own an investment property, there’s at least one set of IRS regulations you absolutely will want to understand: 1031 exchange rules. Why? Because normally when you sell an investment property for more than what you paid for it, you’d have to pay a hefty capital gains tax.

But with a 1031 exchange, you get to defer paying those taxes if you reinvest the proceeds in a new property, making an “exchange” rather than a sale. As the name implies, a 1031 Exchange is a swap of one investment property for a like-kind property instead of a traditional sale. If the transaction qualifies, any realized capital gains are deferred until the replacement property is sold at a later date.

Many investors would like to do a 1031 exchange. Some of them who do fix and flip call us for a 1031 exchange to roll the gain over into the next property. But can they? Although confusing, understanding IRS Code Section 1031 is worth it. It’s just that this transaction is subject to some strict regulations, so you’ll need to follow the 1031 exchange rules to the letter.

[Read more…]