Unlocking New York's Housing Market: Expert Insights for Investors

In a recent discussion, Tim Jones from Foreclosure.com and Dr. Teresa R. Martin, founder of REIA NYC, shared insights on thriving in New York's competitive housing market. Success requires a strategic focus on mixed-use buildings, multifamily units, and distressed properties in emerging neighborhoods. Networking with professionals and understanding the legal landscape, including tenant protections and judicial foreclosure processes, is essential.

While foreclosures and short sales offer opportunities, challenges like lengthy timelines and tenant laws demand preparation and patience. With thorough research, a strong team, and financial flexibility, investors can unlock significant potential in this dynamic market.

Search for Distressed Properties: 

New York City 

Westchester County, NY  

Long Island City, NY 

Other regions across New York

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Transcript

0:00: Hi, everyone. I'm Tim Jones with foreclosure.com. Your go-to resource for finding off-market deals and unlocking real estate opportunities today.

0:08: I'm honored to welcome Doctor Teresa R. Martin, speaker, author, attorney, real estate coach, and founder of real estate investors Alliance NYC, also known as REIA NYC. Doctor Martin is at the forefront of this incredible alliance of investors, agents, and entrepreneurs, empowering people to thrive in New York's dynamic real estate market.

0:29: Doctor T, it's always a pleasure to speak with you.

0:33: I am so excited.I am so excited.

0:36:Well, I'm really excited about today's topic. So let's dive in: unlocking New York's housing market, expert insights for investors.

0:48: So, how can investors navigate New York's housing market to find valuable opportunities?

0:54: Wow.Right. We're in New York, right. So, navigating New York it definitely requires, you know, that blend of strategy, patience, creativity, and all the things that go along with that. Right? Because New York right now has always been, but specifically, right now, it is highly competitive, and now we have to navigate the regulations of being a pro-tenant market, right? So, investors have to be well prepared, and they absolutely have to do their due diligence, right.

1:27: So, to find valuable opportunities, I definitely would recommend that they look at our investors look at emerging neighborhoods, right? So, areas that are not yet gentrified, right? But they are definitely poised for growth.

1:44: So for example, you know, where you see infrastructure projects and major developments, you know, that's planned, you know, you often see where that is located, you'll see that those prices, you know, rise over time.

1:57: So investors definitely should look into special property types like mixed-use buildings, multifamily units, and some distressed properties, you know, in that area. And definitely, networking is key.

2:08: So I definitely think that you know, navigating through these, you know, regulations and the pro tendency and everything that the migrant crisis and everything that we're dealing with here in New York, it really takes some patience and some creativity to actually navigate through these waters.

2:24: Yeah, those are some great points. You definitely have to be sharp when you're dealing with New York City.

2:30: Absolutely.

2:31: So,f what are some legal considerations should investors keep in mind when purchasing distressed or foreclosure properties again?

2:41:You know, because of the New York climate right now, you know, investors got to be fully aware of those legal complexities that come with foreclosures, short sales tenant rights and all that, right?

2:55: So, first and foremost, understanding the foreclosure process is definitely critical in New York; it's a judicial process, right? You have nonjudicial in some areas, and you have judicial in others. New York is a judicial process, right. Which means it can be lengthy and filled with major legal challenges, right.

3:13: So you can ensure that you have, you have to ensure that you have an experienced real estate attorney that is gonna guide you through this entire process, and it takes about 12 to 18 months, you know, or longer, you know, for a foreclosure to be finalized here in New York.

3:28: So investors, you know, need to be cautious of those tenants' rights in New York as well, especially since many of these foreclosure or distressed properties may be tenant occupied and, New York laws favor tenants heavily, right, very heavily.

3:44: so which can make evictions, you know, definitely difficult and time-consuming, particularly in rent-stabilized buildings and things of that sort.

3:52: So, knowing whether a property is subject to rent stabilization or other tenant protections is definitely essential before making any purchase decision of a foreclosure property. And then, finally, I would say title issues, right?

