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Suit Up With Baez
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Suit Up With Baez
Episode 12: Investing in the Big Apple: Unveiling Mayweather’s $402M Housing Move & Ethical Real Estate Insights
Discover the electrifying dynamics of New York City's real estate boom with us, Angelo and Alex Baez, as we explore how a 27% market surge is reshaping opportunities across the Big Apple. What does Floyd Mayweather know that you don't? Uncover the story behind his staggering $402 million investment in affordable housing and learn about the promising prospects in neighborhoods like Yonkers and Westchester County. We also spotlight Governor Hochul's ambitious housing plan to bring 71,000 new homes, including 21,000 affordable units, to the city, reflecting an era of transformation and growth.
Navigating real estate isn't just about numbers—it's about ethics and trust. Get insights into the essential role of integrity in real estate transactions and the dire consequences of unethical practices. We'll share personal stories that highlight the importance of choosing the right professionals to safeguard your investments and provide practical tips to protect yourself from financial pitfalls, such as foreclosure due to unauthorized mortgages. Understanding your property documents can be your best defense. Join us for a conversation that balances investment excitement with the grounding necessity of ethical practices.
Hello everyone, welcome to Suda with Bias podcast, and I'm here with co-host Angela Bias, and I am Alex Bias and we're excited and thrilled to talk about these great topics for the week.
Speaker 2:Yeah, we can start it off with New York City's small real estate market surge. Last podcast, we were talking about how the Fed had reduced rates and how that was going to lead to an uptick in home sales, and it shows that, from the data collected, that New York City's real estate market is up 27% since 2021, which is really big.
Speaker 1:That's huge guys, you know. So you're saying 27% went up due to these rates.
Speaker 2:Yes, it's a cause of it. One of the biggest deal spikes we've seen in a very long time.
Speaker 1:That's amazing, to be honest with you. You know it's so exciting to see how much these rates basically, you know, with just those rates and the Fed saying that we're going to go down, you see how everyone wants to get involved again into real estate.
Speaker 2:Exactly, and people are taking advantage of those rates. Psychologically, they're thinking like this is the time to go, because you want to get in the market before rates do go down a tremendous amount and then people are going to be in the market trying to compete for houses like crazy.
Speaker 1:I'm still getting a lot of calls for about the rates. Rates are going down, but it's not going down drastically Like we're expecting it right. I know it's going to be going down. Guys keep calling me weekly so I can ask Heidi about it. I have a mortgage broker, heidi Baez, but I've been getting calls Angel left to right about this race still Like is it already at five?
Speaker 2:Is it still like? Is it already at five? Is it at five and a half? Reality is it's gonna go down. Right, so we just gotta be patient and waiting. Hopefully it'll be down before the end of the year. Yeah, like you said, I think, in the last podcast, it takes time for them to go down because the whole mortgage system, uh, it needs to go through a whole process of it like slowly going down to where it's supposed to be. So I don't think that this is going to be like a overnight type of thing. It is going to take months for it to get there. It's going to get there, it's definitely going to get there. And in other news, in the Upper East Side, 39.2 rise in signed contracts. That means that there's a lot of activity up there in the Upper East Side of New York City.
Speaker 1:In.
Speaker 2:Manhattan, yes, in Manhattan. Having talked about Upper Side Floyd Mayweather, have you heard the news on him?
Speaker 1:I know I mean Floyd Mayweather. It's interesting how he's putting all his fortune into real estate. He's always been creating like a real estate portfolio, like that's always been his thing too. All right, it's interesting how these millionaires also look into real estate. Right, these millionaires also look into real estate and we try to push everyone to look into real estate. But it's so much beneficial, especially when you see all these millionaires, rich people, doing it as something they're doing, right?
Speaker 2:Exactly, I mean Floyd Mayweather. In this article it states that he's spending $402 million in real estate investment in a thousand unit affordable housing portfolio in upper Manhattan. The portfolio includes over 60 buildings and is one of the city's largest real estate deals of the year. Wow.
