New Wannabe Investor from New York City

New Wannabe Investor from New York City

Bronx, NY · Member since 2015 · 151 posts · 54 votes

Hi all,

It is a true pleasure to finally have my first post on BP.  I have been going back and forth and hesitating on when putting up my first post but as written in The Ultimate Beginners Guide "I never worry about action, but only inaction" is a rule that I want to learn and live by.  I was also inspired by watching some HGTV programs on Netflix last night and I really think this may be a field that interest me, I know TV is nothing like real life.

I was also encouraged by Episode 113 of the BP Podcast which I have heard about 3 times and was only published yesterday and I was given a gleam of hope that I may be able to one day become a successful investor. It is difficult to see myself succeed in this field as I am creating a lot of imaginary walls. I have never owned any property, have lived my younger years in a tiny apartment and just recently move with my wife and son to a nice 850 sq foot apartment in the Bronx. With that being said I know absolutely nothing about owning property but am doing my best to soak up as much information as possible. Reading the Ultimate Beginners Guide to Real Estate Investing, listening to as many podcast as possible (at 1.5x speed=Lifehack, thanks BP), reading through the forums, and currently creating a must read book which include The Millionaire Real Estate Investor and FLIP. In the future, I am also planning to attend events for local REI events in my area. Due to my lack of experience in Real Estate, I do not know if I want to move into buy and hold, flipping, or wholesaling. I have been researching enough to know that the New York City market is a tough one and I am not sure how I am planning to build my wealth yet but I have a strong commitment to do it through Real Estate. Another hurdle that I am running into is the lack of capital, raising a family in NYC is not cheap.

Current Position and Experience

I am an accountant who works for a major utility company in New York preparing Financial Statements that are filed with the SEC.  Although my background is in accounting, the only experience I have with tax law is one college course.  I do enjoy working with my hands and using tools (I guess this just makes me man *thumps on chest*), I have volunteered at Habitat for Humanity and 8 hours always seems like 1 hour.

Goals

I want to reach a point where I can have positive cash flow and leave the chain that is currently attaches my ankle to my cubicle.  Growing up I have always wanted to travel and have yet to leave North America and am hoping that through investing I can attain these new opportunities.  I want to be involved in the American system that provides living accommodations to those who are looking for it.  I am looking to network with professionals who would be willing to accept some labor for some of there knowledge and experience.

Any advice and guidance is completely welcome!

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Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
11y

Welcome to BP community @Angel Rosado It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best! 

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  • NY · Member since 2015 · 33 posts · 9 votes
    11y

    Welcome, @Angel Rosado! I am a new investor too. This is a great place for us to learn and connect with other investors. I hear there are some great meet ups in the nyc metro. I went to one posted by @Darren Sager here on BP and it was excellent. Keep learning here, meeting people, listening to the podcasts, reading the books and saving some money while you learn... or at least that is what I am doing while looking for my first buy&hold. Looking forward to seeing you more here and maybe in one of the events.

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Welcome to BP community @Angel Rosado It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best! 

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Angel Rosado

     Hi and welcome to BP!  Thank you for taking the time to so thoroughly introduce yourself.

  • Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
    11y

    @Angel Rosado

     Bronx is an interesting place right now as it has lagged other areas of NYC (I am from NYC first). 

    Maybe you should start by looking for great deals in the area as being native gives you an advantage over others that came from BK or other areas of NYC. You can either try no money down strategies or find an investor that is willing to do in with you. 

  • Real Estate Coach · Scottsdale, AZ · Member since 2010 · 72 posts · 23 votes
    11y

    Angel,

    Real estate investing can be a very rewarding and profitable venture. I have been an investor since 1985 and still enjoy it to this day, you must be very when investing in real estate my recommendation is to educate yourself and make sure you are prepared.

    Here are some good questions to ask yourself prior to deciding which type of investing avenue to take.

    Why do you want to invest in real estate?

    How much time do you have to spend educating yourself?

    How much time do you have to spend on investing?

    How much money do you have to invest?

    What are your financial goals?

    Don't try to do it alone find a good real estate who specializes in The real estate investing technique that will be best for you based on your answers to questions above.

    Our company Leaseown Homes invests using lease options, we found it limits our liability, allows us to minimize the use of our cash and allows us to invest in real estate without risking our credit.

    Do your homework and ask lots of questions.

    Good Luck.

  • Involved In Real Estate · Brooklyn, NY · Member since 2014 · 1 post · 0 votes
    11y

    Welcome fellow New Yorker!

  • Bronx, NY · Member since 2015 · 151 posts · 54 votes
    11y

    @Account ClosedTHANKS!!!! so much to think about.  These questions really provide a brainstorming ground that I can leverage to further my education.  Please don't be surprised if I ask you some questions.  And now I'm on the hunt to learn about lease options.

  • Investor · Titusville, PA · Member since 2015 · 298 posts · 150 votes
    11y

    Welcome to BP!  Be encouraged.  I have found that locations seem to be relative as far as expenses go.  Wages tend to follow cost of living, generally, in my experience, so NYC may be more expensive than Podunk, PA, but the employees aren't making $10/hour either.  Because of that relativity, so long as you are keeping your expenses lower than your income, you should be able to save up a down payment in time.  As an accountant, simply keep track of your personal finances as well as you might your client's. Cash flow is king.  Best regards

  • NY · Member since 2015 · 33 posts · 9 votes
    11y

    @Angel Rosado

     You sound really focused and I think you can go far. Good luck and hopefully see you soon in one of the meetups!

