2nd Mortgage Hard Money Loan for SFR in Kauai, Hawaii

Myers Capital Hawaii, a residential and commercial mortgage banking company and direct private lender, partnered with its affiliate, Koa Mortgage Fund, to finance this modified $2,000,000 second-lien position equity cash-out loan secured by a single-family home in Kealia, on the Island of Kauai, HI. The combined loan-to-value (CLTV) ratio was 41.46%, based on the appraised value of $16,125,000. Koa Mortgage Fund, a pooled mortgage debt fund, provided financing for a high-end single-family home on fee-simple land. Originally structured as a $1,000,000 loan, it was later increased to $2 million. The Borrower had excellent credit. They plan to use the funds to launch additional investment projects in their pipeline, with the exit strategy being to sell the property upon completion. The subject property was in good condition and vacant at closing. The interest rate was 16%. The modified bridge loan carries a 16% interest rate with a 12-month term, including 12 months of guaranteed interest. This 2nd mortgage equity cash-out loan was funded in February 2025.