New-York tribune., 1921-11-27
Frederick BrOlUn Tells HO,v
To Make Money in Realty
Have Confidence in Future of New York City Prop
erty; Invest Near Main Highways and
Don't Stretch Capital
BY Frederick Brown

Making money in real estate is not
an occult art, nor is it the result Of
mysterious formula or anything Of that
nature. 1t is simply the fruit of pru-
dence, common sense and an unshaka-
Bile confidence in New York City prop
erty to pay dividends or profits.
These are the cardinal requirements
for success in the realty field, in my
opinion. They have been my guide
posts for the last twenty years. have
made money in New York property.
have never allowed myself to be tempt
ed to stretch my capital-that is, to try
to buy more than + was prudently able
to buy. never tried to buy with
81 900 what felt sure required $4,000.
Neither will buy to-day 100000
worth of property unless ] have what
] consider enough capital to swing such
deal.
Every one must decide the margin of
safety for himself. It would be
foolish for me to say what proportion
of the purchasing figure should be in
vested, because conditions are differ
ent in every deal. Thinking people
should know what amount they should
invest to make sure Of their holdings.
Every one Is speculator In the sense
that he hopes for quick advance in
values and an opportunity to sell, even
though he Is, strictly speaking, an in
vestor.
The speculator, in my opinion, need
not put as much money into a property
as an investor, for he plans to resell
quickly. Very often speculator parts
with parcel, and at profit, before he
is legally the owner of the property.
The investor is what Wall Street men
call "long." He buys for income and
q prospective advance in value.
Buy Near Main Highways
Firmness in refusing to stretch cap
.tal to the breaking point is prudence
and at the same time common sense.
These qualifications also are exercised
in the selection Of property. Do not
buy too far east or west of the main
highways, is my theory.
Fifth Avenue is the backbone of New
York. Third Avenue, we may say, is
the center Of activity on the East Side
and Eighth Avenue the focus of every
thing on the West Side. Broadway is
one Of the chief highways of the city
and is the focal point of property val
ues in certain sections of Manhattan.
=! have learned New York. 1 know
this section and that section and the
other section, whether they be in Man
haitian, the Bronx, Brooklyn or Queens
But so far I have devoted most of my
/ operations to Manhattan and the Bronx.
When ! am offered a property I
know Immediately the character of it's
location, and if it is good or favorab BILE
| take into consideration the details !:
that is, the rentals and operation cost
and other facts, which are essential
information in buying real estate. But
it is the general character of d neigh
berhood and the exterior appearance
of a hoNse that decides whether l am
interested or not.
Investors would not be unwise in
basing decisions on sectional character
and appearance of property. If pleased
with the neighborhood and the street
side Of the structure is satisfactory
then future investigation into the
merits Of the property would be justi-
fed. 1t is not often that the character
OF the interior or mouse is not IN
dicated by the exterior. If the in
terror is neglected so will be the ex-
terror.
Small Investments Have Made Fortunes
Fortunes have been made in rea.
estate on small original Investments
know many persons who are in very
comfortable circumstances as a result
of investments they made in real estate
There are scores of men in New York
who have fortunes running into six and
seven figures who made it all in reai
estate, starting with very limited CAPT
tai. Prudence, common sense and faith
In New York we're their chief assets.
TO mo 70 L. ]