Need Your Advice (Money Question) (Hilo: real estate, apartment complex, rentals)

[Eastern Oregonian]

Seems like every time I post on this forum, my ideas change. HaHa!

Okay, I'm asking for your answers, and also you comments.

It has and always will be my dream to move to the Big Island. I'm struggling to plan it out though. I want to do it the smart way.

What I want to do in life:
I want to get my real estate license and start out as an agent. Then after I gain the needed experience, I may get my brokers license. I want to eventually have money work for me, meaning I want to become my own boss as soon as I can and develop a passive income.
Here in Oregon I could do that by starting out buying and remodeling fixer upper houses (living in them as I go to save money) then after saving enough money, investing in an income property (apartment complex, or building). After that I thought I could develop residential and business property and either lease or sell.
I also have a great idea to turn some popular stores in my area into chains. And to run a program where I ask the residents what kind of business they would like to see in their town. (I'd be doing it to please the residents).

I hope that made sense. (I've been reading Rich Dad, Poor Dad so I want to be a millionaire so I can give back).

Would the same idea work out the same in Hawaii? I'm sure it would, but I don't know how strong the economy is.

Thanks guys! Especially the ones who've read my random questions on this forum.

[whtviper1]

Originally Posted by Eastern Oregonian

What I want to do in life:
I want to get my real estate license and start out as an agent. Then after I gain the needed experience, I may get my brokers license. I want to eventually have money work for me, meaning I want to become my own boss as soon as I can and develop a passive income.
Here in Oregon I could do that by starting out buying and remodeling fixer upper houses (living in them as I go to save money) then after saving enough money, investing in an income property (apartment complex, or building). After that I thought I could develop residential and business property and either lease or sell.
I also have a great idea to turn some popular stores in my area into chains. And to run a program where I ask the residents what kind of business they would like to see in their town. (I'd be doing it to please the residents).


Would the same idea work out the same in Hawaii? I'm sure it would, but I don't know how strong the economy is.

Your idea is very not likely to work on the Big Island.

As a real estate agent - it is less about experience and all about who you know. People don't often buy houses from mainland newcomers.

The economy has improved on the Big Island - but I don't believe anyone would describe it as "strong" - more like "ok"

Incomes tend be low on the Big Island - therefore, that would likely trickle down to you for whatever ideas you may have.

[hotzcatz]

You can have your rentals in Oregon and live in Hawaii, can't you? Get a property manager there and then you'd not have to be there. It's probably a lot less expensive to purchase fixer-uppers in Oregon. Or at least get started fixing them up there and then once you get cash flow going, you can start in on finding Hawaii properties. If you have enough cash flow from Oregon, maybe you won't need to buy fixer-uppers in Hawaii.

[smarino]

All my life I've wanted something like "passive income". Hey, it would suit me to a T!

I agree w/ whtviper1, real estate can certainly be about establishing a good contact base. On the other hand, some of the best realtors I've known in Hawaii (there actually are a few) work very simply. They are very picky about what properties they handle, and they do a great job of exposing those properties in the right places to the right market. Having sold and bought quite a bit of property in Hilo w/o a realtor back when things were booming, I found out that if it's a property suited to your buyer, and the price is right, things essentially sell themselves. A lot of it is about the price point.

We had a difficult time trying to sell a property once by using two realty companies (one after the other) that did a lot of high pressure selling. It didn't work. When I did find a good realtor, one who actually owned her own company, she told me "Look, I'm not going to sell this property, I'm going to list it, and let the other realtors come by w/ their clients and sell it". She was more comfortable picking the right properties, letting things come to her, and getting the 3% commission vs the 6%. She was also very successful. In the end, I ended up getting the next door neighbor to buy it from my showing, and simply ran her over to my realtor because we were under contract w/ her.

Buying fixer uppers in Hawaii, what w/ the limited amount of good contractors (the good ones are always really busy) and the high cost of materials is not a particularly good idea unless you're thoroughly acquainted w/ construction techniques, zoning, and have several good contractors in your back pocket.

[hawaiian by heart]

^^^^^

Another example of how Hawaii is different?

[Due]

Originally Posted by smarino

I agree w/ whtviper1, real estate can certainly be about establishing a good contact base. On the other hand, some of the best realtors I've known in Hawaii (there actually are a few) work very simply. They are very picky about what properties they handle, and they do a great job of exposing those properties in the right places to the right market.

Buying fixer uppers in Hawaii, what w/ the limited amount of good contractors (the good ones are always really busy) and the high cost of materials is not a particularly good idea unless you're thoroughly acquainted w/ construction techniques, zoning, and have several good contractors in your back pocket.

I agree with your real estate assessment and contractors.
Finding a good contractor is easy, but most are booked for months and sometimes years out.
The cost of their work and materials is considerably more than the mainland.
The construction rates vary, but are currently in the range of $50.00/hour per worker and $70.00/hour for the contractor.

[Linrobark]

I've alway been told "Do the type of business you know the best and especially the area in which you feel you know the rules" Hawaii is completely different than I've ever experienced when dealing with real estate.
I've bought real estate all over the US (mainland) and this is so different in so many ways.
My advise is stay where your at and learn from someone that is successful in the business. lt won't be easy but if you want to succeed you will. Good Luck to you Re-invent yourself

[whtviper1]

Originally Posted by Linrobark

Hawaii is completely different than I've ever experienced when dealing with real estate.
I've bought real estate all over the US (mainland) and this is so different in so many ways.

How so? I have found the buying/selling process quite similar to California.

[hawaiian by heart]

Originally Posted by whtviper1

How so? I have found the buying/selling process quite similar to California.

I just realised something and honestly im not trying to cause stink. But you whtviper1 are an invester in real estate on the islands, i believe you publicly stated you own five houses or condos? So now it makes perfect sense as to why you want everyone to believe Hawaii is no different to the mainland in anyway. For investment purposes its easier to sell to mainlanders if they believe Hawaii is exactly like home in everyway. And it helps that those in power and have money are trying to make Hawaii lifestyle and experience a exact image of any reasonable mainland city.

[hawaiian by heart]

@Eastern Oregonian

My suggestion is stay local in Oregon, when you prospered enough you can try to expand to Hawaii Realistate. But only expand when the investment isnt your live savings. Like alot of business if it gets big enough it will work for you instead of the other way around, at that point is the time to relocate. That is if you really want to do realistate as a business?