Alabama Fix and Flip Lenders

RCN Capital, a national direct private lender, funded a $487,500 fix and flip loan for a single-family residence in Mountain Brook, AL. The Borrower is an experienced investor (5+ verified projects) who was under contract to acquire the subject property for $345,000 with intentions of spending $234,740 on rehab before listing it for resale. We funded 65% of the purchase and 100% of the renovation in 1st lien position. The Borrower contributed 35% cash to the purchase price at closing. The subject property was appraised for $480,000 As-Is and After Repair Value of $750,000 which evidenced an ROI of 27.10%. The initial advance was 84.13% LTC and 60.47% of LTV. The total loan amount was 70% of ARV. The property was being sold for almost $150,000 below the current value. The Borrower also intends to turn the garage into an Accessory Dwelling Unit (ADU). The Sponsor had good credit with a mid-score of 712. Bank statements reflected a sufficient balance to cover our Liquidity Requirements. The loan term was set at 12 months. The interest rate was 10.49%. We charged 2% origination points. This SFR fix and flip loan was funded in December 2022.