Hawaiian Island Homes LTD
931 University Av Suite 105
Honolulu, HI 96826
Office: 808-955-6672
Fax: 808-946-3225
Email: danac@hihltd.com
Peter Savio is President and Chief Executive officer of the Savio Group of Companies including Hawaiian Island Homes Ltd, and Hawaiian Island Development Co., Inc.
He has more than 30 years experience in real estate development and sales in the Hawaii market. Beginning in 1980 he founded Savio Realty Ltd. and subsequently its affiliated group of companies. Savio has helped his clients realize the maximum return on their real estate investments.
1) How long have you been in Real Estate?
I purchased my first property when I was 15 years old with money I saved from my newspaper rout and odd jobs. I have had a Real Estate license fro 37 years but have been in real estate 45 years.
2) Why do you specialize in condominium conversions?
It is the fastest way to create affordable housing for Hawaii residents. Also, the conversion of hotels and commercial buildings allow for older and newer building to be made more attractive to smaller investors.
3) How many units have you converted?
I have done condominium conversion on over 7,000 units. Most have been affordable.
4) How do you make your condominium units affordable?
I do them “as is, where is” conversions. I give the homeowners’ association the money to renovate and upgrade the building and the buyers upgrade their own unit when and if needed. I also accept a lower profit and use my unique conversion process which keeps costs down.
5) Just what is the unique conversion process?
It is a program I developed over 20 years ago and we are constantly updating. Basically, by working with the seller of the building we can reduce the cost of the conversion and the risk. I pass the savings on to the buyer and seller and take a smaller profit than most developers making the unit more affordable and easier to sell. I have given away to first-time buyers over $150 million in “Below-market” prices.
6) How much risk is there?
My conversion program takes most of the risk out of the equation by having buyer and seller work together.
7) Why don’t the sellers do it themselves?
It is better to have a developer do the conversion. The seller can then do a tax-deferred exchange and/or claim the profits at the lower capital gain rate. Conversions are more complex than they sound and most owners and/or brokers do not have the knowledge or expertise needed to do a conversion.