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Deal Details
Private Loan Type
Residential Long-Term Rental
Approx. Funding Date
06/12/2024
Property Type
Property City
Petersburg
Property State
VA
Loan Term (months)
30
Payment Type
Amortized
Purchase Price
$741,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.50
Location Type
Urban
Property Condition
Good
Number of Units
10
Building Square Footage
9,488
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
7.96%
Origination Points
1%
Deal Summary
RCN Capital, a national direct private lender, funded a $592,800 1st lien position long-term rental loan for the acquisition of 5 duplexes in Petersburg, VA. We financed 80% of the $741,000 purchase price, while the Borrower contributed 20% cash at closing. Based on the total as-is appraised value, the loan-to-value ratio was 74%. This is a 30-year blanket purchase loan. The Borrower, with excellent credit and sufficient assets, accepted a 3-year prepayment penalty. All 10 units were rented, and the debt service coverage ratio was 1.50. The interest rate was fixed at 7.965% with amortized payment and we charged a 1% origination point. Homeowners insurance was provided for all properties. The properties were in good condition and the total size is approximately 9,488 square feet. This DSCR rental purchase loan was funded in June 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Jonathan Gras
Team Loan Officer
Jonathan Gras, Team Loan Officer, joined RCN Capital in 2022. He enjoys connecting with brokers and borrowers to create long-lasting relationships that will cultivate successful business. His customer service skills allow him to effectively and efficiently communicate with clients. Prior to joining RCN Capital, Jonathan graduated from Appalachian State University earning his Bachelor of Science in Business Administration with a focus in Finance and Banking.