On Long Island, Where Can I Find Great Investment Property?
As a native New Yorker and a long-time real estate investor, I believe the five boroughs of New York City are over-hyped as the finest areas to discover amazing deals. Yes, real estate investments in Brooklyn and the up-and-coming Bronx districts of Morris Heights and Fieldston continue to have a lot of potential for generating high returns. However, there are regions outside of the city limits where purchasing, refurbishing, and selling investment properties may provide good results. Long Island, for example, is home to more than 60 vineyards, the Hamptons, and districts hit hard by the recession and Hurricane Sandy. But where should you look to invest in Long Island real estate?
FINDING LONG ISLAND INVESTMENT PROPERTY DEALS
As the New York City suburb rebounds from both the housing crisis and Hurricane Sandy, home values in Long Island have been slowly climbing over the previous few years. According to the Multiple Listing Service of Long Island, median closing prices on Long Island have increased by 7.32 percent overall since December 2016, with Nassau and Suffolk counties up by 6.4 and 9% respectively (MLSLI). According to the same data, inventory has decreased by slightly over 7% during the same time period.
Despite these figures, many Long Island homeowners may still be underwater on their mortgages. Hurricane Sandy impacted New York's coastal areas harder in October 2012, only a few years after the housing crisis ravaged the state. According to the National Hurricane Center, Superstorm Sandy damaged or destroyed about 100,000 houses and businesses on Long Island alone, displacing thousands of inhabitants. Many people did not have flood insurance and did not receive government aid.
Consequently, despite a generally improving property market, Long Island residents may still be enduring financial challenges that push them out of their homes. This might offer greater opportunity for investors to acquire residences for a low price while also assisting troubled homeowners. The methods for locating these possibilities are listed below.
Databases for real estate. Finding fixer-upper houses for sale these days is as simple as going online and visiting companies that specialize in compiling data about available properties. At least, that's how it appears. The most popular websites–Redfin, Zillow, and Realtor.com–pull data from the Multiple Listing Service of Long Island (MLSLI), among other sources, and publish listings for free online. They also include information such as previous listings, sales, and tax histories, all of which can assist you in deciding whether or not to purchase a home. Homes for sale by owner are frequently included in several of these databases, broadening the breadth of your search without adding much work.
However, as simple as these services may appear, searching through listings for distressed houses priced below market value requires a significant amount of time and work. Even yet, the information on these sites isn't always correct. They don't always reflect a property's genuine square footage, number of bedrooms and bathrooms, or true condition. As a result, you'll need to perform extra research. You'll also have to compete with an unknown number of other investors, owner-occupiers, and agents that use these platforms to discover cheap real estate. It's all too easy to get caught up in the rat race and never locate a good deal.
In-Person. Real estate speculators are still frequently approaching homeowners personally, either in person or over the phone. You may drive or stroll around areas seeking for neglected or troubled properties, then approach the owner in whatever way you can with a purchase offer. The theory behind "pounding the pavement" or "driving for dollars" is that in-person contact has a higher possibility of immediately establishing rapport with the homeowner and persuading them to sell.
However, residents aren't usually present at their homes, particularly if they've been seriously damaged by Sandy, so you'll have to do some extra homework to locate them. Whether they do or not, this strategy is typically perceived as invasive and can work against you when it comes to creating rapport–especially in the aftermath of a natural disaster. If financially challenged or relocated homeowners are already feeling overburdened by investor interest, they may be less than pleased to see you.
Banks and credit unions are two types of financial institutions. When a homeowner falls behind on their mortgage payments, the bank, credit union, or other lender may foreclose on the home. This can occur anywhere and for a variety of reasons, such as a divorce, a protracted sickness, or the loss of a career. Foreclosed houses are frequently advertised on the lender's website, as well as the MLSLI. Lenders routinely auction properties to the highest bidder on-site, at the courtroom, or online in order to get the greatest offers from the most individuals.
However, there is a word of warning regarding buying foreclosed properties. Even in places like Long Island, these houses might be in terrible shape, and restoring them may be more bother than it's worth. It's a safe assumption that if the mortgage wasn't paid, the repairs weren't either. Furthermore, if the property is sold at auction, you may not have the opportunity to do a home inspection, get title insurance, check papers, or complete any other due diligence. This might result in unpaid back taxes, liens, and other unexpected costs after you close. And, regardless of where you acquire it, buying a money pit can undermine any chance of getting a return on your investment. There are simpler methods for locating a good investment property.
The good news is that each of these approaches can help you locate good prices on Long Island to some extent. However, no matter where you are, there is a method to find greater investing options. The good news is that it works by locating and bringing motivated sellers to you.
GET REAL ABOUT LONG ISLAND REAL ESTATE INVESTING
The globally known "We Buy Ugly Houses®" marketing campaign by HomeVestors® targets distressed homeowners across New York via television, radio, and print. As a result, homeowners never have to wonder who to call when they need to sell immediately. Those leads, which are produced by the nationally famous "We Buy Ugly Houses®" marketing campaigns, are then passed on to local HomeVestors® franchisees like me, who may make a reasonable offer that improves the homeowner's condition while also leaving space for possible returns. It's a more practical and respectful approach to real estate investing, and it's one I'm pleased to be a part of.