BiggerPockets

I'm a very new investor and being in Hawaii is very discouraging. The home prices here are $750k!! You can't buy a house in a "war zone" here for less than $225k. When I started, I went to so many open houses, passed out my card, put up my website, etc... And everyone said the same thing, "You're crazy to invest in real estate with the economy being so bad!" Even my mom! So, I started trying to find investment properties out of state and was amazed at what I could purchase with 100k. However, my location is becoming a problem. The only research I can do is from my computer and can't do my due diligence, thus I know I'm passing up on great deals. Since I'm just starting out, I don't have a lot of liquid funds. But I do have a whole lot of time. Is it too ambitious for me as a newbie to try out of state investing? :idea:

Thanks for the boost! I've been at my computer the whole day and was just about to quit with my new venture. Really, very much appreciated!

Donna,

Be careful where you get your advice from (including here). Taking advice from those who don't know the first thing about real estate (sorry, probably including your mom) will deflate your spirits quickly and is worth what you paid for it (zero). While they may be well meaning, if they haven't ever bought investment property, be very wary of their advice. You wouldn't go to your gynecologist to help diagnose what is wrong with your car would you? It is the same thing in this business.

Find and become involved in your local real estate association. Find a mentor. Remember, almost everyone only buys the real estate they live in so have no basis for telling you not to buy investment real estate other than fear of the unknown. Only a small percentage of RE is done creatively. This is an excellent time to get started. A high priced area isn't necessarily a bad thing because you need to do fewer deals to make pretty good money. But isn't easy or everyone would do it.

Get some education and knowledge. Find a mentor. Then talk to sellers. That is where you will learn the most. Don't fall into the trap of thinking I need to know another couple of months of knowledge and then another and another. Learn the basics and get out of the house.

Good luck

Mike C

Donna,

I have lived in Mililani for 20 years. Don't give up on hawaii. Be patient.

I actually bought a 2bd condo in Mauka in 2003 for $119k with a tenant paying $1200. Property paid for itself. I sold it 18 months later for $160k!

You have wait for a really bad market like we had during the Hawaii real estate bust in 1998-2002. Granted, the market here is bad, but there is not the don't desperation and exodus out of state yet like we had 10 years ago. Remember, like California, the Hawaii real estate market is of the "boom-bust" variety.

Having said that, I just bought a SFH in Memphis. A lot of people in hawaii are buying properties in Vegas. You KNOW how people here LOOOOVE Vegas! In Vegas there IS desperation and a 75% drop in prices.

Good Luck