11.19.08
All commercial real estate markets are based on supply and demand. Hawaii’s market has typically been limited in supply, and demand has outstripped the existing supply. General interest and demand for Hawaii commercial properties comes from people’s fascination with Hawaii and spending time in, and surrounded by, its natural beauty. In trying to protect that natural beauty, difficulties in rezoning are wide spread across Oahu, Maui, The Big Island and Kauai. A very small portion of our states land is zoned for urban and commercial or industrial purposes. Typically, a developer will need to spend seven years to take a property through rezoning and allow that property to be added to the supply side of our commercial real estate marketplace.
hawaii real estate
Being in the middle of the Pacific and a part of the United States provides many advantages to investors. Our clients are comforted and sure of laws and financial markets of the United States and have access to capital and resources from Asia. In many real estate cycles, parts of Asia remain strong while the United States goes through a down period. Asian investors can remain bullish for many reasons, the most prevalent being that their economy at home is strong. The second reason is a positive currency swing for the investor. This situation can play itself out in many countries, always allowing one to be strong and driving investment into Hawaii.
Hawaii Relocation
Hawaii’s economy is now more diversified than ever. Several years ago the people, the government and the business leaders of Hawaii, determined that it was necessary and desirable to create some diversity in the State’s economy. After tourism and military spending, real estate has become a major portion of Hawaii’s economy. From land subdivision to high-rise condominium development, it has been big business. High Tech companies, including movie productions, have created a small blip on the screen for the economy. One positive side effect we have observed is the influx of new residents and people who want to spend more time in the state. Many of these investors include families who are starting to plan for retirement by purchasing a piece of investment real estate for the future. Another type of real estate investor we are seeing is the young financer from Asia who spends several months a year in Hawaii and has purchased a high-end resort luxury property. These types of investors are starting to get involved in the community, give back to local charities and don’t use many city or county resources. They of course pay real estate taxes and are fantastic consumers when in Hawaii.
There are many reasons to invest in Hawaii and many different sizes of investments. From individual weeks of a time share, to major institutional commercial real estate projects you can join in.
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10.06.08
Investing in real estate is not something that a person just does on the spur of the moment. This is a well thought out and discussed matter that is put into action over a period of time. Well that is the way that it should be. The fact of the matter is that half of the people that get involved in real estate investments have no idea what they are doing. Instead they have found a cheap property and hope to make a profit.
While it is possible to turn a profit with nothing more than dumb luck and being in the right place at the right time, the true real estate investor will leave little to luck. They will have a real estate investment strategy. The real estate investment strategy is something that is vital to success in the market. Real Estate is highly volatile and fortunes can turn at a moment’s notice. But the savvy investor can weather the storm and ensure that profits are made with each transaction.
The winning real estate strategy will have several components. It should include, at the very least, the following with minor changes made along the way.
Target Property Type
You need to have a good idea of what kind of real estate that you are looking to invest in. This can mean one of many things, like single family dwellings, apartment complexes and even commercial property for development. Once you have settled on a specific property type you should stick with it. Deviation from this part can mean that you are getting in over your head and will end up with losses as opposed to gains.
Location
If you are planning on investing in property outside of your home territory then you need to find out about the locations. In every place in the world there are good areas and bad areas. The bad areas are your normal low income homes and apartments, where property values are in the tank. Buying in these areas is extremely risky. Stay clear of the potential bad parts of the area and concentrate on mid level to upper level property for the best profit and risk ratio.
Price
You also need to become familiar with the idea of real estate pricing. This is something that is going to change with the market. When the market is up then prices are going to rise and vice versa. Knowing the value of a property as well as the potential sale value will give you a better understanding of how much you should pay for the property. Negotiation is key here, as well as good old fashioned common sense.
Buying and Selling
Finally you have to know when to buy and when to sell. Since property values are always moving you have to be positive in your timing. Selling a property in a buyers market can actually cause you to lose money. When the number of properties is far above the number of buyers then the prices will plummet. Keep a close eye on the market and how other sellers are behaving before making any hasty judgment calls.
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Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the “right” people? Let’s answer by looking at some of the myths of real estate.
1. Real estate investing is for the wealthy. Money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Small deals, partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.
