Investing in Brooklyn real estate without millions in cash - KMSP-TV

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>>

  • Almost all NYC pre-K centers ready

    Almost all NYC pre-K centers ready

    Friday, August 22 2014 7:48 PM EDT2014-08-22 23:48:37 GMT
    Nearly all 1,100 facilities providing services in the city's new universal pre-kindergarten program are ready to open on time after passing health and safety inspections. City officials said Friday they expect the eight remaining pre-K schools to remedy violations by Sept. 4's opening day. If they don't, affected children will be temporarily enrolled in other facilities.
    Nearly all 1,100 facilities providing services in the city's new universal pre-kindergarten program are ready to open on time after passing health and safety inspections. City officials said Friday they expect the eight remaining pre-K schools to remedy violations by Sept. 4's opening day. If they don't, affected children will be temporarily enrolled in other facilities.
  • Brooklyn Bridge flags back on US soil

    Brooklyn Bridge flags back on US soil

    Friday, August 22 2014 7:25 AM EDT2014-08-22 11:25:55 GMT
    Police say the two American flags swiped from the Brooklyn Bridge and replaced with faded white ones are back on U.S. soil. NYPD spokesman Sgt. Carlos Nieves said Friday that the flags are in the United States. He did not know their exact location. Two German artists claimed responsibility earlier this month for the July 22 stunt. 
    Police say the two American flags swiped from the Brooklyn Bridge and replaced with faded white ones are back on U.S. soil. NYPD spokesman Sgt. Carlos Nieves said Friday that the flags are in the United States. He did not know their exact location. Two German artists claimed responsibility earlier this month for the July 22 stunt. 
  • Garner's family meets U.S. attorney

    Staten Island stores worried about rally

    Staten Island stores worried about rally

    Friday, August 22 2014 6:34 AM EDT2014-08-22 10:34:05 GMT
    Some Staten Island business owners say they are bracing for huge crowds on Saturday during a planned march for a man killed in an apparent chokehold during his arrest by NYPD officers. The Rev. Al Sharpton said he is estimating about 3,000 to 5,000 people to rally.
    Some Staten Island business owners say they are bracing for huge crowds on Saturday during a planned march for a man killed in an apparent chokehold during his arrest by NYPD officers. The Rev. Al Sharpton said he is estimating about 3,000 to 5,000 people to rally.
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

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