Why Real Estate Is STILL the #1 Way to Build Wealth

by Kim Faines

From Brooklyn Dreamer to Real Estate Investor & Luxury Rental Mogul: The Rise of Anthony “Tony” Payne

Anthony “Tony” Payne didn’t grow up with a roadmap to wealth. Born and raised in East New York, Brooklyn, he watched people drive past in cars he longed for. What he didn’t know then was that real estate would become his vehicle — literally and figuratively — to building a legacy.

Today, Tony owns Royalty Rentals NY, a luxury vehicle rental business, and a portfolio of income‑producing real estate throughout the tri‑state area. But his path wasn’t overnight, and the lessons he shares in this podcast interview are gold for anyone serious about real wealth—not get‑rich-quick schemes, but sustainable financial freedom.

Early Life & First Leap into Real Estate

Tony’s passion for cars started at a young age. He dreamed of driving exotic vehicles — but also understood that cars depreciate. He needed a plan where assets paid for liabilities. His breakthrough came at age 22, when he took a bold step:

He purchased his first home in Roosevelt, Long Island, through an FHA 203k loan. A 203k loan allows the buyer to finance the purchase and renovations together. It’s ideal for distressed or fixer‑upper properties.

But Tony’s journey didn’t go smoothly. Two weeks after moving in (or during the move), his big screen TV was stolen from his garage. He felt violated. He realized this might not be the place to live. Instead of walking away, he pivoted: he moved his belongings out and turned the house into a rental.

His mortgage at the time was around $936/month. He rented the house for $2,700/month. That’s a powerful lesson: even with imperfect beginnings, a smart move can turn a setback into an opportunity.

Turning One Rental into a Portfolio

Once Tony was cash‑positive every month, his mindset shifted. That single rental became a template. He repeated the process: buy under market value, renovate (if needed), rent out, and roll the equity forward.

Key strategies Tony used:

Home Equity Loans / HELOCs: He tapped into home equity to fund down payments or renovations on new deals.
Careful underwriting: He analyzed net income (rent minus expenses, taxes, maintenance) and demanded strong residual returns.
Section 8 / housing programs: He studied county or municipal voucher rates to add predictability to rental income.
Scaling responsibly: He didn’t overextend himself; he picked deals where margins had room for error.

Tony admits that today’s market is tougher than earlier years. Many properties now require more rehabilitation, and competition is fierce. But he believes there are always deals — you just need the right tools, mindset, and network.

Why He Doesn’t Flip: Long-Term Income Wins

Tony is vocal: he does not flip houses. He sees flips as short‑term, high-risk plays. For him, wealth is built through consistent residuals, not speculative one-off profits.

Flips may deliver quick payouts — but what then? Tony prefers:

Buy & hold: Let rentals generate cash flow over decades.
Appreciation + equity: As properties appreciate and debt is paid down, equity accumulates.
Tax advantages: Depreciation, deductions, and long-term incentives favor ownership over flipping.
Less stress: No constant rehabs, uncertain exit timing, or market timing risk.

Royalty Rentals NY: Luxury Meets Legacy

Real estate provided Tony with the optionality to pursue a second passion: luxury vehicles. He founded Royalty Rentals NY, a company that offers exotic cars, limousines, helicopters, and even planes for events such as proms, weddings, commercials, movies, and birthdays.

His guiding rule: every vehicle is tied to a property. That means each car’s cost is covered — or offset — by real estate income. He doesn’t borrow to buy a car; he buys a car only when an income-generating asset supports it.

He also doesn’t just rent cars — he provides chauffeur / driver services. This adds control, reduces liability risk, and ensures quality.

Tony’s presence in luxury rentals is not just for show; it’s strategic. It amplifies his brand, brings in clients from high-net-worth spaces, and creates cross‑promotional value with his real estate ventures.

