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Show Summary
In this conversation, John Cella, a seasoned broker and investor based in Manhattan, shares his journey into the real estate industry, discussing his transition from commercial to residential real estate. He emphasizes the importance of building relationships, understanding market dynamics, and the challenges of investing in New York City. John also highlights the significance of specialization in a competitive market and the need for a proactive approach in property management and investment strategies.
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Investor Fuel Show Transcript:
John Cella (00:00)
I was fortunate enough to do that. And then by default, accumulate more business for potential investors like looking. So we would work on their behalf ⁓ in order to find potential investments. ⁓It was just kind of like, again, gleaning as much as I could from my manager while going through the processes of, you know, actively trying to sell what listings we had ⁓ while again, trying to generate more business on my own. And it was just, you know, obviously being new to the industry, the first several months were tough. I think people were able to kind of see that I was pretty green. ⁓ But again, I’m so thankful for the experience.
Just because it helped me become a better broker It helped me learn so much And like it’s led me to this point now.
Dylan Silver (02:23)
Hey folks, welcome back to the show. Today’s guest, John Cella, is a broker and investor based out of Manhattan. John, welcome to the show.John Cella (02:35)
Thank you so much for having me, Dylan. It’s great to be here. I’m super excited to talk everything real estate and try and give some tips and tricks and maybe spread the knowledge I’ve accumulated over 15 years in the industry. So, I’m looking forward to having some fun with you today.Dylan Silver (02:54)
Yeah, it’s great to meet you here. We were chatting before hopping on here. I happen to be pretty close to where you’re at. I’m in northern New Jersey. You’re in Manhattan, lifelong New Yorker. Did you come from a family or a circle that was real estate heavy? How did you get into real estate?John Cella (03:14)
good question. ⁓ actually, you know, I, so yeah, I’m a native New Yorker. was born in Queens, moved out to North Shore of Long Island ⁓ in elementary school ⁓ and went to school in Boston actually at Boston College. So spent a few years out of the state, but immediately came back in and started my career right after school in Manhattan. ⁓ I was actually doing a few different things. I was doing television ad sales.I got into sports sales and ⁓ corporate sales and sponsorships with the New York Red Bulls a long time ago out in Harrison, New Jersey. like I said, I was dealing with the soccer clubs and the local businesses there, ⁓ but always had real estate in the back of my mind. My father was a real estate attorney. ⁓ My oldest brother followed in his footsteps. ⁓ He’s also an attorney, but so the language.
the deal, the transactional nomenclature was always being tossed around. And again, it always kind of stuck in my mind. And then I think it was about like 28 or 29. ⁓ I finally kind of took the dive and got my first job into commercial real estate, actually. So ⁓ I was working for a commercial real estate firm handling commercial sales in a certain territory in South Brooklyn. Yeah, and that’s how I got my feet wet. ⁓
and never look back. So it’s been awesome. I just love talking the industry and relationships and how to just really succeed in the business.
Dylan Silver (04:48)
Sure, sure. When we talk about getting in the commercial space, this is for a lot of agents who are newer or even aspiring agents, they may be asking, well, how’d you get in in the commercial side? I’d love to start in commercial, right?Do you think that it’s maybe less complicated than people make it seem in order to get into commercial? Or are there a lot of doors that you’ve got to kind of wedge yourself into in order to break in a commercial?
John Cella (06:04)
Well, you know what, was, I guess at little different time. This was back in 2011, so 2010, 2011. And I just applied to every real estate oriented job. This firm in particular was offering educational courses for beginners like myself. Also, I had the opportunity to work under a manager who had an established territory. So they were able to show me the ropes.And again, it was almost like a dream job for me because I was not only a hundred percent commission, I did have a small salary. the compensation structure was really what enabled me to kind of gather my bearings ⁓ as a newbie, if you will, and just, again, really learn foundational knowledge about the commercial real estate sector. ⁓ And then a lot of it is just…
Dylan Silver (07:00)
Right, right.John Cella (07:04)
You know, going through the pain of, you know, making these calls, like really studying the basics of, you know, what, how to evaluate properties. You know, is there a cap rate analysis that’s applicable? What’s the highest and best use for the property? Does it need to change from say mixed use to a multifamily? All these things were kind of just thrown at me and it really was a great.experience to get into the industry. But ⁓ I soon realized that I think residential was a little more sexy for me or something that kind of fit my style. about eight, I went the other way. Yeah. But I mean, that being said, I still maintain my ties to the commercial sector. So ⁓ in that first 18 months, I was able to connect with a couple of investors and lenders and really establish relationships.
