Hard Money Equity Cash-Out Loan for 5-Unit Property in Chaska, Minnesota
Loan Amount
$400,000
Property Value
$800,000
Loan To Value
50%
Interest Rate
13.5%
Loan Term
12 months
Payment Type
Interest Only
Rate Type
Fixed
Closed Date
05/14/2025
Private Loan Type
Equity Cash Out
Approx. Funding Date
05/14/2025
Property Type
Multifamily
Loan-to-Value
50%
Loan Term
12 months
Interest Rate
13.5%
Deal Summary
Myers Capital Hawaii partnered with its affiliate, Koa Mortgage Fund, to fund a $400,000 first-lien position equity cash-out bridge loan for a 5-unit multifamily property in Chaska, Minnesota.
The loan-to-value ratio was 50%, based on an estimated property value of $800,000. The Borrower, an experienced real estate investor with excellent credit, used the loan proceeds to pay off a balloon payment. The cash-out funds will be used to renovate all five units with improvements such as new flooring, cabinetry, interior and exterior paint, landscaping, and roof repairs.
The Borrower’s exit strategy is to refinance into a long-term loan after the renovations are complete. The subject property was in good condition, featuring 3 single-story buildings totaling approximately 6,400 square feet on a 5.2-acre lot. The loan’s interest rate was 13.5% with a 12-month term, and it includes 12 months of guaranteed interest.
Deal Highlights
- A cash-out refinance was completed on a multifamily property in Chaska, Minnesota.
- Proceeds were used to pay off a balloon payment on a 5-unit apartment complex.
- Additional funds will be used to renovate all five units.
- Exit Strategy: Refinance into long-term financing post-renovation.
Loan Originator
Reed Myers
Principal, Myers Capital Hawaii
Reed is the Principal of Myers Capital Hawaii, an award-winning, privately-owned residential and commercial mortgage banking company. As a second-generation family business owner, Reed has been personally involved in over $1.5 billion in loan originations, helping thousands of clients throughout the country.
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