Alpha Lending

About Alpha Lending

Headquartered in Boise, ID, Alpha Lending is a hard money lender offering funding in Boise, Twin Falls, and Nampa. They offer private refinancing, fix-and-flip hard money loans, hard money loans for commercial properties, hard money bridge loans, and new construction loans. They make loans on various property types, including single family residences, multi family, apartment buildings, office units, retail storefronts, hotels and motels, storage buildings, senior housing facilities, mixed use, warehouses, industrial buildings, medical facilities, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: Boise, Twin Falls, Nampa

Lending Guidelines for Alpha Lending

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

Loan Example 1

Clare is an investor in Boise, ID. She discovers an older property and decides to rehab it and sell it for a profit. The property costs $190,000 but she doesn't have the full amount so she takes out a fix-and-flip loan with Alpha Lending. The loan to value (LTV) on the note is 55%. This means Clare will have to bring 45% of the purchase price to the closing and the principle will be $104,500 on the note. The rate on the note is 11% for a length of 6 months and the company requires a one point origination fee at the close. The interest is to be paid monthly and the principle will be returned after the sale of the property.

Clare will need to bring $85,500 at the closing (45% on the 55% loan-to-value), plus she will need to pay the $1,045 origination fee. she will then pay $958 monthly to Alpha Lending. If Clare sells the renovated project for $266,000 at the end of the 6 month term, her gross profit (not accounting for remodeling expenses) would be $69,208. This is computed by taking the purchase price ($266,000) and subtracting the original principle ($104,500), the origination cost ($1,045), the money she contributed to closing ($85,500), and the total interest expenses ($5,748).

Loan Example 2

Ivan finds a townhouse in Boise, ID to renovate and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Alpha Lending with the following parameters:

a) A $400,000 purchase price, b) a 80% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 3% origination fee.

After the renovation project is complete, if Ivan sells the property for $500,000, the outcome would be as follows:

$500,000 sales price
- $320,000 note principle (80% LTV)
- $80,000 down payment (20% on 80% LTV)
- $9,600 origination points (3% of the $320,000 principle)
- $52,800 interest payments (18 months x 11% interest)
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= $37,600 gross profit (doesn't include taxes or rehab costs)