New York Nightmare Market???

[Jolene P. Neal]

Hi everyone, I noticed that there are hardly any success stories being posted by investors in NY. Primarily around the five boroughs. I have been digging through the MLS hoping to find a diamond in the rough according to my training but the listings are hardly updated. The good ones have already been sold or in contact weeks after they appear available on the MLS. Are there any fellow BPers who have had any luck in this super saturated market? And if so, please share how you are making your deals. I would greatly appreciate it and would love to make my first deal after 2 years of training. I'm ready to take more massive action.

[Llewelyn A.]

@Jolene P. Neal

@Elliot Vann

Hi Jolene! Hi Elliot!

In the year 2000, I bought a 2 Family building ONE block from Prospect Park in Windsor Terrace for only $140k!! Can you imagine that!

Today, it's worth at LEAST $1 Million!!

Every time I tell people that story, which is 100% true, they say that it was a BARGAIN at that time!

Was it a Bargain?! 

Let's analyze a little bit. There were several housings on the same block that were completely similar. In Fact, cooking cutter. How much were they selling for? $140k !!!! oh.. wait.... I didn't get a Bargain?! OR DID I?

YES!! IT WAS A FANTASTIC Bargain! I made almost $1 Million from it!

BUT.......... it's not the same Bargain as the one you and most people are thinking about.

There are actually two kinds of Bargains.

There is the normal bargain, such as buying a pair of great shoes worth $200 for 50% off at $100! That's a Bargain!

BUT, this kind of Bargain is only know not from the purchase price today, but from the Selling Price of TOMORROW!

In other words, when it comes to an Investment, including Real Estate, the only way you know it's a bargain is when you know 2 things.....

1) The Purchase Price and

2) the Selling Price!

If you don't know those two things, you don't really know if you got an Investment Bargain.

I can't tell you how many times I was told starting from 1997 when I bought my first Investment Property in Brooklyn.

EVERY YEAR... without FAIL.... I have been told I was crazy to buy at these Prices.

Amazingly..... those people who gave me that advice never bought.... TO THEIR REGRET.

Now I own 7 Multi-Family buildings (with Partners, of course).

I am in Contract for a 3 Unit building in Crown Heights for $1.890 Million.

And, as it never failed for the last 20 years..... I am crazy to pay so much money for it.

BUT... in 10 years from now, when the Crown Heights Building becomes $3 Million or More...... it will change to "WOW!!! You paid so little for it! What a BARGAIN!"

The Reader of this post so consider that there are different kinds of Bargains. An Investment should not be thought of as the same way you buy shoes. It's a whole different kind of Investment and requires a different way of thinking!

You may also be asking how does one know the property they are buying will be worth more in the future?! Well... all you have to do is look through my posts to see why I am able to use different Future Value Calculations with 10 year pro-forma business plans, analyzing the probability that the Investment can appreciate in value! Somehow, most books and courses seem to miss these kinds of calculations. Maybe that's the secret they don't want you to know!