Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
03/23/2023
Property Type
Property City
Closter
Property State
NJ
Loan Term (months)
18
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$626,000
Loan-to-Purchase Price
52%
Borrower's Contribution to Purchase
48%
Construction Budget
$685,300
Construction Budget Funded
100%
Completed Value
$2,100,000
Loan-to-Completed Value
52%
Construction Project Scope
Vertical
Location Type
Suburban
Number of Units
1
Building Square Footage
4,300
Exit Strategy
Sale
Borrower Credit Rating
Average
Interest Rate
12.49%
Origination Points
3%
Deal Summary
RCN Capital, a national direct private lender, funded a $991,300 1st lien position ground-up construction loan for a single-family residence in Closter, NJ. We funded 100% of the $685,300 construction budget and 52% of the $626,000 purchase price, while the Borrower contributed 48% to the purchase at closing. The existing property was being demolished to make way for a new build of approximately 4,300 square feet. The completed value was estimated at $2,100,000 so our loan-to-completed-value was 47.2%, projecting a solid return on investment of 57.89%. The Borrower plans to sell the property upon completion of the vertical construction. They had a mid-FICO of 684 and sufficient liquidity. The interest rate was 12.49%, and we charged 3% origination points. The loan term was set at 18 months. This SFR ground-up construction loan was funded in March 2023.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Taylor Brawley
Loan Officer
Taylor Brawley, Loan Officer, joins RCN Capital in 2021. He enjoys creating new relationships with brokers and borrowers to ensure their professional goals are met. He works hard at communicating efficiently and effectively in order to achieve the best possible results. He uses his experience from his finance background by being detail-oriented and organized. Prior to joining RCN Capital, Taylor graduated from the University of North Carolina at Charlotte earning his Bachelor of Arts in Finance.