About Alliance Commercial Finance
Headquartered in WAIPAHU, HI, Alliance Commercial Finance is a hard money lender offering loans across the United States. Their lending focus is mainly on commercial loans. They issue loan amounts ranging from $100,000 to $100,000,000. They make loans on most property types, including multi family residences, apartments, office units, retail spaces, hotels/motels, storage buildings, mixed use, and industrial facilities.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Mixed Use, Industrial
Areas Served: National
Lending Guidelines for Alliance Commercial Finance
Below are the general loan guidelines published on the Alliance Commercial Finance website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $100,000 - $100,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Alliance Commercial Finance.
Loan Example 1
Alliance Commercial Finance makes a private money loan to Harold for the purchase of a new building after he is denied a conventional mortgage loan by his credit union due to a low credit rating. Because the lender and borrower agree to a 65% loan-to-value (LTV), Harold will pay $70,000 at the closing and the loan principle amount will be $130,000 because the price of the property is $200,000. The deal also includes a 12 month term, a 13% interest rate, interest only payments paid monthly with a final payment at the end of the note (without a pre-payment penalty), and a 5 point origination charge. By the rules of this deal, Harold will pay an origination charge of $6,500 at the close (5% x $130,000 principle) and will then start making payments of $1,408 per month ($130,000 principle x 13% interest / 12 months in a year). Finally, he will make a final payment of the $130,000 principle when the loan expires, or before if he chooses.
Loan Example 2
Lester takes out a hard money loan from Alliance Commercial Finance so he can rehab a house to re-sell in Alexandria, VA. The deal has the following terms:
a) A $310,000 purchase price, b) a 55% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 5% origination fee.
Once the rehab project is complete, if Lester sells the property for $372,000, the outcome would be the following:
$372,000 sales price
- $170,500 principle (55% LTV)
- $139,500 down payment (45% on 55% LTV)
- $8,525 origination fee (5% of the $170,500 principle)
- $30,690 total interest paid (18 months x 12% interest)
= $22,785 gross profit (doesn't include taxes or rehab costs)
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