All Forum Posts by: Michael Mazzella

Aloha @Nola Akee, great to see you here! You'll find Bigger Pockets to be an excellent resource. You're also entering the business at a great time - 2014 is going to rock for savvy investors, and that of course will include you!

See ya soon!

~Michael

Aloha Robert!

Thanks for your service to our country. I operate out of Honolulu, but now I'm here in Daytona Beach flipping houses for a couple of weeks. Feel free to connect with me, especially when you get something you're ready to assign.

Seize the day!
~Michael Mazzella

Aloha John!

I agree with Aaron. Its only intimidating until you pull the trigger and do your first deal. Wholesaling can minimize your risk and need for large amounts of capital until you're ready to fund your own house flips.

As a rehabber I typically pay $10k - $15k for an assignment that meets my criteria. If a wholesaler is a beginner, I may also let them ride through the deal with me so they can see and learn from the play-by-play, as things unfold in the deal.

I've been doing stuff here on Oahu (howdy, neighbor!) for 11 years. Some wholesaling, but mostly flips, development, and lending.

Create an Awesome, day!
~Michael

Congratulations on your home purchase, Cory.

I suggest always buying a residence as if it were an investment, never pay full retail price, etc. Looks like you've already got some equity in it.

If you're looking for cash-on-cash returns, your dollar will go a lot further in markets that are not high-price points, like Hawaii. On the other hand, I've seen investors go into poor markets that cash flow, but have declining property values, and end up losing money from an ROI standpoint. Look for a market with a strong job outlook, and low relative housing cost and cost of living.

I'm a proponent of doing some 'wealth creation' before jumping into passive income. i.e., flip some houses first (we're making $70k - 100K per flip) and then later enjoy a smoother transition into cash flowing properties. For house flips, I find that SFRs and condos work very well, and for cash flow, multi units tend to provide a better cash-on-cash return.

Good luck Cory! and feel free to connect with me if you have questions. I'm on Oahu.

Aloha Mike!

You've already discovered what a great resource BP is, and its even a good way to meet REIs in your local area.

I'm here on Oahu, too. Been investing full time here for 11 years. Most active investors here making the big bucks are flipping and doing development projects. Getting stuff to cash flow here is difficult, though possible, if you get really creative with your take-down strategies and/or your financing. I've got a couple that are cash flowing here, but while the passive is cool, I personally enjoy the thrill of flipping and development.

I wouldn't be too put off by the higher prices here, Mike. Once you get financed for the higher amount, its not uncommon to make $80k or more per deal as a pre-tax net. Most of us use private money for this, and its certainly do-able.

Feel free to connect with me, Mike. I'll be happy to continue the conversation with you.

Carpe Diem!
~Michael Mazzella

Aloha Todd,

I think you're moving in the right direction! It was similar thinking that caused me to take that leap of faith, and carefully but completely move into real estate investing just over a decade ago. There was no looking back, and I've very glad I did it. You'll learn a lot here at BP!

Feel free to connect with me if you'd like to talk about the ins and outs of investing here in Hawaii.

Aloha Dana,

Good to see another Hawaii investor here. I bought my first property here in 1993, and I've been investing on Oahu full time for about 11 years. From an ROI standpoint, you are correct - it is difficult, though not impossible, to find a good cash flowing property here. Usually if you're investing large sums of money to create cash flow, the numbers will often kill your deal. That said, there are the rare exceptions, and I have been able to collect a small number of them, and a couple of my friends have done likewise.

The bigger money in residential RE here in Hawaii is in one-off house flipping, and residential development. Some private lenders are making good money, too. Six-figure, and even 7-figure deals with development are happening right now. I just made an offer yesterday to a distressed seller with a plot of land containing 4 old houses, and enough land to build out 2 additional houses. If we get the deal, and choose to develop the property to its max potential, there is a profit of $1.5m at the end. It's exciting stuff!

Best wishes to you, Dana, and feel free to connect with me. Create an Awesome day!
~Michael

Aloha Matthew,

Thanks for your service to our country. I think you'll love investing and living here in Hawaii!

Seize the day!
~Michael Mazzella

...and MAHALO for your service to our country, Paul.

~Michael

Aloha from Hawaii Kai, Paul!

I love Kaneohe - I'm flipping a couple of houses there now. Here are a couple of thoughts for you to consider.

Since in this case a face-to-face meeting is not practical, a phone call works better than a direct mail letter. I would simply tell them that you really like living here, and if they'd consider selling, you'd be very interesting in buying.

If you get a yes, then I'd explore seller financing options with them. Seller financing, when done correctly, is a very good deal for the seller. First, they're making extra money from the amortized interest payments. Second, the loan is secured with the property as collateral, so if you default, they can foreclose on the note, take the house back, and keep all the money you've already paid them.

To roll out your plan, Paul, I would also be farming for additional houses to pick up and add to your portfolio, so you're not relying on the outcome of this particular transaction. Kaneohe is a great area for this, it's an old, well established town. Lots of opportunities there!

Feel free to reach out an connect with me if you'd like to continue the discussion.

Create an Awesome day!
~Michael