National Direct Private Lender for Real Estate Investors

RCN Capital® is a nationwide, direct private lender. Established in 2010, we provide short-term and long-term hard money loans to real estate investors. As a direct private lender, RCN Capital takes a common sense approach to underwriting, with all approvals made in-house, and we are dedicated to providing a quick response to time-sensitive loans. We offer speed unmatched by conventional lenders and can close in as few as 10 business days.

Please note: We do not offer loans for owner-occupied homes.

 

Property Geographic Area Details
Nationwide except 6 states: AK, MN, ND, SD, VT, NV. We consider urban and suburban areas only.
Loan Amounts
$75,000 to $10,000,000
Interest Rates
8% to 13%
Loan Terms
12 months to 360 months
Origination Fees
2% to 5%
Lien Position
1st
Collateral Types
  • Residential Property
  • Commercial Property
Loan Purpose
  • Investment Acquisition
  • Investment Refinance
  • Use Equity to Invest in Another Property
Property Occupancy
  • Vacant
  • Tenant Occupied 100%

Maximum Leverage

Purchase Short-Term (no Value-Add):
Max LTP Residential: 82.5%
Max LTP Multifamily: 80%
Purchase Long-Term
Max LTP Residential: 80%
Max LTP Multifamily: 75%
Refinance Short-Term (no Cash Out)
Max LTV 1st Lien Residential: 70%
Max LTV 1st Lien Multifamily: 65%
Refinance & Cash Out Short-Term
Max LTV 1st Lien Residential: 65%
Max LTV 1st Lien Multifamily: 60%
Refinance Long-Term
Max LTV Residential: 75%
Max LTV Multifamily: 75%
Residential Fix & Flip
Max LTP: 90%
Max LTC: 100%
Max LTARV: 75%
Residential Rehab & Hold
Max LTP: 90%
Max LTC: 100%
Max LTARV: 75%
Multifamily Value-Add
Max LTP: 85%
Max LTC: 100%
Max LTARV: 70%
Residential Construction
Max LTP Land: 75%
Max LTC: 90%
Max LTCV: 75%

Fix & Flip Projects / ARV Loans

Short-term financing for the purchase & rehab of non-owner occupied properties.

  • Collateral: Non-Owner Occupied 1-4 Family Real Estate; Condos; Townhomes: 5+ Unit Apartments; Mixed-Use Properties
  • LTV: Up to 90% of the Purchase Price + 100% of the Renovation Cost
    • Investors with less experience will need to contribute more to the purchase
  • LTARV: Not to Exceed 75% of the ARV (max 70% for new investors)
  • Term: 12 Months (6-Month Extension Available)
  • Minimum As-Is Property Value:
    • $50k for Single-Family
    • $25k per Unit for 2-4 Family
    • $35k per Unit for Multi-Family (5+)/Mixed-Use
  • Loan Amount:
    • $50k – $2M for 1-4 Family, Condos, & Townhomes
    • $250k – $5M for Multi-Family (5+)/Mixed-Use
  • Minimum FICO Score: 650
  • Interest Rates: As Low As 8% for very experienced investors
    • (Interest Only Charged on Outstanding Balance)
  • Pre-Payment Penalty: N/A

INVESTOR EXPERIENCE LEVELS

  • New Investor: Completed up to 2 Flips or Owned up to 2 Rentals in the last 3 years
    • Interest Rates Starting at 11.74%
    • 20% cash down payment required for purchase
  • Intermediate Investor: Completed Between 3 & 10 Flips or Owned Between 3 & 15 Rentals in the Last 3 Years
    • Interest Rates Starting at 10.74%
    • 17.5% cash down payment required for purchase
  • Experienced Investor: Owned 30 or More Investment Properties (Flips and/or Rentals) in the Last 3 Years
    • Interest Rates Starting at 10.24%
    • 10% cash down payment required for purchase

Long-Term Rental Loans

Long term financing for the purchase and refinance of non-owner occupied rental properties.

  • Collateral: Non-Owner Occupied 1-4 Family Real Estate; Condos; Townhomes; Planned Unit Development (PUD)
  • LTV:
    • Purchase: Lesser of up to 80% of the As-Is Value or Up to 80% Loan-to-Cost
    • Refinance: Up to 80% of the As Is Value
    • Cash-Out: Up to 75% of the As Is Value
  • Term: 30 Years
  • Property Values: “As Is” Appraised Value Must Be $100k or Greater (Geographical Restrictions May Apply)
  • Loan Amount: $75k – $2M
  • Minimum FICO Score: 650
  • Interest Rates: Starting at 8%
  • Debt Service Coverage Ratio (DSCR):
    • For Property Values < $150k: 1.1 or Greater
    • For Property Values $150k+: 1.1 or Greater

Mulit-Family Loans

Short-term financing for 5+ unit apartments and mixed-use properties.

