So you found a sweet investment property, and you’ve decided that a hard money loan is a good move for you. Great! You’ve taken some huge steps in the right direction to be a profitable real estate investor. If you thought the decision making was over, though, here’s the next step: choosing a hard money lender.
(If you’ve found yourself here and aren’t sure what exactly a hard money loan is, you can find more information on that here, in our guide on what is a hard money loan. To summarize, a hard money loan is a type of borrowing that includes a short, as in less than one year, contract and high interest rates.
This type of loan appeals to real estate investors who can’t get traditional loans either due to:
- a lack of time
- a less than perfect credit history
- no other lender willing to lend on an asset that needs major repairs
This next step in your property investment process is where Alpha Funding comes in (Alpha has been renamed from Alpha Funding Solutions to Alpha Funding Partners). As your partner, Alpha Funding is a vital aid in the hard money borrowing process.
So, why use Alpha Funding as your hard money lending partner?
Well, as a company with over a decade in lending experience and $60 million in active loans circulating the United States, there are scant reasons not to.
With Alpha Funding, Enjoy Lower Interest Rates…
We all know that the ugliest feature of a hard money loan is its double-digit interest rates. These infamous rates can range from as low as 10% to, if the cards are playing against you, up to 15%.
These rates bloat the monthly payment of your loan to the point where essentially no principle is included in the payment.
For one of the most common hard money loans, a fix and flip, Alpha offers a much slimmer 8.99% starting interest rate, and a modest two points required at closing.
You can learn more about points in a hard money loan here.
…Barring a Few Other Requirements
This particular rate may sound like a dream come true, but there are setbacks. This loan’s attractive interest rate, called “The Luxe,” comes with a few prerequisites.
Borrowers hoping to utilize this loan through Alpha should have a track record of at least three successful fix and flips. Additionally, you should have a FICO score of at least 650 and a clean financial slate if you hope to land this funding through Alpha.
However, if you’re a newbie to the fixing and flipping world, Alpha can still help you with an interest rate of less than 10%. This loan, called “The Plush,” starts at 9.99% and requires no track record of rehabbing properties to get approval.
You might want to still double check your credit reports, though, because the step-down from The Luxe loan still requires a 600 FICO score, but will allow certain adverse background histories.
Also consider the down payment for this program, because the underwriter is going to want 10% of the purchase price as down payment. And keep in mind, you can use a business line of credit as the down payment.
Interest Offers for Other Hard Money Loans
Are you looking to fix up a property… and then hang onto it for yourself as a rental? Or maybe you want to breathe some life into a dusty old storefront? Alpha Funding has leading competitive interest rates for a full line of hard money loan types.
New construction is a popular venture funded by Alpha, with a moderate interest rate sitting at just below 11%. You’re going to need to have successfully funded a construction project with hard money before, and have a 620 FICO score ready.
Bridge loans are available for more diverse projects, including retail spaces, multi-family units, and more. The interest rate begins at 9.99% and no prior experience from the borrower is required.
If you’re a long standing Alpha customer, you can get 100% financing loans that entirely cover the purchase.
Custom Tailored Contracts? No Problem
Typically, hard money lenders and even traditional bankers want things done on their own terms, down to the payment date and the length of the loan. If you would benefit from lenders who are open to negotiations, Alpha Funding is the right partner for you.
Alpha’s superior loan officers can work with you to tailor a loan to your needs. With flexibility in loan terms, access to capital, and personalized experiences with underwriters and experts, your custom hard money goals can be addressed.
Alpha Funding Solutions isn’t Right for You If…
You have devastated, bottom of the barrel credit. To continue being able to do what the company does, Alpha Funding has to assess each potential borrower for risk to some degree. People who have serious infractions on their credit pose an uncertain future to lenders at Alpha Funding.
While your credit and financial history doesn’t have to be perfect, it definitely should not be a smoking ruin.
Alpha may also not be suitable for you depending on the state you live in. The company currently funds a select amount of states in the US, which you can find here.
Alpha Funding May be Right for You If…
Your credit and financial history is pretty average, and you are looking for a strategic guide through your experience as a property developer or rehabilitator. Having fixing and flipping experience is a plus in order to get lower interest rates, but not required to have a positive experience at Alpha.
If you happen to live in the northeastern area of the United States (Pennsylvania, New York, New Jersey, etc.), you may be lucky enough to be able to do business with your loan officer face to face.
Even if you’re out of headquarters’ immediate area, you’ll experience timely and personalized encounters with your hard money lending expert.
If you’re hoping for a quick approval process and need to close on funding within ten days, Alpha Funding is the partner for you.
Hard Money Looks Scary, But it Doesn’t Have to Be
The reputation of hard money is shady at best. You may be picturing a no-mercy shark of a man hunting down his borrowers and wringing them of every dollar, but the era of that type of hard money has come and gone.
Modern lending partners such as Alpha Funding are flexible and receptive individuals who have just as much of a hope to see their communities expand and succeed as you do.
If the world of hard money lending appears tangled and messy to you, Alpha Funding is here to simplify it for you.
Learn more about Alpha Funding Solutions and get a pre approval quickly here.