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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
01/18/2024
Property Type
Property City
Huntington
Property State
NY
Loan Term (months)
12
Payment Type
Interest Only
Purchase Price
$462,000
Loan-to-Purchase Price
60%
Borrower's Contribution to Purchase
40%
Renovation Budget
$105,000
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$800,000
Loan-to-After-Repair Value
56.4%
Renovation Project Scope
Light Rehab
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Vacant
Number of Units
1
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
11.47%
Origination Points
1%
Deal Summary
RCN Capital, a national direct private lender, funded a $451,500 1st lien position fix and flip loan for a single-family home in Huntington, Long Island, NY. We funded 100% of the $105,000 renovation budget and 60% of the $462,000 purchase price, while the Borrower contributed 40% cash to the purchase at closing. The after-repair value was estimated at $800,000 so our loan-to-after-repair value was 56.4% The subject property was appraised for $575,000 as-is so this new Borrower, with no experience, got a huge discount on the purchase. They had excellent credit with a mid score of 803 and bank statements that reflected sufficient liquidity to meet the reserves required for this loan. The Borrower had stated that they have a licensed contractor that will manage and oversee the project. They plan to sell the property upon completion of the light rehab. The interest rate was 11.47% and we charged a 1% origination point. The loan term was set at 12 months. This SFR fix and flip loan was funded in January 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Patric Amar
Team Loan Officer
Patric joined RCN Capital in January 2023. His main focus is to build new relationships with brokers and borrowers to work hand in hand to meet timelines and goals that are set. He has strong communication skills and is efficient in his day-to-day tasks. Prior to working with RCN, Patric was a Mortgage Loan Processor for a company based in Los Angeles, where he became a Licensed Mortgage Loan Originator.