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Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
03/22/2024
Property Type
Property City
Meridan
Property State
CT
Loan Term (months)
360
Payment Type
Amortized
Property Value
$390,000
Loan-to-Value
70%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.71
Property Neighborhood
Meridan
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
3
Building Square Footage
2,406
Borrower's Plan
Continue Rental
Borrower Credit Rating
Excellent
Interest Rate
8.26%
Origination Points
3%
Deal Summary
RCN Capital, a national direct private lender, funded a $273,000 1st lien position equity cash-out refinance loan secured by a 3-unit residential property in Meriden, CT. The property value was appraised at $390,000 so our loan-to-value was 70%, and the debt service coverage ratio (DSCR) was 1.71. The property was previously owned free and clear of any mortgages. The property size is 2,406 square feet. One unit was vacant and the other two were combinedly leased and generated a monthly rent of $2550/month which was less than the appraiser’s estimate of the market rent ($4,550/Month). The Borrower had excellent credit and sufficient liquidity to close. The interest rate was fixed at 8.26% with amortized payments, and we charged 3% origination points. The loan term was set at 30 years with a 5-year prepayment penalty. This DSCR loan was funded in March 2024.
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.