Alternative Financial Services

About Alternative Financial Services

Alternative Financial Services is a Spokane, WA based private lender providing funding throughout Washington, Idaho, Wyoming, and Arizona. They offer loans for many different situations, including fix-and-flip loans, short term bridge loans, construction loans, and private commercial loans. They provide rates starting at 8% and loan amounts ranging from $20,000 to $20,000,000. They will make loans on the following types of properties: single family homes, multi-family units, apartments, office units, retail storefronts, hotels and motels, storage facilities, senior housing facilities, mixed use spaces, warehouse buildings, industrial buildings, medical offices, raw land, and churches.

Loan Types Offered: 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, Land, Church

Areas Served: WA, ID, WY, AZ

Lending Guidelines for Alternative Financial Services

Below are the general loan guidelines published on the Alternative Financial Services 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 Alternative Financial Services.

Loan Example 1

Patricia closes on a $210,000 rehab project in Phoenix, AZ, using a fix-and-flip loan from Alternative Financial Services. The loan-to-value (LTV) on the note is 85%. This means Patricia will need to bring 15% of the purchase price to the closing and the principle will be $178,500 on the loan. The parameters of the loan dictate a 14% note for 18 months. They also stipulate a 3 point origination fee, which will also need to be paid at closing.

Accordingly, Patricia will need to contribute a $31,500 down payment plus pay a $5,355 origination fee. The monthly interest only payments will then total $2,083 to the lender. Assuming she sells the remodeled house for $315,000 at the end of the 18 month term, her gross profit (not accounting for rehab expenses) would be $62,160. This is calculated by taking the sales price ($315,000) and subtracting the original principle ($178,500), the origination cost ($5,355), the money she brought to closing ($31,500), and the total interest payments ($37,485).

Loan Example 2

Jacob locates a townhouse in Phoenix, AZ to remodel and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Alternative Financial Services with the following parameters:

a) A $230,000 sales price, b) a 75% loan-to-value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 5% origination fee.

Assuming a $287,500 sales price at the end of the 6 month term, the outcome for this project would look like this:

$287,500 sales price
- $172,500 note principle (75% LTV)
- $57,500 down payment (25% on 75% LTV)
- $8,625 origination fee (5% of the $172,500 principle)
- $12,075 interest payments (6 months x 14% interest)
-----------------------
= $36,800 gross profit (doesn't include taxes or rehab costs)

No Reviews Yet

Alternative Financial Services currently has no reviews. To add a review now, click the link below:

Write a Review for Alternative Financial Services