Private Money Hawaii
Hard Money Loans in Hawaii: Fast, Flexible Funding for Real Estate Investors
In Hawaii’s fast-paced property market, time is money, and waiting on traditional bank loans can mean missing out on profitable deals. Hard money loans offer a strategic alternative for real estate investors who need quick, asset-based financing that keeps projects moving.
Whether you’re flipping a distressed home in Hilo or buying a rental property in Honolulu, hard money lenders in Hawaii provide short-term funding based on property value, not your credit profile.
What Are Hard Money / Private Money Loans?
Hard money loans in Hawaii (also known as private money or alternative financing) are short-term, asset-based loans designed for real estate investors. Rather than relying heavily on personal income or credit, these loans focus on the underlying property’s value and your exit strategy. Because of that, they offer speed, flexibility, and access when conventional financing won’t work.
Key Components & Terms of Hard Money Loans
Interest Rates & Terms
In Hawaii, hard money interest rates range from **9% to 12%+**, depending on risk, island location, and property type. Terms generally last **6 to 24 months**.
Loan-to-Value (LTV) & Equity
Most lenders cap LTV at **65–70%** of the property’s value (often ARV). This means you typically need **25–35% equity or down payment**.
Fees & Points / Origination
Expect **1–3 origination points** (1–3% of the loan). Additional fees may include underwriting, appraisal, inspection, and closing costs.
Repayment Methods / Interest-Only vs Balloon
Borrowers often pay **interest-only** during the loan term and repay the principal via sale or refinance at maturity (balloon payment). Some hybrid structures exist depending on lender.
Why Use Hard Money Loans in Hawaii?
1. Fast Closings
Deals move quickly in places like Maui and Oahu. With traditional banks taking 30–45 days or more to close, investors can lose out. Hard money lenders often close in under 10 days — some in as little as 72 hours.
2. Asset-Based Approval
Private lenders care more about the property’s current and potential value than your W-2, tax returns, or credit score. If the deal is solid, funding follows.
3. Rehab and Flip Financing
Hawaii’s older housing stock offers flip opportunities, especially on the Big Island. Hard money loans can include construction or renovation funds, allowing you to purchase and rehab with a single loan.
4. Flexible Loan Structures
Need deferred payments or interest-only terms? Hard money lenders can structure deals that suit your investment plan, whether you’re wholesaling, flipping, or bridging to long-term financing.
5. Opportunities Banks Avoid
Banks shy away from non-conforming properties, land deals, or unique situations. Hard money lenders step in where banks say no — offering funding for high-potential, unconventional investments.
Uses & Use Cases in Hawaii
Hard money is used by investors for:
- Fix & flip projects — purchase, rehab, resale
- Bridge financing — short-term gap funding before permanent loan
- Construction / rehab — especially when permits or unique scope are involved
- Land / unique property deals — when conventional financing may not accept property types
How to Qualify & What Lenders Look For
To qualify for a hard money loan, lenders evaluate:
- Property value / ARV
- Equity / down payment
- Exit strategy (sale, refinance, rental)
- Borrower experience or track record
- Supporting documentation (purchase contract, rehab plan, proof of funds)
Local Factors That Affect Hard Money in Hawaii
In Hawaii, consider:
- Leasehold vs fee-simple properties, which may complicate underwriting
- Zoning, permitting, and inspection timelines on different islands
- Logistics: labor, shipping, remote location costs
- Market demand fluctuations across Honolulu, Maui, Kauaʻi, and the Big Island
Risks & Things to Watch Out For
Hard money loans carry higher interest and short repayment windows. The key risks:
- Not executing the exit strategy in time
- Cost overruns in rehab
- Market downturns or declining property values
- Over-leveraged equity positions
Always work with a reputable local lender who understands Hawaii’s nuances.
FAQs About Hard Money Loans in Hawaii
Can I get hard money for a condo in Honolulu?
Yes, if the condo association allows investor rehab, and the property qualifies under lender criteria.How fast can I close a hard money loan?
Many lenders close in 7–14 business days if all documentation is in order.Do I need a perfect credit score?
No, credit is considered, but less heavily than with traditional loans.Are multiple property types allowed?
Yes, single-family, multi-family, commercial, land, and mixed-use may all qualify, depending on the lender and the deal.How to Get Started / Apply
Send us: property address, purchase price, rehab/upgrade plan, projected resale or exit path, and funds available. We’ll review your deal, propose terms quickly, and guide you toward closing.
Offering Rates Starts at 9%
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