1
Fc
Foreclosures
Portfolio Composition
We work with private lenders who provide 6-12 month loans to developers looking to buy, rehab and sell residential properties. We review each loan thoroughly, and build highly diversified portfolios with:
max
75%
Average LTV
up to
8-10%
Projected
Yield
across
15+
States
from
75-100
Loans
How It Works
$10,000 initial investment example
You invest $10,000 with AlphaFlow.
AlphaFlow spreads your investment across 75+ loans.
You earn up to 8-10% with interest paid monthly.
You can reinvest your earnings or withdraw as loans are paid off.
How We Build Your Portfolio
1Initial allocation
We put your money to work quickly by getting you initially allocated to a few notes before running your portfolio through the optimizer. Typically this period is not more than a few days.
2Optimization
Our optimization algorithm diversifies your portfolio across 75-100 different loans while keeping the portfolio within the target constraints (8-10% target net yield, loan-to-value < 75%, 15+ states).
3Rebalancing
As we invest in additional loans around the country, we re-run your portfolio through the optimizer to make sure it’s diversified.
4Reinvestment
If you have auto-reinvest enabled, as any loans repay or earnings are paid out, AlphaFlow puts those funds back to work for you automatically.
What You’re Investing In
AlphaFlow invests in short-term, asset-backed mortgage notes, in a first lien position, providing security and assurance of repayment. Portfolios target a maximum loan-to-value of 75%, providing a minimum 25% equity cushion.
How We Choose Lenders
AlphaFlow performs a comprehensive review of each lender before purchasing any loans.
STEP ONE
Lender Overview
- Evidence of the ability to conduct business
- Onsite due diligence visit by AlphaFlow Investment Officer
- Live loan walkthrough and systems demonstration
STEP TWO
Document Review
- Lender’s Credit/Underwriting Policy
- Pre- and post-origination quality control reports
- List of all third parties used as part of lending and servicing activities
- Non-performing loan procedures
STEP THREE
Loans Audited
- Sample loans reviewed by AlphaFlow Investment Committee
- All purchased loans run through AlphaFlow Advanced Analytics
STEP FOUR
Certified Lender
AlphaFlow can now buy loans from the lender, subject to an annual process review in case of any material process changes.
How We Choose Loans
AlphaFlow’s loan selection process focuses on credit quality over quantity.
Alphaflow’s review process is data driven, informed by local market trends and enhanced by AlphaFlow’s Advanced Analytics platform. The loan selection process results in a rejection rate of ~90%.
What Is AlphaFlow Advanced Analytics?
AlphaFlow Advanced Analytics provides a unique forecasting perspective, leverages local market trends, and allows AlphaFlow’s Investment team to quickly analyze and make decisions on investments. Over 50 factors are reviewed as part of the analysis, summarized into Borrower, Market, and Property factors.
2
Pc
Property Condition
1
Br
Bankruptcies
2
Ps
Property Size
2
Pr
Public Records
1
Jm
Judgments
1
Fe
Flipping Experience
1
Rl
Recorded Liens
1
Rp
Rural Properties
2
Zr
Zoning Restrictions
1
Lm
Liens
1
Fr
Fraud
1
Dm
Days-on-Market
1
La
Local Amentities
1
Cp
Construction Permits
1
Mi
Median Income
1
Bp
Building Permits
1
Ph
Property Price History
1
Pc
Property Comparables
2
Em
Easement
1
Ch
Criminal History
1
Se
SSN & EIN Verification
1
Re
Real Estate Exposure
1
Ss
Superfund Sites
1
Ci
Consumer Price Index
1
Mr
Monthly RE Inventory
1
Sr
School Rating
1
Fz
Flood Zone
1
Pt
Property Type
2
Pm
Plat Map
1
De
Deeds
1
Gd
Guarantor Due Diligence
1
Rh
Repayment History
1
Bf
Brownfields
1
Cr
CAP Rates
1
Cd
Census Data
1
Ec
Employment Concentration
1
Mh
Median House Age
1
Er
Earthquake Risk
2
Ha
HOA Restrictions
1
Fo
FICO
1
Lr
Lending Relationships
1
Lc
Open Lines Of Credit
1
Dg
Demographics
1
Cl
Cost of Living Index
1
Ma
Market AVM’s
1
Nh
Natural Hazards
1
Ar
Absorption Rate
1
Hv
Home Value
2
Pi
Permitted Improvements
- Borrower Elements
- Market Elements
- Property Elements
Details That Matter
Monthly Interest Payments
Interest payments are deposited into your AlphaFlow account 1 to 2 times per month.
Tax Advantages
We issue a single K-1 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.
Low Fees
AlphaFlow Advisor, LLC charges a low 1% management fee.*
*We may charge servicing, origination, or other fees in certain circumstances on certain real estate loans in your portfolio which will always be disclosed.
Invest With Your SDIRA
You can invest with your SDIRA. Ask us about it when you sign up. We’ll be happy to assist with the process.
