Bridge Loan
Hard Money 2nd Mortgage for Luxury Home in Kamuela, Hawaii
- Loan Amount
- $500,000
- Loan-to-Value
- 45.5%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Bridge Loan
- Approx. Funding Date
- January 9, 2025
- Property Type
- Single Family Residence
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct hard money lender, funded a $500,000 second mortgage cash-out refinance loan secured by a high-value single-family home in Kamuela, also known as Waimea, on the Big Island of Hawaii. The combined loan-to-value (CLTV) was 45.5% based on an estimated property value of $6,550,000. The Borrowers are experienced home builders who have completed five ground-up construction projects in the past two years. They plan to use the funds to complete the finish work and furnish the home, maximizing its market value and sale potential. Their exit strategy is to sell the property upon completion. The subject property is approximately 2,956 square feet set in a 40,946-square-foot lot. The Borrower had excellent credit. The interest rate was 16.5%. The loan term was set at 12 months. This hard money 2nd mortgage was funded in January 2025.
Deal Highlights
- Borrowers tapped into equity from a nearly completed single-family home on Hawaii Island.
- Funds will be used for final construction touches and new furnishings to enhance market appeal.
- Experienced home builders with a proven track record of multiple successful projects.
- Exit Strategy: Complete construction and sell the property.
Property & Loan Details
- Property City
- Kamuela
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 2nd Mortgage
- Payment Type
- Interest Only
- Property Value
- $6,550,000
- Location Type
- Rural
- Property Condition
- Brand New Build
- Occupancy at Closing
- Vacant
- Building Square Footage
- 2,956
- Lot Square Footage
- 40,946
- Lot Acreage
- 0.94
- Borrower's Plan
- Build and Sell
- Exit Strategy
- Sale
- Borrower Credit Rating
- Excellent
- Interest Rate
- 16.5%
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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