All Forum Posts by: Greg Gaudet

UPDATE: Big news about this meetup!!! 

Cory Nemoto is flying over from Oahu to speak at this event!!! 

If anyone doesn’t know who Cory Nemoto is, he is one of the most successful flippers in the entire State of Hawaii flipping multiple properties each month with a minimum of $100k profit on each! He’s done such a great job at flipping that he and his partner recently started Keco Capital, a Hard Money Lending business. If you need to find deals, you NEED to be at this meetup! 

FYI Keco Capital is the hard money lender that Brandon Turner is using to fund our flips on Maui - you can’t get much more validation than that! 

Here’s the link to Cory’s episode on the BP podcast, episode 302: “Making $100k/deal in Hawaii flipping homes with other people’s money” https://www.biggerpockets.com/...

ALSO: 

Check this post again the day before the meetup, as we are looking for an office space to hold this event now that we have such an incredible guest speaker. 

What!!!! Jay you’re coming to Maui in December? We’ll have to schedule a meetup while you’re here! 

Uh oh.. does it say the wrong date somewhere?? It should say 9/19! I’m sorry for the confusion! 
 

Hey Everyone, 

It's time for our next real estate investors meetup on Maui. 

We will meet at the tables outside at the new Starbucks, next door to Fork and Salad across from Target at 5:00PM. Please come prepared to learn and to share your knowledge and experience so that we can all help each other and grow our businesses together!

The Maui Wealth Builders group was organized to go a little deeper than our normal meetups. We will be holding events with experienced full time investors presenting and sharing their knowledge, and we will have events where you can bring a deal you are currently analyzing to present to the group and get feedback/input/suggestions from the most experienced investors on Maui.

If you have a deal you are analyzing and would like input on please bring all the numbers if you’re willing to discuss. Or if you have completed a deal you would like to do a deep dive on and discuss for everyones benefit, please messaage me so I can reserve a time slot for you. Sharing a deal is an excellent way to expand your networking, everyone leaves with an impression of you as a succesful investor. 

Message me with any questions or suggestions for topics or what you'd like to learn about, and PLEASE share this with any other investors you know AND CLICK "ATTEND EVENT" so we know how many to expect and have a seat for you! 

 As someone that buys a lot at the auction I would highly recommend that you do at least 3-5 non auction deals first. I’ve seen a lot of people lose a lot of money because they don’t have experience in RE and buy something at auction without doing a critical step in due diligence. And once you make your bid you can’t cancel if you find out there’s a $350,000 lien that is not going to be removed at closing. Even with having 15 years experience professionally in RE myself, it’s still extremely risky. 

Anyway it’s also gotten nearly impossible to get a deal at the auction because of the number of people flooding into the auctions now that don’t know how to buyer right. Last week I bid on a property, one that I had emotional connection to and I was ok with overpaying. But a bunch of complete newbies showed up that had no idea what they were doing and drove the price up to market value - which means the winner actually paid well above market value only to assume all of the risk that comes w buying at auction. There are better deal sources, at least until things change again. 

Talk to @Christian Cramer he’s an investor and realtor on Maui. He’ll help you find a deal without risking losing everything. I have a couple deals available right now too that I may wholesale. A house and cottage in kula for 800, a 2/1.5 at harbor lights for 105, and a 3 unit house in Makawao for 585. PM me if interested. 

Why not buy in the islands, in your own market? 

Aloha Jana, do you have any meetups coming up? Or happen to know if there are any near LBI? 

I visit every summer for two weeks and since we always have visitors at my meetup, Maui Wealth Builders, I thought it’d be fun to see what you’re all doing over there. 

Hey Emily, welcome! Did you move here recently? I don’t think we’ve met.. 

Yes you can brrrr here. I just close a brrrrloc last month; paid cash then took out a heloc after closing. Biggest factor is often DTI. And finding the deals, since here you sell a distressed run down house for market value, since most houses are in that same condition, which kinda sucks for us!

But I know many people that buy non conforming SFHs converted into 3-5 units for 600-1m and do well. I'm actually working on one right now myself that I may pass on to another buyer. 3 units, ARV is about 700, gross rents around 5k and price is under 600k. Great neighborhood too.

Actually I'm working on two; but the other is 800k and ARV is 1.1-1.2m. Sounds like you only have a down payment for 600ish?

You generally have to get a big discount and steep value add. Probably pretty rough condition, and fha may not fund the kind of house you need to pull that off. It could work pretty well on something like the house I was mentioning actually; but you might have to be willing to put a few grand into repairs before closing in order to pass appraisal. The main thing I would be looking for is cash flow, since you're only gonna need like 20k down payment anyway; if you make just 1k/month cash flow that's over 50% COC return!

Interesting! LA dictates that you shall pull permits for a kitchen or bath remodel? I knew I'd hear some interesting feedback on this post! I'm sure that requirement has been skipped MANY times! lol 

We also have a whoooole lot of unpermitted work on my island. Due to the high cost of living, and the limited supply of housing, it's very common for property owners to break a SFH up into a duplex, triplex... sometimes even 5,6 or more units. Every time one of those hits the MLS you see "home may be non-conforming" or "floor plan may not match tax records, some improvements may not be permitted" etc. I could probably count on one hand the number of those SFH MFs I've seen that said all improvements permitted.

I'm actually working with a seller right now that has a SFH built in 1980 as a 1,000 sq ft 2/1 and now it's a 2,200 sq ft 2/1, 1/1, and a second story added on top with another 1/1. This one is super unique in that the two added units were both permitted! Sales price is higher than I would like, 560k, but gross potential rents are about 5k/month and ARV is about 700k (it's not in really bad shape, but pretty original except the new second story. I'd like to put 40k in to put new floors, kitchens and baths). But the fact that everything is permitted should add a little more to the ARV.. maybe 725k.. Still pretty tight numbers so IDK yet...

@John Teachout and @George W.

Absolutely, totally agree. I should have worded it more like “what do you pull permits for in your market”.

In my market we don’t need permits for fencing, but we do for roofs. 

Basically permits are required here for anything that alters the structural integrity of a buidling. We don’t need permits for replacing cabinets or flooring, but we do for taking down walls/changing the layout, plumbing, etc. 

John from your comment it sounds like my market may be on the looser side with permitting requirements. 

I’m also curious how challenging other markets are to obtain permits. Specifically, how long does it usually take to get a permit in your market?