All Forum Posts by: Michael Borger

As an investor in Hawaii, I'd always be welcome for agents to bring me deals. However, the truth is that the (vast) majority of agents either don't recognize (or can't learn) what makes a true 'flip' deal or don't want to play in that niche where you need to examine 15-25 properties to get the one that sticks. I once saw an agent get in front of the REIA and pitch a condo in Hawaii Kai worth 450k as a 'hot deal' because it can be had for 430k - not kidding. As for the ones that don't want to work with investors b/c of the volume of work required and would rather work with retail clients, I have no problem with it - it's completely their choice. Of course, selling a house to someone who's going to move in means they won't need you for another 10-20 years, whereas an investor will rinse and repeat.... but I don't try to convince anyone.

Also remember that every market is different. I have a close colleague in a major metro area who gets all of her deals from the MLS whereas it's been one of the least productive sources for me in Hawaii.

The 70% ARV rule is good for mid-lower markets, but in Hawaii where prices can easily eclipse 600k, it could mean walking away from good deals, so adjust it accordingly.

@Jay Hinrichs That's Kahala and Genshiro Kawamoto.

Aloha @Joseph Ferrer. Great questions. I've done many pre-foreclosure deals on Oahu and am doing more of them right now islandwide as I type this response.

The "Amount of Default" is how much they are behind in their payments, also called the arrears. This may be more than the sum of the missed mortgage payments - it may also include the accrued interest, penalties and legal fees that the lender wraps up into the amount owed them to bring the mortgage back into good standing. It is NOT how much the home could be cleanly sold for.

Regarding your plan of action right now, you have a few options:

1. Initiate a direct mail campaign, i.e. yellow letters, typed letters or postcards. Offer the benefits you can provide - debt relief, avoiding a foreclosure on their record, cash in hand (if they have equity).
2. Call them. Of course, this means having their phone number. If you don't have their number, you can try a skip tracing service to find them.
3. Go knock on their doors. This one takes a bit of courage in the beginning, but it's the best way to actually make sure you reach them. As the above poster mentioned, you can ask them what their current plan is.

Just as important, though, is understanding your exit strategies. With a pre-foreclosure list, you'll be speaking with homeowners who are underwater, have lots of equity or have little equity. You need to know how to handle each of these situations -- short sale (and who will negotiate it for you), subject-to and cash out. These are always good to have in your tool belt but are even more important when working a pre-foreclosure list.

Let me know if you have more questions or need help with any deals you're looking to take down!

Aloha, @Scott Watanabe. Welcome to the BP and Hawaii scene. There are some investors there on Maui. I'm looking into a deal there myself at the moment. While certainly not as large a population as Oahu, there are still deals to be done. Good luck!

Hi folks - I have a Lincoln RE website that's getting leads but I'm too busy elsewhere to take them down myself right now, though my VA does screen them. I'm looking for some legit end buyers who are actively looking for deals. Please contact me if so.

Hi everyone - I'm just starting to collect leads in Lincoln area through my SEO and other online work. I'm not yet pulling the trigger on anything myself because I'm so tied up in other markets, but my VA puts all leads through the basic lead sheet. I'm seeking legit people to wholesale flip or rental deals to. If you're already investing in the Lincoln market, liquid and are an end buyer (no wholesale daisy-chaining), then please send me an introduction.

Aloha @Sebastian Howard - Welcome to the Hawaii scene. That's a great story you have and one which will help you tremendously in your REI ventures. The market here is great for those who are willing to put in the work, can think big while paying attention to details and view obstacles as opportunities for learning instead of reasons to turn around.

Michael

Aloha @Michael Brito Jr. - welcome to the Hawaii club :) I have a flip in progress in Enchanted Lake - your neck of the woods (among other areas right now where I'm doing deals). BP is an awesome site for many reasons - knowledge and networking being the best ones, of course. Grab the getting started guide - it's a great read - and then dig into some marketing, the #1 task as an REI, in my opinion.

I just bought a SFR in Keaau this morning and a townhouse on Oahu Friday - the Hawaii market is good :)