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Today, we sat down with superstar real estate expert, Dana Forbes, to learn her unique approach to buying and selling real estate investment properties which has consistently netted her and her clients millions. She also shares her top tips and three action steps readers can take today to gain an edge on the competition.

• Firstly, could you tell us about your background briefly and how you first got interested in real estate, especially on the Gold Coast?

DF: My career began in finance; I was a market maker at Goldman Sachs, living in NYC, and in my early 20s. It was during that time I purchased my first real estate investment property. My parents, who always loved to make real estate investments, encouraged me to look into real estate to diversify because my profession was in the financial markets. I was looking to buy an investment property in an area that was close enough for me to oversee, yet had enough demand to ensure I should be able to consistently find tenants. I also wanted to pick a place that should I ever not be able to find a tenant, or was in a tight position financially, I could happily live at that property. 

I explored the Gold Coast, my top three choices were Locust Valley, Manhasset and Cold Spring Harbor. Ultimately, I felt Manhasset was the best investment for that type of purchase because it had an express train to NYC. It turned out to be a great purchase, and I consistently rented it for ten years, never missing a month, until finally, one day, I decided to move out of the city and ‘try it’; I never looked back. Career-wise, I then went on to build and sell a few small businesses in other fields, fashion and the production industry mostly; I provided photo and lighting gear to teams shooting ads and editorials in and around NYC. After that, I repeated that business model in the Hamptons, where there was a great need for that service! I also had a jewelry line that sold mostly to spas and chains like Equinox’s Pure and Exhale. 

I eventually came back to real estate in the sales capacity, and a few years into it, I found an amazing property. I tried to sell to so many buyers. It needed a ton of work but was a 5-star location; nobody could see past the existing layout. Eventually, I ‘sold it to myself’! I bought the house at $1,450,000 and sold it for $2,325,000. 

• Do you specialize in any specific part of real estate? If so, why?

DF: I work in a lot of areas: residential, commercial, investment properties, and so on. But my specialty niche markets are luxury homes on the gold coast and boutique hospitality properties in the Hamptons.

• What makes your approach to real estate unique in the industry? 

DF: When most people flip, they look for cheap properties you can quickly fix cosmetically. I look for hidden gems that I can give new life to. I find the golden oldies that have so much potential, but it’s hidden so deeply most people can’t see it or are intimidated by the scope of the work. For instance, people often see the ‘rooms’ but can’t really conceptualize the ‘space’ if it was reworked. In my last project, there was a three car garage in an average size home. It was unnecessary, and also a gem! I converted it to living space and made it accessible from the kitchen to serve as either a family room/den OR a formal dining room!

• What do you love about what you do today?

DF: I LOVE seeing the finished product, and I mean totally finished, staged, picture perfect and move in ready. I love looking at people’s expressions who had seen the home before and how they marvel at the transformation.

• What is a stereotype/statement about flipping high-end properties that you want people to know isn’t true?

DF: Most contractors will tell you to just ‘tear it down’, they say it’s cheaper, or you will never really get what you want without starting over. I don’t believe that to be true. It’s simpler in many cases for them to start fresh, and builders make greater profits, but for the end user, I don’t think it is anywhere close to cheaper; it usually takes longer, and you ultimately lose all of the character of the home.

• What are some of the challenges you have had to face or your clients in investing/flipping homes?

DF: HAHA! There are tons of challenges. They continuously arise. The key is to be flexible and fluid through the process; where there is a problem, there is always a solution. In a past project, I couldn’t create a good flow through the house because of where the basement stairs were, a very small addition was the key to creating flow, and I was able to double the space as a mudroom! Another time, there was an awkward and small closet in the primary bedroom; you had to access it through the bathroom. By moving some electrical, I was able to relocate the door so it could be accessed through the bedroom, and the change of entry made the whole space much more usable and also put the entry in a much better location.

• What are some real estate trends or changes that you predict will happen over the next 1-3 years? 

DF: I think people are moving away from open-concept homes; they realize there is literally nowhere to hide 😉 or hide a mess. I think buyers are more cost-conscious. I’m seeing a lot of people come to the realization that the home they are buying likely won’t be their ‘forever home’ and are embracing the home-buying process with a lighter attitude than in previous markets.

• Any Quote or “words of wisdom” that you live by?

DF: Buy location. Never fall in love with a house. A house can always be changed. With a good property, good location and good layout, almost anything can be done.

• Finally, what’s the biggest piece of advice you could give to someone that’s considering starting out in investing/flipping homes.

DF: In flipping homes you have to be meticulous about your numbers. You have to account for all the fees, taxes and costs associated with buying the house, selling the house and carrying the home. These can really add up and often account for about 25-30 of the budget. A lot of first-time flippers don’t even take these costs into consideration!!

• What are 3 action steps you can give to readers?

DF: Research the market by looking at the prices recent comparable homes have SOLD at, don’t look at the asking prices of homes currently on the market; they aren’t validated until they are sold.

Plan for the worst-case scenario. When I run the numbers on a house and speculate the sale price, I always work off of the lowest number, in the event there is a sharp downturn in the market. Anything better than that is gravy!

Don’t rush. These properties take a long time to find if you want to be profitable. Enlist the help of an experienced agent or local expert who can validate for you with numbers and data the current value of the home and the potential sale price. Ask for specific data, and don’t work off of bank appraisal prices.

• Where can people reach you?

Email: dana.forbes@compass.com

Phone: 917-620-3971