Rental Property Investor · Greater NYC Areas, NY · Member since 2014 · 50 posts · 11 votes
Say you have 20 million to play with... How would you find great deals in NYC? (Think critically about it for a second. Don't just make a joke about having or not having $20M!)
Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
7y
I would look outside of NYC, and outside of NY State actually. I'm super bearish on NY right now. WSJ reported earlier this month that the population of NYC is actually declining for the first time in recent memory. (Link below) I live here, and EVERYONE I know with the exception of a handful of lifelong New Yorkers is preparing to move just as soon as they can. I see that you live here as well, and I'm happy to have a coffee and compare notes...maybe you know different people. Not to say that NY won't rebound, but we are going to need to get "new management" in here, and I don't see that happening anytime soon either. Quite the opposite.
If I had $20m of equity to place, I like to think I would look outside of NYC in search of better yield.
Which markets within New York state are you looking? I don't think $20m in NYC goes too far. Workforce class C housing in NYC ranges from $50k -$200k+/door.
Not sure what type of capital you have, patient or fund equity... however a lot of owners in NYC are basically buying the dirt and/or are buying as legacy assets and capitalize on the appreciation.
I think I have to go with @Jared Carpenter on this, on principle alone.
But, to entertain your question. Probably the only way to make any money here is new development for higher density. I would be most interested in condo development (2-4 bedrooms) in good school districts. Families have a hard time finding housing. Because you're dealing with buyers, you can unload the assets and skip the painful process of managing in NYC.
Our state legislature and governor are in agreement that they will make it even harder to be a landlord in this state. I personally see 0 upside in building for passive income in NYC.
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
7y
@Alexander George post that on LinkedIn, with some NYC Real Estate hashtags, and you'll get thousands of brokers sending their deals. Or, you can call the big players and see if they're looking for partners, as they get lots of deals brought to their doorsteps.
Real Estate Agent · Luray, VA · Member since 2016 · 460 posts · 293 votes
7y
In my opinion, you would find great deals in NYC the same way you would find great deals in any other market with whatever you currently have. It would be networking with brokers, posting to LinkedIn like @Scott Wolf recommended, constantly asking for referrals from other people and property management companies.
The big difference would be, with $20MM of cash in hand you will have people fighting for your attention and you will get more deals sent your way quicker than if everyone thought you were a tire-kicker.
Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
7y
I would look outside of NYC, and outside of NY State actually. I'm super bearish on NY right now. WSJ reported earlier this month that the population of NYC is actually declining for the first time in recent memory. (Link below) I live here, and EVERYONE I know with the exception of a handful of lifelong New Yorkers is preparing to move just as soon as they can. I see that you live here as well, and I'm happy to have a coffee and compare notes...maybe you know different people. Not to say that NY won't rebound, but we are going to need to get "new management" in here, and I don't see that happening anytime soon either. Quite the opposite.
Specialist · NY · Member since 2016 · 82 posts · 60 votes
7y
As the above posters suggest. Let your abundant capital position be known and the deals with find you. Whether or not they are actually “deals” is for you to decide. NYC is a highly competitive market and unpredictable with talk of more rent regulation and potential commercial rent regulation and sub 4% cap rates. Many investors would seek out stabilized buildings and base their upside potential on buying out current tenants and re-leasing them at market rates. Now with more tenant protection laws this may not be an easy play. However, there are some outer borough markets that seem pretty attractive with a lot of new development.