the necessary fixes that you need to make to a property you can move on to your next flip as soon as you want. At RCN Capital, we have no pre- payment penalties on the fix-and- flip loan product which encourages fix-and-flippers to complete projects quicker and make more money. Whether you want to do the rehab yourself or hire a contractor you trust, you can learn so much about the home improvement process. Everything from painting the walls to replacing the floors or redoing the kitchen can be learned with repetition or from a contractor you can rely on. The final piece of this puzzle that makes this fix-and-flip process so appealing is the ability to build rela- tionships that set you up for future success. I already mentioned con- tractors, but lenders play a big part in this as well. RCN Capital strives for top-notch customer service and appreciates repeat business. You can familiarize yourself with a lender’s rates and leverages and knowing what to expect every time you pick up the phone to speak with a lender is a big plus. RCN Capital offers very competitive rates and leverages in the industry as well when it comes to fix-and-flip loans. The rates start at 7.74% and we can offer up to 90 percent LTV and 100 percent of the rehab costs in most cases. LONG-TERM STRATEGY: BUY AND HOLD The alternative is the exact oppo- site of the fix and flip model but can still be just as effective. The long- term rental (30 years) is an effective way to build passive or secondary income and can require much less work up front than your typical fix- and-flip project. At RCN Capital, we require that these long-term loan properties be in rent-ready condition. This means that no funds can be allocated for rehab, but at the same
Eitherway you go about your real-estate investment strategy there is a path to success.
time this allows the investor to start making money immediately once they have a tenant in place. There are also opportunities to pick up useful skills with this strat- egy as well. Property management, market research, tenant selection and professional relationship build- ing are all skills that are learned in this line of work. Property management, or becom- ing a landlord, is an important skill that will be learned if you choose the long-term rental strategy. This starts with choosing a tenant that will be the right fit your property. You will need to gauge just how hands-on you need to be depending on the proper- ty and tenant. It is a delicate balance, but mastering property management can go a long way to making that second source of income. Once you get comfortable managing one prop- erty, you can move on two or three. Once you get comfortable managing a single-family property, you can move on to duplexes, triplexes, or multifamily units. This strategy and skill will allow you to multiply your income, and this is where you can start making generational wealth with long-term rentals. Market research is another use- ful tool to master and can help you make more money with your invest- ments. Selecting the right market, then finding the right property and setting your rent at an enticing price while still ensuring profit can sound overwhelming at first, but with the proper research and right guidance you can figure out the right numbers
to make the most profit possible. Doing this with multiple properties as well makes the concept seem less daunting and you will be able to do it with ease before you know it. As always, building professional relationships is key when it comes to long-term rental investment prop- erties. Of course, a positive relation- ship with your tenant(s) is a plus but so is forming that relationship with a lender. RCN Capital will be there to answer any questions regarding this strategy, and we will always work towards having the most appealing rates for investors. Currently, RNC Capital offers rates as low as 3.85 percent and can go up to 80 percent LTV on these long-term loans. Either way you go about your real-estate investment strategy there is a path to success. Just be certain you are picking the right strategy for the right property, and more importantly the right strategy for you. What are you looking to get out of real estate investing? What strategy works better for the per- sonality you have? Once you answer these questions you can start invest- ing and start making money. •
Nate Zielinski, Junior Business Development Coordinator, joined RCN Capital in 2020. He adds his ambition, communication skills, teamwork, and public speaking ability to RCN’s
Business Development team. Nate’s goal will be to recruit new, long-lasting business relationships with brokers and borrowers as well as maintain the strong relationships RCN Capital already has in place. Nate’s prior work experience includes sales, advertisement, copywriting, and social media. Nate graduated from the University of Connecticut in 2015 with a Journalism degree.
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