Norada Capital Management Review: Promissory Notes, Real Investments & More

While short-term vacation rentals and wholesaling are no doubt among the easiest ways to invest in real estate, they still need lots of attention.

If you’d like to dip your toes into real estate without getting your feet wet, passive investing companies are the way to go. Companies like Norada Capital Management do all the hard work, leaving you to bask in the glorious shade of their profits.

We checked out Norada Capital Management reviews, analyzed its pricing, and researched it to create this comprehensive guide. The guide will help you assess Norada Capital’s suitability for your passive investing needs in 2024.

• What Is Norada Real Estate Investments?
• What Is Norada Capital Management?
• Norada Real Estate Investments Features & Benefits
• Norada Real Estate Pros & Cons
• Norada Real Estate Investments Pricing
• Norada Capital Management Pricing
• Norada Capital Management: Top 3 Competitors
• Norada Capital Management: FAQs
• Final Thoughts On Norada Capital Management

*Before we begin our review on Norada Capital Management, we invite you to view our video on How To Get Into Real Estate With No Money! Host and CEO of Real Estate Skills, Alex Martinez, provides the perfect guide for beginners to invest in real estate using no capital of their own!

What Is Norada Real Estate Investments?

Norada Real Estate Investments is a private equity firm based in Laguna Niguel, California. Established in 2003 by Marco Santarelli, the firm offers investors real estate properties that generate private income and equity through appreciation.

The company is renowned in real estate and even made it to the Inc. 5000 list as one of the fastest-growing companies in America. The private equity firm only works with accredited investors.

Here’s a quick overview of what our Norada Capital reviews uncovered about the company's offerings:

• Turnkey cash-flow investment property: Norada promotes new and refurbished residential properties, ranging from single to multi-family properties with up to four units. These properties are usually located in rigorously vetted, high-growth markets across the US, and you can start earning from them as soon as you purchase. Each property features detailed information, ranging from basic data like address, square footage, and year of build to financial data, allowing investors to conduct a personal deal analysis before they invest.
• Property management: Norada has a thoroughly vetted network of property managers and service personnel who handle property management on behalf of owners. However, investors can enlist their own management companies or even directly manage properties they invest in.
• Financing: Norada offers private money lending services for some of the properties it markets. Additionally, the company boasts a network of mortgage brokers and real estate lenders. Consequently, it organizes funding for interested accredited investors short on capital.
• Investing resources: Norada offers a comprehensive education section on its website covering nearly everything investors need to know about real estate.
• Promissory notes: The company offers promissory notes worth as low as $50k with interest rates ranging from 12% to 16.7%.

Who is Marco Santarelli?

Marco Santarelli, founder of Norada Real Estate Investments, is a seasoned real estate investor. He's also a big reason most Norada Capital Management reviews come back positive; he's committed to helping people create wealth and achieve financial freedom through passive income.

He began investing in real estate at the tender age of 18. Marco would purchase, lease, and manage properties. The man now boasts over 84 out-of-state investment properties, ranging from single-family homes and duplexes to small apartments.

Today, the visionary entrepreneur is among Inc.1000 entrepreneurs, Think Realty’s Master Investor of the Year honoree, and an author.

He also hosts Passive Real Estate Investing, a top-rated podcast with over 500 episodes where he answers questions about investing and consistently shares his knowledge on real estate investing.

What Is Norada Capital Management?

Norada Capital Management is part of Norada Real Estate Investments.

While the latter specializes in turnkey rentals, Norada Capital Management allows investors to invest in promissory notes. These notes start at $50,000 to over $200,000 and feature an annual interest rate of 12%-16.7%. They’re designed to offer:

• High-Yield Returns: Most Norada Capital reviews highlight the company's ability to generate returns higher than traditional bonds and stock dividends.
• Regular Income: They offer predictable monthly returns transferred directly to the investor’s funding account via ACH.
• IRA-Friendly Notes: Norada’s promissory notes are IRA-friendly, allowing you to maximize returns on your tax-free IRA funds.
• Rollover: You can reinvest your principal amount upon maturity.
• Maturity Duration: Norada’s promissory notes feature 3-7 year terms.

According to our Norada Capital Management review, they also refund the principal amount invested upon the note’s maturity. However, like its turnkey properties, Norada’s promissory notes are limited to accredited investors.

Norada Real Estate Investments Features & Benefits

Norada Real Estate Investments offers some pretty impressive features. Here’s a quick list followed by a detailed discussion of the benefits that each feature brings to the table

• Norada Capital Management
• Property Analysis
• DealGrader

Norada Capital Management Offering

Are you looking to safeguard your savings against inflation? Our Norada Capital Management review suggests this company might be ideal for you.

Norada Capital Management is designed for investors who want to enjoy passive income in real estate but don’t want complex investments.

The company offers promissory notes worth $50k, $100k, and $200k+, with annual interest rates ranging between 12% and 16.7% depending on the investment amount. These rates of return surpass what bank-provided bonds and stock dividends offer. Norada’s promissory notes generate predictable monthly passive income transferred to the investor’s funding account via ACH.

