Getting Started

AlphaFlow is a registered investment advisor that helps investors passively invest in a diversified portfolio of real estate loans. Due to current SEC restrictions, we are limited to working with accredited investors at this time.

Our account minimum is $10,000 which allows us to provide an optimized allocation across 75-100 real estate loans. We currently accept funds via bank transfer (ACH). ACH allows you to move funds directly between a checking or savings account and your AlphaFlow account. Once you confirm your bank account by logging in to the bank in question or identifying two very small deposits that we send to the desired account, we transfer your money electronically and allow you to make additional deposits at any time. In most cases, bank transfers will be deposited into your AlphaFlow account within 2-3 business days. Please note that any small deposits sent to your bank account for verification purposes will be withdrawn from that bank account within 10 business days.

To deposit funds, log into your AlphaFlow Portfolio and click the “Transfer Funds” button. When the funds arrive, we will send you an email confirming receipt.

These services are offered by Facebook and LinkedIn as a service so you can sign into your favorite sites using your username and password for those sites. Just click the “Log in with Facebook” or “Log in with LinkedIn” button anytime you’re presented with a sign-in prompt.  We will never post to either of these sites on your behalf.

AlphaFlow’s platform is primarily set up as dashboards for your to keep up to date with your investments and payments. You can see every loan in your portfolio at any time by simply logging into your dashboard. We also give you access to the tools we built to help manage the portfolios; namely an Exchange of deals on other platforms and the ability to connect your accounts from other real estate crowdfunding platforms.

Absolutely. In order to invest and manage our client’s portfolios, we built a number of tools and we offer these free to our clients as a courtesy. To highlights include:

  • The AlphaFlow Exchange lists investments from real estate crowdfunding platforms around the industry. It’s an easy way to compare deals from multiple sites all in one place.
  • AlphaFlow tracking allows you to connect your other accounts from around the P2P industry and easily manage your portfolio. As we build more tools for our internal use, we’ll roll them out to you as well as a courtesy. We unfortunately do not have every platform connected, but we’re adding more all the time.

The SEC defines ‘Accredited Investor’ under Rule 501 of Regulation D to include a natural person with (1) a net worth or joint net worth with the person’s spouse exceeding $1 million, not including the value of the primary residence, and / or (2) annual income of $200,000 in each of the two most recent years, or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income in the current year.

As part of your initial onboarding, you went to the accreditation step (it’s the page where you’ll find your Managed Portfolio page). If you choose from the drop down menu, you can verify via (1) 3rd party letter like one from your CPA (2) Income via documents (3) assets via breakdown. If you’ve done it before, it’ll just be resubmitting the same information. We’ll cover the cost of renewal, while our partner, InvestReady, handles the accreditation.

Investing with AlphaFlow

The minimum investment is $10,000. Given that your portfolio may be split across 100 individual loans, AlphaFlow targets a minimum value of $100 in each loan by the time each portfolio is optimized.

For now, AlphaFlow does not have an early liquidity option but we invest only in loans with 3-12 month maturities. AlphaFlow has found that while all loans are 6-12 months in duration, within about 6 months, you will typically have about 40-50% of your principal back. You have the option to set returned principal to auto-reinvest.

With the example of a CD, there would be a specific maturity date. However, with AlphaFlow, the loans all have defined maturities but (1) they often repay early individually or (2) there are extensions of 6 months on a few loans, as that’s a standard option built into these loans in case more time is required to complete the rehab project.

AlphaFlow builds your Optimized Portfolio for you and does all of the work, so you don’t have to go through the trouble of finding, underwriting, and investing in each loan one by one. We’ve built a proprietary system to take that work off your shoulders. As a result though, investors today can’t choose their own investments.

AlphaFlow’s team is investing in loans we like around the industry on a daily basis. When you invest and we receive your capital (this can take up to 7 business days), we allocate you slices of loans in which we have availability at the time. This changes on a daily basis, so there is no way to show you the exact loans you’d be investing in prior to your investment, as we may not even have some of them in our inventory yet. All loans will fall within the same standards of underwriting though.

You can log into your dashboard at any time, 24-7, and see each and every loan in your portfolio!

Your initial investment will be diversified across at least 75 individual loans within the first 45 days. From there, your portfolio will be continually rebalanced to maintain diversification. We strive to put all of your investment to work as soon as possible though, so we may initially place all of your investment in a smaller number of loans so that you are earning interest on all of it, before then continuing to change your allocations and spread you across multiple loans until we get to 75-100!

Payments are effortless! When you sign up for an AlphaFlow Optimized Portfolio, you’ll connect a bank account to fund your investment. At the end of every month, you’ll receive a distribution on your investments in your AlphaFlow account. You can always add a second bank account if you’d like us to make deposits elsewhere! From there, you have 3 options: (1) auto re-invest your earnings and / or returned principal, (2) leave the funds in your AlphaFlow account to decide to reinvest or withdraw later yourself, or (3) auto-withdraw the funds to your account.

All investments are in residential real estate loans secured by first lien positions.

AlphaFlow sources loans from non-bank lenders approved through a thorough vetting process conducted by AlphaFlow’s investment team. Individual loan selection is powered by data-driven decisions based on market trends, resulting in a rejection rate of approximately 80%.

The maximum Loan-to-Value on any given loan is 80%, but AlphaFlow does not typically go above 75% unless the loan has significant compensating factors. The target blended LTV for your portfolio will be 75% max.

AlphaFlow has an extensive list for underwriting the borrower, the property, and the market in order to dilgence every investment. AlphaFlow’s review includes typical items such as credit scores and track record, as well as market trends like days on market for the region along with how the specific local is trending.

