Private Money Hawaii
How Commercial Real Estate Loans Work in Hawaii (Fast 2025 Guide)
These loans focus on the asset—not your tax returns, W-2s, or debt-to-income ratio. This makes them ideal for:
Investors buying commercial buildings with strong upside
Business owners expanding into new spaces
Buyers who need to close in days—not months
Properties banks won’t lend on
Deals needing fast underwriting or flexible structures
Credit-light borrowers
Stabilization, bridge, or repositioning
In this guide, you’ll learn exactly how private commercial real estate loans work in Hawaii, how approvals happen fast, what qualifies, how lenders analyze deals, and how to get approved quickly across Oahu, Maui, Kauai, and the Big Island.
What Makes Commercial Real Estate Lending Different in Hawaii?
Hawaii’s commercial market is unique:
- Higher building costs
- Limited supply
- Island-specific insurance
- Heavy tourism-driven demand
- Multi-zoning differences
- Older building stock
- Higher cap rates in some sub-markets
- High competition for warehouse, industrial, and retail
Because of this, private commercial lenders in Hawaii rely on:
- Asset-based underwriting
- Market rent + NOI
- Stabilization potential
- Exit strategy
- Borrower experience (optional, but helpful)
- Property equity
Not tax returns, not W-2s, not DTI.
This gives Hawaii investors an enormous advantage when they need speed, flexibility, and simplified approval.
How Private Commercial Real Estate Loans Work (Simple Breakdown)
Private commercial loans follow one simple principle:
If the property is strong, the deal gets approved.
Loans are based on:
- The building’s value
- The income the property produces
- Condition
- Market strength
- Your down payment/equity
- Viable exit strategy
This creates faster, cleaner approvals than banks.
Step-By-Step: How a Commercial Loan Gets Approved in Hawaii
Here is the exact process Hawai‘i investors follow in 2025.
Step 1 — Submit the Deal (No Tax Returns Required)
You provide:
- Property address
- Purchase price or refinance request
- Rent roll or pro forma
- Photos / OM (optional)
- Business purpose explanation
Private lenders evaluate the deal the same day.
Step 2 — Receive a Same-Day Term Sheet
Because underwriting is asset-focused, Hawaii investors often get:
- Same-day term sheet
- Initial approval within hours
- Clear closing timeline
Speed is your advantage.
Step 3 — Appraisal or BPO + Title Order
Most commercial loans require:
- Commercial appraisal
- Environmental questionnaire (no Phase II unless needed)
- Title + escrow
- Insurance quotes
Hawaii private lenders can close before final appraisal with exceptions on strong deals.
Step 4 — Underwriting Focuses on NOI + Value
Underwriters evaluate:
- Net Operating Income (NOI)
- Market rents
- Cap rate
- DSCR (commercial version)
- Tenant strength
- Lease terms
- Building condition
- Value-add potential
Personal income plays no role.
Step 5 — Close in 7–14 Days (Faster on Bridge Deals)
Private commercial loans in Hawaii often close:
- 7–14 days standard
- 5–7 days for bridge/urgent deals
- 48–72 hours with priority underwriting (select deals)
This speed lets buyers compete against cash.
Property Types That Qualify for Private Commercial Loans in Hawaii
Private lenders work with almost every commercial asset type, including:
- Multifamily (5+ units)
- Mixed-use buildings
- Retail properties
- Office buildings
- Industrial + warehouse space
- Restaurants + commercial kitchens
- Hospitality (boutique hotels, small inns)
- Self-storage
- Land (case-by-case)
- Special-use buildings
- Stabilized and value-add assets
If it has commercial potential, it’s typically financeable.
Loan Types Available to Hawaii Investors (2025)
Private commercial lenders offer:
1. Bridge Loans (Most Popular in Hawaii)
Fast, flexible funding for:
- Quick closings
- Value-add projects
- Heavy rehab
- Stabilization
2. Long-Term Investor CRE Loans
Based on NOI + market rent, not personal income.
3. Refinance + Cash-Out (Soft or Hard Pull)
Often used for:
- Renovation
- Debt consolidation
- New acquisitions
4. Construction / Renovation Loans
For upgrades, expansions, or repositioning.
5. Commercial Hard Money Loans
When a building is older, distressed, or unconventional.
Commercial Loan Rates in Hawaii (Realistic 2025 Ranges)
Private CRE loan rates depend on:
- Loan type
- Property type
- Condition
- Location
- DSCR/NOI strength
- Borrower experience (optional factor)
- Leverage
Typical Hawaii Private CRE Rates (2025):
- 8.50% – 10.50% → Strong income + stabilized
- 10.50% – 12.50% → Average deals
- 12.50% – 14.00% → Value-add, heavy rehab, distress
This is real Hawaii pricing — not low-ball mainland advertising.
Hawaii Commercial Loan Requirements (Simple List)
- No tax returns
- No W-2s
- No personal DTI
- Minimum credit: 600–620+
- 25%–35% down (purchase)
- 65%–75% LTV on refinance
- Property condition must be viable or fixable
- Valid exit strategy
- Business purpose (investment or business use)
Approval is simple, fast, and property-driven.
Why Local Underwriting Matters in Hawaii
Mainland lenders often get stuck on Hawaii deals because they don’t understand:
- Leasehold
- STR commercial overlay
- Lava zones
- Hurricane insurance
- Oahu’s building classifications
- Honolulu permitting
- Hawaii commercial cap rates
- Local rent expectations
Local underwriting = faster decisions + fewer conditions + fewer delays.
If you’re evaluating a commercial purchase, explore Hawaii Commercial Real Estate Loans for fast, local, asset-based financing.
How to Qualify Fast (Investor Checklist)
- Provide rent roll or projected NOI
- Share a short property description
- Upload the purchase contract
- Provide entity docs (if applicable)
- Share renovation or stabilization plan
- Confirm insurance quotes
- Provide a photo set or OM
This is typically all that’s needed for approval.
FAQ — Commercial Real Estate Loans in Hawaii (2025)
Do private lenders require tax returns?
No. They are asset-based.
How fast do Hawaii commercial loans close?
7–14 days (sometimes faster).
Can you finance mixed-use?
Yes — very common in Honolulu.
Do DSCR requirements apply?
Yes, but commercial DSCR is more flexible.
Do private lenders fund value-add?
Yes — these are ideal deals.
Do you lend on leasehold?
Many private lenders do (case-by-case).
Does credit matter?
A little, but the property matters more.
Looking for fast, flexible financing in Hawaii? Private Money Hawaii offers 7–14-day closings, local underwriting, and asset-based approvals designed for investors who want to move fast and invest smarter across all islands.
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
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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