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About Alt Financial
Alt Financial is an Irvine, CA based private money lender. They provide loans throughout Southern California. They offer loans for many different situations, including short term fix and flip loans and commercial loans. They will make loans on most property types, including single family, multi family residences, apartment buildings, office buildings, retail units, industrial facilities, and storage facilities.
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Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans
Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Industrial, Storage
Areas Served: Southern California
Licenses: NMLS #285120, DRE LIC#1851554
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Lending Guidelines for Alt Financial
Below are the general loan guidelines published on the Alt Financial website. Please confirm all terms and rates directly with the lender.
Fix and Flip Loans
Loan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/ACommercial Hard Money Loans
Loan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A -
Loan Examples
The following loans are for education purposes only. They do not represent actual loans executed by Alt Financial.
Loan Example 1
Olive is a house flipper in Acton, CA. She locates an older property and decides to renovate it and sell it for a profit. The house has a cost of $180,000 but she doesn't have the full amount so she takes a fix-and-flip loan with Alt Financial. The terms of the deal include a 60% loan to value (LTV), so she must contribute 40% of the price as cash at closing, which makes the principle loan amount $108,000. The loan is interest-only, with monthly payments, and is for 18 months at 8% interest with 3 origination points to be paid when the deal closes.
In addition to paying the $3,240 origination fee, Olive will also need to fund $72,000 of the purchase with her own money, or 40% of the sales price. she must then pay $720 monthly to Alt Financial. If Olive sells the renovated project for $270,000 at the end of the 18 month term, her total profit (not accounting for rehab costs) would be $73,800. This is calculated by taking the sales price ($270,000) and subtracting the principle ($108,000), the origination cost ($3,240), the cash she brought to closing ($72,000), and the total interest payments ($12,960).
Loan Example 2
Greg is a an investor in Acton, CA. He locates a run-down property for a renovation project and obtains a private money loan from Alt Financial with the following features:
$200,000 purchase price
80% loan-to-value (LTV)
6 month term
13% interest rate
5% origination feeAfter the rehab project is complete, if Greg sells the project for $300,000, the final numbers would be as follows:
$300,000 sales price
- $160,000 principle on note (80% LTV)
- $40,000 cash paid at closing (20% on 80% LTV)
- $8,000 origination points (5% of the $160,000 principle amount)
- $10,400 total interest paid (6 months x 13% interest)
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= $81,600 total profit (does not include taxes or rehab costs) -
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