4:05: Title issues are common with distressed properties and investors, you know, always perform a thorough title search that is gonna uncover, you know, the liens and unpaid taxes and other encumbrances that may come with the foreclosure property, right?

4:22: So, failure to clear these issues can definitely delay the closing process and lead to some unforeseen financial liabilities that you may not wanna take,, take on as an investor.

4:33: Yeah. No, those are some important points. Hopefully, that will help some investors avoid some potential pitfalls, right? Because it seems like there are some landmines in New York City you have to be aware of.

4:45: Definitely, I mean, and everywhere, right? I mean, everywhere there's land mines but you know, in some of these heavily regulated areas like New York, you just have to be really, really careful and really have a team of investors trying to navigate these waters and trying to, you know, overcome these legal hurdles on their own. You know, it's ill-advised to do that. You really need to have someone on your team who is a specialist in that area. A real estate attorney is not necessarily a housing attorney, right?

5:17: So, a real estate attorney deals with real estate issues. They may deal with the title issues, but a housing attorney is going to help you navigate the landlord-tenant issues, the evictions, and things of that sort, right?

5:29: And then, if you're going through a foreclosure issue, you might need to talk to a litigation attorney, specifically foreclosure litigation. So it's everybody, every legal, you know, professional, they have their specialties, and everyone is, is not gonna know everything.

5:45: So you might need three attorneys in this entire foreclosure process.

5:51: I'm assuming that's why networking is so important so that you can build that team prior to doing these. So you don't get yourself in these potential issues, you know, before you jump in.

6:03: So, no, thank you so much.

6:04: So, how does the foreclosure process differ between New York City and surrounding areas?

6:13: It's a little, it's a little different, it's the same, but a little different, right? So the foreclosure process in New York State, which I've mentioned, is judicial process, you know, across the board.

6:24:But timing and complexity can vary significantly between New York City and the surrounding areas. And when we say surrounding areas on Long Island, Westchester, upstate New York, you know, places like that. And in New York City, specifically, foreclosures can be especially drawn out due to the high volume of cases and the overburdened court system just, it's, it's totally overwhelmed right now.

6:48: And these, and this can cause delays, sometimes taking years before the property is fully foreclosed or available for purchase free, free and clear, of course. And then those surrounding areas as I mentioned, like Long Island, Westchester upstate New York, they have, they may have fewer delays, but the process is still governed by New York law, right? So, meaning it remains slower than in non-judicial, you know, foreclosure.

7:14: States, investors should definitely be aware that these delays which can impact, you know, carrying costs, you know, how long you hold that property, especially if properties are not generating income during this time. Additionally, you know, the city's complex zoning laws. Oh my goodness, the zoning laws, right, rent regulation statutes, and the tenant protections are often stricter, you know, for these types of properties. So, post-foreclosure management of properties is more challenging in New York City than in the surrounding regions.

7:45: So that's how I can give a comparison, but overall, still New York law, but timing and complexity would be a little bit different.

7:56: Ok, interesting. So are Short sales and distressed properties reliable investment opportunities in New York?

8:03: Well, I do think that they are reliable. But I would say the short sale process involves negotiating with a lender, right. So now you have a third party involved, right. So you got to negotiate with the lender to sell the property for less than, you know, the mortgage balance, which can take considerable time.

8:20: So now you're adding more time, you know, on to that, and then while the discount, you know, may be appealing, it often comes at a cost of long delays and that potential competition, you know, from other buyers.

8:32: So investors must keep, you know, keep this in mind that the banks might not always agree to the proposed sale price, and it might drag out the process even further.

8:42: So yes, it is viable. But understand that, you know, the short sales is another delay, you know, on top of the other delays that we just talked about?

8:53: No, that's, that's great advice. And so for some, you know, for the savvy investors that have their team in place and they're doing their due diligence, there's definitely the opportunity, but the timeline or time horizon, I guess, could be longer when you're dealing with it in your area.

9:09: Absolutely. Absolutely.

9:11: So, what are some key challenges and opportunities for investors in short sales and foreclosures?

