So they started doing the loans that everyone else turned down, ultra high risk development deals, second mortgages, land loans at ridiculously high LTV, loans where the borrower has none of his own capital invested, 85% of AFTER stabilized value loans.  

See if you can do an SBA loan at 10% versus a commercial loan at 25% downpayment.As far as investors:3. 

ThanksBrett, we do flips and rehabs and have several lenders in the area that specialize in ARV "style" loans.

Then you can immediately put a loan on. the free and clear property and pull that cash out to get close to what you need for the ADU. 

You're likely looking at a 25% down loan for a non-owner occupied. 

Statistically, I would bet that many of these properties could be at risk from a similar event before the reconstruction could even be completed.What is the new premium on a $5-10-20M insurance policy and how could it ever be recuperated during the life of the policy or length of the average 30 year loan? 

Hawaiian real estate law differs from other western states significantly, mostly due to its monarchal heritage and the Bishop Trust influence.The basics are the same as would be in California; determine the condition of title ownership (individual(s), estate (including conservatorship, if appropriate) OR fiduciary acting for trust.Use a qualified private money equity lender to make a loan sufficient to buy out the cash-only beneficiaryThe legal community in HI and Big Island in particular is small.

Tired landlords and conventional loans weren't available.   

I funded this with US cash, as well as a loan with a Canadian bank.I have shared this process with many friends and other real estate buddies that commended my journey.

Most people don't qualify for that relationship.The seller financing will not show up or affect the credit score.However, when applying for a loan at the bank or especially a Federally Guaranteed loan, they ask on the application for ALL Loans, whether  or not it shows on a credit report.