Alpha Funding Solutions

About Alpha Funding Solutions

Headquartered in Lakehurst, NJ, Alpha Funding Solutions is a hard money lender providing funding throughout New Jersey, Connecticut, Pennsylvania, New York, Maryland, Delaware, and Florida. They offer hard money bridge loans, long term rental property loans, private commercial loans, fix-and-flip hard money loans, and ground up construction loans. They offer terms between 1 year and 2 years and loan amounts up to $3,000,000 with a maximum LTV of 65%. They offer loans on various property types, including single family, multi-family, apartment buildings, offices, retail units, hotels and motels, storage facilities, assisted living facilities, mixed use spaces, warehouse spaces, industrial facilities, and medical facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

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

Areas Served: NJ, CT, PA, NY, MD, DE, FL

Lending Guidelines for Alpha Funding Solutions

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

Loan Example 1

Alpha Funding Solutions makes a hard money loan to Anthony for a renovation project in Brooklyn, NY, on a property that costs $150,000. The borrower will have to fund 40% of the sales price in cash to the closing based on a 60% loan-to-value stipulated by the lender. This makes the principle amount from Alpha Funding Solutions $90,000. The parameters of the note also stipulate a three point origination fee which is to be paid at the closing and a 18 month, interest only note with a 11% interest rate.

According to the parameters of the note, Anthony will need to contribute a $2,700 origination fee plus 40% of the sales price, or $60,000, since there is a 60% LTV. he will then pay $825 per month to Alpha Funding Solutions. If Anthony sells the renovated house for $195,000 at the end of the 18 month term, his total profit (not accounting for renovation expenses) would be $27,450. This is computed by taking the purchase price ($195,000) and subtracting the original note amount ($90,000), the origination fee ($2,700), the funds he contributed to closing ($60,000), and the total interest payments ($14,850).

Loan Example 2

Charlie locates a duplex in Brooklyn, NY to renovate and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Alpha Funding Solutions with the following parameters:

a) A $270,000 sales price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 5% origination fee.

If Charlie achieves his goal of a $337,500 sales price, the final numbers of the project would be as follows:

$337,500 sales price
- $175,500 principle (65% LTV)
- $94,500 down payment (35% on 65% LTV)
- $8,775 origination fee (5% of the $175,500 principle)
- $34,223 total interest paid (18 months x 13% interest)
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= $24,503 gross profit (doesn't include taxes or rehab costs)