All Forum Posts by: Derek Okahashi

More content and info to come. Please reach out with any questions. 

I am getting everything in line to purchase a flip that has mold throughout following a water leak that went undetected for an unknown amount of time (months...).

I have quotes for remediation and the biggest cost is demo and hazmat disposal. All together the demo, disposal, and remediation is coming out to approximately $55k.

Here in Hawaii they burn just about all trash anyways. I’ve worked and trained in OSHA compliance before and I get that mold is the new asbestos. I don’t want to get sued or have any legal issues.

Anyone ever tackle a huge mold problem themselves? Sounds like with proper PPE and precautions I can have guys do the demo and disposal for a fraction of the cost.

Mahalo and thank you in advance for any insight.

@Jeremy Pace thank you for the comment sir

Aloha everyone. I am looking at flipping a home that is full of mold. Having multiple insurance people in my family, I was challenged with the question of insurance, which would be required by the HOA.

The numbers on the project work great even though it is a large undertaking. Also, my partner in this flip is a friend with experience flipping and owns contacting company. With that said, he's never bought something this moldy and traditionally has just foregone insurance until the flip is complete. 

What do you guys/gals do or would you do in this situation? Get insurance? Forego insurance? I was advised that no fir level insurance company will touch it and I will have to seek out the secondary market like Lloyd's of London or a Korean market and it will be pretty expensive. 

Thank you in advance. 

Aloha Everyone,

I am a Realtor, somewhat of a FI/RE guy, and conservative when it comes to debt. Not quite Dave Ramsey, but I get what he is trying to do and am not mad at his approach. With that said, I think the concept that a VA loan is the greatest thing since sliced bread is over stated. I had coffee with a loan officer today. Great guy and seems like a very solid person to have on your team that can break down a lot of numbers. He specializes in VA loans.

Simply put, if you finance something for 100% on Oahu, you will not be able to cashflow or even break even if you have to leave. Military people get restationed and move often (I am prior active and currently a reservist). If you finance a $700k place here on a VA loan with little to nothing down, your payment is going to be about $4k/mo. Your place is probably going to rent for $3200/mo. That's $-800/mo cashflow when you leave not counting cap-ex and vacancies etc. So when you get restationed, what is your exit strategy? Are you relying on appreciation and reselling? Better be a lot to justify the costs and commissions paid out on the resale. Good chance you'll be ok after 4 years of debt pay down in Hawaii but there are 4 year periods where people have lost their shirts. Maybe the plan is to refi but what if interest rates have gone up? It may not put you in a positive cashflow situation.

This conversation does not serve me to close more deals and to ,rinse and repeat to increase my commissions but I feel like it is the elephant in the room as we are pushing people through this 0% down (20% more debt) loan product. Someone change my mind and show me the light please.... 

Aloha Everyone,

I am working to build my company's Property Management portfolio here on Oahu. We set a hard limit at 30 properties per person max but we currently have room to grow. We buy and sell real estate as well so we are always looking for buyers and sellers. I finished with one buyer today and so I need to fill that void as well. 

My question to you, what do you think makes a good property manager and what are you looking for when interviewing property managers?

Mahalo for reading and responding!

Derek Okahashi

RS-82017

@Eboni Bailey I wish we had met earlier but I am happy you found someone you trust. If you ever need a property manager on Oahu in the future, we will be here :)

I see things in Nashville that would cash flow a little before you factor in all of the things you should factor in (management, cap ex, vacancy etc.) The townhouse south of Nashville that I mentioned comes with a lot less maintenance because of the nature of townhouses but I also have not gone through the HOA docs thoroughly to see what may happen in a downturn and what other implications may be on investors.

Phoenix I have not put a lot of effort into and have not found anything good. I was connected with a good property manager out there though so maybe if 2008 happens again (and therefore 2010 happens again), I will look to invest in Phoenix mainly because I know a good PM there. 

Augusta: My cousin has a portfolio of 30+ homes currently in Augusta. He brokers, wholesales, flips, BRRRRs and anything else you can think of. He is not on BP but is a pro out there. With that said, I can't expect him to give up great deals that would make sense to keep in his portfolio. Example: a 10k home at auction needing 25k in rehab, managing contractors for 2 months, and then ARV = 60k. Only makes sense for him to tackle that himself. If I were to spend some time in Augusta I could get those deals and deploy my capital along side him while learning, but we aren't in a relationship where it makes sense to do those things right now. //// So if a good enough deal pops up there then I can tackle it. We have been analyzing deals for months and maybe I had some decent ones but I never pulled the trigger. Now he is selling one from his portfolio and that was the one I mentioned. As Lane stated though, exit strategy on an asset like that in a C- or D neighborhood will be tough. So idk...

@Jay Hinrichs I am currently browsing your site http://turnkey-reviews.com Do you recommend any resources on getting started with notes?

 Jay,

First, I enjoyed your episode. Also, I was thinking about that exact transition from Palo Alto to EPA on University!! I work at Stanford so I go by there all the time. It has gotten a little better but I don't think it's great. For trust deeds to I need to be an accredited investor? I am not there yet...