trying to decide which of your invest- ment properties you want to include in a portfolio. Another additional benefit to using portfolio loans with RCN is typically on 30-year loan terms, we require that properties have an as-is value of $100,000, but for properties in a portfolio we move that number down to $75,000 as long as the average of all the properties is still above the $100,000 thresh hold. For example: • Property 1 As-Is Value: $77,000 • Property 2 As-Is Value: $89,000 • Property 3 As-Is Value: $145,000 • Property 4 As-Is Value: $160,000 • Overall Portfolio Average: $117,750 In this scenario, we would need RCN management to approve, but it is good to know the flexibility is available for real estate investors, and as long as the properties cash flow well, our management is looking to approve these types of deals rather than deny. Other advantages of portfolio loans include consolidating monthly pay- ments, saving in legal fees, acquiring lower interest rates relatives to other existing rates, and possible savings on property appraisals. There are certainly a number of benefits to graduating to portfo - lio loans with RCN Capital, it is just a matter of when you are, in fact, ready. It is a move that is all about the long-term growth of your real estate investment career and can set you up for decades of success in the industry. RCN Capital is offering competitive rates and leverages and will be with you every step of the way to answer any questions and ensure that the deal is right for all parties involved. •
managing numerous properties, but they also have the potential to reduce costs. If you have a number of prop- erties that fit into portfolio guidelines coupled with the experience to be able to manage those properties long term then the portfolio loan is right for you. Portfolio loans follow the guide- lines of the 30-year program at RCN, so the leverages are very competitive for these types of loans. Borrowers can receive up to 80% loan-to-value and can expect rates to be as low as 3.85%. The interest rate for portfo- lios is key here because you could have a number of existing proper- ties with much higher rates. If you choose to consolidate to a portfolio loan with RCN you can cut those rates by a substantial margin. Managing these properties long- term is worth noting in these sce- narios. There are partial release fees at RCN, so you benefit from hanging on to these properties over the long haul. There is an additional 20% pay- off on top of the unpaid loan balance (UPB) for the property the borrower wants to remove from the portfolio. That is crucial to keep in mind when
ages and start making more money on every property you invest in. Managing single assets are also a useful way to learn skills at a pace that is more suitable for new investors. Being a landlord, under - standing rehab projects and budgets, discerning whether or not a proper- ty is cash flowing at an acceptable and honestly the list goes on. Single asset management is also a cru- cial skill to have because not every property is ideal for a portfolio loan with RCN. Knowing how to separate properties so it doesn’t drag down a successful portfolio is key as well. Single-asset property management is the stepping-stone that is neces- sary to master before moving on to building a portfolio. The benefits of a portfolio loan are up next. PORTFOLIO LOAN A strong portfolio is an asset that a real estate investor can be proud of. It also makes a usually hectic profession much more organized and efficient. Not only do portfolio loans conve- niently provide a one-stop service for
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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