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.

Pros & Cons: Investing in New Construction Vs. Existing Property


Want to know the pros and cons of investing in new construction properties vs. existing ones? Continue reading to find out how investing in new construction differs from investing in existing property.

New Construction Pros & Cons

Investing into a project that requires new construction can have its pros and cons. Here’s the most important things you should know about when investing into new construction:

Pros

Low Maintenance

New construction requires less maintenance than existing properties since amenities are new. You can expect new appliances and structural features when you purchase a newly constructed property. Often these homes have brand new systems, saving you money when the HVAC needs to be replaced in an existing home.

Energy Efficient

You could actually save in the long run when purchasing a new home since they are generally more energy efficient than existing homes. Newly constructed homes require focus on using less energy, allowing you to save money on energy costs. There is more eco-friendly technology in houses that are newly constructed.

Customizable

When you invest in a newly constructed property, you get to essentially customize every detail of your the new home. Newly constructed properties give you the luxury of choosing exactly what you want. You can add or take out new features, giving you the flexibility that you crave with your property.

Cons

Higher Costs

Investing into new construction means you have to invest enough capital to cover varying material and labor costs throughout the process. The higher costs associated with new construction is often a turn-off for investors.

Longer Timeline

When investing in new construction, there can be delays that tie up your investment. These delays are inconvenient for a homeowner that wants to move in as soon as possible. Create a schedule for you and your contractor to stick to if you wish to avoid long construction times.

Decision Fatigue

There are many decisions that go into constructing a new property. It is common for one to feel decision fatigue when involved in the construction process.

Pros and Cons of Existing Properties

What are some of the pros and cons of buying an existing property? Here are some of the reasons you may consider an existing property; and some reasons that might make you change your mind!

Pros

Lower Costs

When purchasing an existing property, there are lower costs associated with the price of the property. These properties are usually less expensive to buy than newly constructed properties. Those who cannot afford a newly constructed property will be better suited to buying an existing property.

Less Wait Time

An existing property is ready to move in fairly soon after purchase. Buyers who are in a time crunch and need to move in right away will find that purchasing an existing property will meet their time constraints.

Convenience

Buying an existing property gives you the convenience of being close to certain amenities like good school systems or shopping centers. It is hard to build new construction in popular areas as most of the land is already occupied. Existing properties can provide you with better locations than a newly constructed property.

Cons

Won’t Get Exactly What You Want

When you purchase an existing property there is the risk that you will not get all the qualities you were seeking in your purchase. You will not always get what you want in the properties that are available to you.

Updates and Renovations

Often, you are met with updates or renovations when you purchase an existing property. These renovations can get costly if your home needs something major replaced. Make sure everything is up to code by doing a house inspection if you plan to purchase an existing property.

Finding the Perfect Home Can Become a Chore

Finding the perfect home can get tiring! You are not guaranteed to like every home you look at. Newly constructed homes give you the upper hand when choosing every little detail that goes into the home.

RCN Capital

RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs.Connect with us todayto discuss your next real estate investment.