Bridge Loan for Residential Land in Kealakekua, Hawaii

Funded by Myers Capital

$322,000

Deal Details

Private Loan Type

Equity Cash Out

Approx. Funding Date

05/23/2024

Property Type
Residential Land
Property City

Kealakekua

Property State

HI

Loan Term (months)

12

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$460,000

Loan-to-Value

70%

Property Neighborhood

Kealakekua

Location Type

Rural

Property Condition

Good

Occupancy at Closing

Vacant

Borrower's Plan

Development

Exit Strategy

Sale

Borrower Credit Rating

Excellent

Interest Rate

13%

Deal Highlights

Borrower utilized a cash-out refinance bridge loan on land in the city of Kealakekua, Hawaii.
Borrower used the funds to pay off seller financing used to initially acquire the land.
The remaining cash out funds will be combined with their own funds to build a spec home.

Deal Summary

Myers Capital Hawaii, a mortgage banking company and direct private lender, funded a $322,000 1st lien position equity cash-out bridge loan for residential land in Kealakekua on Hawaii Island. The property value was estimated at $460,000 so our loan-to-value was 70%. The Borrower used the funds to pay off the seller financing that was initially used to acquire the land. They will use the remaining cash-out funds as working capital and combine it with their own funds to build a spec home on the land, which will be sold for a profit. Our loan will be paid off upon the sale of the home. The Borrower is a general contractor with excellent credit. The loan’s interest rate was set at 13%. The loan term was set at 12 months. This bridge loan was funded in May 2024.

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.