  • Collateral: Multi-Family Apartment Buildings (5+ Units); Mixed-Use Properties (Residential Space is Great than 50% of Square Footage)
  • LTV: Stabilized Bridge
    • Purchase: Up to 75% of the As is Value
    • Refinance: Up to 70% of the As is Value
    • Cash-Out: Up to 60% of the As-Is Value
  • Fix & Flip – Light Rehab only

    • Purchase: Up to 87% of the Purchase Price + 100% of Renovation Costs
    • Refinance: Up to 70% of the As-Is Value + 100% of Renovation Costs
    • Cash-Out: Up to 60% of the As-Is Value + 100% of Renovation Costs
  • Term: 12 Months (6-Month Extension Available)
  • Minimum Property Value: $50k per Door (Subject to Increase Based on Location)
  • Loan Amount: $250k – $3M ($1M Max per unit)
  • Minimum FICO Score: 680

Final loan terms may vary based on loan types, verification of application information, and other risk-based factors.

Property Types

  • 2-4 Units Residential
  • Condominium
  • Mixed-Use
  • Multifamily
  • Single Family Residence

Loan Types

  • Private Money
  • Hard Money
  • Residential Bridge
  • Residential Fix and Flip
  • Residential Rehab and Rent
  • Residential Ground-Up Construction
  • Residential Long-Term Rental

Specialty Loan Types

  • Condo Conversion
  • Residential Long-Term Rental
RCN Capital offers short-term bridge financing options for real estate investors for a multitude of non-owner occupied properties. Cross-collateralization options are available. A six-month extension is available for our 18-month bridge loan (a 2% fee will apply). This program has interest rates starting at 7.74%. $50K to $2M | 12 to 18 months | LTV up to 90% of purchase price, Refinance up to 75%, Cash Out up to 70% | 620 minimum FICO. Our Buy-to-Rent loan program offers a 24-month term, with a 12-month extension available, ensuring that our customers have rental property financing that goes the distance. This program has interest rates starting at 7.49%. $75K to $2M | 24 Months, extension available with additional fee | Purchase up to 80% loan-to-cost, Refinance up to 70% of as-is value, Cash Out up to 65% of as-is value | 620 minimum FICO | 1.15 Rent Coverage Ratio.

Max Loan-to-Purchase Price

90%

Borrower Must Have Property Under Contract

no

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

yes

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
RCN Capital’s After Repair Value program offers financing for up to 90% of the purchase price + up to 100% of the renovation costs, not to exceed 75% of the after repair value. Prior real estate investing experience is required. This program has interest rates starting at 8%. $75K to $2M. 12-Month term. 650 minimum FICO score.

Experience Required

no

Minimum Number of Value-Add Projects Completed by Borrower

0

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

100%

Interest Charged for Renovation Costs

Only on Funds Drawn

Typical Number of Days for Funds Draw

5

Maximum After Repair Value

75.00%
Construction loans are only for non-owner occupied Single Family Homes, Condos and Townhomes. Property must have entitlements, permits and approved plans. Minimum FICO score of 680 required. Loan terms of 12, 18, 24 months. At least one borrower or guarantor must have the number of qualifying pieces of experience as dictated above or equivalent experience in the past three (3) years and at least one (1) year in the business of acquiring real estate for investment purposes or renovating real estate. Final loan terms may vary based on loan types, verification of application information, and other risk-based factors.

Development Experience Required

yes

Minimum Number of Ground-Up Construction Projects Completed by Borrower

1

Max LTC for Ground-Up Construction Costs

90%

Interest Charged for Construction Costs

Only on Funds Drawn

Will Lend on Partially Completed Construction Projects

yes
The borrower needs to own at least one other rental property besides the subject property. Purchase up to 80% loan-to-cost, Refinance up to 80% of as-is value, Cash Out up to 75% of as-is value. 660 minimum FICO. The origination fee is 3 points for most of our long-term loans. It is possible to buy down the interest rate by paying more points at closing. There is no seasoning requirement; we do want to see long-term leases in place, but they don’t have to have started yet. The prepayment penalty is 5% of unpaid loan balance if paid off before end of year 1, 4% of unpaid loan balance if paid off before end of year 2, 3% of unpaid loan balance if paid off before end of year 3, 2% of unpaid loan balance if paid off before end of year 4, 1% of unpaid loan balance if paid off before end of year 5. Long-term loans can be secured by a single-family home, condo, townhome, duplex, triplex or fourplex.

Minimum Loan Amount

$75,000

Maximum Loan Amount

$2,000,000

Minimum Interest Rate

8%

Maximum Interest Rate

10%

Minimum Origination Fee

2%

Maximum Origination Fee

5%

Minimum Loan Term

360 months

Maximum Loan Term

360 months

Minimum Debt Service Coverage Ratio

1.10

Will Lend on a Portfolio of Rentals

Yes

Minimum Number of Properties

1

Minimum Property Value

$100,000

Maximum Property Value

$2,000,000

Deposit Required

6 months interest reserve on purchase 12 months interest reserve on refinances

Legal Fee

$995 legal fee due at closing on all loans. New York: $995+.25% of total loan amount.

Inspection Fee

$200 inspection fee per draw request. This amount is NOT paid out of pocket; it is taken out of the renovation budget.

