investing: Investors: Time is Not Your Friend - 09/22/11 03:35 PM
I have written before on real estate investor mistakes, and one of them is worth expanding on. It is little discussed, but if an investor buys a property for rehab and resale, there is more than a simple margin to be focused on. The investor should also be guided by a realistic timetable. 
All too often, I see amateur investors holding out for a price no matter how long in takes. This is a huge mistake for 2 main reasons: the cost of carrying the property, and the opportunity cost of not turning the property over in a timely fashion. 
Carrying … (42 comments)

investing: Think You Have $500 Cash Flow? Think Again - 07/14/11 03:12 PM
I hate to rain on a guy's parade.
As a colleague from another industry sat across my desk, we pondered why his home, listed with another broker prior to meeting me, had not sold. Looking at the market activity, his bottom line and what it appeared he'd get were about $10,000 apart. My suggestion was to lower his price and be done with it. He was not excited about that prospect, and said he was considering renting the place until the market turned around. Among the first questions I asked was what his cash flow position would be if he were … (71 comments)

investing: Amateur Investors - 05/27/11 03:07 PM
I have written before that I do not recruit or solicit first-time investors. Real estate mistakes are expensive, they can ruin you, and I don't want to go head to head with a newbie who won't take my advice, gets hurt,  but still reserves the right to blame me. Not my idea of fun. 
There is a home that is in the final stages of renovation in my marketplace that I am well familiar with; I looked at it when it was on sale in 2007, and I showed it as a bank-owned foreclosure last year. The investors I showed it … (40 comments)

investing: Serving Westchester County Real Estate Investors - 08/21/10 04:19 PM
I have posted before about my philosophy with real estate investor clients. I don't dislike newbies or amateurs, but I sure do a good job of scaring them about the realities of how expensive a mistake in real estate can be. I know investors who spent $400,000 on properties before the sub prime crisis hit, expecting to sell at $550,000. 18 months later, the house sold for...wait for it...$400,000. Did they break even? NO, they lost big time because of the overhead, taxes, cost of money, and carrying costs. The Great Recession created a great many ex-real estate investors. 
Our best investors pay cash, know … (4 comments)

investing: If Real Estate is Such a Bad Investment Why Are We Talking? - 05/29/10 03:55 AM
Let me first say that I cut my teeth working for a broker who was a big investor and I still to this day work with investor clientèle. I am an investor myself.
However, I do not recruit real estate investors as I do those buying a home, and if you ever heard what I say to neophyte investors seeking my advice you might think I don't want to make a sale. You know what? I probably don't. The risks are significant, the headaches are considerable, and the stakes are high. Consider this: If you invest $40,000 in the stock market and the investment tanks, … (56 comments)

investing: You Can't Live in Your 401k. It Gets Drafty. - 12/30/09 01:02 PM
Some of the comments in this story prompted me to write one of my own. The jist of the piece is that all real estate appreciation from the past 10 years is nullified by inflation. Now, I don't know if I should go outside, stand in the street and scream 
DUH
at the top of my lungs, or just put my face in a pillow, and scream
DUH
at the top of my lungs in the privacy of my living room. 
Stories like this bring out the haters, and several commenters lamented at how a $200,000 house actually costs three times … (27 comments)

 
J. Philip Faranda, Associate Broker / Office Manager (Howard Hanna Rand Realty)

J. Philip Faranda

Associate Broker / Office Manager

Yorktown Heights, NY

More about me…

Howard Hanna Rand Realty

Address: 522 North State Road , Suite 100, Briarcliff Manor, NY, 10510

Office: (914) 762-2500

Mobile: (914) 450-8883

Phil Faranda is broker and owner of J. Philip Real Estate LLC in Briarcliff Manor, NY. Since founding the firm as a sole practitioner in late 2005, the team has grown to over 80 agents & closed 1000+ transactions valued at over $1 billion. He was 2014 President of the HGMLS and a 2017 Inman Influencer. This blog commentary is geared toward consumers and industry colleagues alike. You can reach him at (914) 723-8900.
Warning: *Sarcasm and irony advisory at all times.*

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