All Forum Posts by: Duc Ong

💥Join us for an exciting Honolulu Multifamily and More

Virtual Meetup on Tuesday Mar 16, 2021 at 6PM HST

📋 Agenda:

🔵 Open networking

🔵 Effective Team Operations with Vince

🔵 Breakout Rooms 1

🔵 Multifamily Inspections with Steve

🔵 Breakout Rooms 2

🔵 Make-a-Wish Giveaway

🔵 Open Networking

Register in advance for this meeting:

http://bit.ly/HMM31621

After registering, you will receive a confirmation email containing information about joining the meeting.

I would recommend working with a local lender, for any purchase in Hawaii. I've had numerous experiences where clients were delayed due to the mainland lender not being aware of how closings work here. I had one deal where the lender pulled out at the 11th hour, and the buyer had to start over with a local lender. Fortunately, it just closed recently.

@Nathaniel Garcia I agree that the live in flip / house hack is a good place to start, since you would leverage the better terms of a primary occupant loan. I'm actually doing a live in flip right now with my condo in Makiki. Days on market are crazy low currently, due to lack of inventory, low rates, and increased demand. If rates go up, we might see some softening, but that's not happening currently. SFH's that are move-in ready are seeing many offers, well above asking price. Let me know if you want to chat more.

@Tom Wagner While it's possible, I think it's difficult for most people, since the purchasing power is still constrained by the debt to income ratio. Also, FHA offers are not as favorable as conventional ones, especially if you're competing in a seller's market.

📋 Agenda:

🔵 Open networking

🔵 Residential Assisted Living with Eric Dila

🔵 Breakout Rooms 1

🔵 Green Desert Due Diligence with Steve

🔵 Breakout Rooms 2

🔵 Book Giveaway

🔵 Open Networking

Register in advance for this meeting:

http://bit.ly/HMM02092021

After registering, you will receive a confirmation email containing information about joining the meeting.

Thanks for the mention, Mana!

Victoria, let me know if you want to chat.

@Cheryll Ramirez Thank you! Do you invest in El Paso?

@Michael Johnson We're using Greenbrier.

@Taylor L. Thank you! I think it should be a solid deal once we refi, assuming Greenbrier performs.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $814,000

Contributors:
Vince Gethings

Bauer View is a 22 unit multifamily asset located in Saginaw, MI. This one was a JV with members of Tri city Equity Group and Red Hawk Ventures, led by the owner of MDL, Mike Loomis. The long term play here is to bundle this with our existing 52 unit portfolio in Saginaw, and market them together as a 76 unit. This should open up the buyer pool to a more competitive set.

What made you interested in investing in this type of deal?

This allows us to expand our portfolio in the region from 52 to 74 units, and take advantage of economies of scale.

How did you find this deal and how did you negotiate it?

This was listed on loopnet.

How did you finance this deal?

Community bank

What was the outcome?

We are partnering with MDL to implement our business plan. The biggest value add will come from adding in unit laundry and turning the laundry room and storage area into an addition unit. Since there is 1 laundry room per 11 unit building, we will be adding 2 units, bringing the total to 24 units once we are stabilized.

Lessons learned? Challenges?

This one took a lot longer to close than anticipated due to the lender's COVID related processing backlog. One thing we could have improved on was to have other local lending options lined up sooner.