2. “0 down” isn’t possible. I sold a rental property for $1,000 down because I trusted the buyer to make the payments, and I wanted the 9% interest and higher price. He could have gotten a cash-advance on a credit card for another $30 per month and made it a “0-down” deal. “No money down” means none of YOUR money down, and yes, it happens.
3. “0 down” is the best way. If you don’t invest some of your own money, you’ll have higher payments. You’ll also spend more time finding suitable properties, and pay more for them (generally cooperative sellers want more for their cooperation - I do). There are 0-down deals out there - they just aren’t always worth doing.
4. You need experience. Experience helps, but you get it by investing. Start with common sense, ask how you can lose money, be willing to learn the numbers, and you can start where you are.
5. Some investors have a “knack” for making money. Sort of. More accurately, some just took the time and risk to learn the market and continue their education.
6. You need to know the “right” people. It helps, so start the process. Talk to investors, real estate agents, landlords, etc.
7. You have to be great negotiator. If you learn to run the numbers and make the offers based on them, you can be the worst negotiator and still do okay.
8. You need insider knowledge. Understand one deal, and you are on your way. Read and read more, but the best “insider” knowledge comes from experience.
9. Fixer-uppers are safe. People have the idea that doing the work themselves is the safest way to assure a profit. Not true. Mis-planned “fix and flips” have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month.
10. The key is lowball offers. The numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate, if you understand creative financing - and how to do the math.
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08.09.08
The real estate market tends to cyclical, with some periods for buyers and other periods in favor of sellers. As with other free markets, prices and availability of real estate is directly linked with the forces of supply and demand. While many real estate markets in the United States, are experiencing significant declines, other markets remain robust, and some even continue to grow. What makes the situation more complex, that even within a particular city or county may be some areas that are hot and others who are cold.
In parts of the country in which the real estate market slows, there are some things homebuyers can do to increase their chances of obtaining property that they want on terms that are favorable. Here are some strategies to consider:
1. Specify that you want. Be sure to understand what kind of equipment you need (such as bedrooms, bathrooms, size, yard, location, etc.). Identify the elements that you “should” and objects that you would be willing to give, if your other priorities have been met.
2. Consultation with experts. You certainly have heard that all real estate is a local, “so a hand with the best available information. Consult a local real estate expert who can lead you that the community hot and those that are not. Obviously, you’re more likely to find deals in communities that have excess supply and limited demand than vice versa.
3. Understanding the market data. Receipt and evaluation of the data may be one of the most powerful tool in your arsenal. Identify communities that you find desirable, and ask your real estate agent to provide you with relevant statistics on sales. For example, your agent can provide you with:
a. A summary of how many properties are available in the community that you deem appropriate.
b. How long properties are on sale this month, last month, last quarter, last year, etc.
C. How many properties sold this month, last month, last quarter, last year, etc.
D. Changes in average and the average price of properties in the community this month, last month, last quarter, last year, etc.
e. Data on the sales price at the list price (SP: LP). This figure provides information about how much, on average, sellers reduce their prices.
F. Details of the properties that are similar to the type of property you choose (often called “comparables” or “COMPS”).
4. High inventory of the community. Identify, or ask your agent to identify, communities, which seem to be particularly slow, and which are unusually large list of homes. You will have a wider variety of options in these communities, and you can increase the likelihood of finding a better solution.
5. Mortgage approval. Be sure to consult your bank or mortgage broker and get a loan before approving the document. This not only allows you to find out how much you can afford, but it also demonstrates to sellers that you are a serious buyer, and that your proposal deserves serious consideration.
6. Seller motivation. Although information on why the seller is selling are usually confidential, there are situations where the seller will allow their agents to disclose important factors relating to their personal situation. Be sure to ask your agent to know any information that the seller has disclosed his / her agent, which can be brought to your agent. This information can help you decide on the proposal for the property, and the price you would like to suggest.
7. Home inspection. Home inspections are carried out by qualified inspector can provide you with valuable information on the status of the property. In addition, if there are items that need repair or replacement, you can use this information to change your offer price or terms.
8. Extend the scope of the search. As mentioned above, even in a specific city or county may be some areas that are hot, while others are not. Must be provided detailed information on what you want your agent that he / she can give you different options community.
