“There was a somewhat negative outlook towards the beginning of the year, but investors definitely persevered. They’re a hardy bunch, so that didn’t stop them. If you talk to experienced investors, They were like, ‘This is no big deal.’
With interest rates remaining high in the early months of this year, it might have been easy to predict misfortune and gloom would prevail in the industry, but investors embraced business as usual, Zielinski said. He said that, in fact, that was not the case. Mentality at that time.
This has contributed to RCN’s strong year, with Zielinski saying August set a record for the most loans closed in a single month since the company opened in 2010 and expanded its Charlotte office. pointed out.
While rising interest rates put pressure on the fix-and-flip market, other product types have stepped up to fill the void. The most notable was the 30-year DSCR (Debt Service Coverage Ratio) loan. “The market has certainly moved away from fix-and-flip for six to eight months,” Zielinski said. “So the DSCR program took over the ground-up construction.
“A lot of people were looking for the need to create their own inventory (because) at certain times of the year, inventory was a little depleted. So the groundwork was huge for us. … We really hit the mark this year with that program.”
