HAPPY FRIDAY, MAY 25TH AND MEMORIAL DAY WEEKEND! As some of you know I hae been getting involved with purchaing a positive cash flowing Luxury Vacation Property, with 3 Stories/9bdrms + 12 Full & 3 Half Baths. It is Beyond Beautiful I am backing what will be a Wellness Center which will combine with this magnificent property.
First let me say that if any of you are interested in knowing what I know about doing SFRs in the Island, or other aspects of business or property purchases for busines on the Islands, please contact me FIRST> I am NOT an expert - YET. But I know a lot that will keep you way out of trouble.
I am FLABERGASTED that the Islands are as open as they are; that Foreclosure's are FAR MORE then what is beings told the public in the media. Of course the records are there and while I haven't used it for a while, but I will again shortly, I would go to Dean's FORCLUSURE ALERT SITE AND SIGN UP at the very least, AS A RESEARCH TOOL. Call the offices first and ask their opinions, see what they know about doing business over there
I landed a Fantastic Real Estate Agen out of the hole who is a Buyers Agent to Sundi & Joe Sturgon, who will be the owner of the Wellness Center I'm backing. The Agent is very, very gun hoe for being on the Investor Side of the business; thru her I landed a Contractor that is equally On Target; been working as such for 20_ years and who has been working in the business since he was 16 years old. I had a lot of choices: These two people are about Investors. The Agent is excited to learn and work with me; he's perfect for Maui; the Agent works Maui & Oahu and actually lives on the Big Island as her primary home.
I totally recommend staying OFF the Big Island of Hawaii !!
There are MANY MYTHS about the Real Estate Activity in the Islands. Much is Perpetrated by the Brokers & Agents themselves. They market the islands world wide and Prices are DRASTICALLY OVER PRICED: OFF THE HOOK! And the Locals know it. I challenge you to go do your nomal reseach techniques and find out how quickey you can FIRST find out how many Forclosures are available in some city here on the mainland that you are NOT familiar with. Then go do the same thing for the Islands. There is a lot of mis deeds and manipulation going on: Not everything is as it looks and while "cleaned up in the past" The Bishop's Trust, which owns most of the dirt of the Island and lord knows how much of them all, became corrupt and has since been "popped" so to speak. When you get into SFRs and MFPs one must look to that property's relationship with the Trust. This is a must.
Now this is the Frist Part on the Island, just s quick Primer.. Later today I will add to this... Must do some buiness this morning...STAY TUNED!
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
Unique Info
Wow Joe, this is rather unique information.
Have you ever thought about writing it all down and selling it as an ebook? Have a nice little steady stream of income on the side.
Heck, I'd be interested in purchasing the whole story from you.
Can't wait for the next installment of Hawaiian House Hunters.
Thanks Joe!
You Think So?
Hey Mark, thanks for the feed back! It's crossed my mind. I'll say this, with those first two blogs behind me and can shorten them up and get down to some basics from here on out. Still, I'm learning a lot right now and will be there a couple of time between now and end of August.
Thanks Joe,
That's what I love about this site, everyone is so willing to share new information and help each other. I look forward to reading more abnout the RE market in the isladns.
The Islands Are Open For Business; Part 3
HAPPY MEMMORIAL DAY FOLKS! I'll keep it simple now. For the few that are following me on this, I appreciate you getting through some of that long winded information. It makes it easier now.
Initially, doing the same things you are doing here on the mainland for SFRs is the E-Ticket. Get your team together. Contact me and I will put you through to my new Agent, Donna Duryea. Start with her and I will be talking to her today, about locating Agents of Like Mind! Heck, work with her! My Phoenix Agent works with 6 other Investors only.. Thats his client base!
A R/E Attorney I hope to find this week; I'll post his/her info also. I like to meet them face to face and I'll be on the Island shortly. As for Purchase Agreements, us those from the Islands. So far the ones I've seen all have And/Or Assign as the first statement next to the line that you sign as Buyers.
REMEMBER: NO DEALS without knowing the relationship of the property to The Bishops Trust. PROBABLY WILL NOT come into play, but it's still a MUST QUESTION.
THERE ARE MANY, MANY Properties at the Higher End that their owners use as "Rental" and/or Luxury Rentals. These most "often" have Permits! There was a change in the Law in 2002 and these permits "ARE NOT TRANSFERABLE" UNLESS GRANDFATHERED> Even some of those are not in effect anymore. It depends on how long before 2002 the property was used in this capacity. Also, HAS IT BEEN CONTINUOUS?
THE reason for the change in the law is that you can go into an Area and there will be a really nice home, 3+2.5 and the owners will tell you that they occasioally rent it out to tourists, then have their Asking Price associated with this Premium Accordingly. BIG RED FLAG, NOT A BIG OPPORTUNITY, if it's NOT grandfathered. ZONING IS NOW GOD! You will have to start all over in the Permit Process. This is long, arduous and expensive.
Worth it if you are doing an REO, but at the time of this writing, you might need some contingency clauses here if that is your intention. IF you are doing an REO with a property that was used in this capcity prior, this "could be" a huge plus in getting a super low price from the Bank. They KNOW they have a harbanger on their hands... Again, they all love people buying who are NOT from the Islands. They will let you get burried!
Many homes are isolated and look better on the outside. It's a Jungle out there, remember that. I would be very leary of looking for the low cost in an area. Even more leary of the unattended home. They degrate very quickly.
I don't have the Numbers Yet, but I suspect the under $100,000 range of things will be scattered and not desireable to End Buyers if you are going to wholesale flip.
Two kind of Renters: Thos who have to/those who work Blue Collar jobs and their housing. The second is everybody else.
See what rents are going for as an Average in that area. Say $2,700-3,500 per month. Look at the sale comp's in that Zip Code or defined area. Get an average going. Then use that as a base to find the price range for deal making. Remember, the End Wholesale Buyers still want 30% under FMV/ARV and that brings me to a CONTRACTOR.
Not living there myself and knowing that the deals are all over an Island, you should have every place inspected before you waste time dealing. Get your buyers in the normal fashions. They are there for sure.
However, retailing at 20% under could be a gold mine: This is what I'm going to be looking at. There is a huge market there, world wide. But lots of people on the fence too. 20% under/buying 50% under and there you go.
LEARN HOW TO PRONUCIATE THE NAMES IN HAWAIIAN. it wil help you remember the areas. It's simple but tricky. Some get it rigtht away. I'm slow but now getting it down.
Also, saying Aloha is not an ego trip! It is a beautiful and glorious term! It is a greeting, but you can have Great Aloha "in you" and when you get this spiritual connection in your mind & heart, it will aid you when dealing with individuals. It is part of the locals mentality. It makes people softer and at ease to work with, even the hard nosed ones I've notice. And it's fun. I use it more and more now in my e-mails here in general. I love what it's about...
Watch for Part 4 tomorrow or Wednesday
Aloha Mahalo to you!