LOAN PROGRAMS

RCN Capital offers short-term and long-term financing options for real estate investors. Whether you or your clients are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that suit your needs.

Final loan terms may vary based on loan types, verification of application information, and other risk-based factors.

PARTNERS

RCN Capital values building strong partnerships with industry professionals because partnerships drive our success. Learn more about RCN Capital’s Wholesale Lending opportunities, including the Broker Referral Program and the Correspondent Lending Program.

ABOUT

RCN Capital is a nationwide private, direct lender. Established in 2010, we provide retail and wholesale lending options for short-term fix and flip financing, long-term DSCR financing, and ground-up construction financing for real estate investors.

Resources

RCN Capital provides a variety of resources that can help you on your lending journey. Find business partners that can help solve any investing problem, learn more about our processes and get answers to the most frequently asked questions.

How to Make Your First House Flip


If you’re new to real estate investing, your first experience will likely be with house flipping. Flipping gets recommended to beginner investors since it’s a concept that’s easy to understand. You find a discounted property that could use some attention, spruce it up, and sell it for a significant profit after all is said and done. Your returns aren’t as affected by market conditions either, instead, they mostly depend on the amount of work you put into the property. There are solid, consistent profits to be made flipping homes, but if you’re new to the game you may be wondering how to find success. To help you achieve that goal, here are a few tips on how to make your first house flip.

Get a good deal on a good property

The first thing you’ll want to do is find a property that’s worth flipping. Houses that are lightly distressed or only in need of cosmetic updates are ideal candidates for flipping since it will be relatively quick to update them and sell for a profit. To really maximize your returns, you’ll want to try and find a discounted property that’s selling below market value. Don’t forget to hire an inspector to ensure the property is structurally sound and not in need of any major or costly repairs. Finally, you’ll have an easier time selling the home if it’s in a good location: that means a safe neighborhood with access to amenities like quality schools, stores, and attractions.

Get your finances in order

After you’ve found a property that’s worth flipping, the next thing you’ll need to do is get your finances ready for the purchase. Mostly this means you’ll be applying for a loan from a reputable real estate lender. Ideally, you’ll want to find a lender that has a proven track record, or even one that specializes in fix & flip investments. They will most likely take a look at your creditworthiness, so when you’re applying you shouldn’t make any decisions that could greatly affect your scores. Also, you’ll want to set aside some extra funds to cover soft costs like legal and closing fees which won’t be covered by the actual loan. In fact, most lenders will have contingency funds factored into their loan to help cover these costs.

Don’t try to do everything yourself

A common mistake beginner investors will make on their first house flip is trying to do everything themselves. You may be tempted to handle renovating and selling the house yourself to save on costs, but you could actually be doing the opposite. Be honest with your skillsets, and do as much of the simple renovating as possible on your own, but you should hire professional contractors for major work. Not only will they be saving you time and effort, but they could also prevent your from making costly amateur mistakes. As for selling the property, working with a real estate agent can help make sure your property is sold for a good price and in a timely manner. All of this means you can see your returns faster, and move on to your next investment sooner.

Don’t spend too much on renovations

You might think the more you spend on renovations the better since it will directly translate to a higher market value. However, you’ll want to take care not to overspend and have the property far exceed the value of other homes in the area. This could lead to you lowering the final sale price to attract a buyer, and that means you won’t be getting the money you spent on renovations back. If you are performing major updates, stick to high traffic areas like the Kitchen, Bathrooms, and Living Areas to add the most concrete value. A new coat of paint or new carpeting can also be a cost-effective way to update older rooms. Essentially, you want your upgrades to add as much value to the home as possible while costing you the least to maximize your profit.

RCN Capital

RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are an investor looking to finance your first house flip, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.