How to start investing in NYC Real Estate, for non-Millionaires!
How to start investing in NYC Real Estate, for non-Millionaires!
The 3 Qualities you need to kickstart your NYC portfolio
Hello BP Community!
This is my first blog post, I'm not a writer... But I can document!
Gary V encourages us to Document instead of Create... I guess its because theres no fluff involved in documenting... you're just doing your thing and telling it like it is, right?
So here it goes.
I've been VERY active on the forums since I found BiggerPockets and I pay close attention to what is said about beginning as an investor in NYC - Queens, Brooklyn, Manhattan, the Bronx, Staten Island... and even Long Island.
When it comes to the topic of investing in NYC, I see the same remarks time and time again - "It's impossible", "Too expensive", "You need cash", "All the good deals are taken"... While I understand those points of view, I don't totally agree.
House-hackers, BRRRR Strategy users and other investors have found tremendous success in this market. In my experience working with these investors, I've found that they have 3 distinct qualities.
- 1. Qualified - To make the deal happen in the first place, the numbers have to make sense! Of course, your return is important... your potential cash flow is important. None of this matters if you cannot qualify for the type of deal you're looking at. Lenders can lay out the various financing options and help equip you for making an offer once you locate the right property for your strategy.
- 2. Realistic - Tim, an agent from our team, once said "You can't go shopping at Tiffany's with a Target card". While there is a ton of long-term potential in holding NYC Real Estate, you have to realize that there is a price-tag associated with that potential. Of course, you should never bank/depend on future appreciation.
- That being said, properties in the 5 boroughs and Long Island appreciate more than properties in most markets throughout the country. There is a reason why the prices are high here and you should be realistic while on your hunt. Realtors are a great resource for information because they can show you what properties are ACTUALLY selling for.
- 3. Motivated - I don't care how great of a rate your lender gets you or how much of a Rockstar your Realtor is... There is 1 person who can motivate you to pull the trigger when you find the right property... That person is YOU!
- If you're qualified and realistic, but "can't find" your first deal, you're just not motivated. Have you ever heard the topic of "emotion" discussed on the podcast and BP forums? Chances are, you have... and in case you haven't heard this... you CANNOT invest with your emotions. If the 3rd bedroom is too small or the kitchen layout bothers you, guess what? You're not thinking like an investor, you're thinking like a homebuyer.
Learn to see the potential in the investment... if you still can't see the potential. Take a step back and think about WHY you thought about investing in the first place. Your purpose should motivate you to no end!
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