– Around $250,000. We often pool groups of investors in our loans. This allows smaller investors to participate in larger deals with better returns. It also allows larger investors to spread their capital over a number of loans offering diversified risk and returns.

We have our own pool of money that we use to invest with our clients. In this way, we are able to see more deals, invest in more loans, and our clients have us as partners to manage the loan portfolio. We invest with you, rather than for you, so everyone’s goals are aligned.

AltaCal handles all responsibilities with regard to loan servicing. Investors will receive a check each month and a quarterly report on the loan performance. If there are any issues, we notify our investors and resolve them. In the unfortunate event of a default or foreclosure, we are experienced in the many ways available to recoup our investment from the property, and are happy act on behalf of our investors.

Anyone investing with AltaCal must be an accredited investor. Our accreditation form and instructions are available here. All potential investors will be interviewed to see if our program is right for them. Hard money lending is not for everyone, but for many, it is a great choice.

Each deal is different, but typically 10% or higher.

There are no guarantees in the world of investment. But investments secured by quality real estate are hard to beat. We perform extensive due diligence to assure the title is clean, the property is accurately valued, the market is fluid, and that there are no surprises that aren’t factored into the asset value. If the borrower defaults, the asset provides the collateral. Turning that collateral into money is not always easy, but that is our specialty.

While many worry about a changing market environment, we do not. We believe that a softening financial market will actually provide greater breadth of opportunities. As banks turn away more deals, we then have more options to choose from. In the final analysis, it is always about accurate underwriting, for a particular property, in the existing market. If the value is there, the market will support it.

– No. We loan only on commercial properties. This does include multifamily projects that are 5 units or more. It does NOT include single family homes, duplexes, fourplexes, or multiple single family residences grouped together).

Yes, we will look at deals outside of the Bay Area, however it has to be a deal that is simple for us to understand. We are very comfortable with our knowledge of Bay Area real estate, outside that comfort zone, we will have stricter requirements, and may need more time to evaluate a deal. There will probably be other lenders more qualified to look at deals outside of northern California.

Generally speaking, we are a short term, performance based lender. Most of our clients use our loans when traditional lenders will not finance their product. Once the property has been repositioned, or the project completed, our financing is replaced with more traditional, long term financing, usually at a lower rate. Our preferred loan term is 12-18 months.