Investing in Hawaii
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:
build a good team and you'll be ok.
I don't mind investing out of state as long as I have an agent that understands my style and a title company that knows what their doing.
consider joining a REI in an area that you want to invest in, even though your not local you can still pick up references to good vendors that you can quickly build a team.
case in point, I have a title agent out of state that understands what I do and she sends me leads knowing that I'll close with her, and an agent that allows the sellers to meet at his office to sign the papers and hands the keys over to him. I've never met these people face to face but it's a relationship thats been built with trust and performance. I do what I say I will do, and so shall you
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!
quit?
that's the worse thing you could ever do
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
I'm gonna say this the nicest way I can....Don't listen to broke people.
ok, Im done!
Donna, I Jose has sound advice..."Dont listen to broke people". The market is tough, lets not sugar coat it. However, keep these points in mind. 1. Your skills are honed, and fine tuned in tough times. So when the market corrects itself, your so far ahead of your competition. 2. The tools we have today are making investing long distance very achievable. There are awesome deals in Austin, Memphis, Vegas, and many other pockets.
Keep your head up, and get around people that are in the game.
Did you go to the HIREI meeting? If not, lets meet up at the next one.
Aloha, Matt