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Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
03/29/2024
Property Type
Property City
Houston
Property State
TX
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Amortized
Property Value
$945,000
Previous Loan Balance
$8,942
Loan-to-Value
55%
Debt Service Coverage Ratio
1.15
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
4
Building Square Footage
6,481
Borrower's Plan
Continue Rental
Exit Strategy
Refinance
Borrower Credit Rating
Average
Interest Rate
6.96%
Origination Points
2.25%
Deal Summary
RCN Capital, a national direct private lender, funded a $519,750 1st lien position DSCR refinance loan secured by a portfolio of 4 single-family homes in Houston, TX. The total value of the 4 properties was estimated at $945,000 so our loan-to-value was 55%, and the debt-service coverage ratio was 1.15. We paid off a previous loan balance of only $8,942.
- PROPERTY 1 – 11816 Spring Grove Drive, Houston, TX 77099: SFR in good condition, appraised for $232,000, leased for $1,650 per month which is below market rent of $1,750/month.
- PROPERTY 2- 11806 Plumpoint Drive, Missouri City, TX 77099: SFR in good condition, appraised for $232,000, leased for $1,600 per month which is below market rent of $1,750/month.
- PROPERTY 3- 2026 Fall Meadow Drive, Missouri City, TX 77459: SFR in good condition, appraised for $233,000, leased for $1,700 per month which is below market rent of $1,850/month.
- PROPERTY 4- 4323 Stonehenge Trail, Houston, TX 77066: SFR in good condition, appraised for $248,000, leased for $1,800 per month which is above market rent of $1,750/month.
The Borrower had an average FICO score and excellent liquidity to close. The 4 properties totaled approximately 6,481 square feet. The interest rate was 6.96% with amortized payment and we charged 2.25% origination points. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in March 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Georgette Fletcher
Team Loan Officer
Georgette joined RCN Capital in 2019. She enjoys building positive relationships with brokers, customers, and Correspondent Lenders to ensure that their success in this marketplace is met. Using experience in sales, social skills, and marketing, Georgette is versed in being hard-working, diligent in her work, and empathic. Prior to joining RCN Capital, she attended the University of Connecticut and earned a Bachelor of Arts in Human Development and Family Studies with a communications minor.