All Forum Posts by: Zander Kempf

Investment Info:

Large multi-family (5+ units) commercial investment investment.

A 63,000 sf mixed used development. The historic preservation project will result in a restaurant, 20,000 sf of commercial space, and 35 affordable apartments.

How did you finance this deal?

Combined financing from a local bank with a local economic development corporation. Equity was raised through syndication.

How did you add value to the deal?

We made the property fully entitled for 35 residential units. We then leased out the commercial space providing immediate cash flow.

Lessons learned? Challenges?

Too many to count. There are endless possibilities in development and there is always a way to make things work out.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am always happy to give referrals. Send me an email to connect.

One of the best residential agents I have worked with is @Heather Hatcher. She's incredibly personable and responsive.

If you have any interest in commercial, industrial or larger multifamily properties, my firm and I would be honored to represent you.

Hello fellow self storage facility owners. I am curious to know what percentage of your customers end up buying tenant insurance? Any tips and tricks for increasing the purchase rate?

@Armand P.

Hawaii is a great market to invest in if you are looking for appreciation, stability, and a prestigious place to own property. It is a relatively low cap rate market because of these reasons. On an island, there is limited land available, so you don't get the Urban sprawl that you see on the mainland. Instead you see density increasing in many areas, with significant infrastructure and amenities being added as areas develop and grow.

Feel free to message me anytime if you'd like to chat more about the different ways to invest in Hawaii.

@Christian Ciabal Hawaii information service is my go to service. Great historical data and easily prints everything out as a CSV file so you can analyze it.

@Colby Burt weird coincidence, I'm doing a deal right now with a similar structure. You can think of it like a retirement plan or like a deferred down payment plan. Of course we never want long term negative cash flow, but this is a bit different due to the artificially short amortization. If you look at how much equity you are paying off the note every month, you will see you are building a significant amount. At the end of the term you should be able to refinance, potentially with some cash out, and end up with a cash flowing property that you invested relatively little cash to own. Best of luck!

@Ryan O'Leary

What did you end up doing? 

Generally I also advise my clients to hold property for the long term. Real estate has a long history of consistent appreciation, so as long as the cash flow is positive and the property can support itself, I would put some local property management in place and rent it for as long as you can. 

@Suduk N. Hawaii can be a very lucrative place to invest if you know how to do it. There are several solid options that are completely legal short term rentals. There are also many homes with ADUs or Ohana units, which would also work for have family members use part of the year. Feel free to reach out if you would like to chat about how to make an investment in Hawaii!

@Peter Johnson

If you can get anything near the airport right now they would be a great investment since all of the turo operators were just kicked out.

For other parking stalls in Honolulu, there is always a high demand for parking, but you'll likely end up with a pretty low cap rate.

@Luis Castro

In case anyone is looking, I have extensive experience with buying investment properties in Hawaii. I also have done many 1031 deals. If you're looking to buy a rental property in Hawaii, I would be happy to make that happen for you.