The best part about investing with Norada’s Capital Management is that they guarantee monthly income and the total return of your principal amount upon maturity.

Furthermore, Norada Capital Management allows you to automatically reinvest your principal amount into another promissory note once your investment matures; this ensures continuous interest earnings and allows you to capitalize on ongoing opportunities for growth.

To invest in Norada’s promissory notes, simply sign up on the website and choose your investment amount and duration. Norada will handle the rest, including depositing monthly interest returns directly into your funding account via ACH payments on the 1^st of each month. Here are additional investment terms for the promissory notes:

• Duration Options: 3 to 7 years
• Bonus Rate: 5% paid at maturity
• Maximum Interest Return: 16.7%

Property Analysis

Success in real estate investing is closely tied to the level of data you have about your investments. Thankfully, Norada provides plenty of this data. The company offers comprehensive details for each turnkey property it promotes for investment, including the address, price, year of build, square footage, total rooms, and potential rental income.

While these details alone are enough to conduct a property analysis, Norada real estate reviews suggest the company doesn’t stop there. The company offers even more data and tools investors can use to further assess a rental’s profitability. These include:

• A Real-Time Calculator: Offers users all the financial details related to the property, from the purchase price, rental income, taxes, and expenses to potential returns. While already pre-filled, users can customize these figures to analyze the financial outcomes they’d get if they invested in the property, thus enabling them to make informed decisions and projections.
• Financial Analysis Form: Norada includes a PDF form detailing its estimated financial performance across three decades for each turnkey property. The form includes data like expenses incurred in setting it up, cash flow, equity, and the approximate net operating income.
• Financial Analysis Charts: Norada converts the financial analysis data it offers in PDFs into user-friendly charts, allowing users to digest it easily
• Neighborhood Data: This section analyzes the neighborhood where a turnkey rental property is located. It covers property values, demographics, real estate ownership rates in the area, and even trends. This data allows potential investors to seamlessly conduct a comp analysis and determine if it’s a neighborhood they’d like to invest in.

Read Also: Rental Property Calculator: How To Calculate Your ROI

DealGrader

If you want to quickly assess the profitability of a rental you’ve identified on the platform, Norada’s DealGrader is an ideal tool. Norada Capital Management reviews are generally high on the offering.

The DealGrader is an algorithm-based scoring system developed by Marco to measure the economic viability of the properties showcased in Norada’s turnkey rental portfolio. It allows users to swiftly perform an objective evaluation of a property they’re considering for investment.

DealGrader gets the hard work out of deal analysis and facilitates informed decision-making, ensuring investors like you can identify promising investment opportunities that align precisely with their real estate portfolios.

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Norada Real Estate Pros & Cons

Our Norada Capital Management review has uncovered several pros and cons associated with the company, not the least of which are listed below:

Pros

• Superb Property Portfolio: At any given time, Norada’s turnkey rentals portfolio features about 100-200 properties across 18 to 20 markets. This allows investors to invest based on their risk profiles and in the markets most convenient for them. Furthermore, Norada comprehensively researches the economic viability of each market to ensure maximum profitability and low risk.
• Diverse Investments: If property investing isn’t your cuppa, Norada offers an excellent, completely passive alternative investment opportunity—promissory notes with a predictable monthly return on interest
• High-Quality Rental Investments: The team at Norada handpicks each property in its investment portfolio, ensuring that only high-quality investment opportunities are offered to investors. Furthermore, Norada’s investment properties are off-market and exclusive to the investors on the platform, creating a competitive advantage.
• Property Management Flexibility: Norada allows you to decide how passive your investment will be by allowing property management flexibility. If you’d like to be more involved, you can manage the property yourself or get your team to handle that part. But if you have your hands full, the company has a fully vetted network of property managers ready to handle the heavy lifting for you.
• Expertise & Guidance: Norada doesn’t just want you to invest; they want you to succeed. Their commitment to investors' success is evident in the wealth of resources they provide. Their website has an extensive education section with countless blogs, articles, videos, reports, and guides covering various real estate investing strategies. Investors are usually paired up with investment counselors who conduct strategy sessions for free. Add in the founder’s podcast, and you have the resources to perform due diligence, ensuring every investment you make with the company is poised for success.
• Full-Scale Investing Solution: With Norada, you don’t just get an exclusive selection of properties to invest in but also the funds you need to capitalize on these investments, access to resources you need to make informed decisions, navigate challenges, and with property management included, you can take a completely hands-off investing approach, which is ideal if you have a tight schedule.
• A Promissory Note For Every Investor: With options ranging from $50k to over $200k, every investor, whether with limited cash flow or well-funded, can participate in Norada’s promissory note investments.

Norada Real Estate Cons

While great, Norada isn’t completely faultless. Here are some cons you should be aware of:

• Unsecured Promissory Notes: Investing in Norada’s promissory notes is risky as the company offers no collateral. However, this is no deal breaker as the company is legitimate and has a proven track record of successful investors. Plus, many positive Norada real estate investment reviews and user testimonials exist.
• No Fee Or Payment Information: The company doesn’t disclose any information about its fees or payment policies.

