Maui Real Estate

Denver investors buy Hotel Hana-Maui

2010-04-21T08:15:00.002-10:00

Produced from Pacific Business News

A Denver-based real estate investment company is buying the Hotel Hana-Maui for an undisclosed amount and plans to change how the boutique hotel is operated.

AmStar Group LLC said Tuesday that it would purchase the 70-room hotel on 70 oceanfront acres in East Maui from Ohana Hotel Co. in a deal that is expected to close in May.

The firm plans to reposition the AAA Four Diamond hotel, which will mean a change in current operations and new job descriptions that will mean a reduction in staff in the short term, the company said.

“A change in the existing operational model is critical to turning the hotel around and into a viable operation,” Joy Berry, president of Green Tea LLC, an Amstar subsidiary that will manage the property, said in a news release. “Our revamped organizational structure will take a team approach requiring employees to have more than one role, so that no matter the task, we all work together and help each other out to ensure the long-term viability and success of the hotel and more jobs for the community.”

In January, Ohana Hotel Co. notified the Hawaii Department of Labor and Industrial Relations that there was a pending sale that would affect approximately 200 employees, some of whom are members of the UNITE HERE Local 5, AFL-CIO labor union. The buyer at that time was not identified.

Green Tea plans to host a job fair within the next few weeks and is encouraging current employees and members of the community to apply for jobs. The company said it also is looking at possibly outsourcing some operational functions.

“We believe the Hotel Hana-Maui, if repositioned in the marketplace, can be profitable and grow, offering more jobs,” Berry said. “However, it will take hard work, resources, time and, most importantly, employees who support each other as we reposition the hotel.”
The purchase will be the first in Hawaii for Amstar, which owns hotels and resorts in Virginia, Illinois, Rhode Island, Florida, California and Colorado. It also owns office, multifamily, industrial, retail, residential and mixed-use properties in a number of states on the Mainland.

Makena Resort put in Foreclosure

2009-08-31T13:29:00.002-10:00

The Makena Resort, which was purchased by a Maui developer and Morgan Stanley two years ago for $575 million, is in foreclosure.

The partnership between developer Everett Dowling and Morgan Stanley created to purchase the 1,800-acre resort owes $192.5 million in principal, plus interest and late charges, according to the foreclosure lawsuit filed Monday in 2nd Circuit Court on Maui by Wells Fargo, acting in its capacity as trustee for the registered holders of the commercial mortgage securities that secured the property.

Prince Resorts Hawaii, which operates the Maui Prince Hotel and the Makena North Golf Course, was notified Tuesday that the foreclosure had been filed in 2nd Circuit Court on Maui on Monday.

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The Pitfalls Of The Short Sale

2009-08-26T09:16:00.002-10:00

Provided by Mortgage Market News
The Pitfalls Of The Short SaleThe Short Sale.

The new buzz word and opportunity for homeowners trying to dump their property for less than what is owed, is not the panacea for everyone. Yes they can be done, but it is in no way an easy proposition. One must take into account that a Short Sale is an “Open” negotiation to purchase property, and every aspect of the transaction is open to negotiation. Be aware that a Short Sale is nothing more than a negotiation to release the mortgage lien from the property so that title can be transferred. Here are some of the truths that sellers and buyers should be made aware of when considering this type of transaction.

1) A negotiated Short Sale could take several months for a lender to approve. With interest rates expected to only go up, some buyers might not want to wait.

2) The lender can counter the offered price and also stipulate that the buyers pay fees not customary with Hawaii transactions. These fees could include the buyer paying back property taxes, back HOA fees, paying commissions, and paying all of the Escrow and Title fees.

3) Once the lender approves the Short Sale, their terms might not be acceptable to the buyer. After waiting two months for the lender to approve a short sale, a buyer just cancelled their transaction because the lender required the transaction close in 30 days. The husband was out of the country and they would not be able to close in the required time frame.

4) A short sale does impact the seller’s credit rating. Depending on the payment history of the seller with their current loan, upon completion of the short sale the lender will report the mortgage to the credit bureaus differently. Deed In Lieu Of Foreclosure is one step up from foreclosure and is issued if the seller has stopped paying the mortgage during the short sale period. Paid In Full For Less Than The Full Balance will be issued if the seller has continued to make all payments on time. This rating will still have a major impact on one’s credit, and affect their ability to get another mortgage.

