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Deal Details
Private Loan Type
Residential Long-Term Rental
Approx. Funding Date
09/19/2024
Property Type
Property City
Lake Station
Property State
IN
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Amortized
Purchase Price
$350,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.28
Property Neighborhood
Lake Station
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
4
Borrower's Plan
Long-Term Rental
Borrower Credit Rating
Excellent
Interest Rate
6.97%
Origination Points
0%
Deal Summary
RCN Capital, a national direct private lender, funded a $280,000 1st lien position loan for the purchase of a 4-unit residential property in Lake Station, IN. We funded 80% of the $350,000 purchase price, while the Borrower contributed 20% cash at closing. The property was in good condition and tenant-occupied at closing. Three out of four units were leased, generating a total of $2,710 per month, presenting a 1.28 debt service coverage ratio. The Borrowers had sufficient liquidity and good credit to close. The loan was structured at 80% loan-to-value (LTV) and 80% loan-to-cost (LTC). The loan has a 3-year prepayment penalty. The interest rate was fixed at 6.97% with amortized payments. The loan term was set at 30 years. This DSCR rental purchase loan was funded in September 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.