Connecticut Fix and Flip Lenders

Connecticut Residential Fix & Flip Insights from a Local Lender

In the state of Connecticut, lenders are seeing a lot of investors shifting their business strategies to accommodate today’s changing market. Mitchell Zagrodnik, a Jr. Business Development Coordinator at RCN Capital says that currently light to moderate residential fix and flip projects are on the rise in Connecticut because there aren’t many families looking for properties with super high values. So investors are focusing more on properties where they can quickly drive up the value just enough to get a solid return on investment. He explains, “they know budgets are tight and buyers aren’t necessarily looking for high value properties. Usually rehab budgets in the vicinity of $25,000 to about $50,000 are getting put into these properties because the experienced investors in this market know their buyers, they know where they can get the property’s values to and at the end of the day, their job is to get these properties sold and make a profit. So they want to hit that certain marker where there’s actually going to be a buyer’s market.”

Mitchell states that, today, they rarely have borrowers looking to do any multi-family rehab projects, such as addons or condo conversions. “The single family 1-4 has really been our bread and butter, with an average loan amount typically of around $300,000” he says.

According to RCN Capital, although the current market is volatile, their investor clients haven’t been affected too much due to the fact that most of their clients are more experienced, understand the market and know how to diversify their strategies. Mitchell says, “we see the investors getting a little bit more smart and savvy, scaling their budgets where they can actually still have a buyer’s market out there and they’re not trying to drive the price range up too high.”

Mitchell states that another way investors at RCN Capital are surviving today’s market is by using the BRRRR strategy. “Most of our investors in Connecticut right now are looking at their exit strategies to sell the property, but there’s also that ability where they can kind of hold that property as well after rehab. They say, hey, I have a nice property on my hands, now I can rent this out and keep that for passive income so they can refinance into that long term loan after rehab. We see that happen a lot,” he explains.

Popular Markets for Connecticut Investors to Consider

Mitchell says the areas in Connecticut their investor clients are finding the most success in are the bigger cities of New Haven, West Haven and Norwalk. He says they also see investors looking into opportunities in New Britain where there’s a college and a lot of commercial area.

RCN Capital® is a nationwide, direct private lender. They 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 are dedicated to providing a quick response to time-sensitive loans. RCN’s rehab loan program is pretty straightforward. They can do up to 85% of the purchase price and lend 100% of the renovation costs as well, not to exceed 70% of the after repair value. 85% of the purchase price is going to be based on experience, where the investor has completed at least three rehab projects within the last three years. View their profile to find their contact information and learn more.

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