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flipping houses

Mar 2023

Long Island Real Estate Statistics

2024-04-16T14:45:00-04:00March 1, 2023|real estate investing, commercial property, flipping houses, foreclosures, house selling tips|

Long Island Real Estate Statistics 2023-2022

  • Long Island’s median home price reached a record high of $560,000 in 2022, up 15% from the previous year.
  • Home sales on Long Island totaled 9,408 in 2022, a 17% increase from the prior year.
  • The average home value on Long Island is $541,700, up 14.5% from the previous year.
  • The median price of luxury homes on Long Island increased by 29.3% in 2022.
  • Homes on Long Island are selling on average for 6.8% above their asking price.
  • The average rent in Long Island NY was $2,292 in December 2021

Key Long Island Real Estate Stats Explained

Newsday.com reports that Long Island’s median home prices have reached a record high of $560,000 in 2022, an increase of 15% from the previous year. This statistic suggests a strong demand for housing on Long Island, driven by low-interest rates, an influx of homebuyers from New York City, and limited housing inventory. This trend may significantly impact affordability and the overall housing market on Long Island.

LIBN.com highlights the increase in home sales on Long Island, with 9,408 sales in 2022, a 17% increase from the previous year. This statistic suggests that the real estate market on Long Island is thriving, with a higher demand for homes and more buyers entering the market. However, this may also lead to a need for more available housing options and increased buyer competition.

Long Island’s average home value is $541,700, an increase of 14.5% from the previous year. This statistic suggests that Long Island’s real estate market is a strong seller’s market, with high demand and limited supply. It may also impact Long Island’s overall economy, as a strong housing market can lead to increased economic activity.

Other sources also provided valuable insights into Long Island’s real estate market in 2022. For example, a Douglas Elliman Real Estate report suggests that the median price of luxury homes on Long Island has increased by 29.3%, indicating a strong demand for high-end properties. Meanwhile, a report by Redfin.com shows that Long Island’s housing market has become increasingly competitive, with homes selling 6.8% above their asking price on average.

Long Island’s real estate market in 2023 is thriving, with a record-high median home price, increased home sales, and a strong seller’s market. While this may be good news for sellers and the local economy, it may also lead to affordability concerns and limited housing options for buyers. As such, it will be necessary to closely monitor Long Island’s real estate market trends in the coming years.

Cited sources:

  1. https://www.newsday.com/
  2. https://libn.com/
  3. https://www.zillow.com/long-island-ny/home-values/

More Facts About Long Island NY Real Estate Market Trends

  1. The median home value in Long Island, NY, is $542,876 as of December 2021. This suggests that the real estate market in Long Island remains strong. (Source: Zillow)
  2. Redfin found that the median home sale price in Long Island was $509,000 in December 2021, up 26.6% from the previous year. This highlights the trend of rising home prices in the area. (Source: Redfin)
  3. The number of homes sold in Nassau County, Long Island, increased by 29.5% from 2020 to 2021. This suggests that the real estate market in the area is experiencing growth. (Source: Long Island Board of Realtors)
  4. The average rent in Long Island was $2,292 in December 2021, up 4.4% from the previous year. This highlights the trend of rising rental prices in the area. (Source: RentCafe)
  5. The number of building permits issued in Long Island in 2021 was the highest in a decade, suggesting a growing demand for new construction. (Source: Newsday)
  6. The luxury real estate market in Long Island saw a surge in sales in 2021, with 248 homes priced at $2 million or more sold in the first three quarters of the year. This suggests that high-end real estate in the area is in demand. (Source: The Real Deal)
  7. A study by DataUSA found that the most common type of housing in Long Island is single-family homes, which comprise 61.3% of all housing units in the area. This suggests that single-family homes are a popular choice among homebuyers in the area. (Source: DataUSA)

Long Island Business News found that the commercial real estate market in the area is experiencing a surge in demand for industrial and warehouse space, driven by the growth of e-commerce. (Source: Long Island Business News)

Apr 2022

Top 10 Ugliest Houses We’ve Purchased in Long Island

2024-04-19T09:05:54-04:00April 19, 2022|flipping houses|

1. Melville, NY. Single Family House. 1959 Built.

We purchased this house from an estate. The heirs grew up in the house and had since relocated to Florida. All parties were extremely happy with the offer they received and I was able to close on the property in only 17 days.

