At Alpen Mortgage, we’re all about digging into the details, getting to know your needs and determining the best approach for each project.
It’s a true “win-win” relationship, giving developers a trusted source when they’re in need of funding and our investors a trusted source to place their money.
Our objective is to find loans in the regional community that provide an opportunity for both borrowers and investors, and we carefully select investment opportunities that are often “near bankable” for the former group (meaning just outside of banking standards). We also receive “bankable” loan opportunities directly from financial institutions, because they’re unable to fund these within the required time frame for various reasons.
Why Do Borrowers Seek Private Money?
Borrowers turn to private money investors over traditional institutional bank financing for a variety of reasons. For example, private lending provides speed, flexibility, and access to capital that traditional lenders often can’t match.
Key Reasons Borrowers Choose Private Lending
Faster Funding: Banks can take months to approve and fund a loan, whereas private lenders move quickly to meet urgent financial needs.
Less Red Tape: Traditional financing comes with a long list of conditions and rigid requirements; private lending offers a more streamlined process with fewer obstacles.
Flexible Loan Terms: Unlike banks, which have strict lending caps and project restrictions, private lenders can structure larger loans and tailor terms to fit unique projects (including construction and land acquisition financing).
Higher Approval Rates: As many strong investment opportunities fall outside traditional lending criteria, private lenders can finance "near-bankable" projects that would otherwise face rejection.
Private lending is often the best choice for borrowers who need quick, flexible financing solutions—even at higher interest rates—as it eliminates delays and restrictions that can slow down or jeopardize a deal.
Key Reasons Borrowers Choose Private Lending
Faster Funding: Banks can take months to approve and fund a loan, whereas private lenders move quickly to meet urgent financial needs.
Less Red Tape: Traditional financing comes with a long list of conditions and rigid requirements; private lending offers a more streamlined process with fewer obstacles.
Flexible Loan Terms: Unlike banks, which have strict lending caps and project restrictions, private lenders can structure larger loans and tailor terms to fit unique projects (including construction and land acquisition financing).
Higher Approval Rates: As many strong investment opportunities fall outside traditional lending criteria, private lenders can finance "near-bankable" projects that would otherwise face rejection.
Private lending is often the best choice for borrowers who need quick, flexible financing solutions—even at higher interest rates—as it eliminates delays and restrictions that can slow down or jeopardize a deal.
Evaluating the Borrower
At Alpen Mortgage, we take a comprehensive and flexible approach to evaluating borrowers. Unlike traditional lenders that rely solely on credit scores and rigid financial metrics, we assess the full picture: allowing us to structure loans that work for both the borrower and our investors.
When reviewing a loan application, we consider some or all of these key factors:
1. Property Plans & Investment Strategy
Understanding the borrower’s intended use for the property is essential. Whether the party plans to occupy, rent, develop, or sell, we analyze how the project aligns with the loan structure and its potential for success.
2. Financial & Income Status
While traditional banks have strict income documentation requirements, we take a broader view and evaluate both personal and business income streams, liquidity, and cash flow to determine the borrower’s ability to sustain loan payments.
3. Assets & Obligations
We assess the borrower’s financial standing including real estate holdings, investments, and outstanding debt. A strong asset base can provide additional security and flexibility in structuring the loan.
4. Creditworthiness & Community Reputation
While credit history is important, we recognize that past financial challenges don’t always define future success. We also consider references from business partners, community leaders, and prior lenders to gain insight into borrower reliability.
When reviewing a loan application, we consider some or all of these key factors:
1. Property Plans & Investment Strategy
Understanding the borrower’s intended use for the property is essential. Whether the party plans to occupy, rent, develop, or sell, we analyze how the project aligns with the loan structure and its potential for success.
2. Financial & Income Status
While traditional banks have strict income documentation requirements, we take a broader view and evaluate both personal and business income streams, liquidity, and cash flow to determine the borrower’s ability to sustain loan payments.
3. Assets & Obligations
We assess the borrower’s financial standing including real estate holdings, investments, and outstanding debt. A strong asset base can provide additional security and flexibility in structuring the loan.
4. Creditworthiness & Community Reputation
While credit history is important, we recognize that past financial challenges don’t always define future success. We also consider references from business partners, community leaders, and prior lenders to gain insight into borrower reliability.
Collateral: The Foundation of Our Lending Decisions
At Alpen Mortgage, the primary focus of our evaluation process is determining realistic collateral value. Since private lending is largely asset-based, we carefully assess the property type, project feasibility, and potential risks before structuring a loan.
