Finding deals in New York

[Steven Pratt]

Great morning world, I’m kind of in a slump and need my bigger pockets community help to inspire me to get back on my feet, What are some of the best ways to finding deals and do you think it is worth approaching Pre-foreclosure properties? What are some of the best ways to approach the home owners?

[Guy S.]

@Steven Pratt NYC is my home market, and in my opinion, might be the hardest market in the country for investors. Homeowners are more educated and impatient than anywhere else. Home values are high to begin with and are soaring up on a constant basis creating more equity, so banks are more willing to work with distressed homeowners so no one is really in a rush to sell for a discount. Let's put it this way - last year I had 2 pre-foreclosures contracts in the Bronx and both fell through. The banks where not really willing to budge from market value, which made no sense so none of the 2 where closed. Attach that to fierce competition with heavyweight investors, and you get an almost impossible task of "finding deals". I am personally doing heavy prospecting in Harlem, Brooklyn, Queens and Bronx for big developers and few brokers as well and can confidently say - unless you make that a full-time job, it's going to be very, very hard.

IMHO small investors and wholesalers in NYC have little to offer to homeowners. No one really needs to be "saved" over there. You might stumble every once in a while on a nice deal but can't make a business out of it. The only way to flourish in this market is to bring value. There are some ways to do that:

1. Sell homes as an agent and get your commission. Since the market is strong you will have a bigger property base to work with. Second - a lot of times the commission is faster/easier than going the flipping rout. I think this is the best way to start. Join a group of like-minded realtors like @Abel Curiel and work hard, results will come soon after.

2. Develop a property, convert SRO's to a standard dwelling or syndicate a deal. Add real value.

If you really insist on flipping then, in my opinion, start with door knocking. Because it's so condensed, NYC gives you a rare opportunity to cover a lot of ground in less time - knocking 100 doors a day should put you in a different point in a month from now.