Deal Details
Private Loan Type
Residential Long-Term Rental
Approx. Funding Date
05/24/2023
Property Type
Property City
Rahway
Property State
NJ
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Amortized
Purchase Price
$432,000
Loan-to-Purchase Price
69%
Borrower's Contribution to Purchase
31%
Source of Borrower's Contribution
Cash
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.29
Location Type
Urban
Property Condition
Good
Number of Units
3
Building Square Footage
1,872
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
7.48%
Origination Points
3%
Deal Summary
RCN Capital, a national direct private lender, funded a $345,600 1st lien position long-term rental loan for the acquisition of a 3-unit residential investment property in Rahway, New Jersey. We funded 69% of the $432,000 purchase price, while the Borrower contributed 31% cash at closing. The subject property was being leased for $5,533 per month which was above market rate per the appraiser’s estimate of $4,300. It was appraised for $500,000 As-Is and Collateral Desktop Analysis confirmed the value was acceptable. The Sponsor had a mid-score of 766 and bank statements that reflected sufficient liquidity. The loan was structured and priced in accordance with the qualification model. The total loan amount was 80% loan-to-cost and 69.12% loan-to-value with a 1.29 DSCR. The Borrower plans to hold the property as a long-term rental. The subject property was in good condition. It was is approximately 1,872 square feet. The interest rate was fixed at 7.48% with amortized payments and we charged 3% origination points. The loan term was set at 30 years. This DSCR loan was funded in May 2023.
Dealmakers
Scott Evans
Regional Loan Operations
Scott 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.