5) Upon completion of the short sale, the lender will issue a 1099-C and submit it to the IRS. Sellers should consult a tax professional to determine their individual impact.

6) Last, but maybe the most important item a seller needs to know is that the lender may and can require the seller to sign a separate promissory note to cover any shortage of what is owed to the lender.

Housing Data Exceeds Expectations

2009-08-26T09:12:00.003-10:00

Provided by Mortgage Market News
Housing Data Exceeds Expectations

Strong manufacturing and housing sector data contributed to a rally in the stock market this week. This would ordinarily push mortgage rates higher, but the strong economic news was offset by tame PPI inflation data and a significant increase in Fed purchases of mortgage-backed securities (MBS), leading to a mild decline in mortgage rates during the week.

The national housing market data released this week was positive. July Existing Home Sales rose 7% from June, to the highest level since August 2007, and were 5% higher than one year ago. This marked the fourth straight monthly increase. Taking advantage of the $8,000 tax credit, first-time homebuyers accounted for 30% of all transactions. Inventories of unsold homes held steady from June at a 9.4-month supply.

In addition, the National Association of Home Builders (NAHB) Housing Market index rose to the highest level since June 2008, indicating an improvement in home builder confidence. The NAHB also reported that housing affordability during the second quarter of 2009 remained near record levels. The improvement in home builder confidence was reflected in a fifth consecutive month of increased single-family housing starts in July. High affordability, low interest rates, and the first-time homebuyer tax credit combined to improve sentiment and stimulate housing market activity.

Sotheby’s International Realty® Collaborates with The Wall Street Journal

2009-05-09T18:39:00.003-10:00

Sotheby’s International Realty® Network Collaborates with The Wall Street Journal to Promote the Values of Real Estate PARSIPPANY, N.J. (May 8, 2009)

Sotheby’s International Realty Affiliates LLC announced it is collaborating with The Wall Street Journal to present the many values of real estate as a long-term investment and showcase unique properties from its network’s 10,700 sales associates located in more than 500 offices in 39 countries and territories worldwide.

The Sotheby’s International Realty brand and The Wall Street Journal will co-host “The Business of Extraordinary Living” on the publication’s Web site, http://www.wsj.com/, a microsite designed to provide insights into the real estate market from the brand’s worldwide network

For more details visit Island Sotheby’s Real Estate

HVCC - The Home Valuation Code of Conduct

2009-05-09T18:30:00.004-10:00

"HVCC" - The Home Valuation Code of Conduct- May 1, 2009

On May 1, 2009 the national rules for real estate appraisals changed dramatically for lenders who want to sell their loans to Fannie Mae and Freddie Mac, which accounts for the 70% of today’s loan applications.

Lenders will have to adopt what's known as the "HVCC" - the home valuation code of conduct - and guarantee that every loan they sell to Fannie or Freddie complies with the code completely.
The new code will ban mortgage brokers from ordering appraisals, and will push much of the business to third-party appraisal management companies, eliminating the relationships that existed between mortgage lenders and home appraisers.

Those management firms, in turn, select appraisers from their own networks, leaving many of the appraisers out of the loop.

For more information on “HVCC" visit the links below:
Street Links
RESPA Lawyer
FannieMae

Below is a video with an overview:

For More Information, visit my website below:
Maui Island Estates

5 Reasons to Buy Your Vacation Home Now

2009-04-17T14:22:00.003-10:00

Produced from rismedia

RISMEDIA, April 4, 2009-You’d love to buy a vacation home, but (let’s be honest) the recession and the not-so-dim memory of the housing bubble have you a bit skittish. If only you could see what the future holds. But since a reliable crystal ball has yet to be invented, you must resort to less mystical indicators.

According to Christine Karpinski, the National Association of Realtors® (NAR) 2009 Investment and Vacation Home Buyers Survey suggests that the iron is sizzling hot-and if you’re going to strike, the time is now.

