Hard Money Equity Cash-Out Loan for 5-Unit Property in Chaska, Minnesota

Myers Capital Hawaii, a residential and commercial mortgage banking company and direct private lender, partnered with its affiliate, Koa Mortgage Fund, to fund a $400,000 first-lien position equity cash-out hard money loan for a 5-unit multifamily property in Chaska, Minnesota. The loan-to-value ratio was 50%, based on an estimated property value of $800,000. The Borrower is an experienced real estate investor with excellent credit. They used the loan proceeds to pay off a balloon payment, and the cash-out funds will be used to renovate all five units with improvements such as new flooring, cabinetry, interior and exterior paint, landscaping, and roof repairs. The Borrower’s exit strategy is to refinance into a long-term loan after the renovations are complete. The subject property was in good condition. It has 3 single-story buildings totaling approximately 6,400 square feet on a 5.2-acre lot. The loan’s interest rate was 13.5% with a 12-month term, and it includes 12 months of guaranteed interest. This hard money loan was funded in May 2025.