Norada Real Estate Investments Pricing

Norada’s website offers no information on how much its real estate investment services cost.

But Marco Santarelli shared on the Ask Marco section of his podcast’s website that Norada Real Estate Investments promotes turnkey investment property owners. They market these properties on behalf of the owners, provide guidance and support to clients, and facilitate the investment and closing process.

In exchange, Norada Real Estate Investments receives a commission from the property owner for their services, while investors like you incur no charges. Once you invest, Norada doesn’t share in your profits or get any equity in the property.

Norada Real Estate Investments operates similarly to a real estate brokerage but specializes in exclusive turnkey properties. That means besides the investment you make in the property and the money you’d pay for property management, if you decide to go completely passive, working with Norada Real Estate Investments costs you nothing.

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide

Norada Capital Management Pricing

Norada Capital reviews are pleased the company charges no management or servicing fees. You only need the amount you invest in the Norada Capital management promissory note.

The notes are worth $50k, $100k, and $200k+, with interest rates between 12% and 15% annually. The interest rate you qualify for depends on the amount you put down. Essentially, the company offers three main types of promissory note investments, each with different interest rates:

• A $50,000 minimum investment earns 12% per year.
• A $100,000 minimum investment earns 15% per year.
• A $200,000 (or more) investment earns 15% annually, plus a 5% bonus when the note matures.

Norada Capital Management: Top 3 Competitors

Norada Capital Management offers an amazing real estate investment model. However, other real estate companies offer similar investments, including:

• Roofstock
• Howard Hanna Real Estate Services
• REI Nation

Here’s how Norada compares to them:

Norada vs. Roofstock

Norada and Roofstock offer investors an opportunity to invest in turnkey rental properties. They also employ an extensive vetting process to ensure each property offered to investors is high quality and has a healthy potential for returns.

But while Norada specializes in rentals and promissory notes, Roofstock expands its offerings to include multi-family properties for sale. Roofstock further offers various ownership levels, including fractional ownership.

Operating in over 70 cities across 24 states, Roofstock boasts a broader geographical reach than Norada, which specializes in only 22 real estate markets and has limited inventory in each.

Roofstock further stands out by offering a 30-day money-back guarantee, providing investors with added assurance.

Norada vs. Howard Hanna

Howard Hanna is a real estate brokerage, while Norada is a turnkey rental properties promoter. Consequently, the two companies are entirely different in their operational models. However, despite this notable distinction, they share some similarities in the level of customer support they provide.

Like Norada, Howard Hanna assigns investors a dedicated real estate agent to guide them through the turnkey real estate process, acquisition, and management. The primary difference is that while Norada’s agents are complimentary, Howard Hanna’s team charges a commission ranging from 2% to 6%, depending on the investor’s locale.

Additionally, we couldn’t find any information about money-back guarantees on Norada’s website, which means the deal is done once you invest with the company. However, Howard Hanna offers a 100% money-back guarantee for unsatisfied buyers.

Norada vs. REI Nation

REI Nation is one of Norada’s key competitors. Like Norada, REI Nation promotes turnkey investment properties. It excels in this field by focusing on specific markets and only providing a hand-picked selection of properties.

However, while Norada offers single to multi-family properties, REI Nation specializes in single-family homes.

Also, Norada operates countrywide, while REI Nation specializes in mid-south real estate markets like Texas, Oklahoma, and Tennessee.

Norada Capital Management: FAQs

Our Norada Capital Management review has identified several frequently asked questions we think prospects should know the answers to before taking the first step:

Who is the CEO of Norada?

Marco Santarelli, a seasoned real estate investor with a portfolio of over 84 properties across different states, is the CEO of Norada Real Estate Investment firm.

What is Norada’s Customer Service Number?

You can reach Norada’s customer support team at (949) 218-6668, (800) 611-3060, or [email protected].

What is Norada’s Cancellation & Refund Policy?

Norada discloses no information about fees, cancellation, refund, or money-back guarantee policies.

Final Thoughts On Norada Capital Management

With offerings in turnkey residential properties across 22 markets and even assisting with funding, our Norada Capital Management review has identified an excellent option for real estate investors seeking passive income opportunities. It further simplifies passive investing by offering property management services.

For an even more hands-off investing approach, Norada offers promissory notes starting as low as $50K and with interest rates of 12% to 16.7%, allowing investors of all budgets to participate. These notes generate returns monthly and are ideal for investors seeking regular, predictable passive income. In essence, Norada Capital Management is a company we’d recommend checking into. Notably, companies like RoofStock and REI Nation are worthy contenders. Do assess your specific investing needs to identify the right fit.

Do you want to learn how to invest in any real estate market and how to close deals consistently? Simply sign up for our free wholesale training today to get invaluable knowledge from the Founder and CEO of Real Estate Skills, Alex Martinez, and our community of passionate real estate investors.