  • Bronx, NY · Member since 2014 · 117 posts · 33 votes
    11y

    @Angel Rosado

     Welcome. I am in the Bronx as well. 

  • Bronx, NY · Member since 2015 · 151 posts · 54 votes
    11y

    @Jayson Greenblatt nice to see another person from my area, in your research whats your opinion on our market?

  • Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
    11y

    @Angel Rosado

     just because they are empty doesn't mean they are a good investment. Just like any investment, it depends on your risk tolerance and your ability to withstand the pain at least on something like that. Will you be able to sit there for who knows how many years while the area turns? Will you be able to deal with a tenant base that is hugely problematic in the meantime for no money (as cashflow many times is small)? 

    True when it does turn everyone thinks they should have done it but everything is great in hindsight.

  • Investor · Brooklyn, NY · Member since 2015 · 127 posts · 57 votes
    11y

    @Angel Rosado Welcome! I like to see that you are committed and have strong goals. My best advice is that real estate is a slow and steady way to build wealth - stay patient and keep learning. Don't get discouraged if you can't jump in tomorrow.

    I am just starting to research the Bronx, I do think there are some good opportunities there and would love to hear your thoughts on the up-and-coming areas.

  • Bronx, NY · Member since 2014 · 117 posts · 33 votes
    11y

    @Angel Rosado

     So far my opinion of our market is just like anywhere else in the boroughs.....EXPENSIVE!! I am currently looking for a multi fam where I will live in one and hopefully the other units will cover the mortgage and operating expenses. Everything I have seen is in the 400k plus range and needs ALOT of work. I mean the bronx housing stock seems very run down on the interiors as far as im concerned. I am not being too picky either, just plain run down. Then there are a handful of affordable properties but I would be paying half the mortgage and thats not what im looking for as of right now. 

  • Atlanta, GA · Member since 2015 · 24 posts · 15 votes
    11y
    What up a Angel, Welcome to BP you are in great place to receive true real estate investing education. I'm from Brooklyn so I know first hand what you mean when you had mentioned that real estate in NY is expensive. Since you are a first time buyer (Newbie Investor) try NACA it's home buying program that make the home buying process affordable even in NYC, there program offers all type of assistant and their interest rates are always a% lower than whatever the interest rate are.If you decide to go through NACA for your first investment they are not going to allow you to flip,part of the terms is that you must use the property of choice as your primary residence,however you can purchase multifamily. Every 1k you put towards the purchase you'll receive half of percent off the interest ,it's worth checking out.
  • Matthew WeiserPro Member
    Investor · Flushing, NY · Member since 2013 · 175 posts · 29 votes
    11y

    Hi @Angel Rosado welcome to BiggerPockets!

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    You're welcome, Angel! See you around BP Forum!

  • Bronx, NY · Member since 2015 · 7 posts · 1 vote
    11y

    Welcome to BP I'm also a newbie and I just moved to the Bronx from Harlem. Hope we connect at some point.

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    11y

    Hey @Angel Rosado welcome to the site!

  • Bronx, NY · Member since 2015 · 151 posts · 54 votes
    11y

    @Daniel MohnkernI whole heartedly agree, cash flow is king and that is what I'm looking for. 

    @Charles Worth I think we all wish we lived in the hindsight and made choices based on that.  There was one podcast that I recently listened to that went into the tenant interview process and provided some huge insight into properly screening tenants to minimize problematic tenant base, I'm hoping this will help in my journey.  

    @Adam K. unfortunately because I'm still a noob in this area I wouldn't be able to tell you the areas that are up and coming but I know that some great living area is Riverdale and of course price tags will match.

    @Jayson GreenblattLooks like we have similar interest when it comes to strategies, I am looking to buy a multifamily and live in one.  I know I will be utilizing a first home buyer program because 20% won't be feasible for my first investment.  I do fear that living in the multifamily will have it's issues such as tenants knocking for any little problem but this is something we have to deal with a new investors and it's all temporary.

    @Taheem Bellz Thanks for the info, I already looked at NYC's HomeFirst Down Payment Assistance and I am already disqualified based on income but it looks like the NACA program is more flexible, have you tried NACA? and no picture yet?

    @Brandon TurnerThanks for the welcome and Kudos to you for all that you provide, I started this journey less than 2 weeks ago and I have already attained so much knowledge through the blog, forum, and podcast.

  • Atlanta, GA · Member since 2015 · 24 posts · 15 votes
    11y

    I've been through their workshop but never follow through all the way , and that was my own fault. Heads up NACA is going want to see that you have been paying all of cost of living for a year on time. They do not qualified you through credit rating , but onhow you manage your house hold. Example ( if your gas bill is $500 you must pay the entire amount) they do not want you making Payment arrangements. Show surplus every month after you paid all of your bills. They will assign someone to your case ,and they'll let you know exactly whatyou have to do. It's a tedious process,however it's worth it. Especially when investing in an expensive market like NYC.

  • Houston, TX · Member since 2013 · 1k+ posts · 114 votes
    11y

    Hi @Angel Rosado!

    Welcome to biggerpockets! All the best !

  • Investor · Brooklyn, NY · Member since 2015 · 20 posts · 3 votes
    11y

    Thanks for all the great questions and answers. I'm a new investor in NYC (just moved back from living in MA for several years where I rehabbed a couple of properties). Some people suggested NYC may be a difficult place to start out so I've been asking seasoned investors what their thoughts are. I've been to a real estate meet up and look forward to meeting some of you on BP sometime soon. 

  • Flipper · Cedarhurst, NY · Member since 2015 · 33 posts · 1 vote
    11y

    Welcome to BP family.

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