Real estate investors like Samuel Kooris in Brooklyn are looking beyond their region and discovering that the real estate market across the United States is filled with opportunities. With over 60 properties and counting, Mr. Kooris and his team have acquired buildings in NYC, New York State, and as far away as Kansas City, MO. With a background in urban real estate, investors like him are able to see new opportunities even where old buildings stand.
Improving Old Real Estate
There are many different approaches to urban real estate investing, but Sam Kooris takes a unique approach. While making money is the end goal, it’s not done at the expense of gentrification or pricing out the locals. By purchasing and remodeling old buildings, his team is able to improve the quality of life for people already living in the neighborhood and offer new places to live that may not have been available before.
It’s evident that this kind of investing is about more than becoming the next big billionaire as fast as possible. If slow and steady win the race, then his company Alchemy Ventures is on a winning path. As investors like him move from city to city, they discover opportunities in unlikely places. Most people wouldn’t think that Kansas City is much of anything, but investing in historic sites, mixed-use, and multi-family real estate offers the opportunity to not only make an income on rentals later, but to be part of the urban revitalization that is boosting economies across the nation.
Building New Properties
Investors work strategically to determine what they will do next. Some investors choose to build new. This strategy requires land to build on and in urban areas, this is in short supply. When buildings are too run down to fix up, they get torn down. This brings in a different kind of investor. Often they are looking at what can make them the biggest ROI, because they will be out a lot of money when their projects are completed.
The old stereotype of developers coming in and tearing down a neighborhood is partly true. While the best ones still try and keep the look and feel of the overall area, it’s hard to do that when they are creating new, modern buildings with a different lifestyle in mind. Sometimes the new is as important as the old in an area.
The new stores and apartments help bring in new people, jobs, and opportunities. These investors and developers look for ways to maximize vertical space often leaving them the opportunity to build incredible mixed-use buildings for storefronts, businesses, offices, and even residential units. They are looking for cities in the area with key growth markers, where there are deals to be found on land and properties that can’t just be remodeled.
Rebuilding Communities
Some regions need significant help to rebuild their neighborhoods. Investors look for ways to transform neighborhoods in ways that earn them money. Sam Kooris is just one of many looking to do projects in areas that are seeing signs of life. By investing in buildings that can be remodeled, they take what’s old and make it usable again.
Investors make strategic improvements that might include something as basic as adding a fitness room to a condominium community or as big as turning old hotels into studio apartments. Adding more housing to areas in short supply means that there will always be someone in line for a place to live. When it comes to updating restaurants and storefronts, adding park space, and even putting in local gyms and swimming pools, these are all done to improve the quality of life for new tenants and those who have lived in the area for years.
Investors continue to look for opportunities in urban areas. Believe it or not, there are more options in cities than you’d think. Also, strategically purchasing properties in different regions can help protect against losses and ensure greater profitability. As cities look to modernize, update entire blocks, and even add in new businesses, investors are finding their niche in the city. While some investors focus on things like residential properties only, diversification of a real estate portfolio is critical. You want to diversify the types of properties, but also have a portfolio with diverse locations to ensure your investments are profitable.
