Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
02/09/2023
Property Type
Property City
Pearl River
Property State
NY
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$410,000
Loan-to-Purchase Price
75%
Borrower's Contribution to Purchase
15%
Source of Borrower's Contribution
Cash
Renovation Budget
$45,355
Renovation Budget Funded
100%
After-Repair Value
$550,000
Loan-to-After-Repair Value
62.80%
Renovation Project Scope
Light Rehab
Location Type
Urban
Property Condition
Good
Number of Units
2
Building Square Footage
1,312
Lot Square Footage
8,712
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Interest Rate
12.74%
Origination Points
3%
Deal Summary
RCN Capital, a national direct private lender, funded a $345,355 1st lien position hard money loan for a 2-unit residential property in Pearl River, Rockland County, NY. We funded 75% of the $410,000 purchase price and 100% of the $45,355 renovation budget, while the Borrower contributed 25% cash to the purchase at closing. The subject property was appraised for $400,000 As-Is and an after-repair value of $550,000 evidenced a good ROI for the Borrower of over 17.61%. Initial advance was 73.20% LTC & 75.00% LTV. The total loan amount was 62.80% of the after-repair value (ARV). The subject property was approximately 1,312 square feet set in an 8,712-square-foot lot. The Sponsor had a mid score of 718 and bank statements that reflected sufficient assets. The Borrower plans to lease the property upon completion of the light rehab and eventually refinance as an exit strategy. The interest rate was 12.74%. We charged 3% origination points. The loan term was set at 12 months. This residential hard money loan was funded in February 2023.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Scott Evans
Regional Loan Operations
Scott Evans, Regional Loan Originations Director, joined RCN Capital in October 2022. Working from his satellite office in the Orlando market, he brings 4 years of private lending experience to help build and expand RCN’s preverbal footprint to the bourgeoning investor real estate industry in the Sunshine state. Scott has had the good fortune to attend over 100 conferences where he established a solid reputation and developed substantial relationships throughout the industry nationwide. He looks to strengthen and expand RCN’s involvement in those trade associations in the Southeast Region in the near future.