AlphaFlow is a tech-enabled investment manager that buys real estate loans from lenders across the nation.
AlphaFlow is a collaborative and reliable partner that provides capital, software, and underwriting insights to help its lenders grow their business.
Speed – AlphaFlow provides instant feedback (<24 hours) and buy in less than 5 days
Transparency – AlphaFlow shares underwriting insights via its Lender Portal
Reliability – AlphaFlow reviews loans daily and buys weekly.
AlphaFlow has been an investment manager for 5 years and began its institutional whole loan buying program in December 2018.
AlphaFlow does not originate loans. AlphaFlow solely purchases loans from lenders.
AlphaFlow provides instant feedback via our proprietary Loan Sizer, feedback within 24 hours from our investment team, and can close a purchase within 5 days.
AlphaFlow buys loans ranging in size from $75k-$10MM. Loans outside of these ranges may be considered on an exception basis.
AlphaFlow buys short-term, business purpose, first-lien loans on residential real estate. This includes Value add, Cash-Out Refinance, Ground p construction, and Stabilized/Rent (aka rate and term refinances), we will also consider 5-30 units and mixed-use on a case by case basis.
AlphaFlow buys loans on Single Family Residential (SFR 1-4 unit), Condo, and PUD, Mixed Use and 5-30 units AlphaFlow does not buy loans on certain commercial property types (office, storage, Industrial, etc).
AlphaFlow is currently active with over 80 lenders who operate across 41 different states. We are continually looking to establish long term partnerships with high quality lenders looking for a strong capital partner.
AlphaFlow does not table fund loans at this time.
AlphaFlow buys loans starting at 6.75% with volume commitments. AlphaFlow prices range from 6.75% to 7.5%+ depending on the characteristics of the loan.
AlphaFlow uses an algorithmic pricing model that takes into account transaction, borrower, property, and local market-related factors when determining the interest rate at which AlphaFlow will purchase a loan. Any difference between our purchase rate and the interest rate of the loan will be sent back to the lender when the borrower makes their monthly payment (i.e. the Yield Strip).
No, AlphaFlow’s lenders keep 100% of the origination fees.
AlphaFlow has three main sources of capital: 1) institutional capital 2) family offices and 3) our revolutionary $100M securitization in partnership with Saluda Grade. When AlphaFlow buys loans it acts as a master servicer and continues to act as a single point of contact with its Lenders.
AlphaFlow is backed by multiple types of investors and has committed capital of $1+ billion which it expects to deploy in the next 12-24 months.
AlphaFlow will purchase loans with an initial term of no more than 36 months and the loan can have up to two six-month extensions.
The minimum credit score for a borrower/guarantor is 620.
AlphaFlow will review and buy loans in all 50 states. Depending on market conditions, there may be restrictions in particular geographies at any given time.
AlphaFlow will purchase loans with up to 85% of as-is LTV (property rehab), up to 90% of LTC and up to 75% of ARV. Refinance, stabilized/rent are up to 75% of LTC and as-is value. Ground Up up to 70% of After Completion Value. 5-30 and Mixed Use properties up to 70%
AlphaFlow understands how much value borrower relationships have to its lenders. While AlphaFlow does purchase loans with servicing released, AlphaFlow still wants its lenders to be ‘the face’ of the loan to the borrower to maintain those relationships. As such, AlphaFlow allows the lender to be the single point of contact for items like rehab draws post-sale. In addition, AlphaFlow engages sub-servicers to hold reserves and collect interest payments and payoffs. AlphaFlow acts as the single point of contact with its lenders for our sub-servicers.
AlphaFlow aims to process a construction draw in 24-48 hours after the request is submitted to AlphaFlow’s servicing team.
AlphaFlow’s preferred subservicer is FCI Lender Services but we also work with several servicing groups including Fay and BSI.
AlphaFlow does not work with brokers directly but requires each originating lender to have a direct purchase agreement with AlphaFlow.
AlphaFlow does not allow foreign nationals.
AlphaFlow has the ability to buy loans from any partners who have borrowers with active business licenses, a US operating entity and the borrower must have a credit score.
Yes, AlphaFlow requires an appraisal from a licensed appraiser on the appropriate FNMA form based on property type. We recognize the timing issues currently with full appraisals and provide options that include an interior BPO, (BPO’s are allowed on loans under 1 MM and not allowed on ground up or heavy rehabs) desktop valuation by a licensed appraiser with interior pictures, hybrid appraisals like ProTek or Value Net are also acceptable. We require full appraisals on all ground up, heavy rehab loans, mixed use and 5-30 units.
Yes, AlphaFlow will buy seasoned loans, but the loan must have at least 3 months until maturity and be performing.
No, AlphaFlow will not buy loans with a lender participation agreement.
AlphaFlow currently does not purchase non-performing loans. However as AlphaFlow continues to expand its investment strategies, AlphaFlow expects this to be one of its future strategies.
Yes, AlphaFlow buys loans in judicial states.
AlphaFlow traditionally likes to see at least one year of track record from its partners but can be flexible to help new and growing lenders.
Yes, Alphaflow will buy portfolio or blanket loans on a case by case basis.
AlphaFlow has a simple three-step process to become an approved lender (Qualification, Diligence, and Onboarding), the specific steps for each are further detailed in its institutional loan buying guide.
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No. We do not charge lenders to use our platform. We make money by being a great capital partner. The software just helps us be better partners.