Bridge Loan
2nd Mortgage Hard Money Loan for SFR in Kauai, Hawaii
- Loan Amount
- $2,000,000
- Interest-Only Term
- 12 Months
- Private Loan Type
- Bridge Loan
- Approx. Funding Date
- February 21, 2025
- Property Type
- Single Family Residence
- Property City
- Kauai
Deal Summary
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.
Deal Highlights
- Borrower secured a $1 million second-lien cash-out bridge loan in late 2024.
- We modified their loan on a nearly completed luxury home on Kauai.
- This brought their total loan size to $2 million.
- Additional funds will be used to start other investment projects they have in their pipeline.
- The Borrower is a seasoned home builder specializing in luxury properties.
Property & Loan Details
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 2nd Mortgage
- Payment Type
- Interest Only
- Property Value
- $16,125,000
- Property Neighborhood
- Kealia
- 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%
Loan Originator
Reed Myers
Principal
Reed is also Principal of Myers Capital, an award-winning, privately-owned residential and commercial mortgage banking company and direct private lender based in Honolulu, Hawaii. As a second-generation family business owner, Reed is personally involved in over $2 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. Myers Capital provides efficient mortgage lending and real estate advisory services in 42 states.
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