Why Hybrid Finance Firms Thrive in Hawaii's Pricey Market

In an industry obsessed with specialization, one hybrid firm is pursuing on versatility – and it's paying off. Automation may cut the grunt work, but running a boutique firm that juggles lending, broking and fund management still demands hands-on hustle - and it’s a model that’s quietly thriving.

While the financial services industry leans increasingly into specialization, some boutique firms are embracing a hybrid model that blends traditional mortgage services with investment fund management. This approach leans heavily on operational efficiency and AI, with automation handling up to 80% of formerly manual tasks.

In high-cost markets like Hawaii, where the median price of a single-family home on Oʻahu reached $1.02 million in early 2024, offering flexible financing and investment solutions under one roof can be the key to staying competitive.

It’s the model Reed Myers (pictured) has refined over the years. During the 2008 crash, he joined the mortgage company his father founded and eventually expanded it into a multi-branch operation. Today, Myers oversees lending, brokering, and fund management at Myers Capital and Myers Investment Group, firms that operate with a lean team but a wide reach - prioritizing personal relationships, low rates, and long-term thinking over high-volume transactions.

Reed Myers, Principal, Myers Investment Group and Myers Capital

From real estate crash to family business

Myers’ financial career began in the Carolinas as an analyst for a real estate investment trust, but the 2008 crash brought everything to a standstill. Projects disappeared, and so did job security.

“All my projects I'd been working so hard on, everything got iced, put on hold; it didn't look good,” he said. “Even my boss was telling me: ‘You should probably start looking for another position.’”

He joined his father’s company, Myers Capital, which had been founded in 1998. Initially unenthused about the industry as a teenager, Myers’ perspective shifted once he got a deeper look into the business.

“When I got involved in it later as an adult, I started to do really well. I loved it,” he said.

From there, the company grew. He opened a branch in Hawaii and eventually expanded to Virginia, seeing many of his clients beginning to invest in these areas. They were no longer bound by brick-and-mortar offices thanks to advancements in technology and regulatory changes.

“Technology [has] made it very interesting and allowed for opportunities we wouldn't otherwise have had,” Myers said.

Adaptation, relationships and long-term thinking

Like many, the company embraced remote work after the pandemic, downsizing their physical footprint while maintaining client relationships across the country. But even as business shifted online, his core values remained intact.

“Part of my approach is very hands-on, very personal. I meet with my clients; I sit with them for an hour or two in my office,” he said. “But after COVID, our clients became a whole lot more tech savvy than they were before.”

Managing the investment fund comes with its own demands - namely, raising capital and ensuring it is deployed quickly and soundly to earn the double-digit yield investors are looking for. But for Myers, it’s about relationships more than formal pitches. Some of his borrowers become capital investors, and some investors return as borrowers, creating a flexible network where overlap is not only expected but encouraged.

“We have that full spectrum. We can help them on either side and give them a tremendous amount of creative lending options,” Myers said.

Even in a competitive industry, he doesn’t view other fund managers as adversaries.

“You would think one fund manager is vying for the capital that's out there, well, it's yes and no,” he said. “Many times, we collaborate with other fund managers to do larger deals that we would otherwise not be able to execute.”

Lower rates, a key part of his value proposition, come from leveraging volume in negotiations with capital sources - benefits he passes on to clients rather than keeping them as company profit.

“I'd rather have two or three good-quality clients that will refer us to their friends and family and other investors, than trying to maximize profits on any one deal,” he said.

Staying grounded in Hawaii, despite the costs

Living and working in Hawaii, however, comes with its own set of hurdles. The cost of living remains one of the largest challenges - both for him and for his clients.

“An average single-family home in Oahu is about a million dollars. So, if you're a first-time home buyer, that's not what you're going for, unless you have gift funds from family members or are a very high-income earner,” Myers said.

He pointed out that even with help, the qualifications are steep. Many in Hawaii find themselves adjusting their career goals to match the cost of living, sometimes sacrificing passion for practicality.

“It’s challenging deciding what you want to do, as far as a career goes in Hawaii; you may have to go beyond [the] things you really are passionate about,” he said.

Still, for Myers, Hawaii is worth it.

“Hawaii is a very culturally connected place. And for me is the place I wanted to end up,” he said. “We still have the same issues as everywhere else, but it is a geographically beautiful and very special place.” Article published at Mortgage Professional America