Under $270K! Ocean Front Bliss | Maui Real Estate

Are we live yet? I never know. There's always a delay, so I gotta wait. Hey, aloha guys. Eric West here, hawaiirealestate.org, coming to you live once again. Once again, right here from the beautiful island of Maui, Hawaii. I don't know if the mic is going to be okay, but I redid everything, right? Tested, retested, technology, turn it on, turn it off again. You know how it is. Let's hope it works, because the last live I did, the audio was horrible. So part of the reason I'm doing this live is actually just to retest this DJI mic. It's cutting edge. It's the latest version. It should be good, but that's technology for you, right? You know what I'm talking about. Your phone breaks, this breaks, everything breaks constantly. It's horrible. It's enough to drive a man insane or a woman. So that's why, okay? This is the reason why you must have at some point in your life, in my humble opinion, some ocean front bliss, some Maui, some Maui on the mind. Do you agree? Because if you're not careful, if you're not careful, life could possibly drive you insane. And the only way out, my humble opinion, is some of that. A little salt water behind the ears, a little Maui sunshine, some palm trees. Hang on a second, right? Just flowing in the breeze, right? You know what I'm talking about? Right? I don't know about you guys, but I spent a lifetime on the mainland sitting in traffic, dealing with horrible weather. And just, this was my screensaver. I mean, literally on my big screen TV in my office, Maui was my screensaver. And it was like, someday, someday, if I can just, I don't even know what it's going to take, but it's just like someday. Well, right here, this could be your someday right now for under $270,000. That's crazy. One of the things I love about Maui real estate is there's something for everyone. Well, almost everyone. You do have to have some money. Sorry. Sorry, freeloaders. You do have to have some cash to pull this off, but this is literally the same oceanfront lifestyle that Sammy Hagar is enjoying just a few houses that way. And he paid $16 million. You can jump in the same water that Sammy jumps in every single day right here for under 270K. That's crazy. I mean, compare that to even like LA real estate, like shut up. What can you get for 270K in LA that would even come close to this? Nothing, nothing. So it's special. It is. You know, seriously, if I was sitting on the mainland right now and I was stuck and I had an extra quarter million laying around, like it's going right here right now. No questions asked. But in this video, I'm going to show you around this unit. I'm going to explain to you more than you probably ever wanted to know about leasehold condos, because there are some nuances that I'm telling you will make all the difference in the world. And you will now understand like the light bulb will come on. You'd be like, I get it. The clouds are going to clear. The dolphin is going to jump. The whale's going to breach. The rainbow is going to expose. It's just going to make sense. And you're going to be like, that is a smart investment. And I promise you, when you get done hearing me, you will agree. You'll be like, Eric, now that you explained it, now that I understand it, I can see why it's hands down a no brainer. But before I do that, that's my big hook to keep you hanging in there for a few minutes. This is a live, by the way. This is totally on, you know, unscripted. Just me just rapping, having a good time on a beautiful Saturday. That's what I do. I talk condos. I talk oceanfront. I talk ocean bliss. I talk Maui real estate. And I'm doing it today from the beautiful Royal Kahana. So if you want to know more about this place, just go to royalkahanaforsale.com. I make the URL super easy. There will be a link in the description eventually. But for right now, can we just take this in? Can we just have a Maui moment, a little bliss, the birds, the sound of the surf, Molokai, the sun, the sand, the sea, vitamin C? Let's just take a moment. Let's just see what we're talking about here. This is what's at stake. You waking up every day and experiencing this, or go look out your window right now and compare. Just compare. All right. In the comments, what's the comparison look like? What do we got here? Talk to me. What's outside your window right now? What's outside your backyard, your lanai, your patio, your deck, whatever you call it. Here it's a lanai. What are you looking at? And how does it compare? That's all I want to know. Okay. Enough of that. Actually, no, you can never get enough of that ever. Period. It's like staring into a fire. It never gets old. And it is literally medicine for the soul. Okay. So here's what we got going on