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Deal Details
Private Loan Type
2nd Mortgage
Approx. Funding Date
10/23/2024
Property Type
Property City
Kauai
Property State
HI
Loan Term (months)
12
Lien Type
2nd Mortgage
Payment Type
Interest Only
Property Value
$16,125,000
Property Neighborhood
Kilauea
Location Type
Rural
Property Condition
Good
Occupancy at Closing
Vacant
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
16%
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct private lender collaborated with its affiliate Koa Mortgage Fund, a pooled mortgage debt fund, to provide a $1,000,000 second mortgage equity cash-out loan secured by a high-end single-family home in Kealia, on the island of Kauai, HI. The purpose of the loan was to complete the construction of the home and get it ready for sale. The Borrower, a California-based home builder with excellent credit and expertise in upscale properties, planned to use the funds to complete finish work and landscaping to enhance the property’s sale potential. The exit strategy is to sell the property as soon as the work is completed. Along with the existing 1st mortgage, the combined loan-to-value ratio was 32% based on the completed property value of $16,125,000. This bridge loan carries a 16% interest rate with a 12-month term, including 12 months of guaranteed interest. This private money loan was funded in October 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.