Where Does RSC Lend? How Property Location Shapes Your Loan

Before you spend time on a deal, confirm the lender works in that state. Then think about how the location itself affects the loan. A deal can be identical on paper in two states and still close on different timelines with different costs.

RSC Private Lending lends in 40 states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin and Wyoming. Products may not be available in all states.

We make business-purpose loans only. Property types by program:

• Fix & Flip and Bridge: non-owner-occupied 1-4 unit homes, condos, townhomes and PUDs
• New Construction: new 1-4 unit homes, townhomes and condos built for investment
• DSCR Rental: single-family, 2-4 unit, condo, townhome and PUD rentals, including short-term rentals

Why lenders don't lend everywhere

Most private lenders operate in many states but not all. Common reasons:

• Licensing. Some states require specific licenses even for business-purpose loans.
• Regulation. Usury limits, disclosure rules and other requirements vary.
• Foreclosure process. States with long, court-supervised (judicial) foreclosures increase lender risk and cost.
• Market activity. Some areas don't see enough investor deals for a lender to serve them well.

How location changes the details

Even inside a lender's footprint, the state and county matter:

• Closing and recording. Some states use attorneys for closings, some use title companies. Recording speed varies by county.
• Insurance. Flood zones, hurricane coasts and wildfire areas can mean higher premiums or extra policies. On a rental loan, that hits your payment directly.
• Property taxes. Rates vary widely. Higher taxes raise the monthly payment a DSCR (debt service coverage ratio) lender uses to qualify the loan.
• Documents. Mortgage versus deed of trust, state disclosures and entity registration rules all differ.

Example, round numbers only. Two similar rentals, each with $2,400 a month in rent and the same $1,500 principal and interest payment. In a lower-cost area, taxes and insurance add $400, for a total payment of $1,900 and a DSCR of about 1.26. In a high-tax coastal area, they add $800, for a total of $2,300 and a DSCR of about 1.04. Both clear RSC's 0.75x minimum DSCR, but the second leaves far less room for a vacancy or a tax increase.

Investing outside your home state

Plenty of investors buy where the numbers work, not where they live. Private lenders generally underwrite the property and the market, not how far you live from it. To make out-of-state deals work:

• Hold the property in an entity that's registered to do business in that state
• Line up a property manager or a reliable local contractor before closing
• Use local agents and comps, not national averages, for value and rent
• Ask your lender how draws are verified when you aren't on site

What this means for you

Confirm coverage first, then price in the local details: taxes, insurance, closing practices and entity registration.

RSC Private Lending is based in Houston, TX. Send your scenario with the property's state, county and loan type, and we'll confirm coverage. Subject to underwriting.