All Forum Posts by: Andrew Olmstead

I have followed the Thai market out of curiosity but, even though I'm an international investor, I'll never invest there. Two main reasons:

1. I have made the decision to only invest in Canada, the US, Latin America and Europe for legal reasons. In these countries, foreigners are treated equally to locals. In Thailand, they're not. While foreigners can own a condo freehold, they can't own the ground, which is a bit silly because, as we know, when you own a condo elsewhere, you own part of the land (common parts) and how can you really own a property without the land that's under. Also, I believe that locals need to own and therefore control the majority of the buildings. Regardless of these "details", it shows that the country's legal system discriminates against foreigners so think about who's going to win if you have to bring a Thai individual or company to court!

2. The profitability is way too low in my opinion. I'm not sure how you get such figures and, even if you could, is it worth the risks or headaches to make 8% of $80k = $6,400 per year gross? Generally speaking, short-term rental rates in Thailand are low compared to other countries with a lot of tourism, as are luxury hotel rates so how much would anyone pay to rent one of these minuscule shoebox condos, which they're building by the boatload 

Hello! I am hoping to find some insight and advice on the Honolulu area. I will also be looking for knowledgeable realtors who know the area well and can guide me in the right direction. Here is my situation. I am hoping to attend the University of Hawaii at Manoa next year. Ideally I'd like to purchase a condo or if possible single family house in the area before moving out in order to attend school. I have successfully completed a few househacks and own a few million dollars in multi family and commercial properties in Michigan and Minnesota. I plan to use my GI bill from going to school to offset the cost of the mortgage of the condo. I believe the monthly allowance is currently around $3,600 per month so I do think I would be able to cover the entire mortgage of a reasonably priced condo and over time would be a big net positive. It seems purchasing and owning a condo that I plan to occupy for the next 4 years will give me a better return than just renting. I look at it as a different way to essentially "Househack" just with uncle Sam footing the bill for the mortgage. I would hope for a bit of appreciation in that 4 year period if I wanted to sell after that period, but the idea would be to hold onto the property for at least a decade. 

Are there any local Honolulu realtors very familiar with the condo's in this area that would be open to having a conversation? Am I crazy thinking this is a good idea or would I be better off just renting something and have the flexibility? I've been thinking of doing this for a couple of years so I'd love to hear some others opinions and thoughts! Thanks! 

Don't be too hard on him @Priti Donnelly. We get more than our share of advertisements in this forum from people trying to make a buck. It gets a bit tiresome after a while. :)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $91,202

4 Bedroom, 2 Bathroom with Garage (New Build) - Purchased this one with a partner (50/50)

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

Excellent turnkey provider with new build inventory.

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

Doing ongoing research for years. Finding the "correct" turnkey provider is essential.
Listening to their podcast twice a week (Not your Average Inverter Show - JWB).
Made contact and "picked" a property.

How did you finance this deal?

JWB only allows their approved lenders. With effort and good communication from all parties involved everything was done remotely with me in South Africa.

How did you add value to the deal?

None / New Build

What was the outcome?

Excellent - Good turnkey provider is the ONLY way for me as a foreign investor to have peace of mind.

Lessons learned? Challenges?

Communication is key. This was my first deal with a 30 Year fixed mortgage and the paperwork was the biggest challenge. Having good records, bank history and reserve funds are all essential elements to successfully close the deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

JWB - All the parties involved are approved and recommended by them.

I am a realtor and investor. I live in Schertz/Cibolo near San Antonio. We are located near Randolph Air Force base and always have a steady influx of renters. Prices are great and you can find solid cash-flowing homes in the area. 

Give me a shout. 210-852-8890