Dun dun na da New York New York. Listen,
friends. Today we are talking about New York City, we’re talking about real
estate New York because a lot of people want to know, man, that’s crazy prices out
there, should I be buying? Should I be running? What should I do?
We’re going to talk about the real estate market in New York City right now. So I’m in New York and I needed to get
myself some breakfast and I get off the subway, I go around the corner and I find
the most quaint little breakfast shop that I possibly can get and I remember
that I they didn’t have a lot of options so I got a hard-boiled egg, a little bowl
of oatmeal and then I got a tiny little little paper boxes of cereals that you
dump and they gave me a little bit of milk and it came to like $25 or
something, I was like, this place is crazy, this cost of living here, this is insane.
Well, friends, that’s what you get for one of the biggest cities in the world, this
is certainly one of the biggest cities or the biggest city in all of America.
New York City, what a fascinating place, people go there for the lights. I
went there a couple years ago to watch the apple drop which basically meant
spending nine hours behind barricaded, this is a with no toilets or
anything which created a really awkward moment when all the people were moshing
and there was a great underneath my feet and I relieved myself and I don’t think
anyone found out, I hope. Anyway, that was really beside the point.
New York City’s got 8.5 million people but
20 million in the state and so you have several million every day commuting in
and out of New York for their jobs and as fascinating fun and interesting of a
place it is, a place that I love to visit, hit Broadway, see the shows isn’t a good
place for you to buy real estate in. This is one of the questions that people just
really got to know and let’s talk about it. The median home prices last year in
New York hole was $345,000 but if you
wanted a 1-bedroom apartment in Manhattan, $750,000.
So just think about that, a 1-bedroom practical studio, this
tiny little thing that’s going for $750,000 some of them well over a million dollars and people want to know hey, if I lived there
should I buy real estate there? If I’m an out-of-state investor, should I buy real
estate there? Let me think about it. No, wait. I’m going to think harder. No,
definitely not, heck no, no no no no no no no. But why? Well think about it, the only
real game that you can play in New York and make money isn’t a game of
appreciation and this last year was up 10.9%
but remember where it was a few years ago, it had totally tanked. Of course
it’s going to come back up. If you’re watching my videos on these
these markets and a lot of people want to know, should I invest in Vancouver? Should
invest in Indiana? Should I invest in New York? Should I invest in California?
Really what it comes down to is these over populated areas, what’s happened is
it’s driven the price so high but once you break that $300,000 mark, you can’t
rent a place profitably, your cash flow is going to be slim none and the higher you
go, it’s actually going to be negative so it’s not a great place for investing
unless you can roll with the big dawgs and play a really massive game. I like to
play the game of single-family homes. I want to help you. I want to help you that
I’m assuming if you’re watching this, you’ve done 20 or less properties, maybe
none at all, maybe 5 and you’re saying, Kris, what’s the safest way to build and
compound wealth? You don’t have to have a lot of money to become a millionaire and
if you think about it, the number one most important financial decision you’ll
ever make in your entire life is how much you pay yourself out of every
paycheck before you pay your expenses and I’m hoping it’s at least 10%.
If you’re check to check, I promise you can squirm out 10% and you’ll
balance the books and you’ll figure it out. You need that little money to go
into some savings for protection and then you need to invest it and you need
to invest it in multiple places not only eggs in one basket and the simple little
advice is that if you get it in real estate producing 10% to 20%
and can come compound it and control it, you’re going to get taken care of and doing
that underneath the median is the most intelligent play that you can personally
make so if you’re going into a market like New York where it’s really crazy
expensive and you have to put down a lot of money then sure, with appreciation
over time you might get taken care of from time to time, it’s
going to be handed back to you hardcore because you’re going to lose hundreds of
thousands of dollars of value like this and that’s just numbers on paper but the
bigger thing is once you get over a few hundred thousand dollars, you’re negative
on your cash flow. Is New York a good market to invest in? No but likewise,
if you were living in some podunk part of the country low population where your
prices aren’t growing because populations not growing in real estate
sixty thousand, one hundred and twenty thousand dollars, I would give you the
same answer, don’t invest there either unless you
really know what you’re doing or you’ve taken my lease option course. The secret
to sustainable long-term optimization of your investment portfolio is to go into
the very best markets, not the worst, not the hardest, not the most difficult.
Separate that romantic attachment to certain ideas and types of homes and
locations and cultures and respect your money and be responsible with it.
That’s why if you watch my 5-part series on the best markets in the entire
United States investing, I’ll share with you why I’m investing in those markets
and exactly what they are and how you win so that you can really gain a much
deeper appreciation in fact, click the link up here to gain some access right now to
some tools that can really help you and show you how to win in the game of
investing. New York, I was there a few years ago downtown to watch the Seahawks
crush it I mean, it was crazy when they were playing the
Broncos but I’m going to tell you, outside of going there for some entertainment,
some fun and business meetings, it’s never a place I’m going to be investing in.
That’s New York and if you want to get your fingers on some of the markets that
I’m in and if you want to check out our excess inventory then check out the
playlist on some of our hot markets, the places that we’re investing right now
and be sure to also click the link up here so that me and my team can share
with you ways that we can engage play and help you succeed in real estate.