Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
09/30/2016
Property Type
Property City
Anchorage
Property State
AK
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$85,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Cash
Loan-to-Value
65%
Renovation Budget
$109,000
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Deal Summary
RCN Capital, a national direct private lender, funded a $156,000 1st lien position fix and flip loan for a single-family home in Anchorage, Alaska. The Borrowers were under contract to acquire the single-family home for less than the appraised as-is value. The purchase price was $85,000. The Borrowers plan to completely renovate the property before listing it for resale. The renovation costs are estimated at $109,000. RCN Capital provided 80% loan-to-cost and the Borrowers put in 20% of the total project cost. Once the repairs are completed the Borrower plans to list the property for around $240,000 and is anticipating a 19% return on investment. The loan-to-value based on the ARV (after-repair value) is 65%. This SFR fix and flip loan was funded in September 2016.