All Forum Posts by: Dominik Makaneole

I enjoy catching up on the new post at the end of my day.  Very informative.  Thank you for taking the time to put out this information.  Do you have any recommendations of some of your favorite books that helped you when you were starting out?  Preferably land development specific.  Always a pleasure to read your posts.  Look forward to the next one.

@Greg Horn and @Lorna Kaaloa.  I definitely could use as much insight you through my way.  Development is definitely out of my comfort zone but I'll learn.  Congrats on your marriage.  Lorna Kauai like most of Hawaii has a housing shortage and I just feel like I'm in a position to help young families stay home instead of do what I had to do and earn a living elsewhere to come back once I could somewhat afford it.

@Mariusz Bojarczuk  "Fortune favors the bold"

Also if you borrow money from your 401K it wont be reported as debt.  In other words the banks will not track this when figuring out your debt ratio.  Banks want your debt ratio to be below 42%.  So you could potentially use this for your down payment and in the eyes of the bank its cash on hand.

Realtor.com can give you a "quick look" at info such as tax info, price per square foot, insurance estimate, etc. etc.  I use it to get my interest in a property then I look further into it gathering actual data from .gov sites.  I'm not saying this is the best way, but its how I do it.  This also has helped me to focus my searches knowing what numbers I have to hit.  When looking at neighborhoods I'm familiar with I know what rents are so looking for properties become easier. 

@Nick G. Congratulations on your wedding.  If you have questions about Kauai,  I would gladly answer them for you.  Doesn't have to be real estate inquires.  Travel ideas etc.  

wow,  you guys are going to need a vacation when your done with this project. hahaha.  I'm sorry to hear about your daughter and I will send some prayers your way.  I'm also looking for our 4th house to purchase.  My wife and I still work because it helps with our debt ratio for borrowing the medium priced home in my market is a little over $500K which is why we still work.

Once you get hit with the investment bug it will excite you to keep going.  What I mean is that first check you receive from a renter or a house you flip will be life changing.  In my humble opinion try to purchase your first home with some sort of attached rental unit you can use.  I'm assuming you will be living in it as well.  You probably wont be making positive cash flow but at the very least you wont be paying someone's mortgage down.  And be very, very, very, selective on whom you rent this unit to.  It will determine if you love it or hate it experience.  Good luck.

Aloha all,  I've been slowly building up a rental portfolio of 6 units in a very expensive market.  Myself as well as my wife have jobs and are not quite ready to give that up yet.  I found this site by searching for ways to raise capital which is currently our biggest problem right now.  Although I have experience with finding properties, fixing, pricing, etc. My banking education is low.  I'm now having to learn about debt ratio and how banks look at projects completely differently than I do from an investor.  I'm learning how to do both. 

I'm also starting to look at property development which is a whole new ball game that I know very little about.  Because property is very expensive in my market, I'm looking at building apartments for rent to accommodate the younger working class that cant afford renting 3 bedroom homes which is the majority of available rentals here.

On a side note, I enjoy surfing, hunting, and working on cars.  I'm a veteran using my GI bill to learn the automotive field just because when I retire young, I will need a hobby lol.

Dominik

I was able to get a 4 bed room house 50cents to the dollar because the family inherited the house which was paid down drastically.  $150k left on mortgage.  appraised at $420, after projected renovations near $500.  We ended up paying $60K cash to the family took over the loan put the 60K and 30K for renovations into the loan.  The Bank was more than willing to work with us because it was delinquent about 2 months and I was able to get the family out.  Win win for everyone.  When it was all done my loan on the house was 240K.  It took 2 months to renovate.  Mortgage payment is $1745 and I rent it out for $3150.  Didn't put any money down.  I did pay some money to get contractors started but was paid back with the bank loan.  So its possible..  Hope this helps