Investment Properties Archives - Page 2 of 6 - Norada Real Estate Investments

What You Should Know About HUD Properties

November 18, 2008 by Marco Santarelli

HUD properties are available all over the United States, and make great investments for anybody that is interested. These homes often get a bad rap for being in bad condition, but in all actuality they are not any worse than other foreclosed homes that are available. Just like anything else, there are some HUD properties that are in good condition, and some that are in need of repairs. It is simply a matter of how well the past owner cared for the home.

HUD properties are homes that had loans which were insured by the Department of Housing and Urban Development (HUD). But when the owner fails to live up to the financial obligations that are expected, the bank then takes over the home and it becomes an HUD property. At this point, the Department of Housing and Urban Development is in charge of repaying the lender any money that they lost on the deal. So as you can see, the Department of Housing and Urban Development sticks their neck on the line when they insure the loans on these homes; if the owner doesn’t pay, they are stuck with owing money to the lender.

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What Drives the Real Estate Market?

November 4, 2008 by Marco Santarelli

People.

The U.S. Census indicates that our population is increasing by approximately three million people each year. All those people will need a place to live, work and shop. So there will continue to be demand for housing and that growth will continue to provide opportunities for real estate investors.

The primary factor driving real estate appreciation is migration. When you have more people moving into an area than those moving out (or passing away), you drive up demand which will ultimately increase home values.

But what drives migration?

Jobs! The largest determinant of migration is job growth. People go where the jobs are, and retailers go where the people are.
Demand for housing will continue, the question is where?

Even though U.S. job growth has been down recently, Norada’s goal is to find where job growth is up. So we begin by identifying markets with solid job growth and narrow our focus to neighborhoods that provide solid real estate investment opportunities.

Building Wealth Through Real Estate

October 21, 2008 by Marco Santarelli

Real estate is the most powerful way to build wealth, and more people have become millionaires through real estate than any other means. Despite the obvious need to save for retirement, a recent Wall Street Journal article indicated that a startling 95% of Americans will face financial difficulties at retirement!

Of course, you have several options for your retirement and other savings, but most of these options pale in comparison to real estate. Consider options like savings accounts, CDs, bonds, and money market accounts. These are safe options, but you certainly won’t reach a goal of building significant wealth through these means. For the most part, these options will barely outpace inflation. Think of it. How many millionaires do you know who have become wealthy by investing in savings accounts? The stock market can bring you some interesting returns, but it can also lead to some big losses. You have very little control over the companies you invest in, and there aren’t significant tax advantages to owning stock.

Historically, real estate has provided investors with a stronger return than other options. Consider the growth of the median price of a home from 1950 to 2007 (57 years):

Click to enlarge.

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The Perfect Storm to Buy Real Estate

October 6, 2008 by Marco Santarelli

This may be the most amazing buyer’s market in decades!

Think about it. Interest rates are at historic lows. Housing inventories are at 20-year highs. Nationally, housing prices have dropped 16.3% since last year. Sellers of every kinds (home owners, investors, builders, and developers) are motivated to sell their property to liquidate or stay liquid in these tough economic times.

I’m sure most of you have heard these stats before: Only 2% of retirees will be financially independent by age 65, while the other 98% rely on family, the government or a job to get by financially.

If you want to make a fortune in real estate, and I’m talking about millions of dollars, then now is the time to buy! Forget about the uncertainties of the stock market and worrying about a recession. Now is the time to position yourself for real wealth simply by buying real estate in growth markets around the country.

If you’re not sure how to get started then call me. I will help point you in the right direction.

How to Get Your Investment Down Payment

September 30, 2008 by Marco Santarelli

Real estate has always been the fastest and safest investment vehicle to acquire wealth and reach millionaire status. But without a down payment your real estate investment goals will be difficult to achieve.