real estate investment<\/a> portfolios. The company provides individual clients with comprehensive plans about the geographical markets and submarkets that make sense for them.<\/p>\n\u201cIt always starts with what we call a \u2018strategy session\u2019\u2014that first call that can last an hour or more,\u201d said Santarelli. \u201cThey probably range in 30-60 minutes, based on how much the investor understands and how seasoned they are or aren\u2019t. The first hour lays a lot of groundwork and answers a lot of their questions.\u201d<\/p>\n
Naturally, Norada avoids the so-called \u201c24-hour cities,\u201d like New York City, San Francisco, Los Angeles and Chicago proper, because\u2014much like Canadian investors have come to learn about Toronto and Vancouver\u2014investment properties in those cities don\u2019t carry themselves. While the aforementioned cities still offer superlative equity after a number of years, Norada operates in markets that proffer both immediate positive cash flow and, down the line, considerable appreciation.<\/p>\n
\u201cThe reality is that the bulk of properties we choose for our investor clients in the single-family home submarket range from US$100,000-200,000, and sometimes as low as US$80,000. These homes range from about 1,000 to 2,000 sq. ft, have three bedrooms, and an average of two bathrooms.<\/p>\n
\u201cJacksonville, Memphis, Indianapolis or Greater Chicago\u2019s metro area, that\u2019s where your rent-to-value ratio, as I like calling it, will be closer to 1%, which is perfect,\u201d said Santarelli. \u201cIt could be 0.8% or 0.9%, but a $100,000 three-bedroom single-family home would rent for roughly $1,000 a month, while a $200,000 single-family home will rent for roughly $1,700 a month gross. In lower priced markets, your cash-on-cash return could have double-digit cash flow.\u201d<\/p>\n
Santarelli stressed the importance of deep market analysis and alluded to Detroit, which investors often mistake as being ripe for a boom. Not so, says Santarelli.<\/p>\n
\u201cDetroit is not a market we operate in, and we wouldn\u2019t touch it for decades. You can buy properties there for $10,000-30,000, but you\u2019re dealing with a problematic demographic of tenants with very low income and transient job situations.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Real estate investors must be growing accustomed to Canadian markets plateauing and yielding diminishing returns, and the solution may involve our vastly more populous neighbour to the south. Norada Real Estate Investments, a firm founded by Calgary-born Marco Santarelli, now a resident of Orange County, California, could best be described as a gateway to myriad […]<\/p>\n","protected":false},"author":6,"featured_media":23200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8983"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8983"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8983\/revisions"}],"predecessor-version":[{"id":30140,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8983\/revisions\/30140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/23200"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}