Speaker 1:Well, thank you, floyd Manweather, for investing into New York real estate. We do appreciate it right. We know New York is what it is at, but the real estate in New York is always the best in my opinion. But it's interesting how you see Fred Morewell doing this and investing into real estate. It's so fortunate to it and he's creating an amazing portfolio for his kids and his family. You know that's the route to go. To be honest, that's the goal I have in the future to one day have so many buildings and create that portfolio for my kids.
Speaker 2:What would you like to buy the buildings if you could? I like Yonkers, yonkers.
Speaker 1:Yeah, I'm starting to really like Yonkers. Yonkers yeah, I'm starting to really like Yonkers. To be honest with you, Like buying buildings in Yonkers and Westchester County. I'm starting to like a lot, Maybe because I live in Westchester County. Are there any?
Speaker 2:parts in particular of Westchester.
Speaker 1:Like New Rochelle Yonkers. I like lower Westchester.
Speaker 2:Lower.
Speaker 1:Westchester. Yeah, that's the ones I'm really interested in for the future. Gotcha hear Floyd Moyler investing into New York City, the largest purchase in New York City of this year, 2024.
Speaker 2:Yep of this year. I mean, that's quite a portfolio.
Speaker 1:Imagine 60 and older 60 buildings, a thousand units, 408,. You said 402 million Wow.
Speaker 2:Yeah, that's pretty much half a billion right there.
Speaker 1:Half a billion real estate. Imagine everything else he has too, because I understand Floyd Moyler he does owns a lot of skyscrapers too in New York City. So he definitely likes the real estate in New York City, maybe because his benefits are bigger. His, you know, rental income is better, so maybe that's why. But I know he owns more real estate in New York too.
Speaker 2:Yeah, I mean another person that's investing into New York real estate. Well, not investing but giving more housing is Governor Hochul and her housing initiative. She announced 71,000 new homes in New York City, includes 21,000 affordable units and it's part of the state's landmark housing.
Speaker 1:There's going to be a lot of buildings coming into New York City, which they are. If you look at the Bronx, I remember I used to live in the Bronx from Merrill's area. It was South Bronx where the Yankee Stadium is at, by the way. Let's go, yankees. We've got to win. This is our year 2024. We're going to sweep the Dodgers.
Speaker 2:Yeah, I heard that you wanted to get a suite in the Yankees oh, it was sold out.
Speaker 1:So I was trying to go after for a suite for a group of our guys and it was sold out. I mean sold out within like the hour if you look at it. It's actually interesting this, this world series. I'll say why because it's the two, one of the two most expensive states going against each other, which is los angeles and new york. It's a lot of money there. New york and los angeles, oh that's a lot. I think it's probably one of the most expensive world series. To be honest with you. Also, look at the tickets Extremely high. They're already sold out. But just sit back and look back behind it and be like, wow, new York and Los.
Speaker 2:Angeles, exactly Like the equivalent in basketball would be the Knicks versus the LA League.
Speaker 1:Exactly. This actually is going to be interesting, but going for the Yankees game, I'm saying Game 7.
Speaker 2:Game 7.
Speaker 1:That's my prediction. Game seven Yankees win Game seven. They have to win. It's not they want, they have to win. We've been waiting for 15 years, by the way.
Speaker 2:Has it been that long?
Speaker 1:Since 2009. I'll be honest with you, I was watching the game and my eyes got water. I was like it's 15 years we've been suffering. Honestly, since George Steiner died which was the previous on, his father died Yankees haven't been the same once. His dad his dad, I believe died in 2009 when they won the World Series, and since then they haven't gone to the World Series. This is something huge for the family George Steiner. He created something big in New York. You know he was remember.
Speaker 1:I remember when I used to watch in the early 2000 how George Ste Stein used to be so strong on his team, like he will get any player he wanted and he will fire anyone in the heartbeat. Like he was so obsessed with his team and he gave the public what we wanted, which was championships. Since his son took over, I'm sorry he does not have the same blood, the same running like his father did. Yankees is the Yankees right, but I don't see that George Steinman's son running like his father would, unfortunately. How's Aaron Judge doing? He's doing good. He's getting his homers in. He definitely needs to definitely bring his hitting back up because he's been not so great. Juan Soto, we appreciate it. I hope you re-sign with the Yankees. Oh, with Jim Carlos. Who was it that won the MVP? I wanted Juan Soto to win the MVP. To be honest with you, he did a three-run home run in the 11th inning. Tickets to the World Series in the 10th inning, wasn't it right? We went to the World Series 15 years. Guys, let's go, yankees, let's go Yan.
