How do you buy and hold on to better NY real estate deals?
Here are five hacks that can help real estate investors score better deals on NY property, and increase their performance over time…
1. Get The Property Taxes Reduced
Savvy investors from Holdfolio in Indiana and Back Belt Investors in California have been tapping into this tactic to reduce holding costs and create additional surplus cash flow, without having to raise the rent. New York investment property owners can use this strategy too by leveraging the help of Property Tax Adjusters, Ltd.
2. Better Financing
Optimizing financing can make a huge difference in financing and holding costs. Sometimes simply asking for a little better interest rate or a discount on fees can make a big difference. In other cases it is seeking out new financing sources. Right now big funds are plowing into the real estate industry to keep returns and yields up. They are funneling money through crowdfunding portals and conduit lenders, as well as buying into REITs. Other funds may directly put capital into projects.
New York’s most notable investors and investment firms have been increasingly partnering up on deals. This helps lower risk, increase the number of parties with a vested interest in success, and helps to facilitate broader diversification. Beyond people you know, consider approaching funds, family offices, and other private lenders.
4. Wills, Trusts, and Estates
According to Dave Ratner of Sotheby’s in Brooklyn; holding properties for multiple generations can be made easier and more profitable in some cases by selling and retaining a life estate, or offering long term leaseholds. This can alleviate the hassles and costs of regular property management, while preserving passive income, usage, or equity appreciation.
5. Off-Market Deals
The first three on this list can help make deals more profitable while offering more money for properties than your competition. Yet, with NY real estate so hot, one of the best ways to beat them out entirely is to connect with local experts who have access to exclusive off-market deals. These are properties owned by sellers who prize their privacy, or which may be willing to sell to the right party for the right price. In some cases this can facilitate access to NY properties which have been off market and held by families for decades or even generations, but which are now ripe for redevelopment.
How do you maintain your edge in the NY real estate market?