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Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
09/13/2023
Property Type
Property City
Broken Bow
Property State
OK
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$182,500
Renovation Budget
$120,500
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$493,000
Loan-to-After-Repair Value
60%
Renovation Project Scope
Heavy Rehab
Location Type
Suburban
Property Condition
Poor
Occupancy at Closing
Vacant
Building Square Footage
1,176
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Interest Rate
11.49%
Origination Points
3.25%
Deal Summary
RCN Capital, a national direct private lender, funded a $230,000 1st lien position equity cash-out refinance loan secured by a single-family home in Broken Bow, Oklahoma. The property was initially purchased for $118,000 in October 2020. The Borrower needed to complete a major renovation of the property before placing tenants in it. The as-is value was estimated at $182,500. We provided $120,500 as a controlled rehab budget to be released in multiple draws. The after-repair value was estimated at $493,000 which put our loan at a 60% loan-to-value. And the Borrower will see a solid return of 104%. They had a lot of experience and excellent credit, with a middle score of 712 and their bank statements showed sufficient liquidity to meet the reserves required for this loan. They plan to lease the property upon completion of the heavy rehab and eventually refinance it as an exit strategy. It is approximately 1,176 square feet. The interest rate was 11.49% and we charged 3.25% origination points. The loan term was set at 12 months. This rehab-to-rent loan was funded in September 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.