Rent-controlled properties in Brooklyn have been the entry point for young commercial real estate investors. Brooklyn’s rent-controlled properties may not have the high yield compared to other commercial real estate investments in NYC, but they are a great start for building a portfolio. Recently, even more seasoned commercial real estate investors have been targeting Brooklyn’s rent-controlled properties.
Rent-Controlled Properties Are Sound Investments
Brooklyn’s rent-controlled properties offer a sound investment for those looking for acquisitions. There is never a question of vacancies, and if a tenant moves out, there is usually a waiting list am a mile long of people looking to move in. This creates a constant stream of revenue which investors can use to pay off financing and acquire more properties. It’s easy to see why rent-controlled properties are desirable for both new and older commercial real estate investors.
Property Availability
There are roughly 14 thousand rent-controlled buildings in Brooklyn, each housing six or more units. Local commercial real estate investors looking for properties with lower risks attached are setting their sights on purchasing these buildings as a means of funding future ventures. Additionally, more properties in Brooklyn are becoming rent-controlled, which opens up opportunities to investors with a keen eye for stable revenue.
Financing Brooklyn’s Rent-Controlled Properties
Young and first-time investors typically go to friends and family to fund acquisitions and renovations. The man reason for this is that traditional loans are inaccessible. While many commercial real estate investors do not want to tackle the prohibitively high requirements of traditional loans or the restrictions that come along with them, experts warn against mixing friendships and family relationships with finances. Quite often, relationships fall apart when one party expects a bigger return or the initial investment is not as profitable right out of the gate. Traditional loans should take a back seat as well. With the Fed raising interest rates on bank loans, using traditional financing is more prohibitive right now than in previous years. Finding a source that specializes in commercial real estate financing with a solid understanding of the property market in Brooklyn is the best bet.
Express Capital Financing provides funding solutions for people looking to acquire and renovate properties throughout Brooklyn. If you are setting your sights on Brooklyn’s rent-controlled properties and need financing tailored to your needs, contact our offices today.
