Matching the Loan to the Plan: RSC's Four Core Loan Types

Every real estate strategy has a different timeline and a different exit. The right loan fits both. RSC Private Lending focuses on four loan types, all business-purpose only: they finance investment property, not a home you live in. The borrower is an LLC, LP or corporation with a personal guarantee, and borrowers must be U.S. citizens or permanent residents.

Fix and flip loans

For: buying a property, renovating it and selling it.

Rehab money is typically released in draws as the work gets done.

At RSC: $150K to $6M, 12-month term, interest-only. Up to 95% LTV on the purchase, 100% of rehab, 95% of total cost and 75% of ARV (95% of total cost on light rehab requires 3+ completed projects). Minimum FICO is 620, and new investors are welcome on cosmetic projects. Rates from 8.000%.

New construction loans

For: building from the ground up, whether you plan to sell or keep the finished property.

Funds are typically released in stages tied to milestones such as foundation, framing and rough-ins. When the build is done, you sell or refinance into long-term debt.

At RSC: $150K to $6M, 12-month term, interest-only. Up to 75% of lot, 100% of construction, 90% of total cost and 75% of ARV, on entitled land with a survey. Minimum FICO is 680. You need 3+ completed builds, or 5+ completed projects including a build, so first-time builders do not qualify. Rates from 9.950%.

DSCR rental loans

For: holding a rental for the long term.

A DSCR (debt service coverage ratio) loan qualifies mainly on whether the property's rent covers its payment, not on your personal income, which helps self-employed investors and anyone with several mortgages. It is the usual exit for a BRRRR (buy, rehab, rent, refinance, repeat) project.

At RSC: $150K to $3M, 30-year fixed, prepayment options from a 5-year step-down to none, minimum 0.75x DSCR and 660 FICO. Up to 80% LTV on purchases and rate/term refinances, 75% on cash-out. Single-family, 2-4 unit, condo, townhome and PUD rentals qualify, and short-term rentals are welcome. Rates from 6.750%.

Bridge loans

For: short-term needs on a property that needs little or no work.

Common uses: closing fast on a purchase before long-term financing is ready, paying off a loan that's about to mature, or carrying a property while you lease it up or sell it.

At RSC: $150K to $5M, 12-month term, interest-only, no prepayment penalty, minimum 600 FICO and no experience required. Up to 85% LTV on purchases, 80% on rate/term refinances and 75% on cash-out. Borrower-funded cosmetic updates are allowed. Rates from 8.250%.

RSC also offers Mid-Construction loans, for taking over a stalled project or refinancing a construction loan, with terms quoted per deal.

Example, round numbers only. A dated house costs $200,000 and needs $50,000 of work. To sell it, use a fix and flip loan. To keep it, start with a rehab loan and refinance into a DSCR loan once it's rented. To tear it down and build, look at new construction. If it only needs paint and you must close in two weeks, a bridge loan may fit.

What this means for you

Start with your exit, then pick the loan. Not sure which fits? Describe your plan and we'll tell you how we would structure it. Rates and terms may change without notice.

Send us your scenario for a term sheet in 24 hours. Subject to underwriting.