Speaker 1:I was saying like when I used to live in the Bronx right growing up in the 2000 or late 90s, there was empty lots everywhere, everywhere. Now you go to the Bronx you just see so many buildings left to right, so much affordable buildings, and they look actually really beautiful. I actually used to live in an affordable building. I used to live in one bedroom. I used to pay only $800. But I mean, we have laundromat, we have parking. It was like the amenities were great. You know elevator as well. The building I was living in, I think, had over 100 units. But I mean, like it was amazing, to be honest with you, to be paying $800. You know. So these affordable buildings that they bring into the Bronx, you know it's very appreciated.
Speaker 1:It's great, but I did always say that the only way I would give my apartment up is when I my first property. And I did exactly what I said because I was like I ain't going to be paying all this money of rent. Right, Especially now rent is so expensive. But these affordability give you the opportunity to save and also what they do is like what I recommend to people that are getting those affordable ones, because I was in that same position Right, definitely buy, Don't leave from there to go to another rental more higher. You know, definitely, when you leave from there, give up the unit and definitely go and get your property. That's what me and Heidi did. We used to live in one of those.
Speaker 2:Right, because if you go into another apartment that's not rent stabilized and all of that good stuff, then you could just see an increase of like 100% on your rent at any given renewal in the lease and it's just like I had to go. You know, be told that and there's no way. There's. It's just such a hard uphill battle.
Speaker 1:Whereas in when you buy you have full control over all yeah, especially when you're renting, like for instance. Like every year when I used to rent, I was always like oh, got to renew my lease, got to sign my lease, and then you see the increase too every year. So they increase every year. The good thing is they got a percentage. You know they got to follow by law. They can't increase more than that percentage.
Speaker 2:It's like 2%.
Speaker 1:I've seen 3 to 4. They got to increase right On an affordable, it might be less. I think you're right. I think it was 2%. On the affordable ones. It all depends on the type of building. That for building it is. I would say from 2% to 4%. Yeah, it would be like 2% to 4% 2% to 4%.
Speaker 2:You were talking about empty lots. I remember no more.
Speaker 1:Everything is sold. All the vacant lots are sold, since, like when I started real estate, when it was like 2016,. It was so many vacant lots.
Speaker 2:Oh yeah, especially here in the Bronx, in the Bronx.
Speaker 1:I saw a few to developers Like they go after those empty lots because most of those zonings are like R7, r8 in the Bronx man. They go after them because they could do man hundreds of units there.
Speaker 2:Yeah, where I live by Mott Haven everything got bought up, all of the lots Now, you see, like Even the parking lots, right.
Speaker 1:I saw that.
Speaker 2:Some of the parking lots have been sold. Hopefully they don't sell the one in front of my building, because then I won't find parking anymore. There's two parking lots in front of my building and they have been, uh, approached by investors but they haven't sold to them just yet. But you know, if you come in with a ridiculous offer, sometimes money speaks for itself and it's like I just can't refuse that they develop so many buildings. Everyone in the bronx they're huge, like they're huge, huge problem seven, eight floors properties yeah, like that's a Like that's a lot of units.
Speaker 2:More than that, yeah right, probably like 10 or 12.
Speaker 1:Like the one I lived in was eight floors. No, it's definitely like the Bronx has changed a lot. A lot of nice buildings are coming in.
Speaker 2:There's no parking.
Speaker 1:No parking? I don't see no parking nowhere in the Bronx.
Speaker 2:Yes, and the South Bronx it's getting so, so hard to like a vacant lot that isn't purchasing being developed on right now.
Speaker 1:Yeah, man, but I'm happy about South Bronx, where I'm from. I always root for South Bronx and I just hope it keeps, you know, getting better.
