AlphaFlow Optimized Portfolios are a fixed income alternative investment. It’s a simple and passive way to include income-producing real estate loans in your investment portfolio.
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4.5% - 12%
Asset Class Return•1Y
AlphaFlow Optimized Portfolios are a fixed income alternative investment with low correlation to the stock and bond markets. It’s a simple and passive way to include income-producing real estate loans in your investment portfolio. By combining deep knowledge of real estate markets, institutional portfolio management best practices, and data science, they 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.
Things to Know
You make money on
Term of investment
7.5% - 9%
Diversification. Your personal portfolio is broadly diversified across 75-100 loans
Liquidity. Loans in the portfolios have a short duration of 6-12 months
Protection. Portfolios target a conservative LTV of 75% max.
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
Once your dollars arrive at AlphaFlow, its investment team picks real estate investments for you. The AlphaFlow team will choose investments for you, generally in increments of around $100 each. A typical account with a $10,000 balance will be invested in 75 to 100 loans at any given time. The investments will be in single-family residential properties. As borrowers make interest payments, you will see them flow into your account. Interest deposits come in once or twice per month. You can choose to auto-withdraw or auto-reinvest as your account balance grows.
How Alpha Flow makes money
Management fees of 1% per annum. AlpaFlow charges a higher interest rate to Borrowers, therefore earning the difference between what an Investor is paid and what the Borrower pays.
Is it safe?
AlphaFlow is also one of the only platforms that is a Registered Investment Advisor. This means they have a legally enforced fiduciary obligation to put your interests above their own. Default Risk — Investments are neither FDIC insured nor equivalent to bank CDs or Treasury notes. Inflation Risk — Similar to bonds (since there’s a fixed rate), you have the risk of inflation eating at your returns. However, with the high rate of return, this risk is reduced. Liquidity Risk: Loans are typically held for the duration of the term Economy Risk — Another recession will more than likely increase overall defaults of individuals within AlphaFlow. This would cause your return to decrease.
How You're Taxed
Profits earned from P2P Lending are taxed at ordinary income tax rates. This means that profits are added to your total income for the year.
You can receive income from P2P lending tax free if you invest using certain accounts.
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