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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
12/09/2022
Property Type
Property City
Memphis
Property State
TN
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$65,000
Loan-to-Purchase Price
75%
Borrower's Contribution to Purchase
25%
Source of Borrower's Contribution
Cash
Renovation Budget
$16,154
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$112,000
Renovation Project Scope
Light Rehab
Property Neighborhood
Memphis
Location Type
Suburban
Number of Units
1
Building Square Footage
1,031
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
14.24%
Origination Points
1%
Deal Summary
RCN Capital, a national direct private lender, funded a $64,904 fix and flip loan in 1st lien position for a single-family residence in Memphis, TN. The purchase price was $65,000 and the renovation budget was $16,154. We funded 75% of the purchase price plus 100% of the renovation. The Borrower contributed 25% cash to the closing. The subject property was appraised for $68,000 As-Is and an after-repair value of $112,000 evidenced solid returns to the Borrower of just under 35%. The Guarantor had excellent credit with a middle score of 780 and a background history without any major issues. Bank statements reflected sufficient liquidity to meet the reserves required for this loan. Good deal overall. The subject property was approximately 1,031 square feet. The interest rate was 14.24%. We charged a 1% origination point. The loan term was set at 12 months. The Borrower plans to sell the property upon completion of the light rehab. 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
Ryan Taft
Loan Officer
Ryan puts a premium on giving clients at RCN a customer experience that will lead to a long-lasting relationship. Ryan goes above and beyond to make sure brokers & borrowers alike reach their financial and professional goals through clear & concise communication.
Ryan Taft
Loan Officer
New borrower, first loan with RCN. Had one previous flip. He has now done 3 loans with RCN. In less then 2 months. $65k purchase, $16k rehab, $112k ARV. Nice little fix and flip for a solid 34.77% Return on investment. Borrower has great credit at 780 and now has 3 experience to get him our best loan terms/leverages. This deal was done at 75% LTV, and a full note interest at 14.24% due to being under $50k initial advance. Borrower is wrapping up the rehab currently and should be out of the loan in the next month pending sale of property. - Ryan Taft, Loan Officer