Insights

“The Time Is Now”: Leadership & Market Insight with Jeffrey Tesch, CEO of RCN Capital

We’re honored to feature Jeffrey Tesch, CEO of RCN Capital — one of the most influential voices in the private lending industry. Under his leadership, RCN has grown into a national powerhouse, recognized for its speed, consistency, and unwavering commitment to brokers and investors alike. Over the past 12 months, the company originated $1.59 billion in loans, earning the No. 3 spot nationwide in market share. In the midst of a fast-evolving market, Jeffrey graciously took the time to share his insights with The Elite Officer. We’re truly grateful for his openness and generosity. We hope this conversation brings valuable perspective to Loan Officers and professionals navigating today’s lending landscape. Originally intended as a straightforward Market Insight interview… this piece became something more. I just couldn’t help myself. Very quickly, it turned into something much more than numbers and trends. Yes, you’ll find a sharp analysis of the current state of private lending and valuable insights on how to navigate today’s challenging market. But you’ll also discover how one of the most important companies in the industry was born—and evolved—told firsthand by its CEO, Jeffrey Tesch. We talk about corporate culture, leadership, pivotal decisions, and life lessons that go beyond business. The conversation with Jeffrey flows through emotions rarely seen in the financial world: the joy of the path traveled, genuine excitement for what lies ahead, but also a responsible concern for today’s uncertain landscape, and the seriousness of a leader who leads by example. There’s laughter as we revisit the company’s early days, and a hint of sadness when recalling the tough times brought by the pandemic. All of it wrapped in a human warmth—and above all, a humility—that leaves a lasting impression on this writer. Though the article is presented as a conversation, it is not a word-for-word transcript. Some parts have been adapted for clarity and flow—but I believe the essence of each message remains intact. I’ll leave you now with Jeffrey. Uriel Fleicher: First of all, thank you. Just to warm things up—let’s talk about your company, Rehab Cash Now. (Yes, that was actually the original name, and when I mentioned it, Jeffrey started laughing—and so did I.) Jeffrey Tesch: Yeah, that’s how it all started. It was an interesting time—2010—15 years ago. We just celebrated our 15th anniversary with a big party. It was especially exciting for the employees that have been with us the entire way. In 2010, the single-family housing market in the U.S. was extremely challenged. Prices were deflating because conventional buyers had no appetite to purchase, and banks were foreclosing on properties due to people’s inability to make payments in a tough economic climate. We believed it was the perfect time to launch a business that deployed capital to investors buying distressed properties—often unlivable—and fixing them up to return to the market. Our whole focus was to provide capital not just to buy, but also to rehab the property. Once they sold, we’d get paid off. That’s where the name Rehab Cash Now came from. It was 2010, and I was trying to find a name. Even then, finding a good .com domain was hard. I wanted something simple that clearly said what we did and was easy to spell. That’s how RehabCashNow.com started. A few years later, our Chief Marketing Officer, Erica LaCentra, said we had graduated and needed a more institutional name. RehabCashNow sounded a little… informal. So we became RCN Capital. But you can still go to rehabcashnow.com—it redirects to RCN’s website. Uriel: Thank you for that. Now, about the work culture at RCN. Someone from your company, whose name I’ll keep private, told me, “Jeffrey really cares about us.” I also read that during the pandemic, you struggled not seeing your team every day. So it seems RCN is like a family to you. Can you tell me more about that connection? Jeffrey: As I’ve matured in my career, I’ve realized—starting even before RCN when I owned franchises—that everything that leads to success revolves around making employees feel valued, appreciated, and elevated to be the best version of themselves they can be, and that goes for good times and bad times. When we hire people it’s about building a collective community of like-minded people who enjoy working together and support one another. That’s more important than a 4.0 GPA or a fancy degree. We don’t hire people for jobs—we hire for careers. There’s a big difference. Jobs are tasks. Careers are about investment in growth—for them and for us. That’s why RCN feels like a family. Uriel: I couldn’t agree more. Let’s switch gears. I want to hear your thoughts on the current market. How is RCN positioned and what are you hearing from other lenders? Jeffrey: There’s still a massive deficit in single-family housing. Despite a lot of building, the shortage hasn’t improved since COVID. That structural deficit—some estimate between 2 to 5 million units—benefits lenders like us who support investors fixing up or building homes. It’s especially bad in places like California and New York, but really it’s all across the country. The private lending sector is in a strong position to provide the capital needed to help solve that problem. We’re well-equipped to step in. On the financing side, we all thought interest rates would be lower by now. That hasn’t happened. Mortgage rates are hovering between 6.75% and 7.25%, and that’s causing affordability challenges. Elevated rates, combined with limited housing supply, continue to push prices up—making it increasingly difficult for folks to afford housing and ultimately slowing transaction volume across the board, in both business-purpose and owner-occupied lending. All of that said, rental properties are still performing due to rising rents. Buy-fix-sell models are also resilient because the loans are short-term. What matters more is whether the finished product can sell quickly. Uriel: I was recently reviewing your Investor Sentiment Index—it’s a fascinating snapshot of what’s happening on the ground. One concern that really stood out was competition from institutional investors. Can you explain that?