Aloha. If you have been following me within this group on Facebook, you know that I purchased two wonderful investment properties in Hawaii over the last couple years. You also know that I have been pouring my heart, soul and treasure into turning them into magical places. What you may not know is why.
It is not because I am bored or can’t stop doing stuff (good guess though!). I am what you call a Real Estate Syndicator. This is just a fancy way of saying, I invite my network of friends and family, as well as other real estate investors, to invest with me in my real estate projects.
So, while it may look like I am eternally on vacation in beautiful places, it is actually my job to acquire undervalued properties and fix them up for resell to enrich both myself and my fellow investors. After ten years of doing this indoors in historic theaters, I just prefer to do it in beautiful places that see the sun more often!
For my syndications, I do the heavy lifting for each property. This means that I identify which properties to acquire. I form a legal entity that allows others to join me as co-owners. I then operate the entity from A to Z until the property is sold for a profit.
My primary responsibility during each run is to identify ways to increase the value of the real estate. This typically involves creating a business that maximizes revenue from the real estate while giving the property time to appreciate. For instance, I chose to create and operate a personal development retreat business to monetize my first acquisition in Hawaii. After four successful years, I then decided to transform it into a boutique luxury hotel because I thought I could get even more value out of the property this way. Thus, Hamakua Hotel was born.
For my second acquisition, I decided to keep Waterfalling Estate as a short-term vacation rental but, I wanted to make it more luxurious and capable of fetching a higher average daily rental rate. We have succeeded in doing this, increasing the average daily rate that the prior owners were getting ($2500 per day) to over $4000 per day under my management.
Selecting the right business model for each property is just the beginning though. Once I tap my experience as a life-long entrepreneur to get an operating company up and running, I then focus my energies on picking renovation projects that will increase the value of the property. You guys have seen plenty of examples of this in the last year, including the beautiful new infinity pool I had constructed from scratch for Hamakua Hotel to the outdoor restoration work I had completed at Waterfalling Estate.
My final important job function is to prepare each property for a timely exit. I typically use a term, so all investors know when I plan to sell each property. The term I created for my two Hawaii properties was five years. We just entered year three for both.
For Waterfalling Estate, I have determined, with my investors, that now is the best time to list it for sale. In the days ahead, I will provide a listing link so you can see how I will execute on this.
For Hamakua Hotel though, I believe that the property has a lot more value to create over the next three years before identifying a buyer. I am just getting started with that property and believe that there is tremendous upside that needs to be untapped before we even think about an exit. I believe that another boutique luxury hotel chain will jump at the opportunity to purchase our property but first I want to maximize its value so we can have an epic exit, just like the Fox Theater.
We have a fantastic group of investors in Hamakua Hotel that includes forty individuals from my network. Interesting enough, thirty-five of them are members of this Facebook group. Considering the fact that I started this group only to share my inspirational writings with the people I care most about, I find this to be pretty incredible and very unexpected. Who knew that over 10% of us were real estate investors. I guess the saying “birds of a feather flock together” is true!
I was cleaning up our Cap Table over the long weekend (how we keep track of our investment group) and found that we still have 100,000 units of equity left in this real estate investment. I assumed that we were maxed out and stopped offering investment opportunity months ago. I was excited to find out that there was still some equity left.
There are 6,000,000 units total, so 100,000 units is equal to 1.67% of the overall equity in the project. If you have been watching my moves with this real estate project with interest over the last year but your timing was not right to invest, it is not too late to join my investment group and ride this magical piece of real estate all the way to our sunset exit. Units are priced at $1.50 per unit with a minimum investment of $25k.
I would like to finalize our investment group by the end of this month. Please hit me up through PM or via email at eric@hamakuahotel.com if you are interested. I am happy to provide additional information for your consideration. Thanks for reading this far.
Below is a photo of our current operating team at www.hamakuahotel.com
