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Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
05/19/2023
Property Type
Property City
Easton
Property State
PA
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Amortized
Property Value
$182,000
Previous Loan Balance
$48,947
Loan-to-Value
75%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.33
Property Neighborhood
Easton
Location Type
Suburban
Property Condition
Good
Number of Units
2
Building Square Footage
1,513
Borrower's Plan
Continue Rental
Interest Rate
7.8%
Origination Points
4%
Deal Summary
RCN Capital, a national direct private lender, funded a $136,500 1st lien position equity cash-out DSCR loan secured by a 2-unit residential investment property in Easton, Pennsylvania. The property value was estimated at $182,000 and a Collateral Desktop Analysis confirmed the value was acceptable, so our loan-to-value was 75%. We paid off a previous loan balance of $48,947. The subject property is a 2-family property currently leased for $1,825 per month which is below the market rates per the appraiser’s estimate ($2,000). This put the debt service coverage ratio (DSCR) at 1.33. The Borrower had excellent credit with a mid-score of 776 and bank statements that reflected sufficient liquidity to meet the reserve requirement. The subject property was in good condition. It is approximately 1,513 square feet. The interest rate was fixed at 7.8% with amortized payments and we charged 4% origination points. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in May 2023.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Connor Hibbs
Loan Officer
Connor joined RCN Capital in the Fall of 2019. He brings adept critical thinking skills, superior communication skills, and a desire to build and maintain strong customer relationships. Connor’s mission is to amplify RCN’s presence in local and national markets. He has had previous work experience in sales with AIL along with several years of customer service. Connor Hibbs graduated from the University of Connecticut with a degree in Economics and a Minor in Anthropology while also participating in the University’s Club Hockey and Club Lacrosse programs.