Funded Rehab Loans for Rental Properties
RCN Capital, a national direct private lender, funded a $230,000 1st lien position equity cash-out refinance loan secured by a single-family home in Broken Bow, Oklahoma. The property was initially purchased for $118,000 in October 2020. The Borrower needed to complete a major renovation of the property before placing tenants in it. The as-is value was estimated at $182,500. We provided $120,500 as a controlled rehab budget to be released in multiple draws. The after-repair value was estimated at $493,000 which put our loan at a 60% loan-to-value. And the Borrower will see a solid return of 104%. They had a lot of experience and excellent credit, with a middle score of 712 and their bank statements showed sufficient liquidity to meet the reserves required for this loan. They plan to lease the property upon completion of the heavy rehab and eventually refinance it as an exit strategy. It is approximately 1,176 square feet. The interest rate was 11.49% and we charged 3.25% origination points. The loan term was set at 12 months. This rehab-to-rent loan was funded in September 2023.
Precision Capital, a direct private lender, funded a $348,550 1st lien position hard money loan for the acquisition and rehab of a single-family residence in Willamina, OR. We funded 100% of the $167,050 purchase price and 100% of the $181,500 renovation budget. The after-repair value was $530,000 so our loan-to-after-repair value was 66%. This property was uninhabitable at the time of purchase. Our Borrower saw the diamond in the rough and we were pleased to help them bring this property back to life! It was approximately 2,535 square feet set in a 5-acre lot. The Borrower had good credit. They plan to lease the property upon completion of the heavy rehab and eventually refinance as an exit strategy. The interest rate was 11.99% and we charged 3% origination points. The loan term was set at 24 months. This SFR hard money loan was funded in April 2022.