Dylan Silver (07:45)
Really? You went the other way? What? No.John Cella (08:02)
that ⁓ I maintain to this day. And I think that’s just one of the main pieces of being successful in this industry. Having these relationships and having these people that you know and that trust you ⁓ is going to lead to the expansion of the business.⁓ It’s just kind of by nature. So as long as you’re hustling, long as you’re meeting people, ⁓ and you are that dependable, reliable, consistent resource, real estate resource, things will happen. So that’s kind of just what I learned early on and what I tried to maintain over the last 15 years.
Dylan Silver (08:45)
Now getting into commercial, you then went into the residential side. What were the deals like though in the commercial space? So were you brokering the deals? Were you doing acquisitions directly? Were you guys buying these properties yourselves? What were the deals like?John Cella (08:52)
Mm-hmm.Yeah, strictly as a broker position. ⁓ Like I said, I was working under manager who had established himself in the territory, so I was assisting by basically getting out the word on the current exclusives that we had ⁓ talking to all the local investors ⁓ at the time. And I’m not sure if this has changed ⁓ since COVID and you the growth of the Internet and everything, but nine times out of 10.
are any property that we sold, the investor was local nearby. They knew the market. They saw the opportunity to add value if there was one. ⁓ And then again, that was who we worked with.
was fortunate enough to do that. And then by default, accumulate more business for potential investors like looking. So we would work on their behalf ⁓ in order to find potential investments.
It was just kind of like, again, gleaning as much as I could from my manager while going through the processes of, you know, actively trying to sell what listings we had ⁓ while again, trying to generate more business on my own. And it was just, you know, obviously being new to the industry, the first several months were tough. I think people were able to kind of see that I was pretty green. ⁓ But again, I’m so thankful for the experience.
Just because it helped me become a better broker It helped me learn so much And like it’s led me to this point now.
like I’m certainly confident with you know, any sort of advising role that I take on You know, I take my fiduciary as a broker with the utmost responsibility. So You know, I’m always looking to work on behalf of my clients whether they’re buying or selling ⁓
Dylan Silver (11:12)
Yeah, absolutely.John Cella (11:32)
and always make sure that I’m setting expectations properly and they have the confidence that I do that they are making a sound investment or a sound sale at the time.Dylan Silver (11:44)
What’s it like being a, well before you were a broker, as a new realtor in New York City?John Cella (11:53)
It was tough, man. mean, like I said, like I think people were able to see through my disguise initially. And as you might know, if anyone’s in sales ⁓ early on, you might not have the confidence in order to express yourself ⁓ in a believable manner. So I think people were calling me out pretty quickly. But again, it enabled me tojust really learn, like, okay, how do I position an argument that should lead to, that should further the conversation, or at least should develop the relationship in the long term? ⁓ rough beginnings, but I think that’s with every job. I’ve also come to believe that there’s no better teacher than the real world. You can learn as much as you want in college and get your MBA and graduate.
school, but go right into the workforce and you’ll learn exactly what people want, how people think, and how to make people happy and service clients. ⁓ I’ve ⁓ collected all that, found out the demographic that I want to serve, and just love what I do. I’m just very fortunate in these senses, but ⁓ tough beginnings.
But again, I don’t think it’s different than any other job. So, yeah.
Dylan Silver (13:22)
any other job.What’s your business like today? Do you you work predominantly with investors? Do you work with retail buyers? Is it a fair mix of both?
