RCN Capital

About RCN Capital

Headquartered in South Windsor, CT, RCN Capital is national, direct, private lender providing funding in 44 states across the country.Established in 2010, we provide short-term and long-term commercial loans ranging from $50k to $2.5M+ for the purchase of non-owner occupied residential and commercial properties, financing of renovation projects and bridge funding. We lend to experienced real estate professionals, investors and contractors throughout the country. We value referrals; brokers are protected.

Loan Types Offered: Fix and Flip Loans, Investment Property Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family, Apartment, Mixed Use

Areas Served: AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, VA, WA, WI, WV, WY, DC, NV

Licenses: RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258, Arizona Mortgage Banker License BK-0932325, Oregon Mortgage Lending License: ML-5571, NMLS Company ID: 1045656

Lending Guidelines for RCN Capital

Below are the general loan guidelines published on the RCN Capital website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by RCN Capital.

Loan Example 1

Olga is a house flipper in Houston, TX. She locates a run-down property for sale and wants to rehab it and flip it for a profit. The house costs $400,000 but she does not have the full amount so she takes a hard money loan with RCN Capital. The terms of the note include a 80% loan-to-value (LTV), so she must bring 20% of the price as cash at closing, which makes the principle note amount $320,000. The loan also includes these features: 1) a 12 month term, 2) a 9% interest only note, and 3) a five point origination charge.

The borrower will need to fund a total of $32,400 up front to pay the $80,000 down payment in addition to the $16,000 origination fee. she must then pay $2,400 per month to the lender. If Olga sells the renovated house for $560,000 at the end of the 12 month term, her gross profit (not including renovation expenses) would be $115,200. This is calculated by taking the sales price ($560,000) and subtracting the principle ($320,000), the origination fee ($16,000), the money she brought to closing ($80,000), and the total interest payments ($28,800).

Loan Example 2

Howard is a real estate investor in Houston, TX. He finds an older property for a renovation project and obtains a hard money loan from RCN Capital with the following paramters:

a) A $260,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 4% origination fee.

If Howard achieves his goal of a $325,000 sales price, the outcome of the deal will be as follows:

$325,000 sales price
- $130,000 loan principle (50% LTV)
- $130,000 down payment (50% on 50% LTV)
- $5,200 origination points (4% of the $130,000 principle)
- $17,550 interest payments (18 months x 9% interest)
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= $42,250 gross profit (does not include taxes or rehab costs)