here, guys. We have this beautiful lanai, beautiful lanai covered. And this is a studio. That's right for 269K. I'm sorry, I can't get you one bedroom, but I can get you everything you need, right? This is everything you need. We're talking baseline needs are met right here and now. Now you could take this bed, this nice big giant bed. You could do a Murphy. Yeah, we can Murphy that thing up and you'd have a larger area to live, but do you have to have it? No, not really. And this, everything's been redone here, right? You don't have to do anything. Bring your toothbrush and your board shorts or your bikini and let's go. The floors have been redone. We got some tile. We got some stainless steel, refrigerator, oven, microwave. We got the granite. We have the upgraded cabinets, countertops. I mean, hello, we got, is this a pullout? I should know that. Yep. Got a pullout. So you could literally have like your buddy come stay with you. You know, if it's not that kind of a buddy and they can pull out the couch, you can sleep like four people in this thing, right? And then the best thing I love about this condo is if you sit in this chair on this couch, I should say, you can see the ocean. Okay. Hang on. Now the ultimate, as you guys know, if you've been watching the channel for any time, I've got what we call the pillow test, right? Does it pass the pillow test? Okay. So right now, okay. Hang on a second. Ah, here we go. Hang on. Are you ready? My double chin. I have my head on the pillow. Okay. Verified. And that's what I see. So when I wake up in the morning in this condo right here, let me just, this is kind of the view I see right there. Just in all fairness, that's what my eyes sees right now. It passes the pillow test. So for $269, it passes the pillow test. Come on. Can you imagine every morning, every night, this is just what you see. You don't have to get out of bed. Now, granted, you might want to watch some TV and that's the perfect location for the television, right? So, all right, what else we got? Hang on. We're having fun, guys. This to me is fun. A place to dine, right? A little two-person dinette. Perfect. Ceiling fan. It has AC, central AC, but you don't need it. It's like perfect weather on the planet. And then back here, we have a washer dryer. So yeah, you have a washer dryer. No community, no driving somewhere, calling up. Nope. And then everything's remodeled. Beautiful remodeled tiled in shower. Nice little American standard toilet and matching granite upgraded bone, right? What else? Oh yeah. Hang on. There's more like the Ginsu knives, right? There's more. Hang on. There's more. When you open up your door and you're getting ready to go, you get to see the beautiful West Maui mountains right from your front door. So it's mountains on one side, ocean on the other, and the ultimate lifestyle awaits you for 269K. All right. So now, now it's very important. Well, that was way too close. That we talk about leaseholds, right? Because I know there's a lot of confusion about leaseholds. There's a lot of stigma around leaseholds. So we don't want to clear up the stigma. So the stigma is this, right? Hang on. It's so nice and breezy here, by the way. I mean, this trade wind flow right here, I mean, it's like, it's just beautiful. It's like freshest air on the planet. That's why you live longer, by the way, when you live on Maui, because this right here is fresh. It just blew in from 3000 miles of ocean. And it's like, and if there was any pollution, there wouldn't be, it would just blow right off that side to Japan. So it's, and there's an unending flow of it. It's just, it's just like God's gift to your lungs breathing. It's the most important thing. So take a deep breath today. All right, let's close it. Okay, here we go. Let's talk leaseholds. And then I got to go, go do something else. But I wanted to show you this place. Matter of fact, I've been holding a nice little open house down here. I don't just sell like multimillion dollar prop. Hey, I'm down. I'm down. High dollar, medium dollar, low dollar, affordable dollar. Let's go. Eric West is here to help. Okay. So let's just talk leaseholds. Then I got to go. So in the beginning there was like, just kidding. Um, let there be a light. No, in the beginning there was leaseholds and that's it. So the Hawaiians, whoever, right, they own the land. We're not going to get into that topic. I know it's a horrible thing. What happened to the wines? I've got a lot of, you know, I really feel for everything that happened. So that's, but we, but it was owned by Hawaiian, the land, the lands was owned by the original Hawaiians and they didn't want to sell it. Right. So what did they do? They leased the land to the developers that put in these