Hawaii Fix and Flip Lenders
Are you flipping residential properties in Hawaii? On this page you'll find a list of fix and flip lenders throughout Hawaii. Fix & flip lending is only for residential properties with 1-4 units. We have a separate page for lenders that offer rehab/value-add financing for other property types. The maximum loan-to-after repair value (LTARV) for most lenders in Hawaii is 70%. You typically need some cash for the purchase (15%-20%) and some cash reserves.Searching...
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Myers Capital
Private Lending for Hawaii Investment Property, Including Land
KECO Capital, LLC
Funding for Investors By Investors
LendingOne
Rental, Fix & Flip, Construction & Multifamily Bridge Loans Nationwide
Conventus
We Fund Fast While Providing Excellent Service and Competitive Pricing
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Lima One Capital
The Nation's Premier Lender for Real Estate Investors
Park Place Finance
Nationwide Direct Private Lender for Residential Real Estate Investors
Hilton Financial Corporation
"When the bank says NO or moves too slow" TM.
American Heritage Lending
Direct Lender for Residential Real Estate Investors Nationwide
Easy Street Capital
Direct Lender for Residential Flips and Rentals
HouseMax Funding
Hard Money Loans to Fund Your Next Big Project
Hawaii Residential Fix & Flip Insights from a Local Lender
Year after year, the Hawaii housing market draws in numerous home buyers and investors. Many see Hawaii as an island paradise renowned for its exceptional lifestyle and promising opportunities, especially for residential fix and flippers. According to Cory Nemoto, co-founder of KÉCŌ CAPITAL in Honolulu, HI, the most common investment strategy among investors in the community is fix and flip for two reasons. One, because there is a lot of inventory that is older and needs renovation and two, because of the high equity, high appreciation market in HI. “We’re definitely a poor cash flow market. So, what investors do here is, they flip houses, they build a piggy bank and then they find a cash flow market somewhere on the mainland that is more suited for cash flow,” Cory says.
According to KÉCŌ CAPITAL the types of rehab projects that are most beneficial for both the investor and the lender in HI are ones that have a lot of equity in the deal, showing that there are big margins for profit for the investor and also suggests less risk for the lender. “You want to make sure that you’re getting into a good deal, not one that’s playing on skinny margins, especially here in Hawaii because since a lot of our loans and deals out here are sometimes in the millions, you need a wider margin. One, to make sure that the return is worth the risk. And two, is to insulate, because anything can happen during a project, and no project really goes 100% as planned. Sometimes you go over budget, sometimes it takes longer to sell. So we want to make sure that our investors are buying right, Cory suggests.
Cory also stresses the fact that although the residential rehab market in HI presents a lot of opportunities, these projects typically don’t yield the same rapid turnaround compared to other states. Investors are typically faced with challenges of long lead times in permitting and delivery of materials, especially in the higher end luxury space. “It’s not uncommon for projects to take over 12 months here even for a single family home. So you want to make sure you as the investor, are aware of that and you’re factoring that into your numbers and your deals here. And as a lender, same thing, you want to make sure that you are providing your borrower or your investor enough time on the loan so that they’re not stuck within 12 months, especially if it has to go through the city and county with permitting,” Cory advises.
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. They have built a unique product especially designed for fix and flip investors, where the focus is on how much the borrower is putting up front. 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. View their profile to learn more and to find their contact information.
Funded Fix & Flip Loans in Hawaii
Hard money loan for a house rehab fix & flip project in Wailuku, Maui. The Borrower is a general contractor and realtor who came across a great opportunity to acquire a 2,818 square foot home consisting of 4 bedrooms and 3 bathrooms on a 0.51 acre lot. The purchase price was $425,000. The Borrower plans to spend around $150,000 on renovations, which includes updating the electrical, painting interior and exterior, and remodeling the kitchen and bathrooms. The Borrower put down 15% of the total project cost. The house will be sold upon the completion of the renovations for around $775,000 within the 1-year loan term. RCN Capital was able to provide a loan at 63% of the After-Repair Value and the Borrower anticipates a 28% return on investment. This hard money loan was funded in October 2016.