I still think you can do it if you are well educated in home values and knowledgeable about costs to repair a home. I have a client who recently purchased a home to flip and I will be listing it in about a month. So we'll see how that will do. In this market. It doesn't matter if it is a condo or a home in my opinion.

Tue Jun 10 2008, 14:45

Aloha:

My name is Mike Gallagher and I am Broker in Charge at RE/MAX Honolulu.

Although this is a strictly a Buyer's Market now, flipping can still be done if you do your due deligence and are aware of the nuances within each of the Neighborhood Markets you are looking to make a quick profit.

Condos, which are the preferred choice for this type of action since the risk is much lower than for SFH's and are also in more demand than SFH's.

As a realtor my clients and prospects often times ignore the fact that most of my earnings come from Commissions on sales. This is not true. Most successful realtors will buy and sell property just like anyone else and make profit.

My choice would be to look at Condos as your preferred investment choice. Since most of the buyers in today's Oahu Condo Market are purchasing at the lower end of the price offerings I would look for a condo that is a 1-2 bedroom. Fee Simple, no pool and mostly no amenities that will drive up the Monthly Maintenance Fees.

Look for a Condo within these parameters, but make sure they have at least assigned parking stall and search the MLS for 'at market' or 'below market' offering prices and take it from there.

If you need help in this endeavor, please visit my website athttp:// www.hawaiirealestatestatistics.com and call or email me at:

Mikeg@hawaii.rr.com 808-384-9015

I wish you much Aloha,

Mike Gallagher
Broker in Charge
RE/MAX Honolulu

Sat May 24 2008, 12:47

seems like there were/are some very bright people on this post. I grew up on Oahu and have lived the island twice. I made some money in Makaha and the N Shore. Any idea when the market will turn around? I read the Bankoh economic reports and they say 2013-2015. Would that be a safe guess?
Im stuck with a couple of rentals that I didn't unload in time and Im playing the waiting game.

Wed May 21 2008, 21:06

Rob Gerichs is a very wise man!!!!!!!!!!

I flipped on Oahu for two years and did well and seen other fail miserably.

Wed May 21 2008, 21:01

In my opinion, the best values are older homes that need to be torn down or need extensive work. If you can purchase these at close to the land assessed value (or less of course), then you may have some room to work with. There are many older homes throughout the state that are about fo fall over or in need of serious repair. I think some opportunites can be found here with some legwork and persistence.

Sat May 17 2008, 13:13

I've done some flipping in my time and I think there is still room for flippers in this market. However, there are a few stipulations that need to be met more than ever. First, the main rule, make your money when you buy. Don't expect to create much value by buying at market price and doing a few rennovations and expecting someone to want to pay over market price. Second, make sure it's in a location that people want to live. If you find that you end up trying to talk yourself into thinking it's a place people want to live than more often than not you'll beat yourself up later for doing that (one of the first lessons I learned). Also, if you don't plan on doing the dirty work yourself I think it might be tough to make margins. I was a contractor so I did my own work, but I really don't see how flippers who "hire it out" can make the margins anymore, unless you are working on an expensive higher end property. Lastly, I think your best bets are pre-foreclosures with equity. Find that home owner who is willing to sell their property now to stave off all the ills that come with foreclosure. However, BE CAREFUL, there is a lot of things that can go wrong during these types of sales. Please consult a lawyer if this is uncharted ground for you and move fast. Time is the biggest killer in these deals. I could go on, but I think you understand that now is the time to make sure you think everything through and have the cash, time, and patience to back it all up.

I have invested in real estate ever since I got out of college and it is by far one of the best ways for anyone to create wealth. However, if you don't know what you're doing it's the easiest way to lose your shirt. If in doubt at any time consult a professional. Best of luck!

Sat May 10 2008, 10:50

Yes, there is still a market for flipping homes, but one must be very careful.

The days of crazy appreciation in Hawaii are gone, so profit from flipping will have to be earned primarily upon adding real value to the property -- at a cost which is less than the added value. Assuming a stable market with zero appreciation, with any property type (Single-family home or condo), you must be able to increase the market value of the property (in my opinion) by at least 20%, while keeping your expenses, including carrying costs, realtor fees, etc., to no more than half of that amount. Naturally if your costs are less, you can afford to have less of an increase in the market value of the property.

And, also (in my opinion), the property must be either ever so slightly underpriced or spot on, so it sells rapidly.

The best areas on Oahu for flipping are those that are still appreciating, or that are stable and not declining - and this is provided that you are dealing with property types (e.g. 3 versus 2 BR homes w/ 2 versus 1 BA) and price points with the highest demand (right now the greastest demand seems to be both on the very low end and the very high end for SF homes). Look for foreclosures and eyesores which are really horrible only cosmetically, to get the max return. Right now, there is so much condo inventory that they may not be the best thing for flipping.

Fri Aug 24 2007, 13:51