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%
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.
Dealmakers
Sara Harris
Loan Officer