Financing Archives - Page 2 of 18 - Norada Real Estate Investments

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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What Are The Different Types of Mortgage Loans For Real Estate Investment?

September 5, 2018 by Marco Santarelli Leave a Comment

Types of Mortgage Loans

When you start searching for mortgage options, you will probably find out that there are different types of mortgage loans to choose from. With so many types of mortgage loans, you may most likely don't know where to begin. You know you need to pick the best mortgage rate, however, you ought to comprehend this doesn't really mean going for the mortgage with lowest rate. This is because there are some other variables to consider which can influence your decision.

There are some mortgage options which should know about financing investment properties. Let us discuss the 4 most popular types of mortgages in real estate. The motivation behind this article is to educate you on different types of real estate investment loans that you can use in your real estate investing.

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Think You Missed The Best Interest Rates?

June 15, 2018 by Marco Santarelli Leave a Comment

The recent negative moment in the Mortgage Backed Securities has evidenced a 1% (at times higher) jump in rates. A move such as this can force a pause for many investors who believe they may have gotten into the game too late and missed the best rate options, losing out on best possible cash flows. Recently speaking with an investor he shared significant concern for the difference he was seeing when attempting to close on another purchase this year with a 1% increase in rate from late 2017.

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