All Forum Posts by: Bryan Vukelich

Hi @Kekila Keuma - 

Do all of your siblings want to be cashed out? And how big is the lot size? I ask as there are certain requirements to build an ADU. Personally, due to long term property appreciation of real estate in Hawai'i, I like your idea of trying to find a way to keep the home in the family as long as it is not a financial burden. If your siblings do not need/want the cash, and you were able to build and ADU, you might be surprised what you can get for rental income. Perhaps the rental income could cover the mortgage and expenses and also give you each some monthly income. Or perhaps some siblings are bought out and the rest retain ownership.

And I agree with @Royce Talbo - money can create big problems between family members.  If possible, I highly recommend all the siblings have a direct conversation on what outcome would be best for each of you and then work on formulating a plan of action to get the best results for all of you.  Perhaps some can be

You might also contact an estate planner or probate attorney - they might have a creative solution I am unaware of.  

Happy to answer any questions you have.  If you want to talk to a property manager about potential rental income, I'm happy to give you a referral.  

It's a touch situation - I wish you the best 

Thanks @Skylar Jennings for the additional information.  Yes, that is a tough decision and only you and your family can decide what is best for yourselves.  I agree with @Nathan Gesner that Hawaii is an expensive and regulated market that is very pro tenant.  However, with cap rates being low here, there is obviously high demand from investors to own property here.  Also, stats seem to show that in more regulated markets, home prices are often higher than less regulated markets.  One main reason being is that the more difficult it is to build new homes, the more valuable existing homes area.  And as you know, land is scarce in Hawaii, there is much opposition to develop raw land, and even trying to build a new home, even in an area of existing homes, is often a very lengthly and costly endeavor to build new here.   

For the best cash flow, you can definitely find better opportunities on the mainland.  However, Hawaii appeals to people from around the world and now that many high income earners have the ability to work virtually, there is even greater interest in Hawaii housing than in the past.  There is also a shortage of properties to rent.  I wouldn't be surprised to see home prices drop here in the short term (not sure how much rents will dip - if at all), but long term I am bullish on Hawaii real estate and the historical price charts support this belief.

Best, 

Hi @Skylar Jennings,

Congrats to saving up that money.  I'm just not clear, are you planning to move to Arkansas but also try to buy property on O'ahu?  Either way, @Erik Browning had a good idea of getting a USDA loan.  You'd probably have more opportunities to use it in Arkansas but there are also areas on O'ahu that are USDA eligible.

Another option though is a local credit union here is offering a 30 year fixed loan at 4%.  Buyer just needs to be under contract by end of July 2022 though.  

Regarding if you missed the market - that I do not know.  The market has slowed a bit here but we are still hitting record prices and I'm still seeing multiple offers situations  - just not the frenzy that we had last summer.  I think prices might dip short term but I think long term, Hawaii is still  great place to own real estate.

If you have any other questions, I'm happy to answer them.   

Hi @Justine Lam

I recommend you contact Cary Chinn or Dennis Santiago - both are knowledgable investor friendly lenders.  And both can also likely connect you with an insurance company.  I'm unable to post their contact info so please message me directly if you'd like it. 

Good luck and happy to answer any other questions you have - Aloha 

@Lance Antonio - I agree with the others that to maximize the opportunity for success and to eliminate frustration, it is best you talk to a lender and get clarity about what you will need in order to qualify for financing.  That written though, my attitude, along with many other investors, is that finding a a great investment opportunity is a lot harder than finding the money.   If you are open to taking on a partner(s), you could raise the funds that way.  Also, I've personally used hard money loans in the past to get a deal closed quickly, and I've also had clients use hard money loans and all those deals have closed and worked out well.  You could also try to get the seller to finance the deal for a bit.  Point is, there are ways to get creative in order to get a deal done - it will likely cost more, but still might be worth it.

And it is indeed tough on O'ahu to find deals, but it is possible.  Message me if you'd like contact info on some lenders that might be of value to you.  

Best, 

@Lance Antonio both Michael and Lane gave you good advice.  You are welcome to contact me any time if you'd like to chat real estate and happy to be of value to you in any way I can.  I've been a real estate investor for 20+ years and a licensed agent for over 10 years.  And for quality lenders, you might try contact Troy Switzer.  He is an investor minded lender and has help my other clients before.  Message me if you'd like Troy mobile number. 

What part of the island are you looking to acquire a property?

Best, 

Hi @Matthew Hall -  you might try contacting Adam Hiori - 808 561-8102.  He is a lender that has helped my clients before and isn't hard money, but he has more loan programs (than a conventional lender) that might work for you.  And congrats on building your first home here.  I'm curious if you want to share - how long did it take you to get all the permits?  

@Hoshang Hafizi - unfortunately neither the Waikiki Banyan or Sunset is VA approved. Here is a website - https://lgy.va.gov/lgyhub/cond -  that you can research VA approved buildings on O'ahu.  If you have any other questions or if I can be of value to you in any way, you're welcome to contact me at any time.  

@Hoshang Hafizi and @Carson McGee

Just a heads up, there is a rental coalition filing a lawsuit on the 90 day rental minimum portion of Bill 41 that recently passed on O'ahu.  

And now that Waikiki Sunset and Waikiki Banyan are now designated as legal short term vacation rental buildings, there are some decent investment opportunities there.  A well maintained unit with ocean view at either of those buildings can gross $5500-$6000k most months, but higher in the peak tourism months.  I know of one unit that often gets $7k/mo at the Banyan. 

And if any property association in Ko'olina allows nightly rentals, likely values will go boom.  

Aloha @Keaton Hill

First, regarding your question about the type of loan to purchase a property.  If you plan to live in the property and can qualify, you would get a conventional loan which offers the best terms.  If at any time you decided to vacate and rent out the property, nothing changes about your current loan.  Just know for tax purposes, if a home is your primary residence for 2 out of 5 years, you qualify for a $250k tax exemption as an individual.  But once you rent out the property, you can also do a 1031 exchange and roll the funds into a new investment property if you want to avoid paying capital gains at the time you sell the property. 

And $10k is a great start.  I am unfamiliar with the market in Oklahoma, but if you need additional funds, maybe consider partnering with a family or friend.  Or post on BP looking for investors.  My belief is that if you find a truly good investment opportunity, you can find the money to make the deal happen.  And you don't need any money to get a deal done and get equity in it.  One example: I was once contacted by a BP member who had an off-marketing multi-family opportunity where purchase price was $5M.  The deal was quite attractive and he wanted a 20-30% equity stake in the investment for being the "deal finder" and initially would not be investing any of his own money into the deal.  

Another way is to use hard money. Some just simply look at the financials of the deal and don't look at your credit score or assets. I've personally used hard money to close a deal very quickly and I've had clients also use them and it has worked out well. And also, as Alex mentioned, there is the DSCR loan that would offer better terms than hard money.

Wish you well on your real estate journey - happy to answer any other questions you have - I am here to serve you.