Kauai Real Estate Investors

My computer crash last week temporarily causing me to loose my email contact list and delay my posting an updated blog. Three REOs with Kauai Dreams Realty went on the market since my last post and a few with other brokers.

NEW On the market with Kauai Dreams Realty:

1. 4062 Blackstad Road aka 4031-L Koloa Rd (Off of). This REO has two homes and a cottage on 1.28 acres in Lawai. The homes need a lot of work as one was in the process of remodeling and was in just a real fixer. $689,900 MLS#213597

2. 5261 Laipo Road, Kapaa, 3 bedroom 1 bath home on a larger fenced lot of 9614 sq.ft. Only $357,000 MLS#213299

Mauna Ikena photo

3. 1735 Mauna Ikena Road, Kapaa. 2 bedroom 1 bath home on a large CPR lot. In a upscale area. $397,900. MLS#213692

New on the Market with other Brokers:

1. Kuhio Shores #313, Poipu. On the water condo for $715,000. Owned by Countrywide MLS#213644

2. 4272 Kailewa St., Hanamaulu. 3 bedroom 1.5 bath home. Owned by Countrywide MLS#212729

3. 4433 Kilauea Road, Kilauea. 3 bedroom 2 bath home. Owned by Countrywide MLS#213506

It appears to me that Countrywide has not yet adjusted to the market and these prices most likely will come down.

Existing REO Price Changes and Updates:

#1. Kauai Beach Villas #2304 reduced to $254,900. Now $239,900
#2. 5309 Kualono St, Kapaa 3/2 home $379,900. Reduced to $359,900
#3. Islander on the Beach #168. Sold for $180,000 on 7/3/2008.

Still Upcoming :
#1. Kaahele St, 3/2 home in Wailua Homesteads Kapaa.
#2. Elika Place, 3/2 home in Kapaa.
#3 Moa Road, Unfinished craftsman home in Kapaa
#4. Kakela Makai, Vacant lot with ocean views in Kalaheo.
#5. Royal Drive 2 homes on the rim in Wailua Homesteads.

Buying a REO is still one of the best ways to insure that you are purchasing a bargain. However there are other well priced privately owned properties. It is best to check with a seasoned agent or broker to be sure that your purchase is in line with todays market. As always feel free to contact me if you have any questions about REOs, foreclosures or Kauai Real Estate in general. Aloha Julie julie@hisemail.net

Many Sellers in financial straits have become informed and are now listing and selling their property via a short sale. This is where the lender or Bank agrees to a sales price often less the the amount of the loan on the property. This can be a win win situation for both the bank(as they do not have to spend their time, resources on foreclosure) and the property owner (as a short sale may not be as devastating on a credit report as a foreclosure). However banks may take months to respond to a presented short sale and may not agree. If a buyer has the patience this can be away to purchase a property at current market prices as many home owners on Kauai are not yet willing to drop their prices to the current market levels.

Kauai’s Current REO’S:

Upcoming REOs with Kauai Dreams Realty: Photos are above subject address
#1. Kaahele St, 3/2 home in Wailua Homesteads Kapaa.

#2. Elika Place, 3/2 home in Kapaa.

#3 Moa Road, Unfinished craftsman home in Kapaa

#4. Kakela Makai, Vacant lot with ocean views in Kalaheo.
#5. Mauna Ikena, 2/1 home large lot in Kapahi.
#6. Royal Drive 2 homes on the rim in Wailua Homesteads.
#7. Laipo Road, 3/1 in Kapaa. To be listed shortly.
#8. Blackstad Road, 2 fixxer homes on over an acre in Lawai.

In escrow REOs:
#1. Puamana #26, Princeville listed for $319,900. Cash offer over listed price.
#2. Hale Lani condo Lihue. Listed (with another broker) for $254,900.
#3. Islander on the Beach #168 Listed (with another broker) for $200,000.

REOs still listed with other brokers:
#1. Kauai Beach Villas #2304 reduced to $254,900.
#2. 5309 Kualono St, Kapaa 3/2 home $379,900.
#3. 2469 Keneke St, Kilauea 4/2 home $634,500.

In general I foresee the REO inventory peaking this year for single family homes. Condo REO inventory will probably increase and peak next year especially in the lodging type condos such as Kauai Beach Villas and Islander on the Beach.

You can email me with any questions or inquiries you may have. If you sign up for my email list you will know the prices of any upcoming Kauai Dreams Realty REO before it hits the MLS. Aloha Julie julie@hisemail.net

6/13/08 Update: Puamana 26B is listed at $319,900.
Upcoming 1683 Elika Place, Kapaa. Custom home.

Recent changes in Kauai REO updates are:
#1. Sold on 5/30/08: Villas of Kamalii #35, Princeville for $665,000.
#2. Sold on 6/4/2008: 4243 Waiahi St, Hanamaulu for $369,900.
#3. Listed on 5/21/2008: 2469 Keneke St. 4/2 3080 sq.ft. living area, located across the Kilauea Gym. MLS#211611
#4. In escrow: Halelani Village 3/2 condo for $254,900.
#5. In escrow: Islander on the Beach, Unit #168, 0/1 condo for $200,000.

