Bridge Loan for Vacant Land Purchase in Kamuela, Hawaii
Loan Amount
$510,250
Property Value
$800,000
Loan To Value
63.78%
Interest Rate
13%
Loan Term
12 months
Payment Type
Interest Only
Rate Type
Fixed
Closed Date
09/03/2024
Private Loan Type
Purchase
Approx. Funding Date
09/03/2024
Property Type
Residential Land
Loan-to-Purchase Price
63.78%
Loan Term
12 months
Interest Rate
13%
Deal Summary
Myers Capital Hawaii collaborated with its affiliate Koa Mortgage Fund to provide a $510,250 first-lien position bridge loan for the acquisition of vacant land in Kamuela, a small town located on Hawaii Island.
Funding 63.78% of the $800,000 purchase price, this residential-zoned land was acquired as a replacement property in a Reverse 1031 Exchange transaction. A non-recourse bridge loan was utilized, limiting liability to the property itself and protecting personal assets and income.
The lot size is approximately 13,861 square feet (0.32 acres). The Borrower had excellent credit and plans to exit this bridge loan by selling another lot which is owned free-and-clear. The loan carries a 13% interest rate with a 12-month term.
Deal Highlights
- A non-recourse bridge loan was utilized to acquire vacant land in Kamuela on Hawaii Island.
- The land was acquired as a replacement property in a Reverse 1031 Exchange.
- Building is planned to start next year on the spacious lot situated on the Kohala Coast.
- The exit strategy involves selling another free and clear lot to repay the loan.
Loan Originator
Reed Myers
Principal, Myers Capital Hawaii
Reed is the Principal of Myers Capital Hawaii, an award-winning, privately-owned residential and commercial mortgage banking company. As a second-generation family business owner, Reed has been personally involved in over $1.5 billion in loan originations, helping thousands of clients throughout the country.
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