Navy Vet to Real Estate Pro: Chip Lewis on Managing Out-of-State Properties & The Truth About Hawaiian Rentals
On this episode of The Closing Table, we sat down with Chip Lewis!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Chip Lewis…
Chip Lewis’s journey began in the Southeast, where he grew up in Georgia before moving to Alabama. He attended Auburn University, majoring in engineering and finance. After graduating, he worked as a financial adviser at Mass Mutual in Birmingham, Alabama. However, he soon transitioned to a career as a Naval officer in the submarine force, influenced by Navy recruiters and the financial benefits offered.
Chip explains that support from Navy recruiters and financial benefits influenced his decision to join the Navy and specialize in submarines. Despite challenges and occasional monotony, he emphasizes the camaraderie and resilience developed during his time in the submarine force.
Inspired by underwhelming real estate experiences and observing fellow veterans’ struggles, Chip pursued a career in real estate. After transitioning to the reserves and completing his MBA, he obtained his real estate license and found fulfillment in helping clients and fellow veterans. Chip’s motivation in real estate aligns with his desire to address unmet needs and provide valuable mentorship and support.
Next, Chip shares insights into working with clients towards a common goal. He highlights that challenging transactions lead to growth and learning for agents. His first sale in 2013 resulted in a lasting friendship and significant equity gain for the client. Chip emphasizes persistence and a long-term vision in the real estate business, detailing transactions that took over a year to resolve, showcasing his commitment to clients.
Chip establishes relationships with military clients from various locations and has extensive knowledge of the areas and neighborhoods of the islands, gained over more than 10 years in the real estate market.
He also notes that Hawaii has some of the highest real estate values in the country, with the median sales price on Oahu being $950,000. He explains that most of the value is in the land, which appreciates over time, and that Hawaii has low property taxes for owner-occupied homes compared to other areas. Chip enjoys the freedom of exploring different parts of the island as part of his job and appreciates the beautiful scenery while driving around for showings.
Chip started real estate investing with a rental property before buying a house to live in. He diversified by purchasing a vacation rental on the Gulf Coast and later, through his wife, acquired a rental property in Colorado. Busy with work and family, he used a 1031 exchange for a small multifamily portfolio in North Alabama.
Facing challenges with selling and buying multiple properties, Chip became interested in apartment investing and transitioned to more passive investing. He is now invested in various commercial LP investments, including self-storage, mobile home parks, and large apartment complexes, benefiting from economies of scale despite tax complexities.
Chip does not have investment properties in Hawaii due to high property values and limited cash flow. However, he is considering local investments due to uncertainties in the commercial real estate market and interest rates. He notes that Airbnb regulations in Hawaii are stringent, making vacation rentals challenging to operate, and advises clients to be well-informed about restrictions.
Following that, Chip emphasizes the importance of educating oneself and making informed decisions when investing in real estate. He recommends informing the agent about intentions for short-term rentals to navigate restrictions effectively and reflects on the value of working with an experienced broker throughout the real estate journey.
Reflecting on his journey, Chip acknowledges that starting on his own allowed him to learn with support, though starting differently might have accelerated his sales career. He is surprised by the support he has received and his own knowledge, striving for self-improvement even in challenging situations.
Chip relies on instincts and varied experiences, particularly from military training, to handle challenges. He learned in the Navy to deliver bad news proactively and find solutions. He doesn’t set specific goals but aims to increase his reach and presence, focusing on building a network of trusted agents and helping more families. Looking forward to regular vacations and unplugging from work, Chip enjoys an annual offshore fishing trip with family and friends.
Check out Chip Lewis:
Website: https://chiplewishomes.com
Linkedin: https://www.linkedin.com/in/chip-lewis-83016716/
Facebook: https://www.facebook.com/chiplewis.realtor/
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