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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
04/05/2024
Property Type
Property City
West Berlin
Property State
NJ
Loan Term (months)
12
Payment Type
Interest Only
Purchase Price
$256,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Renovation Budget
$60,000
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$410,000
Renovation Project Scope
Light Rehab
Location Type
Suburban
Number of Units
1
Building Square Footage
2,002
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Interest Rate
11.24%
Origination Points
.5%
Deal Summary
RCN Capital, a national direct private lender, funded a $268,600 1st lien position fix and flip loan for a single-family home in West Berlin, NJ. We funded 100% of the $60,000 renovation budget and 80% of the $256,000 purchase price, while the Borrower contributed 20% cash to the purchase at closing. The subject was appraised for $260,000 as-is, and the after-repair value was estimated at $410,000 which evidenced a return on investment for the Borrower of just over 26%. The Borrower was an experienced investor with a mid-score of 661 and bank statements that reflected sufficient assets. They plan to refinance as an exit strategy upon completion of the light rehab. The initial advance was 81.48% loan-to-cost and 80.23% loan-to-value. The total loan amount was 65.51% of the after-repair value. The subject property is approximately 2,002 square feet. The interest rate was 11.24% and we charged 0.5% origination points. The loan term was set at 12 months. This SFR fix and flip loan was funded in April 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Austin Pallone
Team Loan Officer
Austin joined RCN Capital in 2019. Austin started his RCN career as a Lead Development Specialist, working closely with loan officers to help vet out new deals and provide pricing for all incoming and current deals in their pipelines. Austin takes pride in his communication skills, being straightforward and setting expectations upfront for all parties involved. He believes it is one of the biggest keys to his success in this industry. Austin graduated from Central Connecticut University with a Bachelor of Science. He then when on to be a certified occupational assistant until finding his passion in real estate.