All Forum Posts by: Lilia Matlov

I have discussed a question with many real estate practitioners: What is your biggest regret in doing business?

Undoubtedly, the biggest regret is getting involved in the short-term rental market. It turns out that nothing is more of a waste of time, energy, and money than this, money that could have been spent elsewhere. The sheer complexity of this matter alone is enough to illustrate the problem, but this is just the tip of the iceberg.

It seems we are facing a similar problem; real estate is not just a numbers game, which is contrary to the thinking of most investors. Focusing solely on numbers often leads to junk real estate. Investment needs to pay attention to the quality and potential of the real estate.

Thank you for your reply, John. I always maintain a learning mindset, as the market is always changing. Experience and learning are the keys.

A lesson I learned later is that real estate is not just about numbers, which is contrary to the thinking of most investors. Focusing solely on numbers often leads to the purchase of low-quality properties. For example, in the New York area, especially in some hyped-up fringe neighborhoods (like certain areas of the Bronx, Queens, or Staten Island), finding a "bargain" seems easy. Inexperienced investors rush to buy these properties, only to find themselves with a heap of trouble. Yes, you bought what seems like a good deal on paper, but in reality, you own an old apartment building in a neighborhood with poor security, possibly surrounded by long-vacant shops, streets piled with garbage, and a poorly managed community. How many tenants or buyers would really be interested in such a property? That's right, only those willing to compromise.

This is also why many so-called "creative financing" deals often involve low-quality properties. The reason sellers cannot sell these properties through the traditional market is often due to certain issues, and 98% of the time, these issues are not beneficial to you as a buyer. Smart investors first focus on finding quality properties—such as those in thriving areas of Brooklyn or potential neighborhoods around Manhattan—and then reverse engineer the process by improving management, optimizing rental structures, or enhancing facilities to make it worthwhile. If I had grasped this concept five years ago, my achievements today would be even greater.