2. Rocky Point, NY. Single Family House. North Shore. House Built 1963.

This house was in terrible condition when I purchased it from the homeowners.  The house was filled with over 180 yards of garbage, roof was leaking, there was mold, and violations for an illegal apartment.  I purchased house in “as is” condition with all the violations and contents.  The seller was thrilled we made his life so easy.  The house has since been renovated and the new owners are in love with it.

3. Brentwood, NY. Single Family House. House Built 1983.

When I purchased this house the entire neighborhood came outside to cheer.  This house had been an eyesore for many years and a magnet for squatters and vandals.  It’s not the nicest house on the block and has helped further increase local property values.

4. Ridge, NY. Single Family House. House Built 1977.

The seller was in jeopardy of losing this property for unpaid taxes. With only a few months before the house was to be sold at auction we were able to purchase the property and help the owner relocate to Pennsylvania.

5. Mastic Beach, NY. Single family home. Built 1981.

This house had a non paying tenant for three years. To make matters worse they destroyed over 2,000 square feet of living space. The previous owner was losing money every month and was unable to find a buyer for the house with the tenants. I purchased the property at a fair price and took the tenants through the eviction process. The house has since been gut renovated and sold to a young family.

6. Plainview, NY. Single Family House Built 1981.

This tremendous 5 bedroom 3 bathroom colonial was purchased from an estate. The house had been left unattended and a pipe burst leaving the entire house covered in mold.  I purchased the property in “as is” condition and our team is currently renovating it to perfection.

7. Patchogue, NY. Single Family House Built 1985.

This house had been the victim of a significant fire. The seller was able to keep a large insurance check and sell me the property for a combined massive profit. We have since renovated the house and it’s the nicest property on the block.  Win win situation for everyone.

8. Elmont, NY. Single Family House Built 1987.

This house had a squatter living in it for 5 years prior to purchase. I was able to make an agreement with the squatter to help him relocate to Florida. Our team then proceeded to gut renovate the entire house. We created an open layout, full finished basement, and a modern look. Handsome Homebuyer will purchase any house regardless of the condition or reason.

9. Floral Park, NY. Single Family House. House Built 1981.

Special kind of house with totally destroyed roof, ceilings and floors. Water damage was catastrophic. Plus some of the period it’s being hoarded. It takes a lot of time and effort to bring this house back on market.

10. Riverhead, NY. Single Family House Built 1981.

This 3 bedroom one bathroom property had been vacant for many years and in extreme disrepair.  Our team removed 100 yards are garbage from a 864 square foot house.  There was even a jetski dumped into the cesspool.  The property has since been renovated and is being rented to a veteran and his family.

Apr 2022

Fix-and-Flip Biohazard Homes?

2024-01-06T12:50:01-05:00April 12, 2022|flipping houses|

Handsome Homebuyer buys all hazardous houses, including those that are in need of remediation from dangerous biohazards such as blood, animal urine and excrement, drug residue, and even hoarding. We are very familiar with the process of acquiring these types of homes.

Additionally, we are partnered with a fully licensed, bonded, and insured nationwide biohazard cleanup company Bio Recovery Inc to ensure the home is properly restored and certified safe for occupancy. These types of situations require special hazmat attention that only trained professionals should handle.

What’s considered a hazard in the home?

Any situation where the home is deemed unsafe for occupancy. This broad definition can mean a home that has been abandoned after a crime scene, drug lab, hoarding, or deadly disease was discovered on the property.

