All Forum Posts by: Loren Clive

I own a residential real estate brokerage, 6 properties plus 10 more with a partner, and flip a couple of houses a year. I pay my accountant, who is also my aunt, $100 monthly to reconcile my brokerage expenses.

I total all my property expenses at year end. We employ a bookkeeper at $60 for the partnership properties then my CPA prepares the K-1.

Annual tax returns run $835 personal, $500 business. People have remarked that I do not overpay given the complexity of my returns. 

Ask around to find a good accountant who is a CPA. My aunt specializes in small business accounting, which caters to entrepreneurs like real estate investors. 

@ericdevito

Yes. Happy investing!

Aloha, Jamie. I am a full-time broker working exclusively on Maui, track all the foreclosure auctions here . . . there are opportunities for fixers! Buy and flip or buy and hold.

I also own and manage over a dozen rental properties here, so I know the numbers on a personal basis. Feel free to reach out if you're interested in Maui. Welcome.

Talk to Quicken. They offer better terms (no annual fee, lower interest rate, rolled-in closing costs) than you are getting. I pay under $200/mo interest only for $50k HELOC but I am a Schwab Bank preferred customer, meaning I have at least that much money in bank/401k.

I employed the same strategy recently and it worked out great, BUT property values are much higher in HI $500k.

Whenever you borrow, make sure you have a payback strategy. The investment property you are buying better cashflow, which it should since you're buying it cash. Calculate your payback on the HELOC via rent income. Should not be more than 10 years.

Don't tell the banks you're buying another property with the HELOC. Red flag! Say you're improving your current residence. It's none of their business what you use the money for.

No. Laws change all the time and it's well worth it to pay a professional to do it for you, especially if you own multiple properties. 

Basic business checklist:

1. Good attorney

2. Good accountant

3. Good lender

Even Donald Trump uses accountants. C'mon people!

I bought a duplex in the hood on Maui in 2013 way below market, led to huge financial freedom. I refinanced, bought and flipped the house down the street and was able to buy my dream home in Haiku this year. Still own the cashflowing duplex which has become an income stream for me.

If you can afford it, you're crazy not to take advantage of the $250k-$500k tax-free capital gains on your personal home in Hawaii. I know investors who employ this as their sole strategy, moving every 3 years. The HI market is ideal for it.

Plus, with the little one coming, you have the security of owning and upgrading as you wish. Here on Maui, rentals are scarce, and it would be horrible to get notice and have no place to go. Owning guarantees you're NOT in that situation.

I can refer a realtor in Kona also if you need one. 

If you can't qualify conventionally, I have private money resources too. Message me.

http://pacifichomeloans.com/

Steven and his team are amazing!

Don't sue; it's not worth the hassle. Terminate your contract and find another firm. 

AA Oceanfront in Kihei charges 15% of gross rentals with no check-in fee. Property management companies are a dime a dozen and there's another brokerage out there that would appreciate your business.

@George P It took our painter 6 weeks to paint the outside of our house, but he did a phenomenal job and cost half the rest of the bids we got. This is Maui, so by Hawaiian standards it turned out pretty good. ;)

I do pay folks to do most of the stuff on my properties, but then again, you have to realize when you're getting ripped off. Like when my property manager recently bought a $200 rug for my vacation rental after telling me to return my $65 bought from Ross. Right.

You always get what you pay for, so you have to balance your timeline, i.e. do you have the leisure to let it take longer, vs. the cost of hiring a real professional.