RCN Capital®, a leading national direct private lender, has reached the significant milestone of originating over $500 million in private loans. This landmark goal of a half-billion dollars in originations was achieved as the result of strong demand for RCN Capital’s platform of loan products, which are designed specifically for the investors and developers in the red hot “fix and flip” real estate market. The important milestone also reflects the company’s record-setting trajectory, initiating more than $200 million in private loans since 2015.
“We are thrilled with our continued growth as an industry leader in the competitive fix and flip housing market,” said Jeffery Tesch, Managing Director of RCN Capital LLC. “We’ve enjoyed phenomenal growth driven by strong interest from borrowers and investors in fix and flip real estate. I also credit our ongoing success to the innovations and creative lending solutions from our talented team in a variety of unique real estate scenarios.”
Since its inception in 2010, RCN Capital has underwritten more than 2,500 loans and overseen more than $500 million in originations throughout the United States. In 2016, RCN Capital initiated more than $87 million in private loans, with a majority of its 452 loans used to fix and flip single family properties. So far this year, RCN Capital has already exceeded its total 2016 loan amounts.
RCN Capital’s programs have revitalized communities across the country through the purchase and rehabilitation of single family, multi-family, and commercial properties. Each of these projects has created and supported new jobs while injecting money into local businesses that supply the necessary materials and services. RCN Capital’s renovation funding has also increased home values and decreased vacancies, further revitalizing communities on a nationwide scale.
Fueling this growth, as the fix and flip market has changed with rising home values, RCN has developed new products for every type of borrower and project.
“Our creative funding solutions are advancing our growth in a tight market,” Tesch said. “We’re helping to yield profitable returns for developers and investors, but we are also filling a drastic need to keep development projects moving forward, often in some of the nation’s most challenging suburban and urban centers. It’s gratifying to be so instrumental in saving and improving communities.”
RCN Capital growth strategy has also benefited from a significant lack of new construction across the nation, which continues to provide a large customer base for the firm. This, in conjunction with the fact that foreclosures and housing inventory are generally low, is causing investors to take a hard look at existing housing for fixing and flipping for a profitable return. Investors no longer have the luxury of having numerous opportunities to pick from, and they have to get creative in terms of what properties they are looking to flip and how to get the most profit out of each property.
RCN has continued to evolve with the changing market conditions. For instance, Tesch said, investors continue to look for outdated homes that they can modernize. “In many cases, borrowers are trying to hold their properties for rental income once renovations are completed,” Tesch said.
With these scenarios much more common in 2017 than in 2016, RCN Capital has benefited from its unique ability to craft new strategies and products to meet their customers’ demands.
About RCN Capital
RCN Capital® is a national, direct, private lender. Established in 2010, RCN provides short-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. RCN lends to experienced real estate professionals, investors and contractors throughout the country.