Investing in Brooklyn real estate without millions in cash - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

CityShares

Investing in Brooklyn real estate without millions in cash

Posted: Updated:
NEW YORK (MYFOXNY) -

New York City real estate is so hot right now. Everyone seems to want a part of it but it's not affordable for all.

In the Bedford-Stuyvesant section of Brooklyn, the average listing price for a home is just below $1 million, according to Trulia. As trendy businesses have moved in, sale prices moved up more than 10 percent in the last five years.

Most people can't afford on their own to buy an investment property in New York, which is how real estate investor Seth Weissman came up with the idea for a fund he calls CityShares. He says he thinks the prices are poised to go even higher.

"We realized there was no current avenue for people who wanted to invest in that neighborhood, in real estate, to get exposure without buying a condo or co-op or townhouse in that neighborhood," he says.

The fund pools money to invest in Bed-Stuy properties.

But the fund is not for everyone. While you don't have to be a millionaire to join, you do need a pretty substantial chunk of change: the minimum investment is $100,000.

Eric Peerless, who runs a tech firm, is one of the early investors.

"It seems that everyone I know who bought a couple of years ago has done pretty well, so it's compelling to not have to put out that full amount of money you would to buy a condo or townhouse," he says.

Lauren Lyons Cole, a personal finance contributor for TheStreet.com, says while real estate is a great way to diversify a portfolio, CityShares could be too specific a fund for the average investor because she says it is a lot of risk to take on. She says you can get a good return in other ways.

Weissman says he thinks he can make investors an annual 12 percent return from a combination of rental income and property appreciation. He plans to replicate the model in other up-and-coming neighborhoods, such as Harlem and Crown Heights, in the coming months.

 

  • Brooklyn NewsBrooklyn NewsMore>>

  • The Big Idea

    Making New York City more energy efficient

    Making New York City more energy efficient

    Thursday, July 24 2014 10:20 PM EDT2014-07-25 02:20:19 GMT
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
  • NYC's pickup basketball games moving indoors

    NYC's pickup basketball games moving indoors

    Thursday, July 24 2014 5:54 PM EDT2014-07-24 21:54:18 GMT
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
  • Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Thursday, July 24 2014 2:30 PM EDT2014-07-24 18:30:38 GMT
    Dunkin' Donuts handout photoDunkin' Donuts handout photo
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices