Multifamily Purchase and Rehab Loan in Waipahu, Hawaii

Myers Capital Hawaii, a direct private lender, funded a $1,015,000 1st lien position bridge loan for the purchase and rehab of an 8-unit multifamily property in Waipahu, a town in the ʻEwa District of Honolulu, Hawaii. We funded 100% of the $95,000 renovation budget and 80% of the $1,150,000 purchase price, while the Borrower contributed 20% cash to the purchase at closing. The Borrower is an experienced real estate investor with an excellent credit score. The loan was held in the name of their LLC, which helped build credit for their real estate business and limit personal liability. The subject property was receiving a monthly rent of $5,425. Five units were occupied, of which four units were on a month-to-month lease. Three units were ready for occupancy. Each of the 2-bedroom, 1-bath apartments received rents under market value. The key planned renovations include updating common space and unit electrical wiring; bathrooms with new toilets, sinks, and showers; kitchen appliances, cabinets, countertops, sinks, and disposals; and common area railings, walkways, and stairs. The property is approximately 4,032 square feet set in a 7,876-square-foot lot. The Borrower plans to refinance the property as an exit strategy. The interest rate was 12% and we charged 2% origination points. The loan term was set at 12 months. This multifamily rehab loan was funded in December 2023.