Bridge Loan
Bridge Loan for Vacant Land Purchase in Kamuela, Hawaii
- Loan Amount
- $510,250
- Loan-to-Purchase Price
- 63.78%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Bridge Loan
- Approx. Funding Date
- September 3, 2024
- Property Type
- Residential Land
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 $510,250 first-lien position bridge loan for the acquisition of vacant land in Kamuela, a small town located on Hawaii Island. We funded 63.78% of the $800,000 purchase price. This residential-zoned land was acquired as a replacement property in a Reverse 1031 Exchange transaction. The Borrower utilized a non-recourse bridge loan, limiting liability to the property itself and protecting personal assets and income. The lot size is approximately 13,861 square feet (0.32 acres). The Borrower had excellent credit. They plan to exit this bridge loan by selling another lot which is owned free-and-clear. The loan carries a 13% interest rate with a 12-month term. This bridge loan was funded in September 2024.
Deal Highlights
- Borrower utilized a non-recourse bridge loan to acquire vacant land in Kamuela on Hawaii Island.
- The land was acquired as a replacement property in a Reverse 1031 Exchange.
- The borrower plans to start building next year on the spacious lot situated in the Kohala Coast.
- Borrower plans to exit the loan by selling another free and clear lot.
Property & Loan Details
- Property City
- Kamuela
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Purchase Price
- $800,000
- Borrower's Contribution to Purchase
- 34%
- Source of Borrower's Contribution
- Cash
- Location Type
- Vacation Area
- Number of Units
- 1
- Lot Square Footage
- 13,861
- Lot Acreage
- 0.32
- Borrower's Plan
- Build and Hold
- Exit Strategy
- Sale
- Borrower Credit Rating
- Excellent
- Interest Rate
- 13%
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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