condominiums, hotels, et cetera. They leased it to them. They go, yeah, you can put your building here, but I'm not going to sell you my land. You can just lease it, put your building here. That's the vast majority were leaseholds. Okay. Now those leases only lasted for so long after 99 years, the, um, the landowner would have the option to cancel the lease and get his land back and remove your condo, get out of here. I want my land back. Or they could continue to have the lease go on and on. Right. And, um, but what happened is most of these leases converted, meaning what at some point the Hawaiian family, whoever owned it, got together and said, you know what? We want to sell the land. We don't want it anymore. You can have it. So then all the people in the condos had to cough up money, right? Cause it's a condominium that's owned, it's a shared ownership program. So let's just say it was, um, you know, say it was a million dollars hypothetically, and there's 10 owners, it'd be a hundred, a thousand dollars each. It's just simple math, right? So they all had to cough up a hundred thousand dollars. It's a million dollar purchase. And now they own the property and it converts to fee simple fee. Simple is what you're used to. That's where you own the land and the building and everything in between. So that's a converted property. So this property converted at some point in time, right? So let's just pretend for a moment. And this is, you don't have to pretend, right? No one ever agrees on everything completely 100%. So you have those 10 people that need to cough up about a hundred thousand dollars. Well, two of them are like, I don't want to do that, man. I ain't got a hundred thousand. And I just like the leasehold. Well, the rest of the owners are like, well, you're going to, you're going to hold up the whole deal. So what they did is they let those guys not pay. So the other owners had to pick up the slack and pay their 200K essentially. So their cost went up. But those two holdouts, those two owners that didn't convert because they didn't pay, they remain leaseholds. All the other units are fee simple. So that's why you'll see in a place like Royal Kahana, the vast majority of all of the units are fee simple. But then there's a few of these leasehold holdouts, I call that, what I call them, because they didn't buy, they didn't want to pay. So they didn't. So they don't become a lease, a fee simple. They remain a leasehold forever. So what are the odds that the owner's going to come back and ask for his land back or demand it back? Well, he's not because he already sold it. The owner is gone. And now it's owned by all the people in the condo, except those holdouts don't get to call themselves a fee simple because they didn't pay the tab. So they forever remain a leasehold. And essentially those products got sold to a servicing company. So a servicing company just buys it as an annuity and they just service it. It has a certain future value, a present value, and they basically just service those as annuities. It's like a financial instrument, but there is no longer anyone that owns the land underneath. It's all owned by the condominium owners, but there's these holdouts. So this is a leasehold holdout. And the other good news about this one, two pieces of good news, is the lease doesn't quote unquote expire until 2050. So you don't have to worry about anything until 2050, but at 2050, there's no landowner that's going to come back to try to get their land because they sold it already. By comparison, Jale Mejina, another leasehold that's up the street from here, they're 100% leasehold. They have not converted. So if you bought a Jale Mejina, at some point in time, that lease will expire. And if it's not renewed, then yes, the risk is you could lose your condo and get nothing forward, essentially. There's a small vacancy fee. There's a vacancy clause, basically. You might get a couple hundred bucks, but you risk losing the entire asset because it is a leasehold property. So hence the reason why a lot of people don't want to buy these, because they don't want to lose their investment, right? That would be kind of foolish. A lot of people still buy those, don't get me wrong, because they're like, I'm going to be dead in 20 or 30 years, so I don't care. It's just an occupancy thing. And that's great. It's not good for the heirs, obviously, because you're not really getting a real asset. But in terms of there's all kinds, Papakea, Kanapali Shores, Royal Kahana like this one, there's loads of them where there's these little holdouts. So if I was thinking about purchasing something and I wanted to get the best bang for my buck with the smallest amount of risk, I would get a leasehold that's in a property that has already