Alanna Avalone – Private Lender

2025, Issue No. 7

Quote of the Day

It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.

— Donald Trump

Letter to the Investors

Investor Corner: Why Credit Still Matters in Private Lending

In the private lending world, we don’t underwrite like banks. No tax returns. No W-2s. No cookie-cutter checklists. But one thing we do still care about? Your credit.

Not because we’re judging, but because credit tells a story.

I’ve seen investors with millions in equity get stalled over a few missed payments or maxed-out cards. And I’ve seen first-time buyers lock in clean terms with nothing more than a 680+ score and consistent habits.

As a lender, here’s what I actually look for:

• Do you manage debt with discipline?
• Have you shown you can borrow and recover?
• Are you ready to take on a property, and a payment, with confidence?

The score gets attention, but the file tells the full story. And as a lender, I read it to understand how you move, not just what you owe.

That difference between a 639 and a 640? It might feel small. But in this market, it could mean:

• Access to a DSCR loan
• A more favorable LTV Or a real path to cash-out capital

Here’s how it plays out on rental loans:

FICO Score	Max Purchase LTV	Max Cash-Out LTV	Max Loan Amount
760+	85%	80%	Up to $3.5MM
740–759	80%	75%	Up to $3.5MM
700–739	80%	70%	Up to $3.5MM
680–699	75%	70%	Up to $3MM
660–679	70%	65%	Up to $2.5MM
640–659	70%	60% (or 55%)	Up to $2MM

So if you’re preparing to buy, build, or refinance, don’t overlook your credit health. It’s not just a number, it’s part of your deal structure. And we’re paying attention, because it matters.

Capital Markets Insight – May 2025

Where money is flowing, what lenders are favoring, and how to position your next deal.

Rates remain stable across the non-QM space, but we’re seeing a clear split in pricing based on borrower profiles. Lenders are rewarding preparation, especially strong credit scores, solid reserves, and clean ownership structures.

The most favorable terms right now are going to:

• Borrowers with FICO 680+
• Refinances with stabilized cash flow
• Investors requesting loans under $3.5MM

Across the $1MM–$5MM range, capital appetite is strongest for:

• DSCR refinances on stabilized 1–20 unit rentals
• Stabilized bridge loans for transitional assets with predictable rent roll
• Ground-up construction with exit to DSCR or agency

DSCR loans remain a go-to for turnkey rentals, with rates starting at 6.37% for well-qualified borrowers (strong credit + experience). In practice, most loans are closing between 6.99% and 7.99%.

Stabilized bridge loans are pricing closer to 13%, often reserved for clean assets with transitional strategies or recent tenant updates.

Ground-up construction loans are closing at an average of 10.99%, with appetite highest for build-to-rent strategies and experienced sponsors.

In this climate, credit isn’t just about qualifying, it’s a negotiating tool. Investors who come prepared with clean files, capital reserves, and clear exit plans are getting the best terms in a market that still rewards readiness.

Loan Product Highlight: Updated Investor Rates

We’ve just rolled out new pricing on three of our most requested loan options:

• New Construction: 10.99%
• Fix & Flip: 9.99%
• Rental Loans: Starting at 6.37% 

Experienced investor?

If you’ve completed 5 or more successful exits in the past 24 months, you may qualify for a 0.5% rate reduction on Fix & Flip and New Construction loans.

Qualified property types include:

• Residential (1–4 units)
• Multifamily
• Commercial

Up to 5MM.

For larger transactions (5MM+), we source capital through our Capital Markets platform, including Fannie Mae, Freddie Mac, FHA, and other institutional partners.

These rates reflect current market demand and are structured to help real estate investors stay competitive and move quickly.

Weekly Feature: The Credit Score Blueprint for Real Estate Investors

I wrote this guide last year, but it’s still one of the most shared resources I’ve put out, because credit remains the quiet foundation behind every good deal.

In this post, I break down:

What private lenders really see when they pull your credit Why 640+ is a critical threshold for DSCR and rental loans And how to recover from past damage without disqualifying your next move

If you’re preparing to buy, build, or refinance in the next 6 months, this is worth a read (or a re-read).

Read it here:

The Credit Score Blueprint for Real Estate Investors

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Need help packaging a file? My team underwrites with you.

We are Direct Lender for Residential Investor Projects.
We do NOT offer loans for homesteads (primary residences), or rural.

For projects that don’t align perfectly with our requirements, we collaborate with other lenders to explore financing alternatives.

— Typically booked out 2-3 days. Secure your spot now.

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Broker Collaboration

We know brokers are the key to getting deals done. We provide the capital, underwriting, and servicing to help you close more deals with ease, backed by private capital.

Your deals, our capital. Focus on origination, we’ll handle the rest.

— If you’re a broker looking for a reliable lending partner, let’s connect!

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My Gift to You: Business Credit That Grows With You

Need working capital to kickstart your next project?

I’m sharing a powerful funding tool I’ve personally used to build my business.

Chase for Business offers a flexible line of credit with:

• 0% interest for the first year
• No annual fee
• Ideal for strong borrower profiles (700+ credit)

Start with $25K–$100K+ and watch your credit line grow as your business scales.

This is the kind of smart capital that works for you, not against you.

— Consider it my gift to help you move faster and smarter.

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AI-Powered Credit Boost

Dovly AI is shaking up the credit game with the first all-in-one AI credit engine that builds, fixes and protects credit, empowering all Americans to boom financially – 100% free.

— Our investors are using Dovly AI to improve personal credit for smoother approval.

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Invest Smarter with Robinhood

Many real estate investors are diversifying into the stock market.
Start small, earn passively, and complement your real estate strategy with market-based gains.

— Get a free stock on me.