All Forum Posts by: Joseph Hummel

@Justin Krautkremer

If you shoot so low you can even hit yourself in the foot.

My advice is keep planning and saving for something bigger.

It’s not paralysis you just aren’t ready and don’t get hung up on numbers just make sure your gross rent exceeds all your expenses by whatever cash flow you want.

Banks typically won’t finance under 50k loans either - so like I said aim a little bigger.

@Krystin Krebs

Keep developing the idea- but get building dept to tell you, an architect, contractor or engineer or both and a bank to say ok before spending any money. Seem like the idea is not quite all there yet. Shipping containers are not a good idea but maybe prefab homes?

Have you lived there?

I build for a living and I’ve lived in MN.

@Andres Cardenas

Yeah man you nailed it on the head. I can tell costs of most things, but it’s those unseen items. Let me know how it goes!

@Clarence Ng

If you wrote this 2 years ago I’d say stop paying them and go to the contractors board. Your contract most likely states mediation is the solution and legal issues won’t go to court.

BUT....

During covid times Most likely they are suffering delays, staff shortages and rising costs like everyone else- and they can’t control that. While they shouldn’t ignore your calls/emails they also aren’t always going to be available and you should schedule time to go over issues.

As a GC I’ll give you a tip- if a client can stay on top of the project as much as possible, it will get done quickly if it’s within their control to do it quick.

@Andres Cardenas

Dude Andres! Good questions I’d be stoked to work with someone who has the foresight to even ask these things.

1. If the sale allows for an inspection and you don’t think it would disqualify you as a buyer then it depends on if you just “want” an inspection to gather more info or if you want it as a contingency to the purchase agreement (some cash buyers just offer no contingencies).

2. What to start with first? If you can only do 1 thing at a time because??? cost?- I would address any structural issues/water issues/electrical or gas hazards first. For instance if you have a giant hole in the roof and cracked foundation that leaks... but also a gas leak- well address the most pressing danger and then most immediate cause of further problem. Think of renovation like Building the house in reverse. Start at the bottom and address every major problem up to the roof and then MEP systems.

@James Pederson

Seems stressful. I’m not putting it all together though.

So your daughter’s husband is the investor on a deal you helped set up?

What do you mean by an overcharge on a bid? And who gave who this bid?

Who paid for the work to be done? As in, who do you believe was defrauded and by whom?

Is this your property or are you an investor on it?

Why are you being paid a marketing fee?

It seems from what you wrote and I could be interpreting it wrong, but seems like you don’t like the prices on a bid after the work has already been done? That’s not really a thing- a bid is basically an educated estimate of costs and if agreed to then that is contract. If they charge for something that was blatantly never done then you should just call the contractors board and file a complaint, but also you should definitely not pay that amount if it’s in dispute.

BUT I’m assuming this was not an actual bid from a licensed contractor.

@Alex Kovalenko

Everybody looks legit when they are trying to rent your place... they will tell you what you want to hear.

If you really need to rent out the place I would tell them it’s month to month and get a large deposit up front and make sure your contract has everything in it. It should be easier to get a job than take over someones house.

Here are some I heard-

“Oh the dog is really well trained” = never been trained

“my roommates are super chill” = they will never clean anything

Can a Hawaii lender chime in on this - from what I see conventional loan guidelines dictate a leashold must be at least 5 years beyond the maturity date of your loan (ie a lease that expires in 2041 would have 20yrs but the lender will only lend on 20-5=15yrs). Also when the lease is renegotiated you should be able to refinance into a longer term, which is most likely going to happen in any condo situation because some of the condos are fee simple and some are leasehold. If a fee conversion is available I have heard it can be included in the loan if done at the time of purchase also - this would convert it from leasehold to fee simple and remove the restrictions and lease payment as well. Is this all correct?

I was just reading up on this the other day - from what I remember the big island doesn't have the same restrictions as the other islands for stvr. Here is an in depth article for each island what areas are allowed etc etc https://realhawaii.co/blog/air...

I love the big island, biased though I lived on the far end of Kona 2010ish, I dont recall it being a great spot for STR. There are a few areas where it is built up (your condo/hotel areas) but outside of that Im not sure. There isn't nearly enough amenities nearby once you go outside the main areas of the island. I purchased my current condo in Nevada from a developer who happens to be in Kona. I have some friends out there too who just bought their home near Hilo- they just say the economy is a lot more depressed and not enough industries. My family has property on far south end of Kona. So people are developing and living there, just a lot slower than would be expected. Its a beautiful spot - but developing anything there is extremely hard to do as you are essentially building on solid rock, completely off-grid in most places there is no country electric, sewer, water or internet access for most of the island... and being in construction I'm guessing the island is plagued by a lack of skilled workers as it is everywhere. I'm sure this is changing as county services get expanded but thats what I've heard, and its probably a good thing - the big island is mostly untouched still and beautiful. We built a few homes there all over 3000sqft but I don't think you can expect good returns.