Equity Cash-Out Bridge
Equity Cash-Out Loan for Short-Term Rental in Kapaa, Kauai
- Loan Amount
- $125,000
- Loan-to-Value
- 28.09%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Equity Cash-Out Bridge
- Approx. Funding Date
- August 6, 2025
- Property Type
- Condominium
Deal Summary
Myers Capital Hawaii, a residential and commercial mortgage banking company and direct private lender, partnered with its affiliate, Koa Mortgage Fund, to fund a $125,000 equity cash-out bridge loan on a condotel in Kapaa, a popular vacation area on the island of Kauai, HI. The loan features a conservative 28.09% loan-to-value (LTV) based on an appraised property value of $445,000. The Borrower was previously denied financing by another lender because the short-term rental did not meet kitchen requirements due to the lack of a built-in burner. We provided a creative financing solution that allowed the transaction to move forward. The Borrower will use cash-out proceeds to install a stovetop and repair the AC system to improve rental potential, with additional funds allocated to renovate another investment property in the Pacific Northwest. The subject property was in good condition. It is approximately 372 square feet set in a 55-acre lot. The Borrower had good credit. They plan to refinance as an exit strategy. This 12-month bridge loan carries a 14% interest rate. This private money loan was funded in August 2025.
Deal Highlights
- Borrower cashed out equity from a condotel in Kapaa, Kauai.
- Planned improvements include installing a stovetop and repairing the AC system.
- Additional funds will be used to complete renovations on another investment property.
- Exit Strategy: Refinance with a Debt Service Coverage Ratio (DSCR) loan.
Property & Loan Details
- Property City
- Kapaa
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Property Value
- $445,000
- Location Type
- Vacation Area
- Property Condition
- Good
- Number of Units
- 1
- Building Square Footage
- 372
- Lot Acreage
- 55
- Borrower's Plan
- Rehab and Rent
- Exit Strategy
- Refinance
- Borrower Credit Rating
- Good
- Interest Rate
- 14%
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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