A lot of people think New York City real estate is out of reach.
The numbers are big, the competition is real, and deals are not easy to find.
But in Episode 407 of The Build Up podcast, we sat down with Jude Bernard, a New York City investor, broker, contractor, and founder of the Brooklyn Bank financial education platform, to break down how everyday investors can still find opportunity in one of the world’s most competitive real estate markets.
Here is what Jude wants aspiring investors to know.
You Make Money on the Buy, Not the Sell
One of the most repeated pieces of advice in real estate is also one of the most misunderstood. The profit in a deal is largely determined at the moment of purchase, not when you eventually sell or rent.
If you overpay for a property, no amount of renovation, management, or patience will fully fix the math. Buying right means doing your homework before you make an offer, understanding what the property is worth, what it will cost to bring it to that value, and what your return will look like once it is stabilized.
The second and third properties are often harder than the first, because many investors spend everything they have getting into their first deal and have nothing left to build momentum. Buying at the right price from the start gives you the cash flow and equity to keep going.
Why Headaches Are Where the Money Is
Turnkey properties are easy to buy and easy to own. They are also priced that way. If you want to build real equity, you generally have to be willing to take on what other buyers are not.
Problem tenants, Department of Buildings violations, deferred maintenance, and messy ownership situations all shrink the buyer pool. That reduced competition is exactly what creates opportunity for investors who know how to solve those problems.
The bigger the problem, the bigger the potential profit. That does not mean taking on deals you cannot handle. It means developing the skills and team to handle problems that most buyers walk away from.
Do Not Get Locked Into One Way of Making Money
Real estate offers multiple ways to earn from a single deal. Investors who limit themselves to one exit strategy often miss opportunities that are right in front of them.
A deal that does not cash flow well might carry significant equity. A property you cannot buy today might be worth listing as a broker. A building that needs work might be a contracting opportunity before it becomes an investment.
Being open to multiple ways of participating in a deal, whether as a buyer, a partner, a broker, or a consultant, keeps more doors open and keeps money moving even in a slow market.
Where to Find Deals in NYC Right Now
Manhattan prices have long outpaced rental income in most neighborhoods, making cash flow difficult to achieve. The opportunity in New York City today is pushing further out into neighborhoods that have not yet been fully discovered.
Areas worth paying attention to include:
- East New York and Canarsie in Brooklyn
- Brownsville and surrounding neighborhoods
- The Northeast Bronx, where land costs relative to rents still make sense
The investors who bought in Bed-Stuy in 2001 when it felt risky are sitting on significant equity today. Being a pioneer in an emerging neighborhood is uncomfortable, and that discomfort is precisely what creates the return.
The Three Things Every Real Estate Investor Is Always Doing
No matter the strategy or market, every active real estate investor is working on the same three things at all times:
- Finding deals. One deal is not a business. Consistent deal flow is. Relationships are the most reliable source, so treat every person you meet as a potential lead.
- Finding financing. Getting money once is not a strategy. Knowing how to access capital repeatedly, through lenders, partners, and creative structures, is what allows you to keep growing.
- Building and improving systems. The investors who scale are the ones who build processes that can work without them having to be involved in every decision.
How to Get Started When You Do Not Have All the Resources
Real estate is not a solo sport. Most investors who build meaningful portfolios do it with partners, not alone.
A useful framework for thinking about what you bring to a deal and what you need from others covers five areas: time, resources, assets, cash, credit, and knowledge. If you are missing one or two of those things, find a partner who has them. If you have capital but no deal flow, team up with someone who is good at finding deals. If you have time but no money, find an investor who needs someone to manage the process.
A few ways to start building that network:
- Attend local real estate meetups and investor events
- Join online communities where active investors share deals and advice
- Be clear about what you bring to the table and what you are looking for in a partner
Do Not Be Intimidated by the Numbers
Large price tags scare off a lot of potential investors in New York City. But the size of the number is less important than the percentage return.
A $5 million deal that returns 40 percent is the same math as a $100,000 deal that returns 10 percent. The process is identical: find the deal, find the money, work the system. The fundamentals do not change just because the zeros do.
To Wrap Up
New York City real estate is competitive and expensive. Deals are not handed to you. But they are there, and they are found by investors who build the right relationships, stay open to multiple ways of participating in a deal, and are willing to take on the problems others walk away from.
You do not need to figure it all out alone. Find people who complement what you have, get educated on the fundamentals, and get your piece. They are not making any more land.
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