Investor · Westchester, NY · Member since 2014 · 32 posts · 3 votes
Hi all, looking to build relationships and network with other investors local to the Brooklyn, NY market that are buying at least 2-4 properties a month.
Anyone here looking to network and grow their business?
Brooklyn, NY · Member since 2016 · 7 posts · 5 votes
9y
hey Tyler,
my name is Derek Bernard and I'm from Brooklyn. Me and Wife are just started out and looking to buy some multifamily properties in Brooklyn and as well as Jersey. we joined BP about a month ago and still doing our homework. We are going to purchases multifamily and small apartment buildings to buy and hold. if your interested, we can meet for coffee and discuss business then.
I currently live in Queens. Be aware that the markets in Brooklyn do involve a lot of time and money. What I did when I started out was buy real estate out of state which then in turn gave me more capital to buy something here if I chose to. To be honest with you, your money just goes a lot further outside of New York.
New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
9y
To invest and succeed in Brooklyn you have to have at least $500k in funds. There's no ifs and buts because Brooklyn and Queens are expensive.
If your set on taking on Brooklyn with high hopes then partner up with many investors, you won't succeed in 2017 on Your own.
You will hear success story from others about the past but that's the past and this is 2017 were capital means everything.
Getting any type of loans require a great deal which you won't find because Brooklyn is already over saturated with other investors which makes hard finding off market deals unless your willing to spend $20k on marketing to get an edge.
My advice start in NJ because NYC and its 5 boroughs have become a big boys town with heavy million dollar pockets.
Investor · Brooklyn, NY · Member since 2016 · 56 posts · 40 votes
9y
I am an investor from Brooklyn myself and I would not buy properties anywhere in NYC at the moment as I mentioned before. Properties in markets such as in NYC, San Francisco, LA and other big cities are way overvalued and almost at their peak. Also, just return on investment I don't think it's worth it. For example the average price of a property in Brooklyn is $691,800. Even if lets say that's a multi-unit and you will rent both units, at most you will get rental income of $5000 a month. After expenses and taxes that will be $3,800 a month. That's a CAP rate of 6.5%. There are areas in NJ where for $691K you can buy almost 10 properties with each bringing in $800 in net income every month that's about $8,000 a month of net income after all expenses are paid. I would research other markets for now. If you want to know which markets in NJ are good feel free to contact me.
Flipper/Rehabber · Lyndhurst, NJ · Member since 2016 · 118 posts · 54 votes
9y
Hello all! I am new to BP. I lived in Bensonhurst Brooklyn for 10 years, and a year and a half ago I moved to NJ. As Naum mention, Brooklyn is definitely overpriced, and if you follow the 1% rule, I don't think any properties in Brooklyn (or NYC for that matter) will meet that criteria. Most properties are .5% or lower. If you look in Jersey such as Union City or West New York, you can find some properties that will meet or exceed 1%, but they go very fast. I saw a property in Jersey just today that was a 4 family for around $350k, rent roll around 5k, with potentials to go up to 6k after improvements. That property listed for 1 day already had multiple offers, above asking.
I'm looking to build my network as well, and if anyone is interested in connecting in NJ, feel free to contact me. Im in the Harrison area.
Rego Park, NY · Member since 2017 · 4 posts · 1 vote
9y
Hi everyone!
I'm new to BP and from Queens. I'm looking to learn about investing in tax liens and deeds. If anyone has any info that they care to share, please feel free to share with me. Thanks in advance.
Investor · Nassau, NY · Member since 2016 · 55 posts · 13 votes
9y
You need big pockets to invest in Brooklyn. Colleague just closed on first investment 3 family building for $1.2 mil. Same week someone offered him $1.4 mil to sell.
I agree with the sentiment on this post that it'd best to invest outside of NYC if you're looking to buy multi family properties for investment purposes. The numbers dont make sense because we are at top of the market. I'd say be patient and wait until prices drop to consider investing in Brooklyn. You could do fix and flips and make a good profit but you'll need deep pockets given the amount of cash buyer investors in the market.
Investor · New York City, NY · Member since 2015 · 50 posts · 24 votes
9y
@Tyler Silver Welcome! Basically I agree with most everyone here, being a new investor myself, I did my own research to find that for buy and hold investing (which I plan to do as well) the best place would be somewhere else in the Tri State Area. Specifically for me, I'm looking for somewhere in NJ. That isn't to say that you can't do Brooklyn but it would be damn near impossible from what I know (but hey you may know something or someone I don't so if you're set on Brooklyn don't be discouraged, just always be smart and be diligent with your numbers).
Investor · New York City, NY · Member since 2015 · 50 posts · 24 votes
9y
Shawn Ackerman because in doing my research with my partner we found that Jersey (and specifically the Newark area) is in the stage of its cycle where its growing, and as such the houses we get now are somewhat cheap (and definetely cheaper than NY houses) and they will appreciate well in the years to come.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Adolph Bellamy Are you free on the 19th? You should come out and talk REI at a meet up I'm attending in Brooklyn. I can PM you the details if your free.
Rental Property Investor · Atlanta, GA · Member since 2017 · 127 posts · 75 votes
9y
Hi, where do you think the closest area to Brooklyn to buy a single or duplex for less than 200k on the 1% rule. Within driving distance? Say less than 2-3 hours. I think outside of NY state if possible. I see so many landlords here get beat up by laws skewed to favor tenants.
Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
9y
Mike H. I like the Hudson Valley but since you say out of New York, your options include CT, NJ, PA. Try to see someone on bigger pockets in your poison who has successfully invested out of state. The try to repeat that success
First though don't rule out NY.
It take years to really learn a market. If you live in NY chances are your pretty familiar with the RE market here. That knowledge is valuable. Have you looked into FHA of a small multifamily?
If you can owner occupy for a year that's could be a good option.
You said "I see so many landlords here get beat up by laws skewed to favor tenants"
This is true to a lesser degree in all the tri state area. PA I'm not as familiar with. No matter where you invest tenant screening is the key.
My own strategy to avoid bad tenants and protect my investment is to have the best property in the market at that time. I compare my property to others for rent before I have a vacancy. I keep tabs on price fluctuations. If I'm lagging behind the market I wait for a vacancy and plan a renovation. In 5 years one of my units went from 1350 to 1450 to 2850 to possibly 5500( unit is vacant and for sale, so this is by comps and agent opinions) this was done by first sprucing up the backyard, then painting and refinishing and finally a gut reno.
This works for me, but it might not work in other markets, it takes a lot of trial and error