Real Estate Investor · Windward, HI · Member since 2014 · 11 posts · 3 votes
aloha I'm Jon from windward side of Oahu. Started listening to the podcast a few weeks ago and listen to a podcast everyday now. I'm a newbie with REI but itching to get better. Just wanted to say hi to the BP community and especially anybody in Hawaii.
I did want to ask if anyone knows a place where I can learn the investment terms and especially what formulas to know when investing. In a podcast I thought I heard there was a place here to learn the vocab, also I've heard about the 1% rule, but was wondering what other rules should I be calculating when looking at investments.
Rental Property Investor · Arlington, VA · Member since 2014 · 95 posts · 29 votes
11y
@Jon Gom Hi Jon! I'd like to surf in Hawaii one day, but I hear things can get quite territorial on some beaches. Maybe if I went with a local *hint hint* I always thought the wave que was universal until I heard some stories about the fights that took place over waves in Hawaii. I was there before, but didn't surf at the time. Being from Florida it was painful to admit, but Hawaiian beaches are the best I've ever been to, and I've been to quite a few.
There are some great books out there on real estate. The biggerpockets guide is pretty amazing, it covers a ton of info quickly and efficiently. Other books I enjoyed that would help you are: Investing in Real Estate, by Gary Eldred, The ABCs of Real Estate Investing by Ken McElroy, and probably my favorite was Landlording on Auto-Pilot, by Mike Butler. Mike Butler is hilarious and you can learn a lot from his mistakes and experiences.
You should also keep in mind depending on your real estate goals should dictate which books you concentrate on. Landlording on Auto-Pilot probably isn't the best read for a wholesaler. ABCs of REI concentrates on apartment buildings, but its still a great read.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Rehabber · San Diego, CA · Member since 2010 · 500 posts · 208 votes
11y
Hi Jon. My business is based on Oahu though I recently moved to San Diego. I still actively flip on the islands, though. I can tell you this -- the basic concepts and terminology apply to Hawaii as much as they do anywhere else. The differences will be 1) the numbers (which also affect your choices of exit strategy), and 2) local conditions.
No matter where you are, you'll need to understand your local market. Visit open houses, pull up a Zillow map and wrap your brain around recorded sales numbers in different neighborhoods, visit the local REIA, etc.
For a more expensive market like Hawaii, you may need to be flexible or discard completely the 70% MAO formula -- that's your call, but understand that an expensive market does differ in this regard from an inexpensive market like you may have in the Midwest or South. Again, this comes from knowledge and practice.
There are no shortcuts -- there's just immersive education. Hope this helps!
Real Estate Investor · Windward, HI · Member since 2014 · 11 posts · 3 votes
11y
@Angelo Behar thanks for the book suggestions I haven't read any of those so definitely gonna grab for some Christmas reading, much appreciated.
Yeah the beaches have minor rules when you get to the ones with better waves, especially north shore and leeward side, but all in all everyone's cool if you don't cut them off lol
@Paul Timmins thanks for the books as well. Never thought about REIA clubs so putting that on my things to do next list. Mahalos!
Real Estate Investor · Windward, HI · Member since 2014 · 11 posts · 3 votes
11y
@Michael Borger thanks for the advice, I'm definitely always paying attention to prices of homes and also rent and I was starting to get the feeling that not all RE markets are the same lol so thanks for that.
It does get frustrating when some of the cheapest places are 180k for studio and 1bdrm condos lol. Almost thinking of investing in cheaper areas of the U.S. then coming back to Hawaii RE when I build more capital.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
11y
@Jon Gom I have lived here a few years (best few years I might add) and have recently delved back into the realm of RE investing. Add me on here, let me know what your goals are, and we can go from there. I am looking to build a small group to have once every 2 month meetings to bounce idea off of each other and such. Cheers!
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
11y
Welcome to BP community @Jon Gom It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:
Investor · Kaneohe, HI · Member since 2012 · 218 posts · 104 votes
11y
@Jon Gom welcome, its great to hear from investors in hawaii! Like you I dont care for the prices here in hawaii and might be considering invest out of state, but right now I'm still in the research phase of out of state investing. hope to run into you at one of these meet ups.
@Andrey Y. did you know when you are planning on a meeting? keep me posted
Rehabber · San Diego, CA · Member since 2010 · 500 posts · 208 votes
11y
It depends on your strategy. As primarily a rehabber (flipper), I LOVE the prices in Hawaii. One deal here equates to multiple deals in many other markets. If you're a landlord type, well then yes, you may have to look elsewhere (although exceptions can be found).
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
11y
hey @Jon Gom thanks for jumping in and introducing yourself! If you haven't yet- be sure to setup some "Keyword Alerts" to get into conversation in your target area.
Welcome to the community! Remember to be as active and engaging as you can. There is a wealth of information on BP, but only if you seek it out. Ask questions, read blogs, and the podcasts are golden. The best free education you can get! Good luck!