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Professionally Managed, Diversified Portfolios of Real Estate Loans

By combining deep knowledge of real estate markets, institutional portfolio management best practices, and data science, we created a seamless real estate investment without the high fees and high minimums of traditional real estate lending deals. You make one investment, AlphaFlow builds you a diversified, automatically rebalanced portfolio of real estate loans. It’s that simple.

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
7.5-9%

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 7.5-9% 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 (7.5-9% target net yield, loan-to-value < 75%, 15+ states).
Lifecycle

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.
Example

How We Choose Lenders

AlphaFlow performs a comprehensive review of each lender before purchasing any loans.
Lender Overview
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
Document Review
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
Loans Audited
STEP THREE
Re-Underwrite Loans
  • Sample loans reviewed by AlphaFlow Investment Committee
  • All purchased loans run through AlphaFlow Advanced Analytics
Certified Lender
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.
Funnel
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.
1
Fc
Foreclosures
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

Monthly Interest Payments

Interest payments are deposited into your AlphaFlow account 1 to 2 times per month.

Tax Advantages

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

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.
SDIRA

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.

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