Deal Details
Private Loan Type
Purchase
Approx. Funding Date
10/27/2022
Property Type
Property City
Texas City
Property State
TX
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$170,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
41%
Source of Borrower's Contribution
Cash
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.42
Location Type
Suburban
Occupancy at Closing
Vacant
Building Square Footage
1,880
Lot Square Footage
5,280
Borrower's Plan
Long-Term Rental
Exit Strategy
Pay Down
Borrower Credit Rating
Excellent
Interest Rate
6.5%
Origination Points
2.5%
Deal Summary
RCN Capital, a national direct private lender, funded a $136,000 DSCR loan for the purchase of a single-family residence in Texas City, Texas. The experienced Borrower was under contract to acquire the subject property for $170,000 with intentions of holding it long-term as a rental/income property. The subject property was appraised for $230,000 as-is and the Collateral Desktop Analysis (CDA) Report confirmed that the value was acceptable, so the real LTV at the time was around 59%. The appraiser estimated the market rent to be $1,850/month which results in a 1.42 DSCR (debt service coverage ratio). RCN Capital funded 80% of the purchase in 1st lien position and the Borrower contributed 20% cash. The Borrower had excellent credit with mid-scores of 788 and bank statements showed evidence of sufficient assets to justify the loan. The fixed interest rate was 6.5% and the loan term was set at 30 years. We charged 3% origination points. The subject property is approximately 1,880 square feet on a 5,280 square foot lot. This DSCR rental purchase loan was funded in October 2022.
Dealmakers
Michael Vivenzio
Loan Officer
Michael joined the RCN Capital team in the summer of 2020. Michael strives to develop meaningful long-lasting relationships with brokers and borrowers to help them achieve their financial goals. Michael comes into this position with a passion for real estate born from experience with his family-run Real Estate investment business over the past 5 years. Michael is from Massachusetts and earned a Bachelor’s Degree from Merrimack College in 2018.