9:18: Hmm, Let's see. So I would say some key challenges in short sales and foreclosures, they probably stem like I mentioned before, from the lengthy timelines. It's a long process, right.

9:35: So the lengthy timelines legal hurdles, the pro-tenant litigation in New York, these are definitely, you know, the key challenges, right? So the investor, you know, it's still viable, right. There's still viable options here, you know, we got tax liens, we got, you know, things that you can, you know, put your hands around, but investors should anticipate dealing with backlog court systems, right. And this whole foreclosure, you know, process, right? So particularly in New York City. So, even after acquiring a property, you still gotta think about resolving issues with current tenants. Should it be tenant-occupied. And then, as I mentioned, you know, if it is a unit or, or a building that is protected by Rent stabalization laws, that can add, you know, further challenges for that, right. But on the flip side, right, for that, the opportunities are undeniable, right?

10:24:Foreclosed properties often sell below market value, offering a chance to either flip for profit or, you know, buy and hold as a rental investment.

10:35: And if you're able to identify properties in neighborhoods that's on the rise, such as those emerging neighborhoods that I spoke about earlier, the long-term appreciation can also be substantial, right. So those are some of the areas, and then if we turn our attention to short sales, then while you know, they require patience and skill negotiation, you know, they also offer access to discounted properties, and that would, you know, those properties may not be otherwise, you know, available to them. So the key is being well-capitalized, right. We gotta, you know, remember we need some capital here, right? Being well capitalized and having a flexible timeline, right.

11:14: So focusing on properties where you can improve the value through renovations or strategic repositioning offers, you know, even on the upside, potential, these are some opportunities that come with that.

11:26: But we also have to weigh the opportunities with those key challenges that we mentioned, but that's what I would say on that note.

11:34: OK. Thank you, I appreciate you breaking that down for us.

11:38: It's helpful, challenging but helpful, challenging, but helpful. So, I want to close off with: What advice would you give a new investor entering the New York real estate market today?

11:57: Yes, I wanna be careful as I choose my words, right.  Because we have, we have newer investors, you know, and, depending on when you say new, are we talking about someone who's just brand new, who just went to a boot camp and is now ready to hang out their shit shingle as an investor or someone who's just new to a market, right?

12:15: So my advice for new investors on any level in dealing with New York is to be informed, strategic, and patient. Ok. This is a challenging market with very stringent regulations and fierce competition.

12:34: So you want to start by educating yourself about New York's unique real estate laws, especially the rent protections and the foreclosure process.

12:43: You wanna work with experienced professionals, real estate attorneys, accountants, and knowledgeable agents who understand the intricacies of this New York market, right?

12:53: And then you wanna focus more on the long-term value rather than those quick wins because New York's regulatory landscape can make short-term investing very risky.

13:04: But for those willing to hold on to the properties, you know, the rewards can be very, you know, it can be tremendous, right?

13:10: So be open to creative financing options such as partnering with other investors utilizing 1031 exchanges to help you defer capital gains. And then, finally, I would say networking network relentlessly, right. Network as though your financial future relies on it because usually it does, right? So, real estate isn't as much about relationships as it is about properties. By building a solid network of mentors, peers, and professionals, you can uncover off-market deals.

13:40: You can gain valuable insights and mitigate your risk, and persistence always pays off, especially in this New York market.

13:47: So the hurdles may be higher, but the long-term potential may be well worth it.

13:54: Wonderful. Well, that's fantastic advice. Our audience will find that very valuable.

13:59: So, Doctor T, thank you for sharing your knowledge and expertise with us today.

14:05: You are very welcome anytime I, you know, I love this stuff, and I really want people to understand that real estate is always gonna be a pillar of wealth. But adding your business acumen is tied to your real estate acumen. That's how we build an asset protection that will last us a lifetime.

14:23: Wonderful. Well, that's all the time we have.

14:26: But if you found this video valuable, please like and subscribe to our channel for more insights like these and don't forget to sign up for our free email alerts on foreclosure.com to stay ahead of the game until next time.

14:37: I'm Tim Jones with foreclosure.com. Thank you for joining us.