Key Collateral Evaluation Factors
Property Type & Project Viability: We examine whether the collateral is residential, commercial, land, or a development project and evaluate the likelihood of success.
Potential Risks & Roadblocks: We identify zoning issues, legal constraints, and/or market fluctuations that can impact the project outcome.
Market-Based Valuation: We use the latest market data to determine current property value, ensuring accuracy beyond historical appraisals.
Additional Security Measures
To protect both our borrowers and investors, we often require personal guarantees from key borrowers: adding an extra layer of security to ensure personal financial commitment to the loan should the borrowing entity default.
In some cases, we may also suggest cross-collateralization whereby multiple properties secure a single loan. This approach:
Improves the equity position for investors
Reduces overall lending risk
Provides stronger security in the event of borrower default
At Alpen Mortgage, we take a balanced approach to protect our investors while providing borrowers with smart, flexible financing solutions that bring their projects to life.
Key Collateral Evaluation Factors
Property Type & Project Viability: We examine whether the collateral is residential, commercial, land, or a development project and evaluate the likelihood of success.
Potential Risks & Roadblocks: We identify zoning issues, legal constraints, and/or market fluctuations that can impact the project outcome.
Market-Based Valuation: We use the latest market data to determine current property value, ensuring accuracy beyond historical appraisals.
Additional Security Measures
To protect both our borrowers and investors, we often require personal guarantees from key borrowers: adding an extra layer of security to ensure personal financial commitment to the loan should the borrowing entity default.
In some cases, we may also suggest cross-collateralization whereby multiple properties secure a single loan. This approach:
Improves the equity position for investors
Reduces overall lending risk
Provides stronger security in the event of borrower default
At Alpen Mortgage, we take a balanced approach to protect our investors while providing borrowers with smart, flexible financing solutions that bring their projects to life.
Lien Priority & Security: Protecting Your Investment
At Alpen Mortgage, ensuring the security and priority of each loan is paramount. We thus specialize in First Trust Deed investments that provide the strongest lien position on a property and offer our investors maximum protection.
Understanding Lien Positions
First Trust Deed: This senior lien position, taking priority over any subsequent claims on the property, ensures the First Trust Deed loan is paid off before any subordinate liens in the event of a sale or foreclosure.
Subsequent Trust Deeds (2nd, 3rd, etc.): These are subordinate to the First Trust Deed, meaning they carry higher risk as they are repaid only after the senior lien is satisfied.
Title Insurance: This safeguards lien priority.
To protect our investors, Alpen Mortgage requires title insurance on all loans. This ensures our lien position is clearly established and protected against prior or future liens, claims, or legal disputes involving the subject property.
Our Lending Approach
First Trust Deeds: The vast majority of our investments are in First Trust Deed positions, providing the highest level of security.
Second Trust Deeds: On rare occasions, we may offer Second Trust Deed financing—but only when the combined loan-to value (CLTV) is exceptionally low, minimizing risk for investors.
No Personal Property Loans: We strictly finance real estate assets only, ensuring all loans are secured by tangible property with marketable value.
At Alpen Mortgage, we take a conservative and strategic approach to lending: prioritizing secure, well-structured investments that protect our investors while offering borrowers the capital they need to succeed.
Understanding Lien Positions
First Trust Deed: This senior lien position, taking priority over any subsequent claims on the property, ensures the First Trust Deed loan is paid off before any subordinate liens in the event of a sale or foreclosure.
Subsequent Trust Deeds (2nd, 3rd, etc.): These are subordinate to the First Trust Deed, meaning they carry higher risk as they are repaid only after the senior lien is satisfied.
Title Insurance: This safeguards lien priority.
To protect our investors, Alpen Mortgage requires title insurance on all loans. This ensures our lien position is clearly established and protected against prior or future liens, claims, or legal disputes involving the subject property.
Our Lending Approach
First Trust Deeds: The vast majority of our investments are in First Trust Deed positions, providing the highest level of security.
Second Trust Deeds: On rare occasions, we may offer Second Trust Deed financing—but only when the combined loan-to value (CLTV) is exceptionally low, minimizing risk for investors.
No Personal Property Loans: We strictly finance real estate assets only, ensuring all loans are secured by tangible property with marketable value.
At Alpen Mortgage, we take a conservative and strategic approach to lending: prioritizing secure, well-structured investments that protect our investors while offering borrowers the capital they need to succeed.
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