Not yet listed but available to see now:
#1. Puamana 26B in Princevile. 2/2 condo.
#2. 5261 Laipo Road, 3/1 home in Kapaa.

Photo of Laipo Road
#3. 4062M Blackstad Road, Koloa. 2 fixers on over an acre.

Upcoming:
#1. 1735 Mauna Ikena Road #A, Kapaa
#2. 148 Royal Drive, Wailua Homesteads.

Still available:
#1. MLS#207359 5309 Kualono St, Kapaa. 3/2 Reduced to $389,900.
#2. MLS#209739 Kauai Beach Villas #2304 0/1 Reduced to $269,900.

The Banks are pricing their REOs competitively to sell quickly. However most banks are still behind in selling their foreclosure inventory and I expect more REOs to be available as the year progresses. One way of estimating how many REOs will be coming on the market is by looking at the foreclosures posted by RealtyTrac (www.realtytrac.com). Although I have found this information to be useful it is not 100% accurate and does not encompass 100% of the foreclosures/upcoming REOs on Kauai. For more information on any of the REOs listed here or general questions, feel free to email or contact me. Aloha, Julie julie@hisemail.net

Just as predicted mainland lenders are catching up on their foreclosure inventory on Kauai and more Bank Real Estate Owned (REO) properties are coming up for sale on Kauai. A common questions prospective buyers ask me is if they can buy the property prior to it coming on the MLS or can they buy the property directly from the bank. The answer is “No”. The banks are very systematic in their sales processes. Once they come up in their inventory, the process begins and in most cases is managed through computer web based systems. Most of the agent communication is even done through a web based system. Although there usually is a “live” contact in the case of OCWEN Bank that contact has been outsourced to India. So if you are hoping to buy a bank REO it is best to ask your agent for the Banks purchasing procedures to be sure your offer does not get rejected because of techinical issues.

Here is an updated Kauai REO list:
NEW
#1. Kauai Beach Resort Condo #2304. Studio condo in an oceanfront resort complex. $279,900. MLS#209739

Current listed REOs on Kauai are: (no price changes since last blog)
#2. Villas of Kamalii at $699,999 in escrow and due to close in May 29, 2008
#3. 4243 Waiahi Street, Hanamaulu. MLS#209447. In escrow due to close May 2008.
#4. Islander on the Beach #168 condo. MLS#210506 for $200,000.
#5. 5309 Kualono St, Kapaa, SFR 3/2 Reduced at $399,000. MLS#207359
#6. Halelani Village, Lihue, Condo 3/2 Reduced at $294,900. MLS#207665

Upcoming:
#7. 4062-M Blackstad Rd (Off Koloa Road) 2 homes and guest cottage on over an acre. A fixer upper for sure.
#8. Puamana 26B, Princeville condo. A 2 bedroom 2 bath unit. No price yet.
#9. Laipo Road , Kapaa, 3 bedroom home should come up this May
#10. Kapahi 2 bedroom 1 bath home, great location. No price yet. Address can be revealed once the occupants are gone.
#11. 2 homes on the rim in Wailua Homesteads. Previously listed for over a million.
#12. 4 bedroom 2 bath home in Kilauea.

Be sure to email me julie@hisemail.net if you want to be put on our REO email list for immediate updates on REOs listed by Kauai Dreams Realty. You are also welcomed to email me with any questions you might have in regards to buying REO or foreclosure properties.

Aloha Julie Black

Current listed REOs on Kauai are:
#1. Villas of Kamalii at $699,999 in escrow and due to close in May 2008
#2. 4243 Waiahi Street, Hanamaulu. MLS#209447. After a number of offers the bank finally accepted a full price offer.
#3. NEW Islander on the Beach #168 condo. MLS#210506 for $200,000. Call or email for more details.
#4. 5309 Kualono St, Kapaa, SFR 3/2 Reduced at $399,000. MLS#207359
#5. Halelani Village, Lihue, Condo 3/2 Reduced at $294,900. MLS#207665

Upcoming:
#6. 4062-M Blackstad Rd (Off Koloa Road) 2 homes and guest cottage on over an acre. A fixer upper for sure.
#7. Puamana 26B, Princeville condo. A 2 bedroom 2 bath unit. No price yet.
#8. Laipo Road , Kapaa, 3 bedroom home should come up this May
#9. Kapahi 2 bedroom 1 bath home, great location. No price yet. Address can be revealed once the occupants are gone.

