Like any investment 
vehicle Oahu Real Estate and Real Estate as a whole has specific terms like any investment that an investor will need to know. Very often sellers or properties will start tossing them around to see if a potential buyer knows what he or she a talking about. Be on your best game, we're talking about money here!
Fee Simple - absolute title to land, free of any other claims against the title, which one can sell or pass to another by will or inheritance. This is a redundant form of "fee," but is used to show the fee (absolute title) is not a "conditional fee," or "determinable fee," or "fee tail." Like "fee" it is often used in deeds transferring title as in "Harry Hadit grants to Robert Gotit title in fee simple..." or similar words.
Leasehold- A leasehold interest is created when a fee simple land-owner enters into an agreement or contract called a ground lease with a lessee. A lessee buys leasehold rights much as one buys fee simple rights; however, the leasehold interest differs from the fee simple interest in several important respects. First, the buyer of residential leasehold property does not own the land and must pay ground rent. Second, his use of the land is limited to the remaining years covered by the lease. Therefore, the land returns to the lessor,
and is called reversion. Depending on the provisions of any surrender clause in the lease, the buildings and other improvements on the land may also revert to the lessor. Finally, the use, maintenance, and alteration of the leased premises are subject to any restrictions contained in the lease.
Price/ Sq Ft -Price per Square Foot is a commonly used metric to compare properties. It is obtained by dividing the property price by the livable square feet in the property.
Rent/ Sq Ft- Rent per Square Foot is a commonly used metric to compare properties. It is obtained by dividing the estimated monthly property rental income by the livable square feet in the property.
Pre-tax Annual Cash-on-cash return- Pre-tax Annual Cash-on-cash return measures the annual total cash received by the Investor relative to the total investment in the property, before taxes.
Post-tax Annual Cash-on-cash return- Post -tax Annual Cash-on-cash return measures the annual total cash received by the Investor relative to the total investment in the property, after taxes.
Cap Rate- Cap Rate is the ratio of the net income produced by a property (after expenses, but independent of financing) and its price.
IRR - The Internal Rate of Return is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.
GRM - Gross Rent Multiplier is the ratio of the price of a property to its annual rental income before all expenses, including property taxes, property management, insurance, etc.
Rent Ratio- Rent Ratio is the ratio of the monthly rental income for a property to its price.
Pre-tax Annual Cash Flow- Pre-tax Annual Cash Flow measures the total cash returned to the Investor during the calendar year, after financing costs, but before taxes. The figure is independent of first-year down payment and closing costs, or final year sale proceeds.
Pre-tax Monthly Cash Flow - Pre-tax Monthly Cash Flow measures the total cash returned to the Investor during the average month, after financing costs, but before taxes. The figure is independent of first-year down payment and closing costs, or final year sale proceeds.
Post-tax Annual Cash Flow - Post -tax Annual Cash Flow measures the total cash returned to the Investor during the calendar year, after financing costs and taxes. The figure is independent of first-year down payment and closing costs, or final year sale proceeds.
Post -tax Monthly Cash Flow- Post-tax Monthly Cash Flow measures the total cash returned to the Investor during the average month, after financing costs and taxes. The figure is independent of first-year down payment and closing costs, or final year sale proceeds.
Equity in Property- Equity in Property measures the total equity owned by the Investor in the current year, including property value escalation, repaid loan principal, and property improvements.
Future Property Value-Future Property Value represents the Fair Market Value of the property in the current year, assuming property improvements and value escalation.
Cap Rate Implied by NOI/ Price- Cap Rate Implied by NOI/ Price derives the property "Cap Rate" by dividing the property's actual Net Operating Income (NOI), or income after expenses and taxes (but before financing), by the property price.
When you are ready to make a move on a commercial property, we will give you the same service excellance we give our residential buyer clients. Here is what they and you can expect from us.
Your home is probably one of the biggest purchases you and your family will ever make. Deciding on the right Oahu neighborhoods, the right time, the right amount of mortgage payments you can live with and even which home you will come to know as your own. It is our job to guide you through the entire process. From helping you find the right property to helping with the financing process, to making sure each and every real estate professional you come in contact with is working in your very best interest. This is what you can expect from us:
Our services are FREE to you because the Seller pays all Real Estate Commissions.
We Rebate our Buyer Clients 20% of our commissions! This is given to you as a credit at closing. You may apply the money to the Principle of your new home or use it as you see fit, it's your money!
When choosing a new home, it will be helpful to know if the list price is Fair Market Value, Priced Over Fair Market Value or a Real Bargain! Our high tech approach to valuation will give you this information Before we even visit the property for the first time.
We will go through the Hawaii Purchase Contractand ALL Addendums with you before you sign anything. You will also find a great deal of information about the Purchase Contract and its Contingency Descriptions on our website at www.GreatHawaiianHomes.com . This way, if you choose to become familiar with this document, you can.
We will give you recommendations on Real Estate Professionals whom are available to you. We maintain NO affiliation with any of these Professionals; they are simply the best at what they do in our opinion.
Buyer's Agent. Every buyer needs a buyer's agent that is dedicated to THEIR best interest. As Realtors, and members of the National Association of Realtors and the Honolulu Board of Realtors, we are duty bound and Licensed by the State of Hawaii to Protect your Best Interest at ALL Times.
We often work with Mainland Buyers and families doing Hawaii Relocations. This is easily accomplished by use of Posted Video Tours of homes they have selected to see more of from our emails, emailing of documents, faxing of documents by way of our Toll Free Fax Line, and by excellent communication skills. We have and can also email pdf Slideshows of homes for Mainland Buyers directly to their inbox.
Once we have fully explained the various contracts to you and you make an informed decision as to your acceptance or rejection of them, we will do the face to face negotiating with the Seller's Agent for you to be sure you are getting the best terms the Seller will give. We do our best to keep your transaction as stress free and pleasant as possible.
Not only will we walk through every home together, we will review all inspection reports generated during your transaction. It is important that you know exactly what you are buying and its condition, even inside the walls!
We are proud to have represented a great many families in their purchases of new homes. You will have the full benefit of our years of experience as Realtors acting as Buyer's Agents. We promise not to hold anything back from you...ever.
Our website at www.GreatHawaiianHomes.com is a big advantage to buyers. It explains the buying process in detail and many clients have to us for assistance because they like our website so much. It is very down to earth, just like us. Let's chat over coffee...
Mike Ramsey Fujita (RA)
(808) 630-1828
Mike@GreatHawaiianHomes.com
Gayle Fujita Ramsey (RA)
(808) 388-1485
gfujita@hawaii.rr.com
Hawaii Real Estate Online
If you are a first time homebuyer or a homebuyer returning to an unfamiliar market, you may be time to educate yourself. With the Internet, it is easier than ever to gain access to information or you can sit down over a cup of coffee with your Realtor and get all of your facts. Call "Honolulu Realtors Mike and Gayle" and they will even buy the coffee!
DON'T buy more house than you can afford. Lenders will often loan you up to as much as your credit worthiness will allow, but that may not be what you can comfortably afford. ON the National News, we heard repeatedly, "It's not my fault. 
Calling all Horse People on Oahu!!! Bert Miranda is coming to Oahu for three days of Private Horse Lessons. Bert will help your Horse and YOU to work together and have the ability to go in whatever direction you wish. I have placed the flyer for the event below as well as the contact information for Roberta Rita. Her area code is 808. 
