Financing Archives - Norada Real Estate Investments

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

March 14, 2021 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. You are able to leverage funds otherwise needed to pay capital gains taxes to acquire more desirable property. As the name implies, a 1031 Exchange is a swap of one investment property for a like-kind property instead of a traditional sale.

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Cap Rate Calculation: How To Use Cap Rate In Real Estate?

January 14, 2021 by Marco Santarelli

Capitalization Rate or Cap Rate is a term often thrown around in real estate discussions. Yet many people don't really understand what it means. After all, it can be confused with cash-on-cash returns and the rate of return. When you invest in income-producing property, you are looking for cash flow. You also expect to realize a capital gain, selling the property at some time in the future for a profit. When analyzing investment opportunities, real estate investors evaluate a multitude of different factors.

But a typical investor will be interested in the income that the property can generate now and into the future. That investor is likely to use capitalization of income as one method of estimating value. It is one of the most fundamental concepts in real estate investing and is mostly referred to in calculations as “Cap Rate.” Here's what you need to know about the cap rate, from its definition to methods of calculation.

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Real Estate Notes Investing: Buy Notes For Higher ROI 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.

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How to Calculate Net Operating Income

October 24, 2020 by Marco Santarelli

You can calculate net operating income (NOI) for your real estate investment by using the generally accepted net operating income formula, which is your potential rental income plus any additional property-related income minus vacancy losses minus total operating expenses.

Keep in mind the net operating income formula can vary depending on who calculates it.

For example, most investors separate potential rental income and other income, but sometimes you will see them combined. Regardless, the generally accepted net operating income formula is your potential rental income plus any additional property-related income minus vacancy losses minus total operating expenses.

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Best Ways To Consolidate Your Debts In The Crisis of Coronavirus 2020

June 13, 2020 by Marco Santarelli

Debt consolidation means getting a new loan to pay off all your debts through a single payment plan. With the help of debt consolidation, you can also pay off multiple unsecured loans from credit cards, medical bills, personal loans, payday loans, etc. A Debt Consolidation Loan can be an effective way to manage your finances in 2020. You can roll multiple debts into a single payment, ideally with a lower interest rate. It is like refinancing your mortgage – you take a big loan and then pay off all your previous unsecured loans.