Credit Report Fee

$25 is charged for RCN to pull a credit report

Background Check Fee

$25 for a background check

Background Check Fee

$25 for a background check

Appraisal Fee

Cost of ordering an appraisal. If there is renovation, it will be an appraisal of both as-is and after repair value. Usually in the range of $600-1500, buy may be higher, especially for larger multi-family or mixed use properties. RCN does not collect this fee, as it will be collected by the AMC and therefore will not appear in closing costs.

Renovation Construction Draw Fee

$200 inspection fee per draw request. This amount is NOT paid out of pocket; it is taken out of the renovation budget.

Fees which are mandatory for all new borrower clients

  • Deposit
  • Legal Fee
  • Appraisal Fee
  • Credit Report Fee
  • Background Check Fee
  • Renovation or Construction Funds Draw Fee

Fees which are paid to a third party company

  • Appraisal Fee
  • Credit Report Fee
  • Background Check Fee

Details and Requirements

Typical Closing Time (Days)

15

Fastest Closing Time (Days)

10

Payment Structure
  • Interest Only
  • Amortized
  • Interest Reserve
Payment Structure Details

There are no prepayment penalties on our fix and flip programs. Only on 18 month bridge, Buy to Rent, and Long Term Rental.

Pre Payment Penalty

yes

There are no prepayments on our fix and flip programs. Our programs longer than 18 months do have prepayment penalties. For our 18 month bridge, there is a prepayment penalty before month 9. For our 24-36 month Buy to Rent Program, there is a prepayment penalty before month 6. For our 30 year Long Term Rental Program, there is a step down prepayment penalty.
Will lend to a foreign national

yes

We will lend to foreign nationals at reduced LTV.
Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

no

Will Consider Collateralizing Multiple Properties in One Loan

no

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered
  • LLC
  • Trust
  • Corporation
Documentation Required
  • Credit Report
  • Bank Statements
  • Loan Application
Personal Guaranty (Recourse) Required
Always
Credit Check Required

yes

Minimum Credit Score Required

650

Credit Check Description

Our 12 month bridge, 18 month bridge, and Buy to Rent program all have minimum credit scores of 650. Our Long Term Rental has minimum credit scores of 680.

Appraisal Required for Residential Property

Always Before Funding

Appraisal Required for Commercial Property

Always Before Funding

Broker Price Opinion (BPO) Accepted for Residential Property

Never

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Legal Disclaimer

RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258. Arizona Mortgage Banker License BK-0932325. Oregon Mortgage Lending License: ML-5571. NMLS Company ID: 1045656.

RCN Capital Testimonials

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RCN Capital is a nationwide, direct, private lender. Established in 2010, we provide commercial loans for the purchase or refinance of non-owner-occupied single-family & multi-family properties. We specialize in ground-up construction financing, short-term bridge loans, fix & flip financing and long-term rental financing for real estate investors. We lend to both new and experienced real estate professionals throughout the country.  We value referrals; brokers are protected. As a direct private lender, RCN Capital takes a common-sense approach to underwriting, with all approvals made in-house, and we are dedicated to providing a quick response to time-sensitive loans. We offer speed unmatched by conventional lenders and can close in as few as 10 business days.

 

 

 

License

NMLS ID 1045656, CFL 60DBO-46258, Arizona BK-0932325, Oregon ML-5571

Company Size (Number of Employees)

140

Year Established

2010

Associations

  • American Association of Private Lenders
  • Asian Real Estate Association of America
  • Connecticut Mortgage Association
  • Connecticut Mortgage Bankers Association
  • East Coast Real Estate Investors Association
  • Mortgage Bankers Association
  • National Private Lenders Association
  • National Association of Mortgage Brokers
  • National Alliance of Commercial Loan Brokers

Office Locations

75 Gerber Road East, South Windsor, Connecticut 06074

Primary Capital Source
  • Own Funds
Loan Structure for Majority of Loans
  • Own Balance Sheet
Percentage of Loans Secured by Commercial Property

5%

Percentage of Loans Secured by Residential Property

95%

Total Number of Loans Funded to Date

10000

Total Loan Volume Funded to Date

$2,500,000,000

Our Team

Stephen Ballard

Senior Business Development Coordinator

Natasha Nikulina

Business Development Coordinator

Funded Deals

Get In Touch

RCN Capital pays us to be listed, so there is no fee to connect. Share your loan request, send a simple email, call, or visit their website.

Stay Informed About Private Lending

Receive our monthly newsletters with valuable insights and industry updates
subscribe-illustration

Create a Loan Request

Be more efficient with your lender search. Provide the loan details once, save it, and then share it with multiple lenders.

Contact RCN Capital by whichever method you choose.

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BEFORE YOU CONTACT THIS LENDER

Our Minimum Loan Amount Is

$75,000

What We Do

  • Residential & Multifamily Properties Only
  • 15%+ Cash Required for Flip Purchase
  • 25%+ Cash Required for Rental Purchase
  • Short-Term and Long-Term Financing
  • 650+ FICO Score Required

Not Available

  • NO 100% Financing
  • NO Junior Liens or Gap Funding
  • NO Owner-Occupied Homes
  • NO Land Loans

Send an email to RCN Capital