“A few years ago when prices were escalating rapidly, people were kicking themselves for not having bought earlier when real estate was far more reasonable,” notes Karpinski, director of Owner Community for HomeAway.com and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment. “Well, in 2012 or so, people will look back on 2009 as another missed opportunity.”

While all home sales were down significantly in 2008 (as one would expect)-and vacation property sales were down some 30%-so were real estate prices. That, of course, makes for an extremely favorable buyer’s market. It’s not surprising at all, therefore, that the NAR report found that 80% of vacation property and investment property owners surveyed believe that now is a great time to purchase real estate.

These sentiments echo those of Walter Molony, spokesman for NAR, who said in a recent CNBC article that the second home market is “fundamentally healthy.”

“The long-term underlying demand is favorable for vacation homes because of the large number of middle-age, middle income Americans [who are the primary buyers of such properties],” Molony was quoted as saying. “In recent years, this market has been driven by the Baby Boomers, but there are two even larger population groups coming up right behind them. Those younger segments will continue to fuel this market for the next 10 years.”
Karpinski says the NAR 2009 survey results, in conjunction with a proprietary Special Report done for HomeAway, constitute clear evidence that now is an ideal time to buy a vacation home.

She offers the following insights:

Home prices are way, way down. The National Association of Realtors survey showed that the median sales price of the typical vacation home was $150,000-down 23.1% from 2007’s median price of $195,000. (To put this in perspective, consider that when NAR started conducting this survey, the median vacation home price in 2003 was $190,000 and reached a high in 2004 of $204,100.) When combined with the rock bottom interest rates, says Karpinski, all signs point to the likelihood that we’re now at the picture perfect time to buy.
“Anecdotally, I can tell you that people who would never have purchased a detached single home on the coast are now seriously considering it,” she notes. “Homes that would have once cost $3 million have now fallen to $1.5 million. And these buyers know that the price won’t stay down long, and will never be this low again.”
It’s never been more obvious that real estate is a sound long-term investment. The NAR survey results revealed that the share of speculator sales is down from 29% to 16%. Combined with the fact that 34% of buyers are purchasing properties within 100 miles or less of their primary residence-which suggests they intend to use it themselves-this trend indicates that more and more people are embracing a “buy and hold” strategy. Plus, Karpinski says she constantly sees evidence that people are beginning to see the long-term benefits of real estate investing earlier in life. (The median age of vacation property buyers in 2008 was a relatively young 47.)
The vacation home rental market is booming. While 89% of vacation property owners surveyed cited “to use for vacations or as a family retreat” as a reason for purchasing their second place answer is telling, indeed. Twenty-seven percent of respondents said they were purchasing their home “to rent to others.” While this number is up from the 25% cited in last year’s survey, Karpinski predicts next year’s survey will really tell the tale. As recession-crunched homeowners pursue new income streams-and as it becomes ever more evident that the vacation rental market is booming-2009 will prove to be a huge turning point in the renting out of second homes.
People are more in touch with “rental realities” than they once were. In the past, says Karpinski, a first-time vacation homeowner might have expected to rent out their property an unrealistic number of weeks (say, 50 weeks out of the year). But NAR’s Special Report for HomeAway shows that 44% of respondents said they plan to rent anywhere between 9-26 weeks.

Everything has changed. The truth is it’s gotten so easy and so affordable that there’s no valid reason not to do it yourself.” Need one more reason to take the plunge? Consider the fact that last month Fannie Mae rescinded its four-property limit for investors. If you’re financially secure and can come up with the requisite 20% down, chances are good you’re going to easily qualify for a mortgage.

“Of course there are always risks when buying any kind of real estate,” Karpinski acknowledges. “But investors who are comfortable with risk have to realize that conditions are ripe right now for a ‘perfect storm’ of success. Even if housing prices do go lower, interest rates surely will not. And once the turnaround comes, selection won’t be nearly as good as it is right now.
“Naturally, you should be cautious and do your homework before you buy any property-but don’t be so cautious that you miss this window of opportunity,” Karpinski adds. “These windows do have a way of slamming shut, and you don’t want to be stuck on the other side wistfully looking in a few years down the road.”

Christine Karpinski is the author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment andProfit from Your Vacation Home Dream: The Complete Guide to a Savvy Financial and Emotional Investment.