Aloha Capital

About Aloha Capital

Based in Boulder, CO, Aloha Capital is an asset-based lender offering funding in Washington DC, Maryland, Virginia, and Colorado. They offer loans for many different needs and situations, including long term rental property loans, hard money bridge loans, and fix-and-flip hard money loans. Their loan guidelines are versatile, including rates ranging between 7.95% and 15.95%, terms between 0 and 12 months, and loan amounts ranging from $25,000 to $1,500,000 with a maximum LTV of 70%. The focus of their loans is on single family and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: DC, MD, VA, CO

Lending Guidelines for Aloha Capital

Below are the general loan guidelines published on the Aloha Capital website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Aloha Capital.

Loan Example 1

Derrick finds a property in Denver, CO to rehab and sell. Since he doesn't have enough cash on-hand to acquire the $330,000 house outright, he decides to take out a fix and flip loan from Aloha Capital. As the lender sets a 70% loan-to-value, Derrick will have to put 30% down and the principle amount of the loan will be $231,000. The interest rate on the loan is 9% for a term of 18 months and the company requires a three point origination fee at the close. The interest payments are to be paid monthly and the principle will be returned after the sale of the property.

Therefore, Derrick will have to make a $99,000 down payment in addition to paying a $6,930 origination fee. Once the deal closes, he will pay Aloha Capital $1,733 in monthly interest fees, or 9% times $231,000 divided by 12 months in a year. If Derrick meets his goal of a $478,500 sales price when the loan expires, he would earn a gross profit of $110,385 after repaying the principle on the note and deducting the cash he paid at closing, the origination points, and the total interest payments.

Loan Example 2

Aloha Capital makes a fix and flip loan to Ryan for a rehab project in Denver, CO. The loan includes the following:

a) A $340,000 purchase price, b) a 80% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.

Based on a $425,000 sales price after the 12 month term, the numbers for this deal would look like the following:

$425,000 sales price
- $272,000 principle on note (80% LTV)
- $68,000 cash paid at closing (20% on 80% LTV)
- $2,720 origination fee (1% of the $272,000 principle amount)
- $27,200 total interest paid (12 months x 10% interest)
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= $55,080 gross profit (does not include taxes or renovation costs)