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!
Hi all. I just wanted to add my two cents to this thread, since I'm in the middle of MULTIPLE transactions with RCN right now (unfortunately). First off - I, myself, have a mortgage background- so let's just start there. I know how things should be handled- even with a hard money/more unregulated lender. But THIS- what has transpired with my dealings with RCN- truly takes the cake. After MONTHS of going back and forth on files with my clients (after being told we could close in 3 weeks), we still have no homes closing, and only one of the properties has the promised 90% ARV loan amount. The other is at 80%. And another is questionable if even after TWO expensive appraisals and a rent addendum, if it will close at all.
STAY AWAY FROM RCN. There are MUCH better options out there. Even if they take a bit longer at the approval stage, it’s worth it in the end.