View from Blackstad Road Property

It will be interesting to see if the Anini Estate at 3557 Anini Road previously owned by Jim Lull ( a once prominent loan officer here on the island of Kauai until scandal and bankruptcy hit) will sell at foreclosure auction or will be taken back by the bank. If taken back by the bank this multi million dollar property will be the priciest REO on Kauai’s current real estate market. To be added to our REO Foreclosure list just drop me an email at julie@hisemail.net. Aloha Julie Black (R) Owner Kauai Dreams Realty

After dealing with massive foreclosures on the contiguous 48 states, mainland banks are releasing their foreclosure inventory onto the Hawaii market. Kauai has been averaging around 3 new REOs a month. This figure will probably increase to around 5 to 7 a month as mainland banks are catching up on their foreclosure inventory. Current Bank owned properties listed on Kauai are:
1. 5309 Kualono St, Kapaa, SFR 3/2 at $414,900. The previous owner had paid $437,000 on 4/27/05. MLS#207359
2. Halelani Village, Lihue, Condo 3/2 at $314,900. The previous owner had paid $390,000 on 7/25/06. MLS#207665
3. Villas Of Kamalii #35, Princeville, Condo 3/3 at $699,900. The previous owner had paid $620,000 on 2/15/2005. MLS#199987.
4. 5168 Kawaihau Rd, Kapaa, SFR 3/1 at $274,900. No data on previous sales. MLS#204319
5. 4243 Waiahi St, Hanamaulu, 3/1.5 SFR. $369,900. The previous owner had paid $440,000 on 6/26/06.
6. 4062-M Blackstad Rd (Off Koloa Road) 2 homes and guest cottage on over an acre. A fixxer upper for sure. Not yet listed. Will update with price when listed. The previos owner had paid $850,000 on 3/8/2006.

4243 Waiahi Street, Hanamaulu.

Are you interested in buying a REO property? Most banks have similar requierments. A prequalification letter from a lender and sometimes in the case of Well Fargo or Counrtywide a prequalification letter from one of their loan officers. The Banks may also require proof of cash funds if your purchase is an all cash purchase. If you would like to be notified by email each time Kauai Dreams Realty gets a new REO just email me at julie@hisemail.net.

The past 30 days has shown an increase of bank foreclosure and REO activity on Kauai. 4941 Hui Road in Anahola closed escrow on 3/4/08. This property had a newer house and guest house on over a half acre and sold for $600,000. A Countrywide REO at 5688 Kula Mau’u St. in Kapaa went into escrow after only being on the market for 2 weeks. A Villas of Kamalii unit in Princeville just went into escrow after a major price reduction. At least two new REOs will be coming up this month. 4243 Waiahi St in the Hanamaulu area of Lihue should be priced well and up on the MLS in about 2 weeks. Another larger property in Koloa with 2 homes will also be coming up on the MLS by the end of the month or begining of April.

One sure sign that there will be more REOs coming up is the increase in banks and other companies ordering BPOs. BPO stands for Broker Price Opinion. This is where a banks repesentative will request a form be filled out on a particular home, by a real estate agent, where the home owner is behind on their mortgage. The recent increase of these requests appears to coincide with the increase of forclosures and REOs. Unfortunately the banks willingness to negotiate on price means lower home values for other properties. Fortunately current investors can pick up some real bargains. Often REOs have a bit of deferred maintenance but if you’re the type to roll up your sleeves or know a good handyman buying REOs are a good way to make a satisfying investment in an unsure economy.

February has picked up in market activity on Kauai. Out of all my listings it is the REO properties that receive the most inquiries. REO stands for Real Estate Owned property. It is the term Banks/Mortgage companies use to identify those properties they own due to foreclosure. Savvy investors look for REO properties because they know they can often get a property for below market value as banks do not like to keep real property on their books for too long. Many REO properties need some cosmetic and other repairs making it undesirable for the average owner occupant purchaser. This creates a buying opportunity for investors. Currently on Kauai there are approximately 5 REO properties on the market. Kauai Dreams Realty has two listed, Villas of Kamali’i #35 in Princeville (mls#199987 ) and 2900 Aheahe, Lihue (mls#199500). The three others are 5168 Kawaihau Road, Kapaa (mls #204319), 4925 Nonou Road, Wailua (mls#205899) and 5309 Kualono Street, Kapaa (mls#207359)

Banks are unemotional sellers but they do have their requirements. Inspection periods and closing dates are shorter than the average. Proof of cash funds or a prequalification letter usually from the bank that owns the property is now the norm. Kauai Dreams Realty is the REO listing broker for Wells Fargo Bank and a few other lenders. You can email me if you would like to be updated (email) every time a REO property on Kauai comes on the market.

Being a real estate broker or agent for the last 24 years I am a big fan of real estate and bought and own a number of homes, including a REO. I have not regretted any of my real estate purchasers. Did you know that you can purchase real estate for your self directed IRA or Sep IRA? This will be the subject of a future blog. Stay tuned.

Aloha Julie Black Owner/Principal Broker (R) CRS GRI
Kauai Dreams Realty
julie@hisemail.net

Aloha and welcome to my new blog, part of the Aloha Living Blog Network. I look forward to sharing with you both a professional and personal perspective on real estate in this area. Stay tuned!