9. Be patient. Time is not on your side when there is excess supply and inadequate demand. Try not to “fall” in the house so that you can not be objective. It may be that many proposals and counter proposals to occur before you get a property or you want to decide to walk the path of the transaction. You can also see more properties than usual so that you are exposed to various options.
Despite the above, this is not an exhaustive list of strategies, it is a good starting point for issues to consider when buying a property, especially in a market that encourages buyers. Get the services of experienced real estate agent who can provide you with additional strategies to help you achieve your goals real estate.
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06.01.08
For the success of a man is a woman, and for the success of real estate is an ideal agent. Indeed, the human resource, which is considered the most important factor for the real estate business to success.
Moreover, real estate can be profitable activities, when managed properly human rights. But what is needed to be an ideal real estate agent? Here’s how:
1. Have a solid track.
Most people who succeed in life knows where they want to eat, what they want done and the reasons for it. And so, for the person to be successful real estate agent, he or she must include this feature in order to succeed in this industry.
2. The ideal real estate agent knows who he or she is.
The skills, strategy and marketing tools will be all wasted if the real estate agent does not have a solid assessment of his or her own identity.
Consequently, the real successful agent honest in their endeavors, especially those that include transactions with the client. If, however, primarily real estate agent is not true to himself or herself, a real estate agent is likely to experience difficulties in dealing with other people.
It all boils down to the fact that success is the faithful, not any other things, but in ourselves.
3. Optimism.
A lot of people who are successful in life with optimism. This means that people always positive prospects in life. Optimistic people believed that there is no such thing as failure. And the ideal real estate agent knows about it.
4. Motivation power.
The ideal real estate agent knows how to motivate people and move to action. This unique, that the power of each sales person to device a strategy that can motivate their clients to buy the product it sells.
5. Understanding the value of properties.
To become the perfect real estate agent, you should be aware of the ebb and flow of the value of the property. They must be taken into account with the utmost care and skill.
6. They should not price.
To be an ideal real estate agent must be deliberate with their clients in purchasing power. They must be sufficiently sensitive to detect if the price of real estate is quite reasonable to hit the market.
7. The ideal real estate agent does not participate in the sale difficult.
8. The ideal real estate agent knows how to make a pleasant showcase of the property.
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08.21.07
Why Real Estate?
Anyone can be rich in real estate. That is why many people are engaged in such investments.
Investing in real estate does not necessarily mean that you must be an investment banker or hotshot executive. You just need to be devoted to your goals and commit to it.
Real estate could lead you to great wealth. This is not just another get rich quick system. You need to know the most important principles, and then wisely put them into practice in the real world.
So you’re ready for the real estate?
The role of real estate
Their role is to find sellers for those who want to buy a property, and to find buyers for those trying to sell the property. They help sellers in marketing their property and sell it at the highest possible price for the best conditions. They also help buyers, helping them purchase property for the best price possible under the best conditions.
In the United States, a man who wants to be a real estate broker is required to be licensed, like other professionals.
Real estate licensees and realtors
There are two levels of real estate professionals licensed in individual states:
1. If you have a license to become a real estate agent, you will have real estate sales person license from the state where you will practice. To have such a license, you must pass some specific coursework and then pass state exam on real estate.
2. After gaining experience in real estate sales, you can solve real-estate broker’s license. More exchange and broker state exam on real estate should be adopted.
After receiving brokerage license, you can continue to work for another mediator to be for their own brokerage and be able to hire another vendor licensees.
Become Real Estate
To ensure that you succeed in real estate investment, you can get your real estate license and later, your broker license.
With this not as hard as you could imagine. Each State shall have its own set of rules, but the process is much the same across states.
Benefits are available if you have a real estate broker’s license can be divided into four categories.
? Commissions, which can be obtained
? With access to the Multiple Listing Service (MLS) can help you find properties quickly and easily. You can also use data from the MLS for your market analysis of property.
? You can get more control over the transaction. Once you’ve licensed broker, you will not rely on the services of third parties to search for properties, execute documents, or the whole leadership of the transaction.
? Properties can be listed for sale under your control. When the time comes for you to dispose of the property, you will not have to rely on another person to list it in the MLS. It will also get you commission savings as well.
Getting a brokerage license gives you the advantage of real estate investment. Efforts to obtain such licenses will be rewarded with the first transaction in which you earn a commission.
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