All Forum Posts by: Michael Borger

Hi Dean. I'm here on Oahu. What is your client looking for? Please be specific....

Hi Lorinda. I'm also here on Oahu. It's not surprising the oceanfront land has a high asking price. It's definitely more difficult when you don't have solid comps in your pocket to show the seller. I find that sometimes the best way to get that dialog started is just to ask them how they came up with that number. That way you may get a good idea of how to counter them.

I know that when I consider most properties to flip, I really need solid comps. If I don't have good comps then I'll either walk or I'll make sure I have some serious equity, more than I would normally need. The last thing I want is to be biting my fingernails during a project.

But that's for a flip - not what you're looking to do. So the real question for you is: what type of 'deal' are you looking for? A percentage of equity? A monthly cash flow? What's your buying criteria?

Also, as a former coastal geographer and published scientific author, make sure you understand the behavior of the shoreline in front of your property. I've looked at many shoreline erosion maps for various islands here and there are definitely some areas where I would NOT want to own oceanfront property.

I apparently started this tussle by calling Ben out on the initial "brainless" comment and have largely just watched from the sidelines since. However, the overall gist I get from reading all the ensuing comments is that Ben resents the fact that some people live in markets that currently exhibit greater appreciation than his market does. Are people in other markets supposed to apologize to you for their location?

And no, that is NOT in any way admitting his earlier point that you can be "brainless" and still be successful there, because I still think that's a crock.

Of course, it's easier if the market is on your side. I don't deny that. But your crude remark about how it "takes about as much brain power to make wealth in SF or Hawaii as it does to fall out of a tree" is completely out of line. That's a slap in the face to anyone in those markets who still hasn't "made it" yet.

To that point, there's a big difference between the market being on your side and the market "taking care of you". Again, you discount all of the work that goes into being a successful real estate investor, much of which is completely irrelevant to your local market. You still need to learn how to put deals together, raise capital, manage contractors, build relationships with agents and mortgage professionals, learn how to market effectively, understand contractors, learn different acquisition strategies, etc. Being in Hawaii or SF doesn't mean you don't have to go through that learning curve and/or implement those building blocks.

I do just fine for myself on Oahu, but I know plenty of people here who are just beginning, still managing a full time job while trying to build their real estate business or who are just hitting one of 100 struggles that many people hit along this journey -- and you just effectively labeled them all as brainless with your statement above. If I were one of them and saw your "fall out of a tree" remark, I'd likely be offended and justifiably so.

I don't see how anyone in SF or Hawaii wouldn't be offended by that statement, whether they're doing well or not. This is hard work no matter where in the country you are. There are ways, of course, to improve your odds and shorten the learning curve, but no one achieves significant success without putting in the time and effort and building the proper skill set. Just because you happen to be in a market that may be more than difficult than others doesn't mean that the rest of us simply owe any success to our location or that those who are still putting the pieces together are brainless.

I try to listen the BP podcasts whenever I'm driving around the island (I'm also here on Oahu). It's a great use of my time.

Welcome to real estate. As others have said, there's a ton of great information here on BP. I personally like loading up the podcast on my iPhone and listening to it as I'm cruising around the city. There's also a good Getting Started guide as well as these forums.

But ultimately, you need to decide what type of 'real estate investor' you want to be. The term itself has been so overused as to almost be meaningless. Flip? Buy and hold? Lend? Figure this out first and your direction will start to become more clear.

I think you need to explain more of the details before anyone can give you a more thorough analysis of recommendation. Include some real numbers.

Your agent should get back to you within one day. He likely has other clients, so you can't always expect an immediate response, but not responding at all is inexcusable. If you truly can't get a hold of him, then I'd go above him and contact his broker. Or you could contact the listing agent and see if the offer was received.

As others have said, get the information you need as quickly -- and as politely -- as possible and see if it's even within the ballpark of a deal. If it's not, then you move on and maybe put them in an email drip campaign. Don't try to force a square peg into a round hole. Your low offer is not in the best interest of almost everyone who gets your mailer. That's why you send out 300 mailers at once, not 3. Most people are not interested or even capable of selling their house for 70% of market value or whatever discount you need. It's a numbers game, so make sure your marketing involves big numbers.