AlphaFlow invests in real estate debt, generally called bridge loans. These are short-term, 1st lien notes backed by residential real estate. The notes are typically between $75,000 to $2,000,000, yield between 7%-11%, target a maximum average loan-to-value of 75% and are secured by the property and often a personal guaranty. Your funds are spread across 75-100 of these notes in at least 15 states.
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.
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.
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.
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 Please note that any small deposits sent to your bank account for verification purposes will be withdrawn from that bank account within 10 business days.
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.
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!
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%.
All investments are in residential real estate loans secured by first lien positions.
AlphaFlow has an extensive list for underwriting the borrower, the property, and the market in order to diligence 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.
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.
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.
You can log into your dashboard at any time, 24-7, and see each and every loan in your portfolio!
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.
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!”
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.
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.
Auto-withdraw is a function in your dashboard that you can toggle on or off. With auto-withdraw, you can choose to have your monthly earnings and any returned principal automatically withdrawn to your bank account. If you have opted for auto-withdraw, funds will be in your bank account within 3 business days. Otherwise, simply click the Transfer Funds button to withdraw your Cash Reserves.
Auto-reinvest is a function in your dashboard that you can toggle on or off. With auto-reinvest you can choose whether to re-invest interest earnings as well as returned principal. By default, the settings on your Balances tab in your account are set to auto-reinvest returned principal and to move earnings to Cash Reserves. If you opt for auto-reinvest, you will see those earnings and returned principal in the Investible Cash portion of your dashboard.
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Interest payments are deposited into your AlphaFlow account 1 to 2 times per month.
You can invest with your SDIRA. Ask us about it when you sign up. We’ll be happy to assist with the process.
AlphaFlow Advisor, LLC charges a low 1% management fee.*
We issue a single K1 each year for all of your investments made throughout that year with AlphaFlow. Whether you only invest once or add funds multiple times, it’s a total of only one K-1 per year.