Private Money Hawaii

How to Get 100% Financing for a Fix-and-Flip in Hawaii

Why 100% Financing Matters for Hawaii Investors

Hawaii’s real estate market is one of the most competitive — and expensive — in the U.S. Investors constantly face high entry costs, fast-moving deals, and limited inventory. Traditional lenders rarely move fast enough or approve loans without large down payments.

That’s why many Hawaii real estate investors turn to 100% financing fix-and-flip loans — short-term, asset-based loans that let them fund both the purchase and renovation of a property using little to no cash of their own.

These loans help investors:

• Act on deals quickly without waiting for liquidity.
• Scale operations by working on multiple flips at once.
• Keep capital free for materials, labor, and carrying costs.

What 100% Fix-and-Flip Financing Actually Means

“100% financing” doesn’t always mean no money down. It typically means the lender funds 100% of the purchase price and rehab budget, while the investor brings equity through experience, collateral, or ARV potential.

For example, if a property’s after-repair value (ARV) is $900,000, a private lender might cover:

• Purchase: up to 85–90% of cost
• Rehab: up to 100% of approved renovation budget
• Total exposure: capped at ~70–75% of ARV

This structure gives you leverage without overextending risk.

How 100% Fix-and-Flip Loans Work in Hawaii

Here’s how local private lenders structure these deals step by step:

1. Property Evaluation – The lender reviews the property’s condition, market value, and ARV potential.
2. Borrower Profile – Instead of credit scores, lenders assess your experience, project plan, and exit strategy.
3. Loan Terms – Most loans run 6–12 months, interest-only, with flexible draw schedules for rehab funds.
4. Funding Speed – With local underwriting, closings can happen in 7–14 days.
5. Repayment – When the flip sells or refinances, you repay the principal plus interest.

Who Qualifies for 100% Financing in Hawaii

These loans are designed for active investors, not owner-occupants. Lenders look for:

• Strong ARV margin – The project must show clear profit potential.
• Proven experience – Prior flips or construction management experience.
• Detailed rehab plan – Timeline, budget, and contractor scope.
• Solid exit strategy – Plan to sell or refinance within loan term.

First-time flippers can still qualify if they partner with experienced builders or use reputable contractors.

Presenting a professional project proposal with comps and cost breakdowns increases approval odds.

Benefits of 100% Financing for Fix-and-Flip Investors

1. Zero out-of-pocket entry – Retain capital for other projects.
2. Speed – Local lenders fund within 1–2 weeks.
3. Scalability – Run multiple flips simultaneously.
4. Flexible approval – Based on property and plan, not credit.
5. Simplified process – No lengthy bank underwriting.

Risks to Watch Out For

While 100% financing boosts leverage, it also magnifies risk.

• Higher carrying costs – Interest accrues monthly until sale.
• Strict timelines – Delays eat into profit margin.
• Market shifts – A slower market could cut ARV value.
• Experience matters – Novices may face higher rates or smaller loans.

Always build 10–15% contingency into your rehab budget and have a backup exit plan.