All Forum Posts by: Bryan Vukelich

Hi Christian, I have not done it but I've had clients consider making offers on probate properties.  Key thing to note is that even if probate court accepts your offer, you offer will then be advertised to the public, and any interested party has the opportunity to beat your offer.  I believe any new offer has to beat yours by at least 5% (I'm not sure if 5% is law or set by probate court) and then you have the option to either match the higher offer.  

And I agree with Frank - it is very competitive and so best to have several methods for lead generation.  I personally like driving for dollars or online lead generation.  

But I recommend you don't rule out finding a property that has been listed on the market.   I recently had a client buy this property:  91-621 Kilaha Street 39, Ewa Beach.  It was a multiple offer situation and he purchased it for $286k.  He is about done with the remodel and with how hot the market is, I think he'll do quite well on the resale.  

Any areas in particular you are looking to buy on O'ahu?  If you have any questions for me, I'm happy to answer them.  

Congrats Adam - looks like you have thought it out well and great that you can use your wife's income to pursue opportunities.  I've been a real estate investor for over 25 years and happy to answer any questions you have - though I still am learning things.  Wish you well on your way to financial independence.  

What part of Hawaii you from? 

Hi Adam - I recommend trying with smaller "owner managed" properties rather than with property managers.  You'll likely have better success dealing directly with an owner as most property managers will likely be risk averse to subletting - especially in this market.  

And for best areas to do it, I'd focus on areas that are most desirable for tourists and/or locals - these will likely be most lucrative for you.  If you find anything, you're welcome to share with me.  I know of 2 different individuals who are planning to visit O'ahu next couple months and are looking for places to rent.    

Good luck 

Hi Prashanth, I agree with Lake's answer but wanted to contribute some about STR's - my answer deals mainly with Oahu as each county in Hawaii differs somewhat on how they handle STR's.

For O'ahu, vast majority of legal STR's are in the hotel district of Waikiki. These are legal due to the zoning. There are properties outside of Waikiki that can be legally used at STR's and these properties have non-conforming use permits (NUC's). Last I checked there were about 800 NUCs on O'ahu. NUC's are transferable and have to be renewed county every 2 years. If they are not renewed, they expire and it is impossible to reactivate.

For Waikiki condo STR's, it is possible for them to cash flow but the returns usually aren't very good. It usually makes the most sense for an owner who wants to offset some of their costs while owning real estate in Hawaii.

Also, there is a somewhat "workaround" to the STR regulations, and that is doing 30 day rentals which can be quite lucrative. I have client who recently bought an oceanfront home on the Windward side of O'ahu for $916K. They will starting doing rentals next month and the property manager expects them to gross $7-9K a month. This property manager also manages a home in Kailua area - walking distance to the beach and 30 day rate is $12k. Lease rates have skyrocketed this year as there is very strong demand - obviously no guarantee if rates will stay high but some people are making money right now.

If you have any other questions, I'm happy to answer them. 

Hi Mariani, what type of properties are you looking for and what is your goal with them?  As others have said, Hawaii is not the best market for finding cashflow investing  - especially in this market.  But there are some opportunities in the short term vacation area, but overall, better opportunities can be found on the mainland. 

If you have any other questions, I'm happy to answer them.

Hi Clifton,I am realtor as well as an investor on O'ahu.  Are you under contract?  If so, I realize my post is late to the game and wish you the best, but wanted to share a few things and maybe reassure you or give you more clarity of situation in Hawaii and submitting an offer in this market.  

First, yes, market is crazy here as you are aware.  Here is an excerpt from my last newsletter I send last week addressing this crazy market. 

"How do you define insanity? Some say it is doing the same thing over and over and expecting different results. Many would-be buyers are certainly feeling a bit insane as they continue to vie for property in today’s market. In fact, there is a term called “inventory insanity” that is being tossed out quite a bit these days.

Simply put, it is an extreme, unprecedented shortage in the market that is causing otherwise logical buyers and their agents to go a little bit crazy. In some cases, a lot crazy. As a buyer, you want to be competitive. By all means, sharpen your pencil to craft a strong, competitive offer. But, waiving all your rights to secure a property is quite another. In some cases, that is what we are seeing. Buyers are waiving home inspections, termite inspections, surveys, and giving up reasonable asks like cleaning and pet treatment to be competitive. To secure a property. Each situation is unique. Every buyer must decide what to do. And, on the advice of their agent. The point is that the shortage of housing is creating insanity in the market."

With that I'm guessing your realtor might have suggested you waive certain contingencies, or you offer to pay for them yourself.  It really comes down to what you are comfortable with, but if your agent is quality, he/she would have explained each item in detail and answered all your questions so you could determine how to proceed.  

And I'm glad you ignored @Lane Kawaoka post and did what is best for yourself.  And there are real estate agents who put their clients interests ahead of their own and are financially independent.  

Hi Ms. Buzzetta,

Based on what you wrote in your post, I don't find you a stupid person at all.  By you investing your time educating yourself on Bigger pockets and RE podcasts, reading Rich Dad, Poor Dad, and to never have any debt, I think you are very smart with all of that and way ahead of many people.  All you have to do is get educated in regarding real estate investing.  You just need time, and experience.  I recommend you continue what you are doing, and also practice analyzing real estate deals, look for opportunities and grow your network.  As I tell people, the hardest thing (in my experience) is finding attractive investment opportunities.  But once you find one, it is easy to get the money to acquire it.  

Regarding understanding the paperwork . . . several years ago I moved to Hawaii and got my real estate license.  This is after I'd been licensed twice in Washington once in California.  I even owned my own real estate sales company.  But despite my experience, I was somewhat overwhelmed by the paperwork they use in Hawaii.  I'm over 2 years in as a full time agent here and still ask my broker for help at times.  So it will take you some time to get comfortable with the language in real estate contracts.  And until you are comfortable with all the paperwork, I highly recommend you have a trusted mentor, or you hire a quality real estate attorney, to advise you in order to protect your interests.  

Wish you luck 

I am a big fan of the quality automatic car washes. Also like self storage.  Good luck 

Hi Joseph, as Nathan recommend, relative can be a good way to borrow money.  I also recommend trying to find attractive deals that other investors would be interested in buying and are willing to give you some equity for finding the deal.  Also, in my experience, wholesaling has proven to be a good way to make money while using only a small amount of my personal funds.  

Last, if you find a seller finance opportunity, see if you can get creative with the financing there.  

Good luck

Hi Onye, I used to own properties in Seattle Washington area but sold all due to regulations that were very pro tenant and greatly reduced owners ability to properly screen tenants.  I also owned a property management company and also have had other family members own a property management business, and we all agree that city, county and state regulations made it more difficult to manage units and also increased liability. 

So long answer to your question, is look for states that favorably treat landlords.  I'm currently invested in Idaho and very happy with how things are going.  But my partner and I have also look at Texas, Utah, and independently he has looked at Kentucky and I think South Carolina.  

Good luck in your search