having a property fit-in with the rest of the neighborhood is a recipe for success. Properties that do not fit in their respective neighborhood can be referred to as “white ele- phants” or “unicorns” and they are something you want to avoid in the real estate investment space. Sometimes renovation plans can be very ambitious to create the best and most modern property that fits the investor’s standards. However, if the rehab plans pro - duce a property that ends up being valued much higher than its sur- rounding neighbors, the shiny new renovations can make the property undesirable instead. Even if it is a beautiful property, if it sticks out too much in appearance and espe- cially in price, you can expect the property to stay on the market for a longer period of time and the price will eventually have to be lowered. In this scenario, the investor stands
to lose money because after all that work, they will not get the expect- ed purchase price due to property being so different than the ones in the surrounding areas. EXISTINGAPPRAISALS Having an existing appraisal is an exception that RCN Capital and other lenders can make and if it is accepted by your lender this exception is a great way to save time and money. At RCN Capital, if the appraisal is performed 120 days before the date of closing, then RCN can accept the appraisal. It must be a third-party appraisal and come from a verified source that RCN can trust, but we will take a look at it and hopefully be able to accept it. Ordering another appraisal may take anywhere from 2-4 weeks and on average cost an extra $500-$1500. If you have an appraisal already com- pleted do not hesitate to send it in.
Even if we cannot use it, it would not hurt to have multiple valuations of the property. Exceptions and workaround are crucial to know about the real estate investment property industry. Asking your lender about them and becom- ing more knowledgeable on what certain lenders can offer is a huge advantage for investors. With part 1 and 2 of Workarounds and Excep - tions now available, you should be well-versed on how to gain even the slightest edge to make a deal work. •
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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