A hazardous home can also mean:

  • The home cannot be entered without appropriate PPE or hazmat.
  • If the property is zoned for apartments or other commercial purposes, the premises cannot be opened to the public without proper clearance.

In certain cases, mold, smoke, and storm damage may raise potential concern for hazardous conditions, but a trained professional would need to assess the situation.

Examples of House Hazards

There are many kinds of home hazards to be aware of, below are just a few examples. If you recognize any below situations we strongly recommend having the property professionally treated by our partners right away.

  • Hoarding
  • Black mold
  • Asbestos
  • Blood (e.g. stabbing, suicide)
  • Body decomposition
  • Presence of deadly infectious diseases (e.g. C Diff, Hepatitis, HIV/AIDS)
  • Drugs (e.g. meth lab or discovery of any mass illicit drugs)
  • Serious persistent odors

We Want to Buy Your Home – No Worries, No Questions Asked

No need to worry if your property is currently in these conditions. We are still interested in buying your property no matter the scope or magnitude of the work it entails. We are partnered with the top leading companies licensed to handle these kinds of scenarios and more.

We are fully aware of the process of buying homes affected by biohazards. For you, the process to sell your house fast Long Island is the same. We’ll take care of the work involved to purchase the home, transfer the title, and work with our partners to ensure the property is safe again.

Take a look at a few of the other properties we’ve successfully helped restore and resell.

Apr 2022

Do Banks are Giving Houses Away?

2024-01-06T12:48:58-05:00April 5, 2022|flipping houses, foreclosures, real estate investing|

It’s a common misconception for new investors that bank owned properties (REO as they are referred to in the business) are the cheapest and easiest way to find distressed properties. The truth is quite the opposite. Ten years ago I took a one day class on real estate foreclosures because I was certain that banks were giving houses away to investors like myself who had the right connections. I completed the course and devised a plan to build relationships with REO brokers who would give me first dibs on any of these deals. My girlfriend at the time even went so far as to get licensed as a real estate agent so she could work at the premier REO brokerage on Long Island. We would have the inside track on all the deals and she would get commission when I bought and when I sold. Great plan right? In theory yes, but in reality it was anything but.

So why didn’t this plan work?

A number of reasons. First, by the time a property becomes bank owned the bank has already taken a significant loss and is looking to minimize their downside. Selling properties to investors at a discount only hurts them further. Second, most banks require properties be listed on the MLS, auction sites, and more to give them maximum exposure. Many banks go as far as to require a property to be publicly marketed for a minimum number of days before any offer can be accepted. Lastly, REO brokers aren’t willing to risk a bank relationship that took them years to cultivate. So the odds of them steering a deal in your direction is slim to none and slim just ran away. The truth is that bank owned properties are usually the most overpriced properties an investor can buy.

What can investors do to generate quality leads to purchased distressed assets ?

Simple, you need to generate a comprehensive marketing strategy and be consistent with it to find deals of people that want to sell my house fast Long Island. How involved the strategy becomes depends on how much business and the type of business you’d like to do. Marketing strategies include networking, TV, radio, mailers, cold calling, driving for dollars, organic social media, paid social media, PPC, SEM, events, sponsorships, and more. The more exposure you have the more opportunity you’ll get. For more creative real estate marketing ideas see the attached video

The Advanced Guide On How To Get Deals in Real Estate!

Apr 2022

How to Make $120K a Year in High School

2024-01-06T12:48:41-05:00April 5, 2022|flipping houses, real estate investing|

Is wholesaling real estate a real thing?

If you want to make a lot of money while you’re still in high school, the answer is real estate wholesaling.

Wholesaling is a great way to make money in real estate, learn the business, take little risk, with minimum money out of pocket.

Here’s what you do: Drive around, walk, ride your bike, and look for distressed properties in your area. A distressed property might look like it needs a new roof. It might be run down and the grass on the front lawn is a foot tall and looks like it never gets mowed. It may look like there’s nobody living there at all. Maybe it’s been boarded up by the town. Even in the nicest towns, it’s common to find houses that are in rough shape.

