Port Washington, NY · Member since 2016 · 3 posts · 1 vote
Hey guys, thanks for the great forum! If I have 100k to invest in a flip- would Long island be a potential destination or should I look into more affordable location in upstate and Jersy? How do you find an area in jersey for example that would be good for a flip?
I wouldn't waste your time trying to source a profitable deal on long island with the current state of the market. The average home in Nassau is $595k and suffolk is $456k.
Anything listed below 500k is swamped with offers which leads to a bidding war and people are paying way above market value.
Woukd be worth looking elsewhere or being patient and increasing your cash on hand as much as you can.
I wouldn't waste your time trying to source a profitable deal on long island with the current state of the market. The average home in Nassau is $595k and suffolk is $456k.
Anything listed below 500k is swamped with offers which leads to a bidding war and people are paying way above market value.
Woukd be worth looking elsewhere or being patient and increasing your cash on hand as much as you can.
There are only a couple of places on Long Island you can buy a house for under $100k if you get lucky and are dealing directly with the seller. But any home at that price point is going to need a full gut job - there are no houses where you'll be all in, including purchase, carrying, and construction on Long Island under $100k, so I'd suggest looking elsewhere.
I disagree - I think you can do a lot with 100k and hard money leverage. I currently flip homes specifically in Long Island and I get the properties anywhere from 250k to 325k and make a 50-90k profit minimum. It’s a absolutely possible you just need to get in front of distressed homeowners easily.
@Sam G., with a hard money loan added to what you have, this would be possible, otherwise...NY tough. There are opportunities in every market, every area- you just need to look closely, don't despair. If I may, why Long Island? how about upstate NY?
I have to agree with @Account Closed and I was going to say the same. If you are a real estate investor you are going to leverage other peoples money so in theory that $100k should get you a property worth 3 or 4 times that. If your a new investor looking to fix and flip and considering a hard money loan your probably going to get terms of 2 points and 10.5% interest on a short term loan and going to have to put 20% down on the purchase price and 100% of the renovation cost financed. These terms were quoted to me about a week ago and will obviously change. So if your looking to fix and flip $100k is more than enough to get in the game on Long Island. As far as purchase price is concerned, your not going to get a good deal looking on the MLS in the current environment. Thats not to say you cant get deals on the MLS, I have been looking on the open market for about two years now and havent seen anything worth investing in. Actually there was one in Medford a few months ago but the broker didnt call me back and the property was off the MLS in 2 days (meaning someone with cash probably bought it). In order to get a good deal your going to have to look offmarket and network with wholesalers, attorneys, realtors and others to build your deal pipeline. This is what I have realized myself as new investor and have been driving for dollars and doing direct mail marketing among other strategies to build my deal pipeline. If your interested in pursuing this DM me so I can contact you when I get a good deal.
@Sam G. When a market is hot, you need to get creative. Use some of your money on a marketing campaign to find the off-market deals. That way you aren't competing with every other person working with a realtor hoping to get a house after the owner has done all the work to get a house ready to sell.
Mail campaigns are probably the best way to reach out to people who might be ready to sell, but the process might be overwhelming. Work with a list broker to find the good lists. These might include Owners with Low Financial Stability Scores (FSS) or Seniors with Long-Time Ownership.
Make sure your letter addresses the difficulties of selling a home the traditional way. Check this blog for ideas of seller-focused benefits.