All Shorts

    Short

    Why Hawaii Land Is a Secret Goldmine for Real Estate Investors

    Watch on YouTube

    Reed Myers lends against Hawaii land, a market with hard supply limits and very few competing lenders. He explains what makes the collateral unusual and how he underwrites value where comparable sales are thin.

    • #privatelending
    • #hawaii
    • #landinvesting
    • #mortgagefund
    • #realestate

    From the full episode

    Reed Myers on Private Lending, Mortgage Funds, and Predictable Returns

    As I started getting some success in South Carolina, I'm actually from Hawaii, I was born here, I wanted to move back here in my later 20s.
    Listen to the full episode with Reed Myers

    Frequently Asked Questions

    Why does Reed Myers lend on raw land in Hawaii?
    Because in Hawaii most of the value sits in the dirt. Reed notes an average single family home on Oahu runs about $1 million to $1.1 million, and a good 70 to 80 percent of that value is the land itself. Since Myers Capital knows those markets intimately, they will get creative and lend on raw land in certain situations — something they would not do as freely on the mainland.
    What property types will Myers Capital lend on, and what will it avoid?
    Reed lends on the basic food groups — one to four units, multifamily, commercial, mixed use, special use and light industrial — plus horizontal development, small subdivisions, and occasional second lien or mezzanine financing. Heavy industrial is a no. He also skips states that require a direct lending license, including Alaska, California, Nevada, Arizona, the Dakotas, Wyoming and Montana.
    How does Reed structure loans to avoid foreclosure?
    His stated goal is to never foreclose, though the firm sets up a deed in lieu of foreclosure in advance in case it is needed. Loans are made to investors rather than homeowners at around 65 percent loan to value, and when a 12 month loan runs late it typically pays off around month 14 or 15, with late fees recouped at closing.

    Want more like this?

    Get new clips, episodes, and lessons from active real estate investing by email.

    Free, no spam. Unsubscribe anytime.