Speaker 2:Exactly. And now on other news not too positive news on the South Bronx, there's a little article that we have here, that is. It's basically describing some scams that were happening in the Bronx. The head of the scams is actually named Marcia Campo, a Bronx real estate broker, and essentially her and two associates are accused of stealing homes by forging signatures and taking out fraudulent mortgages. One case involves a victim who lost her home after the group secured a $493,000 mortgage without her knowledge, leading to foreclosure. The group allegedly targeted vulnerable individuals, including an immigrant couple who were charged $91,000 in bogus fees, and another woman who gave $65,000 for a non-existent investment, and the legal consequences that they're facing are. Campbell and her associates face multiple felony charges, including grand larceny, fraud and falsifying business records. If convicted, they could serve up to 15 years in prison.
Speaker 1:Wow, so that's a real estate broker in the Bronx In the Bronx Wow, unfortunate. I always say do the right thing. Karma is real guys. Oh yeah, always do the right thing because it's going to come back to you. You might enjoy the moment, but it's going to come right back to you. There's a lot of brokerages that work like that illegally. At the end of the day, it's going to come back to you either soon or later.
Speaker 1:You might do it, for I know brokerages. You know that the reality is that they don't understand the principles, right, the ethics that we need to have. I always tell everyone we're a licensed real estate broker, real estate realtors. Our job is what? To protect the public? That's our job. You guys are hiring us to protect the public, to guide you guys the right way in the real estate industry. Right, that's what we hire for, right? And if you're focusing on hurting other people and just thinking about yourself in your pockets, you know I hope they take all the actions they need, right. Especially, the Department of State takes all the action on these people and I hope they serve so many years, because it's very unfair. You know that you come and use someone's name and go pull out a mortgage, do illegal deeds, illegal mortgages.
Speaker 2:It's going to come back to you, sooner or later, how do you secure a 493 mortgage without her knowledge? That's insane.
Speaker 1:She most likely did illegal signatures. Of course, I'll tell you something when this is happening, angel, I'm sure there's a group right behind it, too right, that's doing it with them, because they're going to need more support. They're going to need other people around it, right, right, my point is, guys, when you're working with these guys, ask a lot of questions. Do your research on the realtors, on the mortgage brokers. Do your research on these people. Make sure they have any losses against them, anything against me, because you know, find out exactly who these people are that you're working with, because it's good to work with professionals, right, well, people that really work for your best interest, right, like we do, we work for your best interest and we always helping clients out there with their best interest. But doing things like that, wow, I mean that's sad, to be honest with you. Yeah, do you know when this happened, when it started?
Speaker 2:So I believe this article came up in October 9th.
Speaker 1:We don't know how long this has been happening for, but I would say when someone is doing this, they might be doing it for such a long time until they get caught, and that one person give a call to the Department of State, the federal, then it goes on from there. But I'm happy that they're going to be serving their time. Yeah, I mean this is a fiduciary duty.
Speaker 2:When you sign those, those documents on your license as a real estate agent, you are clearly told that, hey, you have a fiduciary duty to your clients, meaning that you have to hold their best interest at hand.
Speaker 1:For sure. And you, you know, like us, we sit down with so many clients that come to you. I feel for those clients because, like I say to them all the time, like it's like, I understand your position. I know this is something you want to do. You know your emotions. It's kind of scary sometimes, right, because you're putting your lifetime saving into this. When we help these clients, we feel for them because myself, right, I'm also a dad, I'm married. I'm always going to protect and provide to my household. I, especially those dads I understand you guys' position, especially when you come to us, you trust the realtor to help you out. But it's really sad.
Speaker 1:It's funny that this thing came up because the other day I was talking to another client. She actually did a refinance and didn't even know that she was getting a second mortgage. Like no one really explained to her. And then when she found out that she has a second mortgage, she was really like the modification mortgage. They didn't explain to her in details what was she going to do A modification mortgage and she was having a second mortgage on her property. She actually is losing her property, like she's going through foreclosure right now. And I told her listen, there's nothing we can do. What we can do is try to do a short sale and guess what is? The banker doesn't want to ask a lot of questions. Go out and do your research. Speak to two to three people before you hire someone. I always give that advice to everyone.
