DSCR Rental Loan
Private Money Loan for Short-Term Rental in Kailua-Kona, Hawaii
- Loan Amount
- $640,000
- Loan-to-Value
- 80%
- Interest-Only Term
- 3 Months
- Private Loan Type
- DSCR Rental Loan
- Approx. Funding Date
- December 31, 2024
- Property Type
- Single Family Residence
Deal Summary
Myers Capital Hawaii, a residential and commercial mortgage banking company and direct private lender, funded a $640,000 equity cash-out loan secured by a single-family home in Kailua-Kona on Hawaii Island. The loan had an 80% loan-to-value ratio based on the property’s estimated value of $800,000. Our repeat clients will pay off the existing mortgage on their legally operated short-term rental and use the cash-out proceeds to acquire another investment property. Their exit strategy is to refinance the subject property into a long-term DSCR loan while operating it as a short-term rental in Kailua-Kona, a prime vacation destination. The subject property was in good condition. It is approximately 1,345 square feet set in a 3-acre lot. The Borrower had excellent credit. The loan had a 12.5% interest rate with a 3-month term, including two months of guaranteed interest. This private money equity loan was funded in December 2024.
Deal Highlights
- Borrowers cashed out equity from a property in Kailua-Kona, Hawaii Island.
- Borrowers will pay off the mortgage on this single family short-term rental.
- They plan to use cash-out proceeds to acquire another investment property, expanding their portfolio
- Exit Strategy: Refinance the bridge loan into a Debt Service Coverage Ratio (DSCR) loan.
Property & Loan Details
- Property City
- Kailua-Kona
- Property State
- HI
- Loan Term (months)
- 3
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Property Value
- $800,000
- Location Type
- Rural
- Property Condition
- Good
- Building Square Footage
- 1,345
- Lot Square Footage
- 130,680
- Lot Acreage
- 3
- Borrower's Plan
- Short-Term Rental
- Exit Strategy
- Refinance
- Borrower Credit Rating
- Excellent
- Interest Rate
- 12.5%
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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