All Forum Posts by: Greg Gaudet

@Coral Hernandez

Yes it does. I’ve noticed each deal gets more and more complicated.. I wouldn’t have know what to do if I were in this situation 3 years ago.

Huge mahalo to @Cory Nemoto and @Brandon Turner for your patience and help in pulling this miracle!

Just a heads up, if you’re working on a deal and planning on using hard money I recommend checking with your lender to make sure they have funding. We almost just lost a deal we’re about to close on in 5 days because apparently most HMLs lost most of their funding on Monday, then the seller threatened to sue since we are past our contingency period and she needs the funds to close on a short sale that was scheduled to close the same day!

Fortunately Cory Nemoto from Keco Capital came through for us and it looks like we’re funding Monday just in time to meet our closing. But just wanted to give a heads up so no one gets in a bad position for not knowing.

Brandon was correct. Maui County passed a new ordinance (about a year ago I believe) allowing 2 ADUs for properties that have over 7,500 sq ft of land (before they were only allowed 1 ADU), and now you can have 1 ADU if your lot is under 7,500 sq ft; whereas you used to not be allowed to have any.

The problem is that passing this new law doesn't just magickly mean we can add an ADU.. most properties will still have problems with parking, utilities, boundary set backs, and other issues that come up with permitting, etc. when adding a third unit. But I'm still very interested in learning more about this topic as a potential strategy to grow revenue during a competitive and expensive market.

I think it's important for us to remember, when we speak of our islands, that we reference our specific market. I know the Maui market, but I don't know anything about zoning or ADU limits on other islands (except that Oahu's zoning is a million times easier to understand than Maui's!)

What ways are you looking at investing? Be sure to coordinate with Brandon and I; we prefer to work with other investors rather than against them, and we're also expanding rapidly and growing our team, so lots of opportunity! 

Just wanted to share, I'm super stoked! And incredibly humbled to have been given an opportunity like this. Thank you to everyone that has been supportive; basically the entire BP community. It's always been a goal of mine to get onto the podcast, so can't believe how soon I accomplished that... I still don't think I'm qualified, but @Brandon Turner said it was a great episode so we'll see what you all think! I did go pretty deep into some emotional and pain and suffering issues from my past that made me who I am today, so I hope that stuff resonates with others out there and provides some inspiration that nothing can hold you back! 

If you’re serious, Brandon and I want to train a team of wholesalers to work with us. If you're willing to educate yourself in your free time and show us that you have the commitment and determination to work your *** off the way we all do, let’s talk. 

Can’t wait! See you there! 

Note - maybe change the title to beach bash, big beach bash could be implied as the location being big beach? 

Patrick, I wish I had seen your response sooner, things have just been too crazy. I just closed on a unit at West Maui trades! We are in the middle of rehab now. Be sure to email me if you bid on anything there so we are not driving the price up on each other LOL one thing to be aware of is the plumbing, as it is all cast-iron from the 70s and it is all rotten and full of holes. I just spent about 5K on upgrading my plumbing alone. That said, you will find this same issue and expense in 75% of the condos on Maui. Generally, if it was built in the 60s or 70s and the plumbing has not been replaced yet, you will need to replace all of it. The association will cover the cost of changing any common pipes that run through your unit, but that can often be a negligible amount. We just closed on a condo in Kihei that was on the first floor. It’s also important to note that first floor condos typically have A common drain pipe running directly underneath they’re living room concrete slab. I had seen this numerous times before, but last month I experienced it first first hand myself, where the common drain pipe that ran under our living room had dissolved into nothing, causing a massive flood in our unit right when we finished the rehab. We had to tear up all of the new vinyl floor, jackhammer the concrete foundation, and replace about 15 feet of what used to be a drain pipe. Fortunately I also work in restoration and have great relationships with most of the Aoao's, plumbers etc. On Maui and I was lucky that I got to leverage those relationships to get this issue approved by the board, paid for by the association, and completed in less than one week. We were also fortunate that this was a common pipe and not our pipe, as the total cost was Well above $10,000. 

 Would love to chat more with you about West Maui trades,. 

The renegotiation is based on two appraisals done bye GRA – general residential appraisers – the highest qualification available to appraisers. The lease cannot be canceled on the renegotiation date, it could only be non-renewed on the expiration date, November 2049. The advantage is kind of like free financing on half of the purchase price… You only have to pay for the condo, not the land, which is the expensive part. And you don’t even have to make a down payment on the land portion, plus it’s generally cheaper then if you were to compare a bank loan on the market value of the land. I see it as an excellent opportunity to create cash flow for investors willing to sacrifice equity appreciation, But it’s mostly very popular with retirees and young first time homebuyers that want a cheaper way to own a home. 

 Well said Marc. Although I’d like to have the chance to discuss this with you further. I just closed on my first LH condo, and while reviewing the lease it seem to be very clear about stating that on November 29, 2049 I will surrender my condo to the leaseholder. I was pretty surprised to read this, as I had always assumed that the leaseholder would be required to buy out each owner at the current market value of their improvements. That said, I am not an attorney, and therefore may not be qualified to be interpreting this document. I had my attorney review it, and their response was that they needed more information, they seemed to not want to agree with me that the lease very clearly stated that I shall sign The deed over to them upon expiration. That being said, I felt as though the returns were good enough to justify the investment even in the worst case scenario; pretty unlikely that I will even owned this condo in 30 years anyway lol