New Construction

A Specialty Program for the Advanced Investor

New Construction

For seasoned investors, Alpha offers new construction loans that enable quick access to leverage and underwriting flexibility not available through conventional lending sources. Working with Alpha Funding Partners for new construction projects gives investors the flexibility and capital to cover up to 90% of the project cost from single-family homes to larger multi-family properties and small subdivisions. Our company has been an active lender in the new construction space since 2007 and has deep knowledge of how to structure and finance your deals.

About Lending Program

New Construction

For seasoned investors, Alpha offers new construction loans that enable quick access to leverage and underwriting flexibility not available through conventional lending sources. Working with Alpha Funding Partners for new construction projects gives investors the flexibility and capital to cover up to 90% of the project cost from single-family homes to larger multifamily properties and small subdivisions. Our company has been an active lender in the new construction space since 2007 and has deep knowledge of how to structure and finance your deals.

About Lending Program

Alpha Funding Success

$700 Million in Loans to Fuel Successful Real Estate Projects. 

Purchased:
$225,000
Rehab:
$74,905
ARV:
$390,000

Fix & Flip

Old Bridge, NJ

Purchased:
$210,000
Rehab:
$56,500
ARV:
$420,000


Fix & Flip

Marlton, NJ

Purchased:
$216,000
Rehab:
$45,100
ARV:
$400,000


Fix & Flip

Rockaway, NJ

Purchased:
$90,000
Rehab:
$32,075
ARV:
$198,000


Fix & Flip

Berlin, NJ

WHAT IS A HARD MONEY CONSTRUCTION LOAN?

For experienced investors who are looking to fund the challenging undertaking of building a structure from scratch or finishing a tear-down and gut rehab of a preexisting home, a new construction hard money loan is the ideal way to obtain capital. A new construction hard money loan is a short-term financing option that can be used to pay for the construction of a real estate investment asset. Similar to other hard money loans for construction or rehab projects, a percentage of the capital are disbursed upon the completion of the closing process to cover the lot acquisition and the remainder of the loan is retained in an escrow account. The escrow funds are incrementally distributed at predetermined stages of the project. After the completion of each phase—often referred to as a “draw”—the lender conducts an inspection to ensure the work has been completed before releasing the funds to be used for the next draw. This helps both the hard money lender and the borrower stick to the project timeline and maintain an open line of communication.

BENEFITS OF HARD MONEY CONSTRUCTION LOAN

When it comes to hard money loans, the overall amount is determined by the combined value of the existing structure and lot along with the anticipated repair and construction expenses. An added advantage of a hard money construction loan is that there is no minimum credit score to be approved for funding. All experienced real estate investors realize just how important a quick closing process can be when it comes to getting a loan. Real estate investing is a competitive niche and prime deals are snapped up quickly. At Alpha Funding, our closing timeline is expedient and hassle-free, allowing our clients to get their financing in a matter of days so they can get a leg up on the competition.

OBTAINING A HARD MONEY LOAN FOR NEW CONSTRUCTION

Securing a hard money loan is vastly different—and more efficient—than the process required to obtain a conventional bank mortgage. First off, there is considerably less paperwork as a hard money loan only requires a few key documents. After you locate the ideal investment property, you will consult with a loan officer and complete our streamlined online application. The loan officer and underwriter will then walk through the deal with you step-by-step and explain the appraisal process should your deal qualify for financing. Next, the Alpha Funding team will generate a term sheet that clearly specifies all of the loan’s terms so there will never be any surprise charges. The loan then proceeds to the closing process, after which you will receive your loan and be ready to start diversifying your investment portfolio.

Where the Lending Program is Offered

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