Equity Cash-Out Bridge
Hard Money Loan for Vacant Land in Kilauea, Hawaii
- Loan Amount
- $700,000
- Loan-to-Value
- 35%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Equity Cash-Out Bridge
- Approx. Funding Date
- September 18, 2024
- Property Type
- Residential Land
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct private lender, funded a $700,000 first-lien position equity cash-out loan secured by a 5-acre parcel of land in Kilauea, Hawaii. The loan-to-value ratio was 35%, based on an estimated property value of $2,000,000. The Borrower used the funds to pay off the seller financing originally used to acquire the land in 2019. The remaining cash-out proceeds will go toward minor property improvements, such as roadwork, grading, and utility setup, to enhance the property’s marketability for sale. The Borrower had average credit. They plan to exit the bridge loan by selling the upgraded land within 12 months of completing the improvements. The interest rate was 15%. The loan term was set at 12 months. This hard money loan was funded in September 2024.
Deal Highlights
- Borrower secured a cash-out refinance bridge loan on vacant land in Kilauea on the island of Kauai.
- Loan proceeds will be used to pay off seller financing and fund minor property improvements.
- Borrower plans to exit the bridge loan by selling the land within 12 months of making improvements.
Property & Loan Details
- Property City
- Kilauea
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Property Value
- $2,000,000
- Location Type
- Rural
- Property Condition
- Good
- Occupancy at Closing
- Vacant
- Lot Acreage
- 5
- Borrower's Plan
- Rehab and Sell
- Exit Strategy
- Sale
- Borrower Credit Rating
- Average
- Interest Rate
- 15%
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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