Fix & Flip Loan for Single-Family Residence in Charlotte, North Carolina

Funded by RCN Capital

$455,000

Deal Details

Private Loan Type

Residential Fix and Flip

Approx. Funding Date

04/27/2023

Property Type
Single Family Residence
Property City

Charlotte

Property State

NC

Loan Term (months)

12

Payment Type

Interest Only

Purchase Price

$380,000

Loan-to-Purchase Price

76%

Borrower's Contribution to Purchase

24%

Source of Borrower's Contribution

Cash

Renovation Budget

$113,000

Renovation Budget Funded

100%

Borrower's Contribution to Budget

0%

After-Repair Value

$655,000

Loan-to-After-Repair Value

69.50%

Renovation Project Scope

Light Rehab

Location Type

Suburban

Number of Units

1

Building Square Footage

1,689

Borrower's Plan

Rehab and Sell

Exit Strategy

Sale

Interest Rate

10.74%

Origination Points

1%

Deal Highlights

Experienced Borrower under contract to purchase the subject property at a 18% discount.
Looking to spend $113k in rehab to bring the value up to $655k.
Sale will show a projected return on investment of approximately 29.86%.

Deal Summary

RCN Capital, a national direct private lender, funded a $455,000 1st lien position fix and flip loan for a single-family home in Charlotte, North Carolina. We funded 76% of the $380,000 purchase price and 100% of the $113,000 renovation budget, while the Borrower contributed 24% cash to the purchase at closing. The after-repair value was estimated at $655,000, and the loan-to-after-repair value was 69.50%. The Borrower was a repeat and highly experienced investor (30+ Rental and 5+ Flipped). They plan to sell the property upon completion of the light rehab. The subject property is approximately 1,689 square feet. It was appraised for $450,000 As-Is and the $655,000 after-repair value evidenced a return on investment of 29.86%. The 4 Borrowers on the loan each have 25% ownership. Bank statements reflected substantial liquidity to close the loan. The interest rate was 10.74% and we charged a 1% origination point. The loan term was set at 12 months. This SFR fix and flip loan was funded in April 2023.

Funded By

RCN Capital

Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans

Dealmakers

Serena DeStefani

Senior Loan Officer

Serena joined RCN Capital in 2020. She enjoys developing new relationships with brokers and borrowers to ensure their professional goals are met. She brings with her a good sense of communication and is willing to do the work wherever it is needed. She uses her experience from accounting by being detail-oriented.