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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
11/17/2022
Property Type
Property City
Oklahoma City
Property State
OK
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$285,000
Loan-to-Purchase Price
70%
Borrower's Contribution to Purchase
30%
Source of Borrower's Contribution
Cash
Renovation Budget
$216,000
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$649,500
Loan-to-After-Repair Value
70%
Renovation Project Scope
Light Rehab
Property Neighborhood
Oklahoma City
Location Type
Suburban
Property Condition
Newly Renovated
Occupancy at Closing
Vacant
Number of Units
2
Building Square Footage
2,836
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
10.49%
Origination Points
1.5%
Deal Summary
RCN Capital, a national direct private lender, provided a $454,650 fix and flip loan for a duplex property in a suburban neighborhood of Oklahoma City. The Borrower is an experienced investor and a repeat client of ours. They were under contract to acquire it for $285,000 (which includes $15,000 assignment fees). RCN Capital funded 70% of the purchase and 100% of the rehab costs, while the Borrower contributed 30% cash at closing. The 2-unit property with approximately 2,836 square feet appraised for $288,000 as-is, and an after-repair value (ARV) of $649,500 evidenced a decent return on investment of over 27%. The Sponsor had excellent credit with a mid score of 771 and bank statements that reflected sufficient assets to close this deal. There was an Initial advance of 83.74% LTC and 82.86% LTV. The total loan amount was 70% of the ARV. The interest rate was 10.49% and we charged 1.5% origination points. The loan term was set at 12 months. The Borrower intends to spend $216,000 (Light rehab) on renovations before listing the duplex property for resale. This residential fix and flip loan was funded in November 2022.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Sara Harris
Loan Officer