Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
10/21/2022
Property Type
Property City
Pompano Beach
Property State
FL
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$1,900,000
Previous Loan Balance
$550,000
Loan-to-Value
44%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.10
Property Neighborhood
Pompano Beach
Location Type
Vacation Area
Property Condition
Excellent
Occupancy at Closing
Tenant-Occupied
Building Square Footage
9,600
Borrower's Plan
Continue Rental
Exit Strategy
Pay Down
Borrower Credit Rating
Good
Interest Rate
7%
Origination Points
4%
Deal Summary
RCN Capital, a national direct private lender, funded an $842,921 DSCR long-term refinance loan secured by a single-family residence in Pompano Beach, FL. The Borrower is an experienced investor looking to cash out on the subject property and pay off an existing lien. The subject property’s value was approximately $1,900,000 as-is, subject to a Collateral Desktop Analysis, so the loan-to-value for our 1st mortgage was 44%. We paid off a previous loan balance of $550,000 and provided over $290,000 in cash-out funds. The subject property was being leased for $9,000 per month which was above the market rates as per the appraiser’s estimate of $8,500. The Sponsor had good credit with a mid-score of 693 and bank statements that reflected sufficient liquidity which met our reserve requirement. The total loan amount was 43.3% LTV with a 1.10 DSCR. The 9600-square-foot property was in excellent condition. The fixed interest rate was 7%. We charged 4% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in October 2022.
Dealmakers
Mike Lane
Team Loan Officer