Fix & Flip Loan for Single-Family Residence in Charlotte, North Carolina

RCN Capital, a national direct private lender, funded a $430,750 fix and flip loan for a single-family residence in Charlotte, North Carolina. The purchase price was $330,000 and the rehab budget was $100,000. RCN Capital funded 100% of the purchase price in 1st and 2nd lien positions. The Borrower was a very experienced investor with multiple successful flips in his portfolio and over 35 investment properties within the last 3 years. They had an excellent credit rating with mid scores of 777 and bank statements that reflected sufficient assets. This qualified them for our platinum program, meaning they qualified for 100% financing on the acquisition, 100% of rehab costs, and up to 75% of the ARV. The after-repair value (ARV) was estimated to be $610,000 which evidenced a solid ROI of 38.42% for the borrower. They were very mindful of the market they wanted to invest in, and we had closed about 4-5 projects within 2 miles of the subject property before acquisition. Their style of work is very up-to-date to the desire of an eager home buyer looking for modern finishes and crisp lines. Due to how active this borrower is within the market, property values increased in this neighborhood because of their completed projects. The initial advance was 100% LTC and 85.91% LTV. The interest rate was 9.99% and the loan term was set at 12 months. We charged 1% origination point. The Borrower plans to sell upon completion. This SFR fix and flip loan was funded in October 2022.