When you find a house that looks like it fits the description above, write down the address. Back at home, hop on Google and search for “free skip tracing software”. Skip tracing programs allow you to find people’s names and contact information by searching the street address of a house. After you have their phone number, call them. It’s likely that they’re not going to want to talk to you the first time you call, they might even be rude about it. You might have to call 20 times before they’ll finally listen. But if you’re persistent, you’ll eventually find someone who wants to sell their distressed property.

When you find someone who is willing to sell the house, you’ll need the help of a real estate attorney. The attorney will draft a contract of sale that contains an “assignment clause”. An assignment clause allows the purchase of the house to be taken over by anyone you choose. That person (usually an investor) comes to the closing and closes in your place with their money. The wholesaler receives a fee at closing for putting the deal together.

Where do you find investors to wholesale properties to? You’ll want to use social media and other marketing tactics to build up relationships with a group of investors who are looking for these type of deals. You should build a network of different investors, because different investors are looking for different kinds of deals, and you never know what opportunities will present themselves to you while you’re out searching to sell my house fast in Long Island.

Apr 2022

5 Characteristics of a Good Fix & Flip House

2024-01-06T12:48:35-05:00April 5, 2022|flipping houses, house renovation, real estate investing|

Not every house available on the market is a good candidate for investment as a “fix-and-flip”. It’s important to bear in mind that there are numerous factors that need to be weighed when you decide to purchase a property for this purpose. In my years of real estate investing, I’ve identified the following five characteristics that elevate certain properties over others when you’re looking for a fix-and-flip project house.

  1. The house in question should be in a desirable area. This is the one thing you absolutely can’t change about the property! The property should be in an area where demand for housing outpaces supply in order to ensure that you’ll quickly get offers when the house is listed for sale. If possible, also try to pick a property that isn’t on a busy road, next to industrial or commercial properties., etc., which can make the individual property less desirable even if the neighborhood itself is in demand.
  2. The house should be totally vacant. If the house is vacant, there is no need to wait for anyone to relocate before you can get to work and you can reduce the overall time you have ownership of it, and therefore keep expenses like insurance and utilities to a minimum. If the house has any residents, even ones you might consider “squatters”, this can lead to great difficulty getting the ball rolling even after you’ve purchased the property.
  3. The house should need significant repairs or upgrades. Essentially, this is the main way an investor makes money on a fix-and-flip; by finding a house that sells for below the average market value of comparable homes in the area, then performing repairs/upgrades that significantly boost the home’s value and selling at a profit.
  4. The spread between the purchase price of the house and your anticipated ARV (After Repair Value) needs to be significant enough to ensure that you’ll be able to sell at a profit even after factoring the costs of repairs, insurance, and other costs related to owning the home while you work on it.
  5. The price of the house has to be right. You don’t make money by selling the house; you make it by buying the house at the right price. Go in with a solid plan so you can purchase the house at the right price, perform the best value-add renovations within your budget, and sell the house quickly at a profit.

By keeping the above factors in mind when you are searching for a house to fix-and-flip you’ll greatly increase the chances of making a profit while minimizing your risk. It’s also important to have a very strong grasp of what your renovation costs, etc., will be before you start on any project so that you don’t wind up putting yourself in the red if you need to sell my house fast in Long Island NY.

Apr 2022

Where Do Foreclosures Come From

2024-01-06T12:48:30-05:00April 5, 2022|flipping houses, foreclosures|

In New York State, the foreclosure process can take a very long time, frequently in excess of five years, as there are a number of moving parts involved in the process which can each take significant time to resolve. For the purposes of this discussion, we’ll keep things simple if you need to sell my house fast in Long Island.

What Is Foreclosure Homes?

