Norada Real Estate Investments

Investing in Mobile Alabama Real Estate

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Imagine if you had the foresight 7 years ago to invest heavily in Las Vegas, Phoenix, Miami and Honolulu, and to get out 2 years ago. Each of those markets appreciated over 100% in a 5 year period. Many savvy investors made enough money in those markets in just 5 years that they never have to work again. Now, instead of waking up with that 7 am alarm clock, many of them softly awaken by the warm breeze off the ocean blowing through their open window.

Mobile, Alabama (pronounced ‘moe beel’) is a city located in southwest Alabama at the mouth of the Mobile River. Spanning about 38 miles on the north shore of Mobile Bay, it was the city held by the French, British, and Spanish until it was seized by U.S. forces in 1813.

Today, Mobile, Alabama is one of the country’s hottest growth markets. Any real estate investor looking for a market with a solid economic foundation and strong appreciation potential will find it here.

According to a new research forecast by Moody's Economy.com, Mobile County will have the fastest growing economy over the next five years among all 363 American metropolitan areas, growing over 34% from 2007 through 2012. [Read more…]

Estimating Value With The Capitalization Rate

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Capitalization RateThe Capitalization Rate (also known as “Cap Rate”) is used to compare an income property with other similar income properties.  It can also be used to place a value on a property based on the income it generates.

The Cap Rate merely represents the projected return for one year as if the property was bought with all cash.  But since we don't normally buy property using all cash we would use other measures, such as the cash-on-cash return, to evaluate a property's financial performance.

[Read more…]

Blog Question: Keep it or Sell it?

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One of our blog readers submitted the following question:

“I have a home that was appraised at $130,000 this month. However, I think it's worth at least $200,000.  Would you agree to keep it until the market comes back up and try to sell then?  My ex-husband will rent it from me until then.  Thanks, Bev”

Well Bev, there are several things to consider: [Read more…]

10 Best Real Estate Markets

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Most experts agree that the days of flipping properties are over.  With weak demand, slow sales and high inventory in most US markets, the question real estate investors are asking is, “Where do I invest now?”

As always, there are markets around the country where homes are affordable, the underlying economy is strong, and appreciation is imminent.  These are the markets you should consider looking at for your next long-term real estate investment. [Read more…]

Money Tight, But Good Time to Buy

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With falling prices and rising inventories, investors are finding themselves in the best buying position in almost a decade.

A recent polls by Reuters/Zogby tells us that it’s a good time to buy. And another poll by Associated Press and AOL also reveals that it’s a good time to buy but 60% of those polled won't buy any real estate within the next two years.

The disparity is probably due to economic fears which are causing consumers to tighten their purse strings. The Reuters/Zogby poll said that nearly 75% of American’s believe the economy is in a recession right now, and almost 50% rated their personal financial situation as negative.

The AP/AOL poll said that nearly 14% of mortgage holders fear they will miss a mortgage payment soon. And 30% said they are concerned their home’s value will decrease within the next two years.

The important thing to remember is that you should stay focused on your local neighborhood and those of your real estate investments. Remember that real estate is primarily driven by local economic factors such as jobs, housing inventory, and supply and demand.

Tax Considerations for the Real Estate Investor

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There is no human invention more complex than the tax codes, and among the most complicated are the laws surrounding real estate investing.  So, what follows is NOT to be considered legal advice — consult your attorney or tax accountant before making any decisions.

Well, now that the rear is covered, what considerations should the real estate investor keep in mind?  Since laws vary between countries, and between states within the U.S., any general advice would be worthless.  But here are some particulars that apply in many areas. [Read more…]

Short Sales Now Widespread 2035

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Roughly 20 percent of all U.S. home sales in March were “short sales” according to a real estate industry survey conducted by Washington-based Campbell Communications. According to their research, two-thirds of short sales are initiated by homeowners, and one-third are launched by mortgage lenders (as a foreclosure alternative).

In a typical home transaction, the seller gets the final say on which buyer gets the home, but in a short sale, the lender weighs in on that decision, since it’s the lender who won’t recoup 100 percent of the seller’s mortgage balance as in a “normal” home transaction.

Buying a Short Sale Can Be A Time-Consuming Process 2046

Buying a Short Sale Can Be A Time-Consuming Process 2035

It is important to know where the seller is in terms of discussions with the lender. The lender can drag the short-sale process on for a very long time. An offer may take anywhere from four to six weeks to get a response. But if the buyer is in the market to purchase a short sale, then patience is going to be vital in order to pick up that good deal.

Short Sales Now Widespread 2046

Foreclosure Activity up 60% from Feb 07

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Foreclosure Activity up 60 Percent from Feb 07There is a lot of media attention on foreclosures these days.  It seems everywhere you turn the radio, TV and newspapers have increasingly more negative news.

Although there are many markets offering great real estate investment opportunities, it is true that there is a significant increase in foreclosures, and nationally the housing market has slowed down significantly.

February foreclosure activity was down 4 percent from the previous month but still up 57 percent from February 2007 according to the latest RealtyTrac U.S. Foreclosure Market Report.  That equated to 1 out of every 557 households having a foreclosure filing of any sort.  Nevada, California, and Florida posted the top state foreclosure rates, with California and Florida metro areas accounted for nine of the top 10 metro foreclosure rates in February.

I've put together a short list of links if you are interested in more information on the current state of foreclosures:

"Go Zone" Going Gang Busters

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The summer of 2005 saw the dreams of hundreds of thousands of American people destroyed when Hurricanes Katrina and Rita hit the Gulf Coast. These hurricanes destroyed homes, stole lives and wiped out entire communities in Alabama, Louisiana and Mississippi.

The American government quickly named the regions most affected by the hurricanes as the ‘GO Zone' – short for the Gulf Opportunity Zone.  Today the Go Zone is actively and passively experiencing a massive regeneration and rebuilding by thousands of people, from new businesses to new home construction. [Read more…]

Welcome to our Real Estate Investment Blog

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Welcome to what we expect will become the definitive blog on real estate investing!

Our approach will be a little different than most other blogs.  In addition to interesting topics related to real estate investing, we also plan to include our insights and answers to questions submitted by you!  Simply use the form on the top right.

Norada Real Estate Investments is doing some great things to help make your investing easier and more profitable.  So subscribe to the RSS feed, and check back often as we kick-it off and grow.

Continued Success!

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

(949) 218-6668
(800) 611-3060
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