Private Money Hawaii
Fix-and-Flip vs Hard Money Loans in Hawaii — Which Funds Faster?
Fast Cash or Smart Leverage? Here’s the Real Difference
In Hawaii’s competitive real estate market, timing can make or break a deal. Investors who hesitate often lose properties to all-cash buyers or faster lenders. That’s where fix-and-flip loans and hard money loans come in — both offer quick access to capital, but they serve slightly different purposes.
If you’re wondering which loan type will help you close faster and smarter, this guide breaks down everything you need to know — including approval speed, funding flexibility, and when each option makes sense in Hawaii’s unique market.
What Is a Fix-and-Flip Loan?
A fix-and-flip loan is a short-term, asset-based loan designed for real estate investors who buy, renovate, and resell properties for profit.
In Hawaii, these loans are popular among active investors because they combine fast closings with rehab funding, allowing you to finance both the purchase and renovation with one approval.
Typical Fix-and-Flip Loan Features in Hawaii
- Term: 6–12 months
- Interest rate: 9%–12%
- Loan-to-Value (LTV): Up to 70–75% of ARV (After-Repair Value)
- Payment: Interest-only
- Funding speed: 7–14 days with local underwriting
Ideal for: Investors flipping distressed or outdated homes in Honolulu, Maui, or the Big Island — and who need capital fast.
What Is a Hard Money Loan?
A hard money loan is broader — it’s a short-term real estate loan that can be used for flips, bridge financing, or investment purchases. Like fix-and-flip loans, they’re based on the asset’s value, not your credit score.
Typical Hard Money Loan Features
- Term: 6–18 months
- Interest rate: 9%–12%
- LTV: Up to 70% of property value
- Collateral: Real estate (non-owner-occupied)
- Approval: Asset-based, not income-based
- Closing speed: Often within 7–14 days in Hawaii
Ideal for: Investors needing fast funding for any real estate deal — from buying to bridging to refinancing.
Fix-and-Flip vs Hard Money Loan — Side-by-Side
| Feature | Fix-and-Flip Loan | Hard Money Loan |
|---|---|---|
| Purpose | Buy, rehab, and resell | Broad investment use (flip, bridge, refinance) |
| Collateral Focus | After-repair value (ARV) | Current property value |
| Term | 6–12 months | 6–18 months |
| Funding Speed | 7–14 days | 7–14 days |
| Rehab Draws | Included | Not always included |
| Underwriting | Based on project plan & ARV | Based on asset & equity |
| Best For | Active flippers | Multi-purpose investors |
When to Choose a Fix-and-Flip Loan in Hawaii
Go with a fix-and-flip loan when you’re buying a property that needs work before resale.
Why it’s the smart move:
- Funds for both purchase and renovation
- Closes in 7–14 days with local lenders
- ARV-based approvals maximize leverage
- Draw schedules keep rehab on track
Example:
You buy a Wahiawa property for $600K with an ARV of $900K. The lender funds 90% of the purchase + 100% of the rehab. You flip it within 6 months, repay the loan, and pocket your profit.
When to Choose a Hard Money Loan in Hawaii
Use a hard money loan when you need flexible short-term capital — not just for renovations, but for acquisitions, bridge deals, or quick closings.
Why it’s the fast move:
- Funded in days, not weeks
- Minimal paperwork
- Can bridge properties while waiting for another sale or refinance
- Covers non-traditional assets (mixed-use, land, or multi-unit deals)
Example:
You’re selling a Kailua condo but want to buy a new Maui property before your sale closes. A hard money bridge loan covers the gap — you repay once your condo sells.
Why Local Underwriting Matters in Hawaii
National lenders don’t always understand Hawaii’s property nuances — from leasehold titles to local appraisals. That’s why local underwriting gives Hawaii investors a real edge.
Local Advantage
- Faster approvals and appraisals
- True understanding of island property values
- Flexibility for unique projects (ohana units, mixed-use, or oceanfront rehabs)
- Personal relationships — approvals made locally, not through algorithms
Pros and Cons at a Glance
| Loan Type | Pros | Cons |
|---|---|---|
| Fix-and-Flip | Rehab funds included, fast closings, ARV-based | Short term, tight timelines |
| Hard Money | Flexible use, quick cash, minimal paperwork | Slightly higher rates, fewer rehab draws |
Smart Strategy for Hawaii Investors
If you’re flipping homes — go with fix-and-flip loans for full project funding and rehab support.
If you’re juggling deals or bridging properties — choose hard money loans for unmatched flexibility.
The smartest investors partner with local private lenders who understand Hawaii’s timing, permitting, and market speed.
Pro Tip: Combine local underwriting with an experienced Hawaii-based lender for the fastest, cleanest closings.
FAQs
Are fix-and-flip and hard money loans the same?
They overlap — fix-and-flip loans are a type of hard money loan focused on renovations and resale.
How fast can these loans close in Hawaii?
Most local lenders fund in 7–14 days once the property and plan are approved.
What credit score do I need?
These are asset-based loans, so approval depends on the property and exit strategy — not perfect credit.
Can I use these on all islands?
Yes — Oahu, Maui, Kauai, and the Big Island are all eligible.
Final Takeaway
In Hawaii, success comes down to speed and smart choices.
A fix-and-flip loan gives you full project leverage, while a hard money loan offers flexibility and speed for any investment deal.
Work with a local private lender who understands Hawaii’s pace — because when you can close fast and plan smarter, every deal becomes an opportunity.
Get Funded Fast in Hawaii
Private Money Hawaii offers fix-and-flip and hard money loans with 7–14-day closings, local underwriting, and asset-based approvals that help investors move quickly and confidently.
Offering Rates Starts at 9%
At Private Money Hawaii, we are proud to fund commercial properties, multi-family residential, investment residential properties, fix and flip projects, land, and construction in Honolulu and across the Hawaii Islands.
Ready for a Honolulu Hard Money Loan? Fast, Flexible Financing Across Hawaii
Act Fast with a Trusted Local Partner
Secure funding in as little as 7–14 days. No bank delays—just Honolulu hard money loans designed for investors who need speed and certainty.
Tailored Loan Programs
From fix-and-flip loans in Oʻahu to bridge loans in Honolulu, DSCR rental financing, and construction loans across Hawaii, we customize terms around your project’s needs. With interest-only payment options, LTV up to 70%, and clear origination fees, you’ll have flexible funding that works for you.
Local Expertise You Can Trust
Led by veteran lender David Ige, with nearly 30 years of experience funding Hawaii investment property loans, we combine deep local insight with transparent terms to help investors succeed.
Private Money Hawaii
Address: 411 Hobron Ln #3912, Honolulu, HI 96815
Call: +1(808) 753-1204
Email: funding@privatemoneyhawaii.com