Foreclosures are the result of a borrower defaulting on their home loan. If a homeowner fails to make payments toward their mortgage for three months and the borrower’s and lender’s efforts to remedy the situation fail, a lis pendens (Latin for “suit pending”) is filed. A lis pendens in this context serves as public notice that a borrower has not paid their mortgage for at least three consecutive months. The matter is assigned to an attorney who represents the lender, and this attorney begins the foreclosure proceedings.

How Does Foreclosure Auction Work

During this process, hearings and foreclosure conferences are held. A “referee” is assigned to conduct an auction for the property in question. Ultimately, several years down the line, the property becomes available to the public at auction. This auction is typically either held online or on the steps of the local courthouse, and it will be advertised at least 30 days in advance to give potential bidders notice of the impending auction.

The bank sets an “upset price”, the lowest acceptable bid for which the property will be sold at auction. This price is intended to recover the outstanding balance of the unpaid mortgage. So long as this reserve price is met, the property goes to the highest bidder.

What Is an REO Foreclosure

In the event that no bidder is willing to offer the upset price, the bank proceeds to buy the property itself, and the property becomes – Real Estate Owned. The property is then listed for sale by a specialist REO real estate broker who lists the property on the open market and attempts to get market value. REO properties are often sold at somewhat of a discount because it is not in the bank’s best interest to retain the property for very long, with the caveat that these properties are most often sold “as is” and may be in need of repair work at the time of purchase.

Conclusion

The above is a brief overview of how foreclosures happen and how they become available to the buying public, but more detailed information for how foreclosures work in New York is available here.

Feb 2022

4 House Renovations That Won’t Generate Significant ROI

2024-01-06T12:37:18-05:00February 20, 2022|flipping houses, house renovation|

When renovating a house during a flip the temptation may be to simply look at every opportunity to upgrade and address as many of them as your budget will allow. But some renovations fail to generate a significant return on your investment and you should think twice about doing them. 

  1. You may think about investing in high-end landscaping to enhance the curb appeal of a newly renovated home, but peoples’ tastes in landscaping tend to be very specific and many home buyers will be just as happy to have simpler landscaping that gives them a “blank canvas” to pursue their own vision. In the case of multimillion dollar properties, you may need to invest more money in landscaping in order to ensure that it’s properly kept up until the time of sale. 
  2. Another curb appeal item is ornately designed front stoops and stairways. These are very expensive to build and are not a very effective selling point – the extra money you spend won’t help you get higher bids than you would have with something that’s attractive but more basic. 
  3. Swimming pools cost too much to generate a good ROI unless you’re dealing with a home in a luxury market where additional amenities such as these are a baseline expectation for properties. For the average middle-class home, the money and time spent to put in a pool won’t generate enough ROI to be worthwhile and may even put off some buyers who don’t want to take on the time and costs associated with maintaining a pool. 
  4. Building above market standards. What this is means is that in neighborhood where the average home is worth $500,000, piling on upgrades isn’t going to make the house you’re trying to sell worth $750,000 – buyers who are shopping for a house in that price range are looking in neighborhoods where that’s the median price. At most, you want to build slightly above the standards of the market to give a potential buyer the feeling they’re getting one of the better deals in the area.

Wisely spending your money on renovations which will get higher bids from buyers is key to successful house-flipping. If you were considering investing in any of the items outlined above, take another look at your property and see if the money can be put to better use elsewhere or sell it to a cash home buyer in Long Island New York.

