Norada Real Estate Investments

  • Home
  • Markets
  • Properties
  • Notes
  • Membership
  • Podcast
  • Learn
  • About
  • Contact

Active vs. Passive Investing

October 19, 2010 by Marco Santarelli

In real estate, there are two basic concepts of investing – active and passive.

Passive investing is typically your buy-and-hold form of investing. Simply put, once you’ve purchased a solid income property, you sit back and let it appreciate over time and have your tenants literally pay down your mortgage each and every month.

This form of investing usually combines most, if not all, of the advantages of real estate; that is, appreciation, leverage, cash flow, tax advantages, tenant pay-down of your mortgage, a solid asset, and freedom.

Passive real estate investing is where true wealth creation comes from. The majority of wealth that comes from real estate investing is created from buying prudent income property and holding on to it. This is how real wealth is created.

[Read more…]

Filed Under: Real Estate Investing Tagged With: Active Investing, Assignment of Contract, flipping, Passive Investing, Real Estate Investing, Rehabbing, Wealth Creation

Flipping Homes No Longer Profitable, Investors Pursue A Long-Term Strategy

October 10, 2009 by Marco Santarelli

Homeowners are facing an economic crunch from the housing crash, but investors often face even more severe repercussions. More than 1 in 3 foreclosures are of investment properties, and should the foreclosure epidemic worsen as forecast, that number is expected to rise as more investors walk away from mortgages.

During the real estate boom investors and speculators bought homes, fixed them up and many sold within months. But the real estate crash prevents them from doing just that. Living in a home intended to be an investment property has become the answer for some investors, while others select to rent the property. More than 240,000 homes sit vacant nationwide, according to the U.S. Census Bureau.

A key strategy of buying a home to flip has gone by the wayside as more and more real estate investors purchase properties for the long term. Just when and how long it will take to reap profits from their investments is an uncertainty with some economists saying that it could take more than 10 years for the market to become healthy enough to make a good profit.

In his book “The Millionaire Real Estate Investor”, Gary Keller, founder of Keller Williams Realty International, keeps a basic theme: “Buy real estate right, pay it down and pay it off.” The ultimate goal should be to own lots of real estate free and clear for maximum cash flow. That mantra is attracting millions of investors and wannabe investors back into the depressed housing market to invest.

[Read more…]

Filed Under: Housing Market, Real Estate Investing Tagged With: buy & hold, buy and hold, flipping, Housing Market, Real Estate Investing, real estate investments

Real Estate

  • Baltimore
  • Birmingham
  • Cape Coral
  • Charlotte
  • Chicago

Quick Links

  • Markets
  • Membership
  • Notes
  • Contact Us

Blog Posts

  • When is the Best Time to Buy a House?
    March 22, 2023Marco Santarelli
  • 18 Best Real Estate Investing Books For Beginners 2023
    March 22, 2023Marco Santarelli
  • Austin Housing Market: Prices, Trends, Forecast 2023
    March 22, 2023Marco Santarelli

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
BBB
  • Terms of Use
  • |
  • Privacy Policy
  • |
  • Testimonials
  • |
  • Suggestions?
  • |
  • Home

Copyright 2018 Norada Real Estate Investments