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Deal Details
Private Loan Type
Residential Long-Term Rental
Approx. Funding Date
03/28/2024
Property Type
Property City
Ironwood
Property State
MI
Loan Term (months)
360
Payment Type
Amortized
Purchase Price
$170,000
Loan-to-Purchase Price
74%
Borrower's Contribution to Purchase
26%
Term
30 years
Rate Type
Fixed
Location Type
Urban
Occupancy at Closing
Vacant
Number of Units
4
Building Square Footage
3,475
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
7.63%
Origination Points
2.25%
Deal Summary
RCN Capital, a national direct private lender, funded a $136,000 1st lien position long-term rental loan for the acquisition of a 4-unit rental property in Ironwood, MI. We funded 74% of the $170,000 purchase price, while the Borrower contributed 26% cash at closing. The subject property was appraised for $183,000 as-is and was vacant when we funded the loan. A Collateral Desktop Analysis (CDA) was ordered and the value was confirmed with an appraisal. The appraiser estimated the market rent to be $3,450 per month. The property is approximately 3,475 square feet. The Borrower had excellent credit with a mid-score of 787 and bank statements that evidenced sufficient liquidity. The total loan amount was 80% loan-to-cost and 74.3% loan-to-value. The interest rate was 7.63% with amortized payment. and we charged 2.25% origination points. The loan term was set at 30 years. This DSCR rental purchase loan was funded in March 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Chris Cardenas
Loan Officer
Christopher Cardenas, Loan Officer, joined RCN Capital in May of 2021. As a loan officer, he concentrates on building relationships and ensuring product guidelines are met along with efficient processes to help the entire team from the start of a loan to the closing. Chris has past experience in wealth management, being an account manager at Raymond James. He graduated from Central Connecticut State University earning his BS in Finance in 2018 and his MBA in 2020.