Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
04/27/2023
Property Type
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 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.
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.