Real Estate Agent · Waterbury, VT · Member since 2015 · 30 posts · 8 votes
I'm working on a first flip deal in Vermont. I have a single family residence under contract for well below the assessed value. I had applied at my local bank but was turned down because my ratios of debt to income are off. So I did a search of the hard money lenders on BP and contacted RCN Capital in CT. I applied 2 days ago and did get an email from a loan officer asking me to sign documents giving access to my tax returns but have not been contacted regarding the process or when I might hear from them. Has anyone else done any transactions with them? Any reviews of their services?
There aren't many hard money lenders willing to work in Vermont. It would be great if these folks are legit. Many thanks!
I just did one with RCN. Found them thought a broker who was recommended to me and my business partner. They financed us for a fix and flip based on the ARV but they charged us points up front and only finance 70%. They pay in draw and an inspector has to come out before each draw and charges $200 per visit. The draws have been small which has slowed progress. We are about 80% done with the project and they refused to give us any more draws and won't return our phone calls. They still owe us about $54,000 as part of the loan. STAY AWAY FROM RCN!!! We are now scrambling to find funds/partner to get this project done so we can sell it and recoup what we've invested and hopefully make a profit. It's been a nightmare!
@Brenda Hedges-- I hope you get replies, I'd love to know what folks have to say.
Also-- when I applied for my duplex mortgage I was turned down by several lenders before I found one that could work with me. Keep trying.
Can you claim any rental income to offset mortgage debt?
Have you filed taxes yet for this year? You can take fewer write offs to show a higher net income (Assuming you are getting 1099 income) raising your income to debt ratios. These are all things I have been looking at before filing. Are you close on the debt to income?
Maybe try http://www.visiolending.com/ I don't know if they will lend in Vt, but I know they are a legit company as I had bought a property from them in Bellows Falls and we closed it in 6 days.
@Blair KnowlesThanks for the encouragement. I'm continuing to contact other potential lenders. Because it's a flip, I'm not being allowed any rental income. I'm working on my taxes and will look at possibly taking fewer deductions on my 1099 income. That's a good idea. We're very close to making the ratio. I'm hoping another lender will be able to make it work.
i never used to try the merchants bank before because i thought they were high , but i now have used them on the last 3-4 deals . call leo cruickshank ( spelling ) i know if under assessed by a good amount they are very good .
Is there anyone you can partner with @Brenda Hedges? I just brought my mom on my loan to get the pre approval letter for my most recent foray. Mine is a BRRR so we plan to re finance and take her off the mortgage down the road. It would be easier with a flip I'd think. Give the partner 10% of your profit, just to let you use their financing power, or some such. Partnering tends to be my last resort because it complicates things, but if it's a good enough deal you probably know someone you trust enough to help you qualify.
Keep going! You are likely more than 9/10ths of the way there. You have done a lot of the work already don't give up yet.
@Blair Knowles Many thanks for the kind words of encouragement. I've got my application in with 2 banks who are looking at it. I had to go to a commercial loan. Fingers crossed!
@Brenda Hedges Just came across this thread. Did you end up getting funding for a flip in VT? Last post (I know, over a year ago), was that you submitted an application to two different banks.
I just did one with RCN. Found them thought a broker who was recommended to me and my business partner. They financed us for a fix and flip based on the ARV but they charged us points up front and only finance 70%. They pay in draw and an inspector has to come out before each draw and charges $200 per visit. The draws have been small which has slowed progress. We are about 80% done with the project and they refused to give us any more draws and won't return our phone calls. They still owe us about $54,000 as part of the loan. STAY AWAY FROM RCN!!! We are now scrambling to find funds/partner to get this project done so we can sell it and recoup what we've invested and hopefully make a profit. It's been a nightmare!
I'm going to post since the title of the thread IS RCN Capital Reviews. I've just received a Commitment Letter from them after a long and painful due diligence bait-and-switch process. My loan officer seems like a good guy, but they have changed their terms many times and at this point I have ZERO trust in them. Long story short, I would've been better off using conventional financing and figuring rehab monies some other way. And I am not encouraged by post saying they are not receiving their rehab draws.
I have had nothing but great success with RCN. I have closed on hundreds of houses over the last couple of years utilizing four different lenders with varying success. I found RCN at the IMN SFR conference in May and just started using RCN shortly after. We have already closed on 7 houses, with an average application to close time of less than 3 weeks. I am not doubting others experience just wanted to share my experience has been great. Best wishes of success to all.
As a follow-up on RCN Capital reviews, I am in rehab progress with RCN. Without going into great detail, they have been a continual disappointment. I won't be using them again. Their terms change on a dime, and often contradict their own distributed documents. In this particular project, they have only agreed to finance 50% of the construction amount. Now, as I am ready for my first draw, and we are about 12% complete, they tell me they are only disbursing funds at the BACK 50% of the project, leaving me to suddenly and unpreparedly fund the FRONT 50% out of?? my grocery money? or maybe my kid's next tuition payment?? Their own documents state that they reimburse for work completed and for materials on site, but that is clearly an outright lie. Which to me, constitutes fraud. FIND ANOTHER LENDER.
@Elizabeth Zieman thanks for posting your experience with RCN. I am looking at them now to finance a flip, but I'm going to be cautious as ask them clarify their terminology. I may have a back to my financing, but I don't won't to use this person unless the lenders I choose put me in a bind. I'm also looking at lending home.
I started a REFINANCE since the beginning of November with these people(RCN) and provided all the requested documents and appraisal payment on the same day. 3 months later, i still don't have a closing date. Excuses after excuses. Then they have the nerve to come back to tell me i have to pay for another appraisal. If this isn't a scam, then i don't know what to call it.
We just closed on 2 loans, so yes-- they are definitely legit. Really nice and easy to work with.
The only thing to be aware of, is their appraisals are VERY expensive ($700-800), which I felt like was a rip off-- normal appraisals in VA cost $300-$500 most Always in closing, it seemed like the closing costs were very expensive too. RCN only charged us 9% interest, but it just felt like overall it was very expensive-- probably the same with all money lenders, but just a heads up. Here is the person I worked with: