All Forum Posts by: Loren Clive

@Chris Seveney I meant local mortgage brokers often have hard money lender contacts and facilitate these types of transactions. I lend hard money, and that's where I get most of my deals from.

OP, how are you going to record a mortgage against the property if there's no TMK? I'm assuming at this price you are buying one of the 2-acre parcels where the subdivision is not yet complete. Not sure if this is legally feasible

Can you record a mortgage against the entire parcel??

I have a couple contacts. DM me

You should ask a local mortgage broker also

I own five properties in Hawaii. There's no way to make it cash flow sounds like. 

If you're not willing to raise the rent on your tenants, I would sell it.

it all depends on the math.

I have an excellent Oahu investor realtor referral if you need help sorting it out. DM me

This is a very rough comparison, for Maui island only, but in 2012 median condo price was $356,158. Now it's $795,000 per the January 2024 report. 

Stats can be found

https://www.ramaui.com/housing-statistics

Or for all islands here

https://www.hawaiirealtors.com/resources/housing-trends-2/

Your realtor can produce more specific stats on your area of interest.

Which island are you buying on? I can help you on Maui. 

your realtor should be able to answer all of these questions

Me. We're all investors!

I'd talk with owners in the areas you want to buy so you have an idea of income, expenses, etc. Maui, for example, has been a great place to own vacation rentals historically, but we've seen a huge dip in tourism in the wake of the fires. Also there are some major zoning changes proposed.

Something you didn't mention is financing--unless you're buying cash? Here in Hawaii, condotel (vacation rental condo) financing is different from typical condo financing, so important to work with a local lender. This piece will also help you determine what you can afford and cash flow. 

Definitely talk to an attorney, Michele. Not much to add to the good advice already written, except

Your mom could easily get a reverse mortgage to pay for her care, then you and your brothers could split the equity left upon sale. I agree it makes no sense to hold onto this condo once she passes.

Once you have the LLC set up with the DCCA, you can just record a quitclaim deed with any escrow company, no lawyer necessary except to draft the deed.

However, you might consider the property tax implications. If your parents are currently claiming owner occupant exemption, they would not be able to do this with title vested in a LLC. They still could get the $200k long-term rental exemption and be taxed at a higher rate.