May we suggest...

First, locate your target, do your due diligence, line up your funds or get a partner with money, get a reliable estimate on the rehab costs and only then come to us. These are our criteria for rehab and flip loans

  • We only loan on property located in the State of Hawaii. Mainland loans—go elsewhere.
  • We loan only when the investors is able to put up in cash 40% to 60% of the actual purchase price The Loan-to-Value (LTV) is determined on a case by case evaluation.
  • If in our opinion, the “as is” value is lower than the purchase price, the percentages apply to the lower of the two.
  • It is possible to cross-collateralize the loan with a first mortgage on a different property, provided it is a first mortgage and otherwise meets our criteria.
  • For LTV purposes, it is the actual purchase price, not the projected price when rehabbed. The rehab value is relevant only for exit strategy purposes.
  • We need to have your pay a small fee to inspect the property ($125 to $200) for us verify the “as is” value and estimate the cost of the rehab.
  • We must be in a first mortgage position.
  • Then borrower must show us that he or she has the funds to accomplish the rehab.
  • The investor must demonstrate to us that he or she has the financial resources to service the loan.
  • We can load the interest into the loan amount but the resulting loan amount must meet our LTV determination.
  • The borrower must have a reasonable exit strategy.
  • Our loans are interest only.
  • Our interest rate is 11.5% to 18%.
  • We have a minimum loan fee of $3,000 or from 5 to 8 points.
  • For rehab or flip situations the loan term is no more than one year.
  • If you want to rehab and hold on to it until the market recovers, the term can be for 2 years provided can service the loan.
  • There is a prepayment penalty of 6 months interest.
  • Currently our loan limit is $1,000,000.00.

Our parameters are not written in stone. We make loans that make sense to us but under no circumstances will we consider a loan without substantial cash from the investor. (Don’t believe what you hear on TV) If you think that you come within these parameters and are satisfied with these terms, we are anxious to talk to you. Call me, Joe Gedan at (808) 536-6129