Mindset, Discipline & Foundational Principles

Tony often emphasizes the mental side of wealth building. He cites these foundational beliefs:

Consistency > Big swings: Do the little things well, every day.
Credit is capital: Strong credit opens doors for favorable financing.
Own your liabilities: Let assets pay for the things you enjoy, not drain your finances.
Set small goals first: Master discipline through daily habits before tackling bigger challenges.
Give back & teach: He mentors students, visits youth in his old neighborhood, and doesn’t shy away from sharing what worked for him.

He also keeps symbolic reminders of his journey. Many of his cars have custom plates or names tied to specific properties, reminding him of how far he’s come — and that every luxury is rooted in real work.

Real Metrics: What Tony Looks For in a Deal

Here are some of Tony’s evaluation criteria, as shared in the interview:

Bedrooms / unit count: More bedrooms often mean higher vouchers from housing authorities.
Purchase price & discount to market: He insists on buying below market value to build margin.
Projected residual (“leftover” money): He looks to net at least $1,000/month after all expenses.
Taxes & maintenance costs: Especially in Long Island and New York, property taxes can be enormous — deduct that from expected returns.
Section 8 / voucher rates: If the property qualifies, knowing voucher allocations can provide padding in revenue.
Interest rates (but secondary): He cares less now about interest rate swings, as long as the deal math holds up.
Buffers & stress test: He builds in room for vacancies, repairs, and market dips.

His perspective: any deal that only just breaks even under perfect conditions is too risky. You need margin.

Overcoming Doubts & Staying the Course

Tony admits there were moments of doubt — especially when his mother discouraged him from renting out property (“Don’t do that — you’ll regret it”). But he leaned into the long game. He believed his assets would ultimately pay for the lifestyle that critics questioned.

He compares years of slow progress with impatience. Though three years of hard work can feel eternal, in retrospect it goes by quickly. He encourages aspiring investors not to give up if they don’t see immediate wins.

One core truth he repeats: how you feel and what’s actually happening are often different. The anxiety and waiting don’t match the outcome. Stick with it, he says, because momentum compounds.

Advice for Aspiring Investors & Entrepreneurs

For anyone listening and wanting to follow a similar path, Tony’s counsel includes:

Start small: Don’t wait for a perfect deal. Start with what’s within reach.
Take bites you can chew: Choose deals where you’re not overleveraged.
Understand your market: Study voucher rates, rent comps, and tax loads in your county.
Prioritize cash flow: No deal is worthwhile without positive residuals.
Build a team: Contractors, property managers, lenders — you can’t do it alone.
Prioritize mindset and habits: The mental game underlies every success.
Teach & uplift: He encourages listeners to help someone else along the way.

Legacy, Giving Back & Where He’s Headed

Tony doesn’t just want wealth for himself. He wants to show people from places like Brooklyn and East New York that better is possible. He’s mentored students one-on-one, spoken to youth in his old neighborhood, and consistently shares his formula of discipline, clarity, and asset-first mindset.

His plates, his vehicles, his real estate holdings — they all tell a story. They remind him and those around him that what’s possible begins with focused intent and a willingness to do the work.

Looking ahead, Tony is eyeing new properties, new markets, and new opportunities. But his guiding principles remain the same: buy income, let it grow, protect the downside, and go long.

Final Thoughts

Anthony “Tony” Payne’s story is not a flashy overnight success. It’s a blueprint rooted in consistency, real estate, and smart leverage of assets. It shows how discipline can transform setbacks, how residual income can fund dreams, and how every investment builds toward freedom.

If you read this and feel inspired — don’t stop there. Study, start small, do the math, and take your first step. The journey isn’t easy, but Tony’s path proves it works.

Visit www.dreamselectrealty.com or contact us at 631‑623‑7117. Follow us on Instagram & TikTok @dreamselectrealty, Twitter @dreamselecthome, or email hometeam@dreamselectrealty.com for the latest updates on homes for sale on Long Island in New York.