While down on NYC, investor discusses other cities to target
Mortgage brokers who work with real estate investors are looking for hot markets to build their deal pipelines heading into the spring buying season.
Despite the recent rate drop below 6%, there hasn’t been a surge in property purchases just yet to correspond with that rate decline. However, there is optimism that if rates continue to fall, that surge could be coming.
While not every major metropolitan area is experiencing a surge in sales right now, some markets are heating up, and one veteran real estate investor believes there are a few markets brokers should target.
Danny Fishman (pictured top), CEO and co-founder of GAIA Real Estate, might not be optimistic about the New York market at the moment, but he sees South Florida heating up, especially in the condo sector.
“I think that with the condo market, if you want to make money, you have to be in South Florida,” Fishman told Mortgage Professional America. “There are lots of condos. And it's not just Miami. You have Fort Lauderdale, Boca Raton, Aventura, and Delray, and of course, West Palm. And there are tens of thousands of condos that are being built. People are buying there.
“I can tell you that there are a lot of international investors who are buying there. We have started to see people from the UK, Canada, and Latin America. That is always a huge market for them. I think they can make a lot of money in South Florida.”
Other strong markets
The latest housing numbers from Redfin line up with what Fishman is saying. West Palm Beach was one of only four metros in the country whose pending sales increased over the four weeks ending February 8. West Palm Beach had the largest increase in pending sales of those four markets at 9.1%.
Fishman suggested some other markets for mortgage brokers who want to get some great investor deals, starting off with Nashville, Tennessee.
“I think Nashville has an opportunity, because it was oversupplied,” Fishman said. “So rent went down, and prices went down. But I think the fundamentals of the city are very good. Universities, healthcare, life science, and Oracle are moving there. I think that's another good spot to be in. Nashville used to be just a fun place, with music and everything.
“But if you go now, there are about 2.5 million people in the region. It has become almost like the capital of healthcare in the United States. There are more and more universities, healthcare centers, research facilities, and jobs in finance. It's really becoming a very good place with job opportunities, growth, opportunity, and relatively good weather compared to the northeast.”
He said another benefit for Nashville is that there are fewer hoops for investors to jump through to get building projects approved. And for investors looking to leave the New York area, there are areas of Nashville that have a similar vibe to areas of NYC.
“There is much less red tape,” Fishman said. “In places like Germantown in Nashville, it's very much like what young people like in Williamsburg in New York. It’s very cool and hype, and you have all the amenities that the neighborhood has to offer. I think it’s definitely an area prime for long-term growth.”
Another area that Fishman believes is a strong option for mortgage brokers working with real estate investors is Houston, Texas.
“I think Houston is growing a lot,” he said. “A lot of AI companies are there, along with Apple and Nvidia. Like Nashville, Houston prices went down, and you can get better deals there as an investor. I think there are other pockets that are growing very nicely, and there are opportunities there with less risk.”
Not giving up on NYC
While Fishman made his feelings known about New York City and new mayor Zohran Mamdani’s policies, he’s not ready to give up on the Big Apple. But he thinks in the short-term, there may be better opportunities elsewhere in the country for investment.
“But with his policies in there, I'm not sure I would invest in the city,” Fishman said. “There are so many other opportunities and growth coming to some other areas of the United States, like South Florida. I don't think his policies will work in New York. The question is, how long will it take for people to figure it out, and how long will it take to fix it?”
Fishman said for brokers working with very patient investors, there could still be good opportunities in New York City.
“I'm not sure if you should buy now, even if you buy relatively cheap, because you're already buying cheaper in other places in the United States,” he said. “I guess if you're very patient and long-term, maybe you have some opportunities in New York today.”
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