All Forum Posts by: Michael Borger

Aloha, @James Moore - welcome to the Hawaii REI scene. Can you be more specific in the types of properties you're looking for? Price range and area? I have properties in different parts of the island in various stages of acquisition/repair. Or just send me a note.

Mike

Aloha @Mark Smith. Lots of options in Hawaii, although cash flow is not usually at the top of the list. Appreciation, private lending, flips, etc. 

Marketing isn't complicated -- it just takes consistency and the diligence to measure your results. There's nothing I can say here that isn't covered 1000 times elsewhere in these forums and that you can also get in the BiggerPockets getting started guide. I highly suggest downloading that and taking lots of notes. While Hawaii is different than most markets regarding price point, the basics of marketing for deals are pretty much the same no matter what market you're in -- bandit signs, direct mail, online, realtors, networking, etc. The key is being consistent.

Hi @Isaac Kaai. Yes, I'd certainly be interested in buying any deals you come across. I'm active on all areas of the island.

As far as target areas, it really depends on how big your marketing budget and reach are going to be. Honolulu, Ewa Beach, Pearl City, Kailua and Kaneohe would be some of the obvious targets but you may want to hit others like Aiea, Waianae, Mililani, Kapolei, etc. There are deals to be had in all areas.

Marketing is 90% of this business and if you're marketing from afar, you'll really need to have your systems in place and know your neighborhoods.

Aloha @Austin Camacho - like Brent mentioned, what do you mean by 'how slow'? I have a house that just hit the market in Keaau a few days ago by Kamehameha schools.

Aloha, @Isaac Kaai. Yes, it's certainly possible to find deals in Hawaii. I'm in multiple right now. However, like in most markets, you have to really dig to find them as there are many people looking everyday. If anything, the higher price point makes wholesaling more lucrative. Since you're not using cash (if assigning), you can take advantage of larger spreads.

Welcome, @Austin Camacho. There's some money to be made out your way. I'm in a project now in Keaau. 

Aloha @Vick Galu - the best thing to do in the beginning is grab the BP Getting Started guide.

http://www.biggerpockets.com/ultimatebeginnersguide.pdf

Congrats on thinking so far ahead this early in your life, @Jennifer Allen - I wish I had started at 21! I do a lot of flips on Oahu, though I no longer live there. It's a great place to be an investor.

@Lilia Andrew Don't get overwhelmed - you have to start somewhere, and you're doing so by joining these forums. In your example, you could conceivably make it work - of course, it all depends on your cost of borrowing and what you're going to charge for the other rooms. I'm not in the Hawaii cash flow game, so I can't speak specifically to how that would likely look, but it's possible. If you buy the property cheaply enough, your cost of borrowing decreases, so maybe you should be looking at distressed multi-family properties instead of what's on the MLS and paying market value. Foreclosures (REO) are one source, but you can also market to pre-foreclosures, probates, inheritance, absentee landlords, etc..... the typical lists.

@Michael Brito Jr. I suggest working backwards from what you feel is a fair profit based on the resources you expect to have tied up into a deal for 4-6 months. Would you do a flip with an ARV of 700k in order to make 40k? I wouldn't, but that would of course bring your MAO/70% up. Do you need to do that deal to make 150k? Again, likely not. Use the calculators, but massage them a bit so that your MAO hits your sweet spot.... then take that figure and compare it to the ARV and you'll have your new MAO %.