7 Tips for Foreclosure Property Investing

With foreclosures rising nationwide, prices falling, and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties, says James Saccacio, CEO of RealtyTrac, which tracks foreclosure data. Saccacio offers this basic advice to foreclosure investors:

1. Know your market. The most important tool in your real estate investing toolbox is knowledge of the area where you plan to invest.
2. Develop an appropriate investment strategy. Find an investment strategy that will work in your market, and then do what it takes to implement that strategy.
3. Make the foreclosure process work for you. Decide what foreclosure buying technique works best with your investment strategy and your strengths as a person.
4. Scrutinize each deal. Many real estate investors wrongly assume that if a home is in foreclosure it's a good deal.
5. Rely on a trustworthy team. You'll be in over your head if you try to do all the work involved in foreclosure investing on your own.
6. Network with banks and lenders. In a slow real estate market, banks and other lenders are saddled with larger inventories of foreclosed properties and will be more motivated to sell those properties at bargain prices.
7. Act quickly, but don't be in a hurry. A slow real estate market gives you the upper hand as a buyer, but you'll still need to act quickly to get the best deals.

— REALTOR® Magazine Online


Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

Top 10 Reasons to Invest in Hawaii Real Estate

I was talking to my long time friend about the real estate market today and she got me thinking about all the great reasons why Hawaii is a prime location to invest in. No matter what the real estate market might look like at any given time, there’s no doubt that over the long haul, Hawaii real estate will always go up.

Why is that? Well, there’s really no new land that’s being created and the land that is being created is well…. Let’s just say that living on a lava field isn’t exactly a great idea. And since there’s no new land, supply is limited. Now, you know the whole deal about how supply and demand works, right?

So here it is! The top 10 reasons why investing in Hawaii Real Estate is a good idea. If you can think of others, feel free to add them to the list.

1. Given enough time, property values will always go up. There will always be an up and down cycle to any real estate market, but real estate values will never be what they were 30 years ago.

2. The Hawaii market always lags the continental counterpart.

3. Aside from inter-island travel, the longest one way trip you’ll ever make on an island is at most 100 miles. In fact, by traveling 100 miles, you could drive essentially around the perimeter of most of the islands. That’s good news for commuters!

4. No matter how far inland you are, you’re never really far from the beach.

5. Weather can vary significantly depending upon where you are on the island. One side of the island can be raining while the other side of the same island has practically no rain at all.

6. The farthest island is about 50 minutes away. Travel to another island within an hour.

7. You can live on one side of a high rise condo and have a spectacular view of both the mountains and the ocean.

8. The temperature difference between summer and winter is at most 40 degrees. Winter temperatures average in the low 60’s.

9. You can live in the tropics and still enjoy convenience stores and Starbucks.

10. You’re kids will think you’re the bomb if you ever gift your Hawaii estate to them!


Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

Buyer Strategy: The Equity Trade-in Plan

Ever wonder how ordinary people can afford homes costing over half a million? These people aren’t pulling in a six figure income individually; they’re just regular folks, but they live in the some of the most prime locations such as Mililani Mauka, Downtown Honolulu, or even Hawaii Kai. Just how do they do it?

“Trading in” or “trading up” is the strategy to use. Your initial home (starter home) purchase is in an affordable range and somewhere in between every 3 – 7 years, you sell your old home and purchase another home with increasing value. Now there are many factors that influence when you would “trade up” but basically, the idea is that you capitalize on the equity being built in your home. Equity is built as you make your regular mortgage payments, but equity is also built as the market increases in value.

A “starter home” is your first home purchase. Many times, it’s not your dream home, but it is something you can afford as well as some place you can live in. When is a good time to purchase your starter home? The answer to that question is different for every situation, but a good answer would be “as soon as you can afford to purchase”. Why is that? Because as a renter, chances are you’re paying off someone else’s mortgage. You’re building someone else’s real estate investment equity. Why not start building your own wealth instead of building up someone else’s?

In the Hawaii real estate market we live in today, rarely do first time homebuyers purchase one home to live in for the rest of their lives as their parents did. With the average sold price of single family homes costing over half a million, the equity trade-in plan provides a way for your family to be able to afford the purchase of your dream home perhaps within a couple of trade-ups. So are you wondering if the equity trade-in plan is for you? Again, there are many factors that influence when you trade-up. Consult with a local realtor who can give you current market activity in your area to make the best decision.


Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

10 Steps to Prepare for Homeownership

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report.

6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.

7. Organize all the documentation a lender will need to preapprove you for a loan.

8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10. Find an experienced realtor who can help you through the process.


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®Copyright 2005. All rights reserved.


Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

Tips for Finding the Perfect Neighborhood

The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.

Make a list of the activities—movies, health club, church—you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.

Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.

Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

See if you’ll make money. Ask a local realtor or call the local realtor association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. A realtor or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.

See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®Copyright 2005. All rights reserved.


Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.

Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992

Searching for Hawaii Foreclosure Properties

We all hear stories of how your neighbor got a great deal on a foreclosed property and illusions of grandeur fill our minds. Okay, reality check! So maybe we don’t necessarily want to own a dozen properties – maybe just our own home and prices these days in Hawaii are outrageous! The truth is that foreclosure properties are out there but it takes work to find them. Chances are that if you spot a great deal, so did at least 50 other people if not more. Honestly, did you think you were the only one checking the newspaper?

Still, if you’re serious about purchasing or investing in a Hawaii foreclosure property, here are some websites that list these types of properties. The best thing about them is that they’re absolutely free to review. There’s a lot more to purchasing foreclosure properties than these links, but they will be sure to provide more current property leads when you’re in the market for them.

1. The Honolulu Star-Bulletin – click on the “foreclosure” link in the Island Homes section.

2. Hudson and Marshall – they’re a company specializing in auctioning real estate

3. Premiere Asset Services – handles Wells Fargo foreclosed properties

4. Countrywide REO – handles Countrywide Mortgage foreclosed properties

5. Bank of America REO – handles Bank of America foreclosed properties

6. HUD PEMCO – handles HUD homes in Hawaii, California, Georgia, Guam, and Marianas

7. Fannie Mae REO – handles Fannie Mae owned foreclosed properties

8. Freddie Mac REO – handles Freddie Mac owned foreclosed properties

9. FDIC – handles asset sales for FDIC owned and seized properties

10. IRS – handles real estate properties foreclosed due to taxes

Again, these are just sites of listings for Hawaii foreclosure properties that are available. You would still need to do your due diligence on the property before purchasing.

Coreen K. Nishijo (RA)
The Master's Plan Realty, LLC
ckn0316@hawaiiantel.net
Office: (808) 488-2992