Hard money, fix and flip and DSCR loans on Oahu: your questions answered

It is a mortgage on an investment property that is funded by private institutional investors, not a bank. The decision is based on the property and the deal: its value after renovation or construction, or whether its rent covers the payment. Your job history and debt-to-income ratio are not reviewed.

Honolulu Fix and Flip Loans is the Hawaii division of Optimus Capital Corp, a nationwide hard money lender that works only with real estate investors. It is run by Andrew Shanti, Senior Vice President, who has worked in lending and real estate since 2005.

Our focus is Oahu: Honolulu and Waikiki, Kailua, Kaneohe, Pearl City, Waipahu, Mililani, Kapolei and Ewa Beach. We also lend on Maui, the Big Island and Kauai, and through Optimus Capital Corp in other states.

Fix and flip loans, DSCR loans for rental property, ground-up construction loans, mid-rehab and completion loans, rental portfolio loans, and commercial loans on multifamily, hospitality, office, industrial and retail property.

Choose a lender that funds most of the purchase and all of the renovation, pays draws promptly, and allows a term long enough for Honolulu permit timelines. We lend up to 90% of the purchase and 100% of the rehab on terms of 6 to 24 months. See investment property loans in Honolulu.

It means the borrower will not live in the property. Flips, rentals and new builds for sale are non-owner-occupied, and they are financed with business-purpose loans. Every loan we make is on non-owner-occupied property.

No. We lend on investment property only. The exception is commercial property occupied by the owner’s business. For a primary residence, a conventional NMLS-licensed mortgage broker is the right place to go.

As a rule, no, except on large commercial loans. The one cost before closing on most loans is the appraisal, which you pay to the appraisal company.

Programs begin at a 600 score. Fix and flip loans start at 600 with reduced leverage, while the best terms, 90% of purchase and 100% of rehab, are for scores of 720 or higher. Rental loans are available at 600 with up to 70% loan-to-value.

No. We look at three things: enough cash to buy and carry the property, a property that can cover its payment now or once the work is finished, and a credit record that shows debts are paid on time.

No. These are business-purpose loans and are not reported on personal credit like a conventional mortgage.

As many as your deals support. There is no limit on the number of properties we will finance for one investor.

Yes. We will need the articles of organization, the IRS EIN letter, a signed operating agreement showing each member’s share and, if the LLC is over a year old, a certificate of good standing.

Yes. You can borrow in your own name or through an LLC. If you are not a Hawaii resident, ask your escrow company about HARPTA withholding when you later sell.

A DSCR loan is approved on the debt service coverage ratio: the rent divided by the full monthly payment. We prefer 1.0 or higher. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program exists at a higher rate.

Outside resort-zoned areas, Honolulu does not allow residential rentals of less than 30 days, and a 2025 city ordinance raises the minimum for many properties to 90 consecutive days. Stays shorter than that are legal mainly in resort districts, such as much of Waikiki, Ko Olina and Turtle Bay, and in units with a nonconforming use certificate or a city registration. Most investor-owned homes on Oahu are therefore underwritten on long-term rent. Check the specific address with the Department of Planning and Permitting before you buy.

Yes, where the building is in a resort-zoned area or the unit otherwise may legally rent by the night. Income is counted from 12 months of history or AirDNA projections at about 70 to 80%.

Yes. Property tax is part of the monthly payment used in the DSCR. Honolulu taxes a home its owner does not live in at the Residential rate if it is assessed under $1 million, and in the Residential A class if it is assessed at $1 million or more, where every dollar over $1 million is taxed at more than three times the base rate. Legal vacation rentals fall in their own, higher class.

Yes. The full AOAO maintenance fee, and any special assessment you will pay, count in the payment. Ask for the association budget and recent meeting minutes before you buy.

No. Hawaii’s general excise tax and transient accommodations taxes are paid on rental income, not on the property, so they are not part of the DSCR payment. Your rental income projections should still account for them.

Yes, through our rental loan programs.

Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included.

In Hawaii an escrow company handles the closing. Have yours chosen when you apply.

The minimum is $75,000. The maximum is more than $10 million.

From 6 months to 30 years. Fix and flip loans are 6 to 24 months with interest-only payments. Rental loans are fixed for 5 to 30 years.

Not on fix and flip loans. Rental loans come with a 3-year or 5-year prepayment penalty, the 5-year usually priced about 0.25 to 0.5% lower, or with no penalty at a higher rate.