Ground-Up Construction
Private Money 2nd Mortgage for SFR Construction Completion in Kealia, Hawaii
- Loan Amount
- $1,000,000
- Interest-Only Term
- 12 Months
- Private Loan Type
- Ground-Up Construction
- Approx. Funding Date
- October 23, 2024
- Property Type
- Single Family Residence
- Property City
- Kauai
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct private lender collaborated with its affiliate Koa Mortgage Fund, a pooled mortgage debt fund, to provide a $1,000,000 second mortgage equity cash-out loan secured by a high-end single-family home in Kealia, on the island of Kauai, HI. The purpose of the loan was to complete the construction of the home and get it ready for sale. The Borrower, a California-based home builder with excellent credit and expertise in upscale properties, planned to use the funds to complete finish work and landscaping to enhance the property’s sale potential. The exit strategy is to sell the property as soon as the work is completed. Along with the existing 1st mortgage, the combined loan-to-value ratio was 32% based on the completed property value of $16,125,000. This bridge loan carries a 16% interest rate with a 12-month term, including 12 months of guaranteed interest. This private money loan was funded in October 2024.
Deal Highlights
- Borrower cashed out equity from a nearly completed single-family home in Kauai.
- The funds will be used to complete finish work and landscaping on the property.
- Borrower is an experienced home builder specializing in upscale properties.
- The Borrower plans to exit the bridge loan by completing construction and selling the property.
Property & Loan Details
- Property State
- HI
- Loan Term (months)
- 12
- Lien Type
- 2nd Mortgage
- Payment Type
- Interest Only
- Property Value
- $16,125,000
- Property Neighborhood
- Kilauea
- Location Type
- Rural
- Property Condition
- Good
- Occupancy at Closing
- Vacant
- Borrower's Plan
- Rehab and Sell
- Exit Strategy
- Sale
- Borrower Credit Rating
- Excellent
- Interest Rate
- 16%
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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