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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
12/06/2022
Property Type
Property City
Mountain Brook
Property State
AL
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$345,000
Loan-to-Purchase Price
65%
Borrower's Contribution to Purchase
35%
Source of Borrower's Contribution
Cash
Renovation Budget
$234,740
Renovation Budget Funded
100%
After-Repair Value
$750,000
Property Neighborhood
Mountain Brook
Location Type
Urban
Property Condition
Excellent
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Good
Interest Rate
10.49%
Origination Points
1.5%
Deal Summary
RCN Capital, a national direct private lender, funded a $487,500 fix and flip loan for a single-family residence in Mountain Brook, AL. The Borrower is an experienced investor (5+ verified projects) who was under contract to acquire the subject property for $345,000 with intentions of spending $234,740 on rehab before listing it for resale. We funded 65% of the purchase and 100% of the renovation in 1st lien position. The Borrower contributed 35% cash to the purchase price at closing. The subject property was appraised for $480,000 As-Is and After Repair Value of $750,000 which evidenced an ROI of 27.10%. The initial advance was 84.13% LTC and 60.47% of LTV. The total loan amount was 70% of ARV. The property was being sold for almost $150,000 below the current value. The Borrower also intends to turn the garage into an Accessory Dwelling Unit (ADU). The Sponsor had good credit with a mid-score of 712. Bank statements reflected a sufficient balance to cover our Liquidity Requirements. The loan term was set at 12 months. The interest rate was 10.49%. We charged 2% origination points. This SFR fix and flip loan was funded in December 2022.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Chyna Jean-Baptiste
Loan Officer
Chyna is a dedicated and detail-driven professional who specializes in building lasting relationships in the finance industry. Prior to entering the lending space, Chyna held over 9+ years of experience in service, financial advisory, investments, and working with clients to find the most suitable, customized solutions to their goals. She prides herself in working side-by-side with brokers and investors alike, specializing in the Southern California market, to bring the best deals to the forefront. Chyna is a Pepperdine University graduate, where she earned a bachelor’s degree in Business Management with an emphasis in Finance.