Frustrated Investor

[Tory Ellis]

Over the past year I've been watching the threads from bp members about my NYC market and all I've been seeming to hear from ppl is that NY isn't a good market to invest in and I've been told that I should invest in other markets. My problem is that first off every book that was written on RE they tell you to start in your OWN BACK YARD!!!. Second Why should I look to another market when I've personally seen my entire neighborhood change through revitalization and its nowhere near done, I've even predicted which neighborhoods would be next accurately! I'm from Bedford Stuyvesant Brooklyn where almost every property in my neighborhood is a Victorian Style Brownstone which ARVs from anywhere between1.5-2mill easy. Even the Brownstones that are at the very edge of Bedstuy bordering other neighborhoods ARVs at 850k-1mill.

 I've done my due diligence on this market. I know what blocks are the "Good Blocks" from the beautiful but shady blocks because of the type of crime that goes on in that vicinity. I know which blocks have the better RE values, I know which Blocks have LandMark Zoning.There are still plenty of unoccupied distressed Bedstuy Brownstones up for grabs right now and its killing me inside that I can't seem to find a way to capitalize on it! I see on Property Shark that these same properties were bought for 300k-600k As Is a few months ago and then rehabbed and sold for millions. I personally watched over 100 properties being done this way in my neighborhood, I even went as far as trying to buy coffee and or lunch for the investor who is always some Jewish guy sitting near by in his Oddessy Van in order to offer my services to help in any kind of way to No Avail at all. They won't even talk to me let alone take coffee.

Also i've been having a big problem finding investor friendly agents. Every Agent that I called, which I can honestly say that i've called them ALL!!! If your name came up as a BKLYN/Queens agent on google I called you at least twice, none of whom work with investors or the FEW that did said that they have investors they send their deals to already but will add me to a list (which obviously never happened). 

I've noticed that most of the new home owners are from another country for the most part which I think is awesome because it only adds to the NY flavor. However I refuse subscribe to the notion that out of all of this fix and flipping thats going on in my back yard that I am forced to go looking to do my first deal anywhere else, it just doesn't make sense to me at all!!. My point is this I KNOW that there is an Occupy Brooklyn Movement going on right now and I need help/guidance/mentoring on how to best position myself to capitalize from it. The same is going on in Queens NY just at lower prices but i have no idea about the Queens neighborhoods.

Is there anyone on BP that can give me the help/guidance/mentoring that I need? Thank You All in advance... Sorry about the tantrum (LOL!!!)

[J. Martin]

@Tory Ellis ,

I will be you a lot of them are being purchased for 100% cash. Maybe through auction.com , maybe tax sales, maybe courthouse auctions, maybe some off-market Craigslist, maybe some probate deals mixed in there.

THERE ARE LOTS OF WAYS TO GET STEALS OFF MARKET, BUT THEY ARE GENERALLY ONLY AVAILABLE TO CASH INVESTORS OR SOMEONE WITH A STRONG PARTNER OR BORROWINGS TO GET THE DEAL DONE IN THE TIME FRAME REQUIRED.

This makes it tough for a new investor at this part of the cycle. With limited deals, and lots of money chasing them, how do you attract the cash and partner without the experience? My recommendations is TO NETWORK all you can. Don't ask for a mentor, but show people your hustle at meetups, and start connecting with them. Then go research these properties, call the agents, look up the title info.

Bring the deal to one of those investors you met, and say "Hey, I saw this deal for auction, I talked to the former agent for the property and it's actually 1000 sq ft bigger than listed, good shape, I checked title and only has a $10K lien, I talked to all the neighbors, and they love living there. It would be a great long-term rental w/ XX% cash flow, based on these comps I went and got.. Do you want to consider partnering on the deal? If you find a great deal and know more than others, you can always find a partner, if you network IMHO.

@Darren Sager  has been blowing it up with some awesome meetups and speakers in the NYC area from what I can tell. Follow him and see when he posts the next one. Also check the "events and happenings" forum on BP and meetup.com to meet some other investors and get the ball rolling!

Good luck Tory!

Everyone said it's too expensive to invest in the SF Bay Area, and that there's no cash flow here. I started with very little/no capital, and have been able to do both. 4 times. With thin inventory. And similar circumstances to you. I still have them all, and plan on holding, by myself, and with a couple partners. So don't be afraid you can't get it done if you're willing to hustle, network, and help others. It will come back to you.