Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
11/22/2022
Property Type
Property City
Halifax
Property State
MA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$160,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Cash
Renovation Budget
$140,000
Renovation Budget Funded
100%
After-Repair Value
$410,000
Loan-to-After-Repair Value
65%
Property Neighborhood
Halifax
Location Type
Suburban
Property Condition
Fair
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Good
Interest Rate
9.99%
Origination Points
2%
Deal Summary
RCN Capital, a national direct private lender, funded a $268,520 fix and flip loan for a triplex in Halifax, MA. The Borrower is a repeat and experienced investor looking to take on another project under contract to acquire the subject property for $151,200 with intentions of spending $140,000 on renovations before listing the property for sale. We funded 100% of the renovation costs. The subject was appraised for $160,000 As-Is and an after-repair value (ARV) of $410,000 evidenced an ROI of over 38.64%. The Sponsor had decent credit with a mid score of 701 and bank statements that reflected sufficient assets to cover our liquidity requirement. The loan was structured and priced in accordance with the guidelines with an initial advance of 85.00% LTC & 80.30% LTV. They contributed 20% to the purchase at closing. The total loan amount was 65.50% of ARV. The subject property was in fair condition. The loan term was set at 12 months. The interest rate was 9.99%. We charged 2% origination points. This SFR 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
Rich DeVito
Senior Loan Officer
Richard DeVito, Senior Loan Officer, is always looking to help people fund their great real-estate investment ideas, from the seasoned veterans in the space to first-time investors. Richard is known for his strong customer service and ability to develop long term relationships with borrowers and brokers. He has a background in financial services/sales and has experienced great success by being knowledgeable, professional, and understanding the investor’s experience is the number one priority. Richard attended Iona College and graduated from the Hagan School of business with a degree in Finance.