All Forum Posts by: Michael Borger

Aloha, @Julie Goode - welcome to the group. This all sounds exciting for you. One thing I would say is that, given you're relatively new to REI, be careful about being too spread out too early in your REI career. That's not to say you don't know what you're doing -- naturally, we don't know here the particulars of what you've got going on. However, you've already mentioned four markets and multiple strategies -- a flip in TX, STR in GA, private lending in AL, and soon to be a licensed realtor in HI. Most people take quite some time to have all those balls in the air.

As @Jay Hinrichs said, good chance it's a leasehold, which after 15+ years is well on its downward march to being worth nothing, depending on the terms. I've done a couple LH flips here and there on Oahu, but they're rarely worth it. Waiau Gardens in Pearl City comes to mind, but I bought the fee at the same time, canceling out the LH.

Something else to be concerned about. AOAOs these days are often, in my opinion, significantly more aggressive on delinquencies than banks. I bought a condo in Waikiki last year where the guy was behind in both his mortgage and dues. I cured both arrears and gave the guy a 6-month leaseback since he just had a kid and needed a steady roof over his head  while he got his life in order (in hindsight, I should have known better as it took him longer to get out - lesson learned - but he also had equity and I held back a portion until vacancy). Anyway, it was the AOAO foreclosing, not his lender. I see this frequently.

So, back to your property/note, if it's a condo and they haven't done anything about it in 15 years, be HIGHLY suspicious about what's going on. I don't know a single AOAO that would let it go that long without freaking out, and who would be behind 15 years in the mortgage but keep the monthly dues paid?

What's the cost? Is it all permitted/within zoning?

I'm fairly certain the law requires you to have an on-island representative, even if you'll be doing the majority of the management from CA.

Aloha, @Ilayda Elmas - welcome to BP and the Hawaii scene. I've been doing deals in Hawaii for about 12 years or so now. It's a mixed bag -- good for flips but can be tough for long-term holds given the normal holding cost vs incoming rent. A lot of people invest elsewhere. There is some good education here on BP for getting started -- how to build a basic marketing campaign, how to speak with sellers, run numbers, get your financing together, etc. The main thing is to get started. Sending out your first batch of letters can be exciting and scary for many people, but do it anyway. Good luck!

I do a fair amount of deals (rehabs, holds) in Anchorage and the valley. It's no different than anywhere else. Hustle, have systems, know what's a deal and what isn't, work with good people, etc.

No, I haven't and doubt I would. Is your cash flow over the years of your ownership going to make up for the purchase price itself? Maybe you could make this work as a cash flow play for a short time, but you have to be sure to sell it while it's still sellable and to counter any cash flow you get against the accumulated loss of market value for the duration of your ownership.

Hi Trent - Anchorage and the valley are my second market. I always have a mix of flips and rentals going on (LTR, MTR, STR). I tend to be more active in Wasilla than Anchorage, but I'm open to anything.

Feel free to hit me up.

Alaska and Hawaii are my two markets. I bought a house in Waianae a few years ago from a lady who moved to Anchorage. I then bought the house in Anchorage when she wanted to move back to Hawaii. Both profitable flips.

I keep things simple -- quality paint (Benjamin Moore), quartz counters, stainless appliances. Something like Moen Lindor brushed nickel shower fixtures. Some people may go higher end, but naturally it depends on the property and neighborhood. You can always add some bells and whistles here and there. Most of my projects are regular SFHs, so I make them appealing to the majority of the typical buyer pool. Others may do differently.