Alpha Funding

About Alpha Funding

Headquartered in Las Vegas, NV, Alpha Funding is a private money lender offering loans all throughout the United States. They provide lending solutions for a variety of situations and needs, including hard money bridge loans and commercial loans. Their loan guidelines are flexible, including terms between 1 year and 3 years, rates ranging between 8% and 12%, and loan amounts ranging from $500,000 to $100,000,000 with a maximum LTV of 80%. They do not require borrowers to have a minimum FICO rating to receive a loan. They make loans on all of the following property types: multi-family, apartment buildings, offices, retail units, hotels and motels, storage buildings, senior facilities, mixed use spaces, warehouse buildings, industrial facilities, medical facilities, and raw land.

Loan Types Offered: Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: National

Lending Guidelines for Alpha Funding

Below are the general loan guidelines published on the Alpha Funding 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 Alpha Funding.

Loan Example 1

Javier is an entrepreneur in Spring, TX. He decides to purchase a new building for his business but he isn't able to get a conforming loan from his bank due to his below average FICO score. He turns to Alpha Funding for a commercial hard money loan so he can fund the purchase. The building is listed for $160,000. Javier will need to put 40% down, or $64,000, since the lender will loan only 60% of the transaction (the loan to value or "LTV"). Accordingly, the principle on the deal will be $96,000. The parameters of the deal include a 12 month length, a 14% interest rate, and a 4 origination fee paid by Javier when the deal is executed. In accordance with the terms of the deal, Javier will have to pay an origination fee of $3,840 when the deal is closed. He will also start making payments of $1,120 per month for the duration of the note and will re-pay the principle at the end of the 12 month term. If he decides to pay off the note before, he can do so with no additional expense because there is no pre-payment penalty stipulated by the loan.

Loan Example 2

Hope finds a townhouse in Memphis, TN to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a bridge loan from Alpha Funding with the following parameters:

$350,000 sales price
50% loan-to-value (LTV)
12 month term
13% rate of interest
1% origination fee

Hope plans to sell the house when the note expires for $490,000. If she succeeds, the deal numbers will be as follows:

$490,000 sales price
- $175,000 principle on note (50% LTV)
- $175,000 cash paid at closing (50% on 50% LTV)
- $1,750 origination points (1% of the $175,000 principle)
- $22,750 total interest paid (12 months x 13% interest)
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= $115,500 gross profit (does not include taxes or renovation costs)

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