What You NEED to Know about Investing in Multi-Family Homes in New York

Ernst Achildiyev’s interest in investing formed at a very young age. Ernst started researching the stock market in middle school and began his real estate journey at the age of 22.

Join us in this interview as Ernst explains some nuances that can only be found in the real estate market in New York City. He also shares some tips with new real estate investors on how to appear more professional and experienced to their clients.

Don’t Forget To Reach Out To Ernst Achildiyev
Linkedin: https://www.linkedin.com/in/ernst-achildiyev-610839128
Facebook: https://www.facebook.com/RealtorErnst/
Instagram: https://www.instagram.com/bestnybroker/?hl=en
Email: bestnybroker@gmail.com

Quotes
4:45 “I’ve always been fascinated by the idea of investing. Ever since middle school, I’ve researched stocks and I’ve researched how the stock market works.”

5:50 “Why multi-family? It’s because I found that multi-family had a lot to do with numbers, investing, and returns. And I was always fascinated by that. And I thought that multi-family investment can give you a much more predictable return than the stock market can.”

11:10 “Financial freedom means you can wake up in the morning and do what you do because you want to and not because you have to.”

15:30 “We have something that is called the RGB, the Rent Guidelines Board. Their job every year in the summertime, they hold hearings as to what percentage to allow the landlords to raise a 1-year lease to a 2-year lease.”

16:07 “The biggest hindrance is that the tenant has a million times more rights than a landlord does in a rent-stabilized apartment. Meaning, the tenant has the first right of refusal for a lease renewal.”

17:17 “What we have is extremely good price appreciation. Even the bad markets, like 2008. You can check it out. In 2008, New York City didn’t really get hit price-wise because our rents didn’t get hit.”

17:38 “Investing in New York City is like buying a bond in real estate. But it’s better than a bond. It’s like buying a bond that yields you 5% let’s say. Which you could not get before 2022.”

32:53 “And I think because it’s not an emerging market (New York City) is why it makes investing into it so safe. It has a lot of old money in the market, and old money is not easily spooked by a downturn of the economy.”

43:10 “And I think that getting through that nervousness, what’s gonna get you there is the vision that you have, and the way you have and the goal that you have.”

Concepts
You don’t need much money to invest in real estate. There are many financing options when investing.
New York has the lowest continuous vacancy rate in any metropolitan city in the country. Most people always look to rent in New York instead of buying as they are only there for work.
Rent control tenants are generally in buildings that were built before February 1, 1947, where the tenant is in continuous occupancy prior to July 1, 1971.
Tenants who took occupancy after June 30, 1971, in buildings of six or more units built before January 1, 1974, are generally Rent Stabilized.
Rent control is usually more severe (having a fixed price) than rent stabilization where the price increase is usually limited to a specific percentage.
For rent-stabilized apartments, the tenant can choose to renew their lease even when the landlord does not want to renew the tenant’s lease.
Investing in real estate in New York is very safe as there are many other industries to prevent the valuation from going down.
Rent grows quickly for free market properties in New York.
Being transparent and always being responsive to your clients gives off the impression that you are experienced.

Time Stamps
0:00 Introduction
3:10 First two years in real estate
4:40 Why did you want to go with Multi-Family properties
7:40 Fascination with the stock market at a young age
9:10 Why you don’t need a lot of money to be successful
10:50 What does “Financial freedom” mean to you?
12:20 Why invest in multi-family homes in New York?
13:40 Differences in investing in the New York market from others.
17:00 Benefits to investing in New York
19:50 How long does a landlord recoup their investment from a bad tenant?
21:50 How are you growing your wealth in New York?
24:30 Criteria for buying properties in New York
28:20 How much money do I need in a month to live comfortably in New York City
31:05 Seller-to-seller financing in New York
34:10 Strategies working as a broker
36:30 How to make a great first impression on investors/landlords
40:30 Preparing for client calls as a rookie
44:50 If given a billion dollars, what would you do?

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