Feb 2022

Why NY is One of the Toughest Places to Flip

2024-01-06T12:38:15-05:00February 13, 2022|flipping houses|

New York is one of the toughest places to flip houses, and here are the reasons why:

  • On Long Island specifically, nearly all the available land is used. There’s almost no place left for new construction, which means no new subdivisions or communities are being built. What this means is that you’re almost totally dependent on finding distressed properties if you’re looking for an off-market deal to start your next fix-and-flip.
  • Competition here is fierce, the population density of people who have enough money to invest in real estate and the popularity of HGTV shows has encouraged a lot of entrepreneurs to try their hand at house flipping. Distressed properties don’t go unnoticed for long and it’s easy to get beaten to the punch if you don’t have a large, reliable network bringing you leads.
  • Prices, especially on Long Island, are very high. In Nassau County, the median sale price is over $600,000, and in Suffolk County the median price is over $500,000. This means that even for distressed property prices are very high and as a result financing house flips is more difficult, requiring you to either have significant cash on hand or the ability to secure favorable financing from a bank.
  • Labor shortages are a real issue here. It got worse during the COVID-19 pandemic, but even before that the availability of labor was a problem. The “fix” part of fix-and-flip is a lot more difficult when the contractors you work with don’t have the manpower to take on a job on short notice. This may result in you having to hang on to a distressed property for longer than is ideal while you wait for your job to get started.
  • Property taxes which are some of the highest in the entire United States. Nassau and Suffolk County property taxes are a major sticking point for a lot of buyers, with typical “middle class” homes having property taxes ranging from $12k to $20k. This imposes additional expense while a property is on your hands and can potentially extend the amount of time it takes to sell. If your timing is right, be sure to file a property tax grievance to try to bring those property taxes down.
  • NY has the strictest government regulations in the entire country. It can take over 11 months to complete permitting processes. As a result, you may wind up holding on to a property for a long time and incurring a lot of additional carrying costs. This greatly increases the risk of any investment you make.

As you can see, house flipping in NY (and on Long Island in particular) is not for the faint of heart. Patience, cash reserves, a strong team, and a shrewd sense of timing are all critical in order to ensure your success. But if you have the right people surrounding you like cash home buyers in Long Island, and you educate yourself regarding the specific challenges of house flipping on Long Island, there is an opportunity to make money.

Feb 2022

Why You Shouldn’t 1031 a Flip

2024-01-06T12:37:59-05:00February 7, 2022|1031 exchange, flipping houses|

1031 exchanges are a great tool that enable real estate investors to sell properties without paying taxes on the proceeds of the sales so long as they are immediately rolled into the purchase of a new property. After the completion of a sale, the gains are normally taxable, but when performing a 1031 exchange the sale proceeds are transferred to a third-party intermediary who holds the funds until they are transferred to the seller. Thus, on paper the real estate investor has never actually made any income from the initial sale and avoids paying taxes. This is useful when an investor has identified a property they think is a better long-term investment than the one they originally owned.

In theory, if applied correctly 1031 exchanges will allow you to sell real estate over the course of your entire investing career and never pay taxes on those gains. It’s important to keep in mind that this strategy has strict requirements that you have to adhere to. Failure to abide by these rules can result not only in paying taxes on an individual transaction in question, but also on all previous transactions that were completed.

Flipping houses by its nature is quick and transactional. The intent is to own your investment properties for as little time possible, typically only a few months at a time. 1031 exchanges are more often intended for use with properties you intend to buy and hold on to for a longer time. There are time limits on identifying the property you’ll roll sale proceeds into when you’re looking to perform a 1031, issues of deciding who will be the intermediary that holds onto the money during the transaction (it cannot be someone with whom you have any formal business relationship), and a limited number of days to complete the subsequent transaction. These issues can make it very difficult to complete a successful sell my house fast Long Island exchange in the context of finding a new house to flip, and it’s easy to find yourself disqualified in this scenario and potentially subject to penalties.

For those reasons, you should limit yourself to using 1031 exchanges for development projects and longer-term buy-and-hold real estate investments, despite how tempting it may be to try to avoid paying taxes on the income from your house flips. But if you’re still intrigued by the possibilities as a house flipper, consider this longer-term strategy: Using the proceeds you make from your fix-and-flip projects over time, purchase a rental property. You can then use 1031 exchanges if and when you identify a property you want to trade up to as a stronger long-term investment opportunity, and sell your rental property without having to pay taxes on the proceeds.