When a loan repays, the funds are returned to you and you have 3 options: (1) auto re-invest your earnings and / or returned principal, (2) leave the funds in your AlphaFlow account to decide to reinvest or withdraw later yourself, or (3) auto-withdraw the funds to your account. Our goal is to make it as effortless as possible to allow you to “set it and forget it!”

AlphaFlow’s team is investing in loans we like around the industry on a daily basis. When you invest and we receive your capital, we allocate you slices of loans in which we have availability at the time. This changes on a daily basis, so depending on when you invest, you may have overlap with other customers but you’ll likely have a unique portfolio from most other AlphaFlow clients. All loans will fall within the same standards of underwriting.

The underlying loans in AlphaFlow Managed Portfolios were originated by non-bank lenders. Borrowers will accept higher rates from these lenders to ensure they have access to capital more quickly and with more flexibility than they would receive from a traditional funding source.

On most platforms, investing in 6-12 loans often means a minimum investment of $30-60K. With AlphaFlow, you are automatically placed into 75-100 loans, all with a minimum investment of $10K.

We partner with many of the top real estate crowdfunding platforms so we have tremendous respect and close relationships with many of them. In general, AlphaFlow is focused on creating a more passive investing experience that utilizes technology building and rebalancing a diversified portfolio, all at a low fee and with low investment minimums.

Yes, AlphaFlow will work with Self Directed IRAs. We work with a several custodians, but IRA Services Trust Company and Polycomp have been some of our favorites.

You will receive one single K-1 for all of your investments in each year with AlphaFlow. Whether you only invest once or add funds multiple times, it’s a total of one K-1 per year!

AlphaFlow charges a 1% annualized asset management (“AUM”) fee. AlphaFlow may charge servicing, origination, or other fees in certain circumstances on certain real estate loans in your portfolio, typically when defaults occur and there are additional 3rd party fees, and those will always be disclosed.

We had great results with our previous three funds but wanted to take what we learned one step farther. The optimized portfolio platform was built to take the same risk/return principles we used with the funds and improve the investment experience in 3 main ways:

1) We’ve virtually eliminated all cash drag. Within a few days of receiving an investor’s capital, he/she will begin earning returns on the entire investment.

2) Clients can invest and re-invest capital at any time.

3) We continually rebalance client portfolios to keep them diversified as loans repay. Ultimately, the underlying principal is the same: Investors make one investment with us and we build them a highly diversified portfolio of 75-100 first lien residential real estate loans spread across 15+ states.

Security

AlphaFlow adheres to the same security encryption standards as your bank. We support browsers that use 128-bit encryption, which is just a means of scrambling information when it’s sent, in this case, between your device and AlphaFlow. Information that is encrypted at one end is then decrypted when it’s received at the other end. It’s the strongest and most secure form of encryption that is generally available in internet browsers today.

To host your data, we use Amazon Web Services (“AWS”). Physical access is strictly controlled both at the perimeter and at building ingress points by professional security staff utilizing video surveillance, intrusion detection systems, and other electronic means. Authorized staff must pass two-factor authentication a minimum of two times to access data center floors. If someone were able to get past all that security and break into a server, they would then have to crack several layers of authentication and military-grade 256-bit encryption to access your data. Translation: even if someone walked out with our hard drives, it would take them BILLIONS of years using the world’s fastest supercomputer to crack your encrypted data.

Here are a few tips to help keep you safe online:

Keep your LinkedIn and Facebook passwords safe – don’t share them with anyone.

Mix it up–make sure that your password includes numbers and capital letters.

Use virus protection and a firewall on any computer you use to access AlphaFlow.

Don’t install programs from people or companies you don’t know.

Learn to prevent identity theft and identify phishing attempts.

No, because AlphaFlow does not require any personally identifiable information for you to create an account.

Absolutely not! We hate spam as well. We’re going to add notifications, newsletters, and perhaps other communications as we grow but you’ll be able to unsubscribe from any and all of them at any time.

Using the Site

We’re always looking to improve our data and if there is something that isn’t correct on your dashboard, we’re eager to fix it. Please just let us know what investment and what information is incorrect, and we will review it promptly. Please reach out at invest@alphaflow.com.

As part of your initial onboarding, you went to the accreditation step (it’s the page where you’ll find your Managed Portfolio page). If you choose from the drop down menu, you can verify via (1) 3rd party letter like one from your CPA (2) Income via documents (3) assets via breakdown. If you’ve done it before, it’ll just be resubmitting the same information. We’ll cover the cost of renewal, while our partner, InvestReady, handles the accreditation.

Originators

We’re always eager to onboard new platforms.  Please just reach out to us at contact@alphaflow.com and tell us a bit about your platform and why it might be a good fit.

About Us

We’re flattered you asked. Learn more about us here.

AlphaFlow Managed Portfolios models the same investment mandate and AUM fee as AlphaFlow’s three previous funds, but with three major improvements:

(1) We’ve minimized all cash drag. Within a few days of AlphaFlow receiving your capital, you will often begin earning returns on your entire investment.

(2) You can invest and re-invest capital at any time.

(3) We continually rebalance your portfolio to keep you diversified as loans repay.

Behind that is a lot of proprietary technology to make things work but the return profile and the cost is the same as with our funds.

If you’re interested in joining our team, please send us an email at careers@alphaflow.com with a resume or LinkedIn profile, along with a note on why you’re interested in AlphaFlow. No formal cover letter is needed. Please no 3rd parties.