While many places in the US experienced a decline in real estate value due to the pandemic, the opposite was true for New York. In fact, the New York housing market is hotter than ever! Because of the low interest rates, more people were encouraged to live out their dreams and take residence in the Big Apple.
Don’t worry, it’s not too late to join the party! If you’re thinking of possible real estate investments in NY, here’s what you can do.
How to Invest in New York Real Estate
There are numerous modern and luxurious apartments that dot the Upper East Side of Manhattan, you shouldn’t ignore the humbler spaces that exist in the other boroughs. Regardless of the neighborhood you choose to invest in, you can rest assured that there will be people looking to rent it from you. After all, renting out property is the main sources of passive income for New York property holders.
Although New York ranks as one of the most popular real estate investments in the world. Due, in part, to its popularity, it’s also known to be one of the most expensive real estate markets. In spite of its heft price tag, you can also get a slice of this hot commodity.
The key is to understand the different real estate investments available so you can choose one that fits your budget.
- Look Into Turnkey Properties
One kind of investment properties you can try is what is referred to as a turnkey property. This is a kind of property which you can purchase, turn around, then have it rented out. They may be difficult to find but they are out there!
- Invest in REIT
Another investment vehicle you can try is REITs. An REIT, which stands for real estate investment trust, allows people (both locally and abroad) to invest in New York real estate. As of 2014, there have been three REITs that focus on New York real estate.
You can think of an REIT like a stock. It allows a group of individuals to have some level of ownership over a given property. Investors, in turn, receive dividends as well as diversification opportunities.
When investing in REITs, you can choose to invest in either commercial or residential property, or even mortgage loans. Some New York REITs even allow you to invest in popular New York landmarks like the Grand Central Station or Union Square.
- Try Mortgage Notes
Finally, you can try your hand at investing in mortgage notes in NY. A mortgage note, also known as a promissory note, is a document that stipulates the terms of a mortgage loan used to purchase property in New York. Like a contract, a mortgage note binds the borrower to the lender. Once the note has been signed by both borrower and lender, it is considered a legal document. If a borrower defaults on their payments, the owner of the mortgage note can legally acquire the property.
When you purchase a mortgage note, particularly a secondhand mortgage note (or a note that has been sold by the original lender), you become the new lender to the borrower, so, monthly payments will be made to you. A mortgage note is a good way to have monthly passive income and could lead to potentially owning a physical New York property.
Investing in New York real estate does not have to cost an arm and a leg. Find the right kind of investment for you so you can start reaping the benefits of having one of the world’s most in-demand properties.
INVEST THROUGH US!
Get started on your mortgage note investment journey! If you’re looking for profitable mortgage notes for sale, come to Melanin Homes. We have various mortgage notes in New York you can choose from. If you also have any questions about mortgage note investing, you can also talk to us. We offer free consultation services to help you learn more about mortgage note investing and how to make the most out of it. Visit our website or contact us today to learn more about our services.