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Deal Details
Private Loan Type
Residential Rehab
Approx. Funding Date
12/22/2023
Property Type
Property City
Waipahu
Property State
HI
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$1,150,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Cash
Renovation Budget
$95,000
Renovation Budget Funded
100%
Renovation Project Scope
Heavy Rehab
Location Type
Suburban
Property Condition
Fair
Occupancy at Closing
Tenant-Occupied
Number of Units
8
Building Square Footage
4,032
Lot Square Footage
7,876
Lot Acreage
0.18
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Interest Rate
12%
Origination Points
2%
Deal Summary
Myers Capital Hawaii, a direct private lender, funded a $1,015,000 1st lien position bridge loan for the purchase and rehab of an 8-unit multifamily property in Waipahu, a town in the ʻEwa District of Honolulu, Hawaii. We funded 100% of the $95,000 renovation budget and 80% of the $1,150,000 purchase price, while the Borrower contributed 20% cash to the purchase at closing. The Borrower is an experienced real estate investor with an excellent credit score. The loan was held in the name of their LLC, which helped build credit for their real estate business and limit personal liability. The subject property was receiving a monthly rent of $5,425. Five units were occupied, of which four units were on a month-to-month lease. Three units were ready for occupancy. Each of the 2-bedroom, 1-bath apartments received rents under market value. The key planned renovations include updating common space and unit electrical wiring; bathrooms with new toilets, sinks, and showers; kitchen appliances, cabinets, countertops, sinks, and disposals; and common area railings, walkways, and stairs. The property is approximately 4,032 square feet set in a 7,876-square-foot lot. The Borrower plans to refinance the property as an exit strategy. The interest rate was 12% and we charged 2% origination points. The loan term was set at 12 months. This multifamily rehab loan was funded in December 2023.
Funded By
Myers Capital
Private Lending for Hawaii Investment Property, Including Land
Dealmakers
Reed Myers
Principal
Reed is also Principal of Myers Capital, an award-winning, privately-owned residential and commercial mortgage banking company based in downtown Honolulu. As a second generation family business owner, Reed is personally involved in over $1.5 billion in loan originations, helping thousands of clients throughout the country. He holds active mortgage loan origination licenses in Hawaii and multiple states. He is also an experienced real estate investor throughout Hawaii and the mainland.