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.