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Deal Details
Private Loan Type
Residential Long-Term Rental
Approx. Funding Date
06/07/2024
Property Type
Property City
Hammond
Property State
IN
Loan Term (months)
360
Payment Type
Amortized
Purchase Price
$120,000
Loan-to-Purchase Price
78%
Borrower's Contribution to Purchase
22%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.17
Number of Units
1
Building Square Footage
1,100
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
8.56%
Origination Points
0%
Deal Summary
RCN Capital, a national direct private lender, funded a $96,000 1st lien position DSCR loan for the purchase of a single-family home in Hammond, IN. We funded 78% of the $120,000 purchase price, while the Borrower contributed 22% cash at closing. The 1,100-square-foot home which was in good condition, appraised for $123,000 as-is, and Collateral Desktop Analysis was pending at the time of review. The property at that time was being leased at $1,200/month, which was just about the same number that the appraisal showed as the market rental rate, and resulted in a 1.17 DSCR. The Borrower had good credit and good liquidity to close the deal. The loan term was set at 30 years with a 3-year prepayment penalty. The interest rate was fixed at 8.56% with amortized payments. This DSCR purchase loan was funded in June 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.