John Cella (13:31)
I think it’s a fair mix of both. Investing so hard here, if anyone’s familiar with the New York City and Brooklyn markets. And I think we were talking about this maybe a bit earlier, but the operating expenses and the carrying costs really hurt the yield. So you don’t really, in my opinion, you don’t really invest in this market to see these annual returns or these like fix and flips.it’s gonna be a long-term hold that you’ll want to focus on a certain area that’s going to mature around you. So you place your money at year one and then year 10 to 15 is where you look to kind of exit the deal ⁓ within that several year timeframe. ⁓ And I think that’s kind of what I’ve learned along the years and it’s enabled me to kind of strategically
⁓ showcase my skills and and allow people to you know be happy with the service that i ⁓ outlook that i afford to them whether they’re on the retail side and you know in the residential or investing in a you know small multi-family or mixed use so ⁓ i think the the economic ⁓ the economic goals for financial goals for each person is almost the same way right like people wanna you know
make money and have their strategy and execute properly.
And it’s just a matter of understanding those goals and helping whoever is active at the moment. Right now, I’d say it’s more residential. A lot of these investors are looking for value add opportunities and they’re just, they’re really few and far between. at the moment, I’d say the…
transactional volume is leaning towards the residential side and the retail side.
Dylan Silver (16:10)
Now, it’s really a different conversation when we’re talking about New York City, even versus every other area of New York and also the country, because how often are you in a city where you have five different boroughs of the same city, and then within there, there’s different areas. As a realtor, now a broker, you know…do people really specialize in certain areas, like even within, you know, ⁓ a borough? And then what’s the competition like? I imagine there has to be so much competition that you do have to be pretty niche in how you’re marketing yourself.
John Cella (16:54)
I think at first, I think it’s important to specialize at first in what you know. So ⁓ it’s gonna be hard to ⁓ know as much aspossible right off the bat and hey, I cover everywhere in Manhattan and Brooklyn and Queens. Like you’re not going to be successful. don’t know anything to start. I think going through the progression of Realtors career locally, start small, focus on a few different things. And then again, it’ll just kind of come naturally and then your geographic knowledge will expand.
You know, I focused mainly in South Brooklyn to start. And then I moved into like Northern Brooklyn. ⁓ And then I slowly moved into Manhattan. So like after again, 15 years now, I, you know, I feel like I’m confident talking about, you know, anywhere in Manhattan from 145th Street down to Financial District. ⁓ Or if you’re familiar with Brooklyn neighborhoods, I like to say Greenpoint.
if I work in Brooklyn anywhere from Greenpoint on the northern end to Greenwood on the southern end. So ⁓ it’s just, again, I’ve, and I’m just fortunate enough, I’ve stuck with it. I’ve been able to familiarize myself. spent days and years ⁓ in each of these neighborhoods. I’ve lived in most of them. ⁓ So now I can confidently talk about certain areas and
Obviously, it depends on a certain investment strategy too, right? Like you’re not going to, your million dollars is not going to go as far in the West Village if you were to go to maybe like Bushwick in Brooklyn. So it really, you have to kind of work with the client and, you know, see what they’re looking for and stay within their means. And so yeah, that’ll be, sorry to be so long-winded with my answer, but I do think it’s,
Dylan Silver (18:56)
That’s okay.John Cella (18:59)
start small and then let it happen naturally. And I think that’ll lead you to success. think it’s the important thing is the relationship, right? Like everyone says it, whether it’s you’re in finance, you’re in a auto shop. If people see you as a consistent, reliable, dependable source, they will come back to you. So establishing that trust and that reliability.Right off the bat is the important thing. So whether you’re dealing with the small deals and only in like the West Village rentals, great. It’ll lead to West Village sales and then, know, Chelsea sales and, you know, who knows? ⁓ You can’t be everywhere at all times. It’s impossible.
