Financing Archives - Norada Real Estate Investments

Using Leverage in Real Estate by Avoiding Risks: Building Wealth

April 14, 2019 by Marco Santarelli Leave a Comment

leverage in real estate Archimedes made the comment, “Give me a lever long enough and a fulcrum strong enough, and I can move the world.”

“Leverage real estate to buy more properties. Invest in real estate with leverage.” You’ve probably heard the phrase many times. Yet it is difficult to get a clear answer as to what it means. All the while, you’ll be told that learning how to do this requires paying for their book or seminar. We’re going to break the mold and tell you what leverage is before explaining how to leverage real estate to build wealth. Leverage is a method that allows you to control properties with little cash.

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Current Housing Trends That Will Change The Market In 2019 And 2020

November 13, 2018 by Marco Santarelli Leave a Comment

Housing Trends And Predictions For 2019 and 2020

Is 2019 a good time to buy a home, sell a home, move up, or invest in real estate — or will you be better off parking your money elsewhere, whether that means buying a house in a different location or an investment in an entirely different industry? While no one knows exactly what will happen with home prices in 2019, if you have the right sources and know where to look, there is enough evidence to make a sound educated guess. Where will we see softening housing trends first, and which cities are still showing healthy growth? We examined all 381 metropolitan statistical areas (MSAs) in the US for local affordability (and change in affordability), housing market price growth, and the pace of housing market price growth to pinpoint where the housing market is slowing down.

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Buying an Investment Property Under the New Tax Plan

November 7, 2018 by Marco Santarelli Leave a Comment

Given the new proposed United States tax plan from the Trump administration, investing in real estate has some potential implications for a new investor. Most consider the changes extremely beneficial to first-time real estate investors in particular.

To cover the basics first, the existing tax structure allows for real estate investors to write-off all the expenses of owning and running a rental as those properties are considered a business operation. In addition, any interest on the mortgages for these investments along with any repair or management costs can be deducted pre-tax on the total income of the property so that the property owner is only taxed on the actual cash flow they’re earning from the investment.

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How to Calculate Net Operating Income

October 24, 2018 by Marco Santarelli Leave a Comment

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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3 Things To Keep Your Earnest Money Deposit Safe

October 19, 2018 by Marco Santarelli Leave a Comment

Once your offer finally gets accepted, one of the first things you’ll do is submit an escrow deposit. This money — your “good faith” deposit — helps show the seller that you’re serious about buying the home.

If the home closes successfully, that money is applied to your down-payment. However, if the deal falls through, there is a chance that you could lose out on thousands of dollars.

With that in mind, many buyers want to know what they can do to help keep their earnest deposit safe. Here are 3 foolproof ways to protect your escrow deposit. If you follow this advice, you can rest easy knowing that your hard-earned money will stay where it belongs.

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