Speaker 1:This poor lady. Now she's about to lose her house. About three years ago I had another client that she did a modification. She wasn't aware of it, but we were able to help her out. We ended up doing a short sale for her in the Bronx. I was the one that did the short sale for her from start to end and we were able to do the short sale for her. But she was about to lose her house too. And this one is actually more interesting because it was in the Bronx. And guess what? She was on a vacant list. She was renting out the house by bedrooms illegally, and guess what happened? The city came, put her on the vacant list. Guess what happened? They end up picking up those tenants. Angel end up taking those tenants to like a hotel in New York City. And guess what? These guys were living there, I think, for over three years.
Speaker 1:And she had to pay for that you know what was her bill. It was crazy. What was her bill? $80,000. And guess what? The city didn't waive anything for her. She, the $80,000. And she wasn't aware of it. Right that this was happening. So you homeowners out there, make sure you read all those documents that come to your home. They were mailing her doc letters every year for it and she wasn't. She didn't understand it. You know, unfortunately she didn't read English, but you have us. If you guys don't read English or need help and read these documents, contact us. That's what we're here for. We can assist you, give you the best help we can, the best guidance on this. That's what we're here for. She didn't have anyone to read them and she should just throw these letters out.
Speaker 1:When she came to sell, when we're doing the short sale, this popped up on Tidal guys. And guess what? I tried to negotiate with the city. City said nope, give me my $80,000. And she had no choice. But we were able to do the short sale. Thank God that her banks. But we were able to do the short sale. Thank God that her banks the two banks that she had. They were very reliable and they were able to. We were able to negotiate with them. We ended up getting them, you know, the job done. But she got a short sale. But this is due to modifications and they don't understand what they're signing, what they're doing. They just desperate to not lose the property. But thank God we were able to help do a show. So I got another client that actually went through foreclosure.
Speaker 2:Yeah, Like you said, you have to ask many questions and have the right people to ask those questions too, because if they're not able to answer those questions, there's someone out there that will and can definitely help you out much better than those that can't. Alex is a great example of it. He's been in the years for God knows how many years.
Speaker 1:Yeah, got a decade. I'm going bald. I got a lot of grades. Now my son tells me all the time like Bobby, I don't want you to get old. You got a lot of grades. Now I'm like, yeah, it's part of life, bobby, but it's the real estate you know, the excitement, the emotion, the.
Speaker 1:You know real estate is very stressful, Many things. It's easy, it's not easy, but it's my calling and I'm excited about that. I love doing the real estate but, yeah, you know, it's exciting. Real estate is very exciting. It's a roller. I always say it's a roller coaster. It got ups and downs, but it's more ups than downs. To be honest with you, Real estate is fun. You got to enjoy what you do and we actually enjoy what we do. Right, this is actually very fun for us, Exactly.
Speaker 2:It's also about the people that you surround yourself with. When you're surrounded by those that are passionate about real estate, as you are, and it's just a treat to come into the office every day and just like work on it with your whole team.
Speaker 1:Yeah, for sure, it definitely is. It's great how real estate is becoming. Everyone is going after and after the real estate now right, and I see that everyone wants to purchase, wants to sell, buy, sell.
Speaker 2:After COVID, that was a big thing, right. Everyone wants to get their own.
Speaker 1:Ever since COVID, I feel like the real estate market has shifted more into positive and going up. Of course, the election of this year is very important, right In November. I see what Rowan does, but let's leave it to God's hand. Hopefully, wherever wins wins, the election is going to be big guys. After the election, definitely in the real estate, you're going to see the shift where it wants it to go. Election is going to be huge guys.
Speaker 2:I don't want to talk about politics, but something that everyone should have in mind, about the elections. Well, with that, I think that's everything that we wanted to talk about today right, guys?
Speaker 1:please like, share, subscribe, please, guys, ask some questions. That's what we're here for. We're here to talk about anything you guys would like to do with real estate industry and any interesting stories. We're here for you, guys. Thank you so much, angelo. Ending with this with Suit Up With Byes podcast. Take care, guys. Bye guys.