Hawaii Hard Money Lenders
Need a hard money loan secured by real estate in Hawaii? This page has a list of direct hard money lenders that offer quick funding for a Hawaii property purchase, refinance, fix & flip, rehab & rent, ground-up construction, and equity cash out in 1st lien position. Hard Money lending is only for investment properties, not for homesteads. The loans are mainly based on equity in the subject property. For most lenders, the maximum LTV is typically 70% for a purchase and 65% for an equity cash out loan. Scroll to see the list of lenders.Searching...
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Myers Capital
Private Lending for Hawaii Investment Property, Including Land
KECO Capital, LLC
Funding for Investors By Investors
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
American Heritage Lending
Direct Lender for Residential Real Estate Investors Nationwide
HouseMax Funding
Hard Money Loans to Fund Your Next Big Project
Hilton Financial Corporation
"When the bank says NO or moves too slow" TM.
LendingOne
Rental, Fix & Flip, Construction & Multifamily Bridge Loans Nationwide
Yieldi LLC
Direct Lender for Investment Properties - Bridge, Rehab, Construction
Conventus
We Fund Fast While Providing Excellent Service and Competitive Pricing
Lima One Capital
The Nation's Premier Lender for Real Estate Investors
Park Place Finance
Nationwide Direct Private Lender for Residential Real Estate Investors
Easy Street Capital
Direct Lender for Residential Flips and Rentals
Hawaii Hard Money Interest Rates
According to the hard money loan documents software company, Lightning Docs, the average interest rate for Hawaii hard money loans in the 1st quarter of 2024 was 11.27%. The average loan amount was $631,827. These stats are the average of 52 short-term loans (including bridge, rehab, and ground-up construction) funded for properties in Hawaii between January 1, 2024 and March 31, 2024 by multiple hard money lenders that use Lightning Docs as their preferred software provider to prepare loan documents.
According to private lending data provider, Analytics Logics, the average interest rate for Hawaii hard money loans in the 1st quarter of 2024 was 10.92%. Lenders charged an average of 1.4% points (origination fee). The average LTV (loan-to-value) for hard money loans in Hawaii was 61%, and the average loan amount was $646,300. These stats are the average of all the loans which were funded between January 1, 2024 and March 31, 2024 by the many hard money lenders who use Liquid Logics’ loan origination software to manage their lending operations.
Top 10 Hawaii Hard Money Lenders
According to Forecasa™, here are the Top 10 Hard Money Lenders ranked by the number of loans originated in Hawaii in the last 12 months from March 2024.
- Conventus LLC
- Temple View Capital
- Visio Lending
- Fundloans Capital
- Lima One Capital LLC
- Archwest Funding
- Marshall Reddick Mortgage Fund LLC
- Velocity Commercial Capital
- American Heritage Lending LLC
- Champions Funding LLC
Forecasa™ provides analytics data for Hawaii hard money lending on a quarterly basis. You’ll find their top lenders data for many other states on our platform.
Hawaii Hard Money Insights from a Local Lender
The Hawaiian islands are ranked as one of the most attractive places to both investors and home buyers, thanks to their stunningly picturesque scenery, tropical climate, flourishing landscapes, majestic mountains and volcanoes, exquisite beaches, and distinctive local cultures. According to Cory Nemoto, co-founder of KÉCŌ CAPITAL in Honolulu, HI, the real estate market consistently maintains high equity and appreciation due to limited inventory and high demand for properties, especially by fix and flippers and developers. “We have very limited supply, we live on an island so there’s not much supply being made around here, and we have extraordinary demand from all over the world. We have buyers from China, from Japan, Korea, Australia, Canada. So everyone wants a little piece of Hawaii, which causes our prices to go up,” Cory explains.
Cory states that Hawaii has a poor cash flow market. He advises that investors looking for cash flow opportunities should consider other states before getting into the Islands of HI. “If you’re looking for cash flow, Hawaii is probably not the place for you. But it doesn’t mean you can’t find deals, there are deals out there, but it’s very hard. And the margins are a lot thinner, that’s why there’s a lot of development and redevelopment [in fix and flip and ground-up construction] going on out here right now.” Cory says.
Given the intense demand, a new trend has emerged among investors in today’s market. Fix and flippers and ground-up construction developers have started venturing into opportunities within the Condominium Property Regime, where a parcel of land is divided into multiple properties. Cory explains that, “it’s kind of like a subdivision except it’s a little quicker and it’s a little less expensive. So if you have 20,000 square feet of land zoned R-5, meaning residential five, you can have one dwelling per 5,000 square feet of land. Then technically with that parcel of 20,000 square feet on R-5, you can have four houses on that property, a very powerful way to force the appreciation of the asset.” However, Cory advises that doing a CPR project does take a little longer because the city needs to approve it first, but they are becoming more common and cities understand the trend among investors and the need for more housing.
Popular Markets for Hawaii Real Estate Investors to Consider
According to KÉCŌ CAPITAL, most of the activity for ground up construction of single family homes is on the northeast side of the big island of Hawaii towards Hilo where it’s typically more rural. In the higher density areas of Oahu, especially in Makaha and Waianae, there is a lot of activity for fix and flip and ground up construction, where the prices are more affordable.
The average loan size in HI is about $990,000 which most of the time pushes over a million dollars per deal. Cory cautions that not only is the land itself costly, but construction expenses are also high, coupled with extended lead times. He emphasizes the importance for investors to exercise caution regarding permitting processes and material lead times.
KÉCŌ CAPITAL, LLC was formed by real estate investors Kekoa-Michael Lwin and Cory Nemoto. As investors who have borrowed millions of dollars in private financing themselves across multiple states and markets, they both saw a huge need in the marketplace to provide affordable capital to investors by investors. Most of the loans they provide are for fix and flip and ground-up construction properties. They provide DSCR loans only against short term vacation rentals because the Airbnb’s and the Vrbo properties are heavily regulated. They have built a unique product for real estate investors where it’s not just about the amount of leverage, it’s about how the leverage is allocated, which allows them to go to the highest leverage of purchase price. They will go up to 90% of the purchase price depending on the type of market and will fund 100% of the renovation budget. In addition, for qualified experienced borrowers who have done five deals in the last three years, they will also fund the renovation in advance instead of arrears up to 20% to 25% of the budget after closing and can wrap 100% of the interest into the loan.
Funded Hard Money Loans in Hawaii
Myers Capital Hawaii, a direct private lender, funded a $50,000 1st lien position equity cash-out loan for free-and-clear land in Hawaiian Paradise Park, on the Island of Hawai’i. The property value was estimated at $80,000 so our loan-to-value was 62%. The Borrower plans to use the funds for working capital to build a spec home at another location and sell it for a profit. To exit the loan, the Borrower will use the proceeds from the sale of the spec home to pay off our loan. The loan was held in the name of their LLC, which will help build credit for their real estate business and limit personal liability. The Borrower had an excellent credit score. The subject property was approximately 1 acre. The loan’s interest rate was 12%. The loan term was set at 12 months. This hard money loan was funded in November 2023.
RCN Capital, a national direct private lender, funded a $997,286 1st lien position fix and flip loan for a rehab fix & flip SFR in Haiku, Maui Island, Hawaii. The Borrower is a repeat client and experienced property investor with over 10+ verified real estate investment properties completed. He was looking for the funds to purchase and renovate this property in Hawaii. RCN Capital was able to provide a loan at 71% of the After-Repair Value plus 100% of the renovation costs. Once the project is completed, the investor is looking at a 26% return on investment. This SFR hard money loan was funded in April 2019.