Dylan Silver (19:46)
all time.Now as someone who’s started in the commercial space and then went into the single-family space, working with both retail and investors, have you looked at deals yourself as an investor? Have you bought deals either in or outside of New York City area?
John Cella (20:07)
Outside. So I’ve bought in Philly, obviously being so close to New York, and it’s just an easy way to kind of oversee properties that I’ve looked at and that I’ve invested in. And I do think like same kind of rules apply. Like there are certain pockets that I’ve wanted to place money and then hold for a long time. You know, I have no plans of selling. I want to see it out. You know, I revamped the property.⁓ That was first and foremost. I only look for properties where I can utilize the value add strategy. So obviously it starts with your ⁓ purchase cost and then what sort of rehab can you do in order to meet the returns that ⁓ I’m forecasting. So yeah.
Dylan Silver (20:56)
Now,when we talk about investing out of state, New York, Pennsylvania, I imagine a lot of this is having ⁓ management in place or a team or people that you know out there personally who can assist. How do you manage that?
John Cella (21:09)
Exactly.Well, it’s been a few years in the making, right? Like I’ve had to go through my own issues of working with the wrong people who, you know, may not follow through with what they promised. So I feel like that’s almost a guarantee. ⁓ But again, you have to go through it like go the real world is the best teacher. So.
Like I said, I’ve gone through these issues before, but I’ve established these relationships with people I can count on. ⁓ And I feel like even though I’m not there on site, I do have people that I trust that constantly oversee the property. I’m in constant communication with my tenants to make sure that they’re happy. ⁓ And I want to make sure that my investment is ⁓ living up to the returns that I expect.
It’s not just, I’m going to put money on it and let it be. I want to be a landlord that’s present, that cares about his tenants. That way, again, my reputation stays intact. It’s not only as a realtor or a broker that I’m focusing my role on. It’s as an owner, investor, and a landlord. I think it’s no matter what you’re doing, people should care about
Dylan Silver (22:29)
Yeah.John Cella (22:33)
⁓ you and you know, rely that you you’re going to be that source. ⁓ Whether there’s an issue, you’re going to solve it. So, you know, that’s just kind of what I aim to do in all my roles, especially as an investor.Dylan Silver (22:43)
Yep. You’re 100%. ⁓you’ve got to be able to walk in and think, you know, if I’m not adding value to this, am I creating distress? Like as an operator, right? I mean, when we talk about commercial right now, there’s a lot of distress, not in properties where I’m licensed in Texas, but on the operator side, the operators themselves are distressed. The same thing can happen in the single family space, right? If you have a, let’s call it like a short-term rental Airbnb and next,
month, you know, next year, Airbnb is no longer allowed short term stays. Well, now you’ve got to pivot your strategy. And, you know, are you going to be able to justify continuing to hold that property or what are you going to do with it? And any time like you’re fixing flipping, of course, right, there’s unforeseen issues that can arise. So it’s always about adding adding some value somewhere. We are we are coming up on time here, though, John.
John Cella (23:31)
Sure.Yeah. wow.
Quickly. I’m sorry.
Dylan Silver (23:49)
Where can folks go if they’re interested in learning more about you or maybe they have a deal they’d like you to look at or maybe they’re in, you know, New York area and they’d like to reach out to you?John Cella (23:59)
Yeah, thank you so much. ⁓ Well, I currently work with Coldwell Bank of Warburg based in Manhattan. ⁓ They can reach me either by email or phone. ⁓ They can go to my direct page. ⁓ They can reach me, like I said, by cell phone, ⁓ email, then they can follow me on Instagram or Facebook. ⁓ I’m a little bit older, so I’m more old school. I have to…get the social media accounts going, but I try to be present for the younger generation. So the best way to reach me is email or phone, man. Just pick up the phone and give me a call and let’s start the relationship and I’ll be happy to advise as best as I can.
Dylan Silver (24:46)
John, thank you so much for coming on the show here today.John Cella (24:49)
My pleasure Dylan, thank you so much for having me.
