Category: Market Updates

Win-Win: A 2015 Market Forecast

It seems like the rush to apartment building investment may be slowing down–lenders are reporting that while lots of things are going into escrow, almost just as many are falling out. Have the returns (cap rates) compressed (lowered) so much that asking prices are just not reflecting the values lenders (and thus buyers) need to…
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Pricing It Right

I was having breakfast with a colleague this morning, and I explained that a seller I was working with had been told that his asset was worth $1-$2 million dollars more than I had calculated. Now, when I’m valuing a property I look at the income, I look at the comps, and I look at…
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Inherited Property–Sell Now or Later?

Have you inherited an apartment building recently? It may be better to sell it now rather than later because of your stepped-up basis. Check with your tax advisor to find out whether it’s best to sell now… Inherited Property The basis of property inherited from a decedent is generally one of the following. The FMV…
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How to Handle Rents and Security Deposits in a 1031 Exchange

A common practice when closing the sale of an investment property is for the seller to give the buyer a credit for any security deposits held by the seller and any rent that is to be prorated between the seller and buyer.  If the seller is doing a 1031 exchange, it’s important to understand how…
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Hawaii Apartment Buildings For Sale

Commercial Investment Strategies, LLC (CIS) specializes in transacting multifamily sales of apartment buildings. Hawaii apartment building sales. Whether you’re a buyer or a seller, CIS can help you achieve your investment goals through professionalism, attention to detail, and efficiency. Check out our available Hawaii properties and Hawaii apartment buildings for sale [txp_properties_map_listing height=250] [easy_query post_type=”property” taxonomy=”property_category”…
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Are You Gonna Pay for That?

I know, I know, it’s absolutely confusing. Why does property A have expenses totaling 8% of the gross while property B has 38%? Why isn’t this calculation standardized? Both are hollow-tile walk up buildings, both are located in the same area, and both have the same utility services. The answer is simpler than you think:…
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Always A White Belt

I recently joined Bigger Pockets, a real estate investing forum that specializes in discussing cash flow and is mostly geared to the investor. I’ve been looking for an audience to discuss my expertise with for a long time now, and Bigger Pockets seems to be just that–a community of savvy and sophisticated investors dedicated to…
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Do you know that 100% AMI per Bill 7 allows for: $2,260 for a studio. $2,411 for a 1BR. $2,848 for a 2BR. $3,243 for a 3BR. $3,646 for a 4BR. Rents do not include utilities. (* Per Bill 7 authors, Mel Kaneshige and Marshall Hung’s, informational presentation about Bill 7) #LinkedIN View A…
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Impacts of Covid19 on the Hawaii Real Estate Market

Did you miss the live streaming of Economist Paul Brewbaker on May 5, 2020 regarding Impacts of Covid19 in the Hawaii Real Estate industry? If so, here are some of his salient points: 1: Adapting to the new normal of Hawaii’s housing market will involve a lot of hard work. Switching to using digital tools has made working from home a somewhat manageable ordeal. The…
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Here are five breaks you’ll miss the most in the tax bill

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Christina Dwight closes another deal with the City

The city spent $6.9 million to buy a three-story, 24-unit walk-up apartment building on Beretania Street to be used for low-income and homeless housing. The purchase of the building at 1727 Beretania St. — makai of Central Union Church and not far from the high-rise where President Barack Obama was raised — is expected to…
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Relating to Medical Marijuana: Your rights as a Landlord

On April 30, 2014, the Hawaii state legislature passed House bill 1503 relating to medical marijuana use in your apartment building by your tenants. Essentially, the new law allows the use of medical marijuana if your tenant has a valid certificate. The BIG BUT here, however, is that if you don’t allow smoking in your…
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The Pet Deposit: How much more you can collect

Having a pet is a privilege many tenants would pay more to enjoy, but did you know that in addition to collecting a higher rental rate, Hawaii’s law now also allows you to collect a pet deposit equivalent to one month’s rent. Whereas prior to this change, one month’s rent was the maximum a landlord…
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Hawai`i’s New Rental Agreement and The Fine Print

Our state recently adopted a new rental agreement, effective May 2013, which adheres more closely to the Federal Service Members Civil Relief Act and clarifies a bunch of other things.  Previously, the Hawaii Association of Realtors-approved form was vague, allowing service members the latitude to interpret the language, resulting in a lot of landlords being…
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Hidden Boot: how to find it.

Thinking of Exchanging?

The tax rates haven’t been raised…YET but here’s a handy calculator to figure out your net proceeds from a sale with the intent to exchange

Reverse Exchanges and more.

First American Exchange is a really great company to use, with excellent resources and lots of great tips, so check out the link below. Did you know that your escrow company and your exchange company ARE NOT the same? You can use a number of exchange companies even if your escrow is at another company–it’s…
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The Old Rules – Real State Investments

I have a friend who is extremely fearful of purchasing a home, even though he’s gainfully well-employed. He keeps hearing from his friends and family about how they are underwater on their mortgages, how they can’t make ends meet, and how it’s all because of the bad loan they got to purchase their home. What…
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2013 Forecast

I just attended the CCIM/BOMA 2013 forecast for Hawaii, and I learned a lot about what to expect out of the next twelve months. 27% of all transactions in our state last year were multifamily. That’s mostly because there were two huge projects that changed hands. Usually it’s about 8-10% 83% of those transactions were…
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Off Market Deals List

Can’t find anything on the market that appeals to you? Contact me for more information about these deals and more!

Looks like you can defer that 3.8% in your exchange.

Source :   There has been some question as to whether taxpayers could use a §1031 exchange to defer the new 3.8% tax on investment income.  The IRS has issued proposed regulations that answer the question with a resounding “Yes”. The new tax is an additional 3.8% tax on “unearned income” which is generally defined…
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