About Alternative Funding Partners
Alternative Funding Partners is an asset-based lender in Denver, CO offering funding throughout Denver. Their lending focus is primarily on short term fix and flip loans. They primarily make funding for single family homes and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Denver
Fix and Flip LoansLoan Amounts: N/A
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
Loan Example 1
Socorro closes on a $360,000 renovation project in Denver, CO, using a fix-and-flip loan from Alternative Funding Partners. The loan-to-value (LTV) on the deal is 50%. This means that Socorro will bring 50% of the sales price to the closing and the principle will be $180,000 on the note. The loan is interest-only, paid monthly, and is for 6 months at 10% interest with 3 points to be paid when the deal closes.
Socorro will need to bring $180,000 to closing (50% on the 50% loan-to-value), plus she will need to pay the $5,400 origination fee. The monthly interest-only payments will then be $1,500 to the lender. If Socorro sells the property for $486,000 after 6 months, she would earn a total profit of $111,600 after deducting the principle of $180,000, the cash contributed at closing of $180,000, the origination fee of $5,400, and the total interest payments of $9,000. This amount does not account for rehab costs.
Loan Example 2
Troy is a an investor in Denver, CO. He buys an older townhouse for a renovation project and takes a hard money loan from Alternative Funding Partners with the following paramters:
a) A $350,000 purchase price, b) a 60% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 4% origination fee.
Based on a $490,000 sales price after the 18 month term, the outcome for this project would look like this:
$490,000 sales price
- $210,000 principle on note (60% LTV)
- $140,000 down payment (40% on 60% LTV)
- $8,400 origination fee (4% of the $210,000 principle)
- $34,650 interest payments (18 months x 11% interest)
= $96,950 total profit (does not include taxes or renovation costs)
by Otis K. 08/30/2016
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