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Buying Advice

Purchase a Hawaii Investment Property Before You Turn 40

I am pleased to share that I am currently helping a number of young people from around the world purchase investment properties in Hawaii. By the nature of my age, 34 at present time, I have helped many younger people with purchasing and selling their first/second homes. The group of buyers which this post focuses on have decided that they want to further their investments in real estate by purchasing income producing properties. A few recent posts that I have authored have helped to improve this new and hopefully continuing trend:

This is a novel trend for me in my 11-year career as a Broker. Up until recently, almost all of my investment condo clientele have been people nearly twice my age. Currently, I am representing four different groups of younger buyers that fit these parameters. However, the underlying fact remains that the baby boomer generation has by far the most capable means to make these discretionary purchases. What’s most exciting for me is to see younger people placing their continued faith in the Hawaii real estate market. Regardless of your age, please call upon my expertise.

Put My Experience to Work For You

One of my clients, Eric Anderson, who I am currently representing as a buyer on an unlisted property at The Honua Kai Resort and Spa, intends to rent the property out on his own to help maximize his investment ROI. I asked Eric to share his perspective as a successful young man purchasing his first investment property. He was very kind to share his direct words here with me:

“I’m 28 years old and by the time I turn 40 I want to be working for fun money. The daily question I ask myself is how. I’ve been saving as much as I can since I graduated college and got a job. Finally, I have enough money to make a move. Unfortunately, the question remains how?

Eric Anderson’s First Investment Option

I still don’t have any ideas for starting a business, so the first thing I looked into was the stock market. Initially, the stock market looked promising. Over time it has historically gone up and there are plenty of stock market success stories like Warren Buffet. Unfortunately, the stock market is at an all-time high and I have the old saying in mind, ‘buy low and sell high.’ To further complicate matters, I can put money into the stock market but then I have no control over what happens except to buy or sell. I plan to invest money in the stock market to diversify, but now is not the time for me.

Eric Anderson and his girlfriend Kris. He is in the process of purchasing an off the market one bedroom residence at The Honua Kai Resort and Spa in Ka’anapali.

On Real Estate Investment

The next thing that pops in my mind is one of my best friend’s suggestions, real estate. Like the stock market, there are plenty of success stories and the possibility of monthly cash flow. Monthly cash flow is a big deal because once there’s enough you can potentially live off it. I began researching real estate and it seems promising but there are way more questions than answers. Do I want a home, condo, vacation rental? How much do I want to spend on my first investment, should I start small and work my way up? I know I want to purchase on the island of Maui, where I live, but where will I get the best returns?

Research on Real Estate

I started my search online reading about the costs and benefits of each type of real estate investment. I browsed the listings online to get a sense of what was available. On weekends I went to open houses, talked to Realtors, and got as many opinions as I could. I put together spreadsheets estimating gross revenue, costs, and profits for what looked to me like the best opportunities. I scheduled appointments to see a few properties with potential. In most cases, the numbers looked promising and I was feeling more and more confident that I could succeed with a real estate investment. I had narrowed down the options of what I was looking for to multi-family homes and vacation rentals but I had yet to really learn about the market on the west side and the market for vacation rentals. I wanted to talk to an expert, somebody that already had success in what I was trying to do and realized that I needed help picking the right property based on my goals.

Honua Kai Hokulani 825

(Hokulani #825 is located in the same tower as the property that Eric is purchasing and is a premium ocean view 3 bed/3 bath vacation rental property that I represented my clients on, and is now available for rent through our portfolio.)

Encountering Jeremy Stice

In doing research on vacation rentals one night, I found Jeremy’s blog. It broke down gross revenue, costs, and what I might be able to expect for profits and cash on cash return. A few people I talked to had scribbled some general numbers on a napkin, but nothing this detailed. I was able to compare my spreadsheets with the way he was calculating his. His first blog was helpful, so I started reading the rest. Turns out Jeremy was exactly what I was looking for, an expert on investment properties, because he owns his own portfolio and manages them himself. I immediately sent him an email hoping to pick his brain about why he invested in his specific properties.

Starting the Journey on Real Estate with Jeremy Stice

In no time at all, I was on the phone with Jeremy talking real estate investments. He introduced me to real estate on the west side and was able to explain why he’s made his investment decisions. He answered all my questions promptly, honestly, and accurately. I asked Jeremy, if he were in my shoes, where would he put his money? The next day I received a list of properties based on what I was looking for. Jeremy explained the positives and negatives of each of the properties. Being the way I am, I always like to do my own research for comparison purposes as well, so I got to work. I couldn’t find anything more attractive than what he proposed. A big part of a real estate investment is location, and Jeremy was able to find the best locations for the best prices. I narrowed down the choices to a couple properties and Jeremy provided me with spreadsheets comparing them. We made an appointment to go see my favorite and the rest is history.

Honua Kai Night Feature

Honua Kai evening – a recent shot from my collection at Honua Kai where Eric is purchasing his property

Established Contact with my Realtor

My offer was recently accepted. I’m now in the process of setting up the opportunity that for so long eluded me. I never realized how much work it would be to get everything set up. But luckily, I have Jeremy on my side answering my questions and guiding the way. When Jeremy helped me select the property, it was the first step on a long journey. You better believe that once I have the money saved up in a few years, I’ll contact Jeremy again. If you’re looking for a real estate investment in Hawaii, I suggest you call or email Jeremy.”

I Pick Up My Cell Phone & Respond to Email in a Timely Fashion

All of this doesn’t provide any value if you can’t get ahold of your Realtor. I make a commitment to pick up my cell phone as best as I can;  return voicemails; answer text messages; and respond to emails in a timely fashion. I do also work 7 days a week, so feel free to call me anytime you need me. If I am busy at the time, I will get back to you shortly. I am here at your service, so reach out to me today.

Jeremy Stice REALTOR (Broker #21286) Maui, Hawaii
Top 100 Realtor recipient in State of Hawaii (out of 14,000 Realtors) 2014, ’15, and ’16 
808.281.2178 Direct
Jeremy@HawaiiLife.com

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