Building a Home in Hawaii (Pt 1)

Growing up, I always thought it would be cool to build a house from the ground up. This year, I got one step closer by securing some vacant land in a spot that I felt was worth while! 

The area is "close enough" to home for me to visit within an hour or so, but different enough to give me a change of pace. My plan is to use it as a gathering place for my family, friends and employees and to make memories at, away from the busy life on Oahu. 

It's a blank canvas, and new construction is something that I've never experienced yet first hand. I've renovated a few properties before... but never did a new build. 

This new experience, I'm sure, will come with challenges and I'll be documenting them along with the lessons learned along the way. 

Disclaimer: None of this is meant to be any real estate or investment advice, just recounting my experiences in (almost) live time. 

"Location, Location, Location" 

Kohala Ranch is a 3,500 acre community on the North Kohala coast on the Island of Hawaii. It's about 45 minutes from the Kona airport, and not too far from Waimea and Hawi. The area ranges in elevation from about 120 feet above sea level to just over 3,000 feet! 

Currently there are five subdivisions - In the lower elevations there are 1-5 acre lots in Heathers I, Heathers II, Meadows I, and Meadows II.

Towards the top of the development, the plots are slightly larger at just around 10 acres. This area is called Summit, where I am building, and the elevation reminds me a lot of my hometown, Wahiawa on Oahu. 

There is an architectural controls committee that oversees the construction that goes on in the development, which I thought was a plus for the long term value of the property. The lots are spacious, its a gated community, and the views are amazing! 

On one end you can see Mauna Kea, Mauna Loa & Hualalai, in the middle a beautiful view of the ocean, and to the other end you can see Maui. The next time I go I definitely need to take more pictures to share. 

Visiting Kohala Ranch

I researched the area for over a year, before making the decision to go out and see the place in person. I mulled around the idea, wasn't sure if it was the place for me. I liked what I saw online, and though there was potential, but hesitated to make a decision. 

One day I heard a family friend that lives on Oahu, was working on a home in Waimea. That is when I realized... it's possible! I shot him a text and started asking him some questions. Within a week, I was on my way to the Big Island to check it out. I met with one of my Dad's friends, who is a realtor based out of Hilo named Glenn.

Initially, I was a little disappointed. The plots that I looked at didn't feel "right". Glenn was patient, and took the time to show us plots all over the division, basically everything that was on the market at the time. 

Part of me felt a little disappointed that there wasn't a plot that I was looking for, but at the same time I didn't want to commit to a plot that I didn't feel good about. 

As we were driving back towards the entrance to pick up our car, we decided to look at one last one. On the very last attempt, I found one that I was looking for! 

Land Loan

I've experienced been a wide range of bank loans in the past. Over the years, I've been through traditional mortgages, a refinance, line of credits, and commercial loans before, but it was my first time ever doing a land loan. 

A land loan is the financing product that banks issue to vacant pieces of land. They're structured a little differently, and it did come with some challenges.

The team I worked with was able to help me navigate through the process, and eventually we were able to close on the property in early 2022. (I do all my major banking with First Hawaiian Bank, and love the team there!) 

What's Next? 

Now that the location has been picked, an offer made and the transaction completed.. the next steps are to conceptualize, design and finalize construction documents.

If it all sounds a little complicated, don't worry it does a bit to me too.

I'm excited to work with the lead architect, and the various engineering disciplines that are involved in this project, and documenting all of it along the way. It's one of my childhood dreams to get this done, and it's one step closer to a reality! 

“Design is not just what it looks like and feels like. Design is how it works.”

- Steve Jobs.