converted to fee simple, because I don't think there's any possibility you'll ever lose the asset. You do have an additional monthly fee. You're still going to pay that leasehold fee. You're being punished because your previous owners didn't cough up the money to become a fee simple. But then look at the math. You save a ton of money on the acquisition because fee simples are usually 20, 30, 40, 50% more than a fee simple. And then on top of it, Royal Kahana, this thing is hotel zone. So it's Bill 9 immune. So Bill 9 has no effect right here on any of these condos. These are all hotel zone. Looking over here at Hololani, next to this Royal Kahana, we've got the Valley Isle, we've got the Sands of Kahana, all hotel zone. But you know what's weird is all of those values have come down for hotel zone, even though they're completely immune to Bill 9, because people are like, I should have had a V8. They don't know. They just don't know. They don't understand. Like, oh, I don't want to buy one of those Maui condos because they're banned for vacation rental. Well, only the apartment zones, not hotel. And all of Napili, by the way, is other than hotel zone. It's not apartment zone either. It's a special district. They're completely immune. So all of a sudden, you can get this huge discount on condos on Maui, even though there's a whole bunch that are immune to Bill 9, but their prices have come down as well. So it's a great time. So anyway, hopefully that makes sense as far as these leaseholds go. This is a holdout. This is a leasehold, 269K total carrying cost between the HOA fee and the leasehold is about 1,400 bucks. So that's pretty nuts, right? Still not affordable housing. Mr. Mayor Bisson ain't never going to be, right? Sorry, but it's a great deal. This condo a few years ago would have probably sold for 400K. So right now it's a very, very good opportunity in my humble opinion to own Oceanfront Bliss right next to Sammy Hagar right down the street. He paid 16 million. You can get it all for under 270K. So anyway, guys, thanks so much for allowing me to explain it. I don't know if I did it in a very efficient manner or not. I'm at 17 minutes. I was hoping to keep this fast and quick and simple and easy and just, but yeah, when you do a live, everything just kind of just rolls. And plus I always remember we, I am on Maui time. So I'm not, I'm not in a hurry, man. Never. All right. That's the whole point. The whole point is when you come here, you slow down, you relax, and you take it all in. All right, guys, thanks so much for tuning in. I appreciate it. Gotta go. I gotta rock and roll, but I just wanted to check in. I've been super busy lately. So my apologies for being, it's been a minute. I know. I've just been running around like crazy, man. I'm just doing my thing. You know, it's just, what can you do? I'm not complaining. The market's turned, by the way, if you want to know, Mauirealestatesstats.com, Mauirealestatesstats, S-T-A-T-S. You'll see last quarter we saw the turnaround. It's there. Closed sales are up. Pending sales are up. Inventory is down. And it could, it could, it could have been the bottom. I don't know. It's possible. The bottom. If we all knew where it was, we would all be billionaires, right? The best you can do is the best you can do. But those are indicators, I think, that should be taken into consideration. All right, guys, I shall return. I don't know where, I don't know when, but I can promise you one thing, Maui Dan. It will be from the most beautiful place on planet Earth, the best lifestyle I think you can ever find. And right here, you can find it for under $270K. So thanks so much. I appreciate your time. Until next time, I will put the link in the description for this one. If you want some more information, seller's motivated. He's ready to make a deal. So what did my mom always say? You gotta, you gotta, what was it? My mom had, my mom had some great sayings. She has great sayings. She's got a lot of good jokes. She's one of those people that she could tell jokes from the back of her mind forever. Like literally, you could just like a, like a impromptu comedian. You could just put her up on stage and she could just crack jokes all day long. I can't do that. But the strike while the iron's hot. See the hard drive was spinning. I'm getting older. You know, it takes it. Strike while the iron is hot. This is where the iron is. It's hot. Very successful vacation rental. And you will have a place that you can call your own right here in beautiful Maui, Hawaii. The next time until next time, Eric West out. Now he did. Where's the button? There it is. Hey, don't forget helpdaniel.org. Help him. He needs it. Helpdaniel.org. Love you guys. Leaseholds. Holdouts. That's the way to go.