Ezra Beyman, Chairman of Empire National Holdings, on Real Estate

Real estate is one of the oldest and most consistently lucrative investments that exist. The 19th century magnate John Jacob Astor, who owned vast amounts of property in Manhattan, was once famously asked what he would do differently if he could live his life over. He replied that he would have bought every single property in Manhattan. Had he done so in the early 1800s, his strategy may well have been one of the best investments in history. While it probably won’t be possible into the future to realize the returns in the tens of thousands of percentage points that an investor in the 1830s may have attained, there is still lots of money to be made in this age-old profession. A recent article highlights the ways that modern New York City real estate investors can make money. Increasingly, however, what is true for New York City is true for most other places throughout the country. The same economic forces that affect Manhattan commerce are in play in cities from coast to coast. Let’s take a look at three ways that a savvy real estate investor can make money in today’s markets.

Warehousing

The great investor Peter Lynch once said that the least-sexy businesses are often the most profitable ones. He gave his predilection for investing in funeral homes as an example. Another example is warehousing operations. While bringing up the topic of warehouses is sure to put just about any listener to sleep, the massive increase in need for warehousing space is driving up prices across the country. Much of this has been driven by online retail and the need for local distribution hubs.

Hotels

The simple law of supply and demand suggests that as the U.S. population increases, there will be more need for hotel rooms. Additionally, the slump in hotel business caused by the advent of Airbnb and similar services is being partially reversed throughout many cities in the United States as local governments crack down on individuals violating local lodging ordinances.

Foreclosures

Many investors many not realize that banks across the country have held on to tens of thousands of foreclosed properties since the 2008 mortgage meltdown. Many of these properties are just now coming up on the auction block, and they represent a prime opportunity to snatch up a property at below-market prices.

About Ezra Beyman

Ezra Beyman is an experienced and seasoned veteran in both the real estate and insurance industries. Based out of New York City, Ezra Beyman takes great pride in assisting his fellow community members. Through his hard work, dedication and quick wit, Ezra Beyman has been able to forge an incredibly successful career for himself.