Basic Loan Terms:
- Loans ranging from $50,000 - $1,000,000
- Term can be from 3 months to 18 months with possible renewal
- 3 month minimum interest payment
- Current interest rate 10.75%
Max Lending Limits:
- Up to 80% LTV/ARV on NOO Residential Projects
- Up to 70% LTV/ARV on Commercial Projects
- Up to 50% LTV on Land Acquisition
- Up to 50% Equity Cash Out Loans on Real Estate
We want our borrowers to succeed!
Our Lending Philosophy
ALFIE provides money to real estate business people who are involved in a wide variety of residential and commercial projects. ALFIE borrowers are seeking a source of funds that allows for flexible financing and creative solutions for specialized real estate opportunities.
ALFIE’s straightforward and rapid loan underwriting allows borrowers to get a firm time frame and cost proposal for the entire process up front. This gives borrowers some degree of certainty about when they may begin their money-making project if everything checks out and the loan closes. The length of time it takes ALFIE to make a decision is determined by the borrower and their ability to produce a complete set of quality documents.
Traditional lending institutions move slowly and often have restrictive and complex lending criteria that can end up decreasing the borrower’s profitability. ALFIE’s process acknowledges the need to provide rapid decision-making and efficient execution of the due diligence and funding cycles. ALFIE’s loans are exclusively asset-value-driven, which means that with full disclosure on the borrower’s part, we can commit to being the financing partner that will allow borrowers to move ahead decisively and successfully close their deals.
The ALFIE Process
- Once your initial loan application is received, ALFIE will conduct a preliminary review. You can expect to hear from ALFIE within three business days from the receipt of your initial application.
- ALFIE will contact you with any outstanding questions about your project.
- If ALFIE is the right fit for your project, we will issue a loan commitment letter.
- Once the commitment letter is signed and returned to ALFIE, we will begin the underwriting process.
- ALFIE will then work with you to determine an appropriate closing date. Generally, we are able to close on a loan within two weeks of receiving all underwriting documents as stated in the loan commitment letter.
At ALFIE our primary consideration for the loan approval process, is the value of the asset that is being offered as collateral. However, we also consider the following criteria when underwriting a loan:
- All of the loans that ALFIE funds are interest only loans. This means your monthly payment is based on the annual simple interest divided by 12 months. The borrower has to prove their ability to service the debt.
- Your credit report is NOT the key factor in determining if a loan will be made. However, ALFIE does look for tax liens, judgements and any other circumstances that may impact the title, security and liquidity of the property.
- The borrower is required to provide a signed personal financial statement and past year's tax return.
- The borrower is required to provide a project summary that clearly outlines their objectives for the use of the loan proceeds.
- The borrower is required to provide a well-defined and identifiable exit strategy for the loan.
- ALFIE may require a recent appraisal supporting the value of the asset.
- Fees: Borrower will pay to lender, upon closing of the loan, 3% of the loan amount as an origination and service fee. Borrower will also pay lender document preparation fees typically $500.00 per transaction.
- Borrowers should have experience in real estate, either in construction, rehab, remodel, development, or general contracting. OR they must hire someone who is experienced to execute the construction project with the term of the loan.
- ALFIE only lends in First Lien Position, no second lien or home equity loans are permitted.
- Only NON-owner occupied properties will be considered for a loan.
Commercial properties along with residences are eligible so long as the borrower and his/her family members do not occupy the space as a personal residence.