A beginner’s guide to New York real estate investing with Michael Shah

Real Estate | 13 Jul, 2020 |

New York is the land of renters, and as the Empire State, it draws an increasing number of visitors, making tourism a driving force behind the business boom and job growth. Thanks to the thriving business and service sectors, New York is marked by population mobility that ensures a stable rental property demand. As a result, New York is an incredible opportunity for relatively stable prices, appreciation, and liquidity for income properties. As the Managing Partner of Delshah Capital, Michael Shah has a sophisticated understanding of the New York real estate market. Providing you with some beginner tips on how to get started, Michael Shah believes that if you follow this advice, you will be well on your way to making smarter investments.

Making wise investment decisions in New York real estate can be the key to your financial future. However, steps should be initiated early on to take advantage of compounding interest. In addition to diversifying your portfolio, Michael Shah explains that investing in real estate can help you make income for retirement or help you start a new career. While it may seem like an approach for more experienced individuals, everyday investors can also invest in real estate.

Know Your Options

First, Michael Shah explains that there is a wide range of investment opportunities in New York, so it is imperative that you select an option that aligns with your current financial status and long-term investment goals. A turnkey property is an ideal option for individuals who may not live in close proximity to the city, or lack the time and resources needed to modernize an investment. Investors may also purchase a property directly, but this will require additional time and resources as the location is always in high demand. Plus, choosing a property that will appreciate involves being familiar with neighborhood trends and being able to anticipate which areas will gentrify next.

A Real Estate Investment Trust (REIT) can generate a steady stream of income and allows investors to earn dividends without having to purchase or manage a property themselves. REIT property types may include apartment buildings, data centers, medical facilities, and retail spaces.  Some Manhattan REITS like SL Green and Vornado are extremely favorably priced right now because of uncertainty around the pandemic’s impact on dense urban living.

Michael Shah stresses that there are advantages and disadvantages to all investment opportunities, what is important is that you select an investment that is maintainable and fits well with your lifestyle.

Understand Your Legal Obligations

Once you possess a firm understanding of your investment options, it is crucial to assess your legal obligations. A limited liability company (LLC) can provide liability protection and various tax advantages.

Michael Shah explains that if you are investing in a rental property, an LLC will help ensure you are legally protected should any issues arise. Additionally, you may want to spend time talking to a lawyer with extensive knowledge on the subject to ensure you are making educated decisions.

Perform Extensive Research

Smart investors always understand the market and what is currently happening in the real estate landscape. You can get to know your local market by talking with realtors, keeping an eye on home listings, and checking in with local community development corporations. These local entities are focused on redeveloping properties and often have an eye on affordable properties.

Evaluate Your Long-Term Objectives

Lastly, Michael Shah suggests having a long-term plan for your investments. Consider how much you are willing to invest at the outset, and evaluate how much risk you are willing to take, and how much of a loss you are willing to absorb. If you are in need of additional investing expertise, contact Delshah Capital. Utilizing his legal expertise, Michael Shah personally directs the course of action though many of the complex investments in which Delshah participates.

About Michael Shah

Michael K Shah is a real estate developer and the founder of Delshah Capital, a commercial real estate firm which specializes in acquiring, developing, and managing real estate and real estate backed loans in and around New York City. At Delshah Capital, Shah oversees all aspects of company operations. This includes acquisitions, legal strategy, property management, and asset management.

Founded in 2006, Delshah Capital, LLC is a vertically integrated New York City-based real estate private equity and asset management firm that invests in real estate equity, and debt investments.

Since inception, Delshah has consistently achieved superior risk-adjusted returns at all points in the market cycle by targeting and investing in real estate, where assets or capital inefficiencies create the opportunity to add significant value.

Delshah utilizes a fundamental, value-driven approach towards its investment’s and has expertise in identifying, structuring and managing real estate investments on behalf of institutional clients and for its principal account.

Delshah’s entrepreneurial culture and emphasis on detailed fundamental market research and data, allows the ability to quickly adapt as market cycles mature, while keeping an eye towards new opportunists to create value and to continue to achieve superior risk-adjusted returns.  For more information, go to: https://www.delshah.com/news/

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