Industry

Financial Services

Company Type

Mortgage Lender

Size

$25 Million

Investment Type

Equity

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ALCOVA MORTGAGE

Overview

Alcova is seeking $25 million to make Home Equity Agreements that will pay off a borrower’s existing mortgage and eliminate their current mortgage payments


10-20% of all home transactions are impeded by the difficulty of managing a home sale while purchasing a new home (500,000-600,000 potential clients is a $1.5+ trillion market)


Provides homebuyers a high degree of confidence and certainty in their acquisition


Expected yields of 10% (much higher in some cases) – detailed financial model with assumptions and scenario analysis functionality available


Maximum 85% ratio of amount obtained by homeowner to property value

ALCOVA MORTGAGE

Opportunity

 

For US Market:

5-6 million home sales annually


Management believes that 10% of all buyers that are also selling their home could benefit from some type of “bridge” financing option


500,000–600,000 potential clients creates over a $1.5 trillion addressable market 

 

For ALCOVA:

Close about 7,000 purchase loans annually


10% of customers (roughly 700 individuals) benefit from this program


700 * $200,000 average loan=$140 million market potential just from the ALCOVA’s customer base

ALCOVA MORTGAGE

Solution/Strategy

ALCOVA is partnering with Valshares, a company that owns patented and proprietary property valuation software called Weiss Analytics


Each property in each transaction will be fully underwritten


The funds will pay off the borrower’s existing mortgage and eliminate their current house payment, allowing them to make a non-contingent offer on their next home, using their current home’s equity for the down payment on the next home


Short duration: expected to be repaid in 6-12 months

ALCOVA MORTGAGE

Management Team

Bobby Nicely

Co-Owner

Leads in hiring new loan officers and oversees all sales and marketing


Former Loan Officer for Atlantic Bay Mortgage


Graduated cum laude with a B.S. in Marketing form Radford University

William Siple

Co-Owner

Serves as primary support for all loans


Enforces all company policies regarding documentation and underwriting functions related to all customers while also managing business operations


Former project engineer with Branch Highways Inc.


B.S. and Civil Engineering degree from Virginia Tech

Robert Lindstrom

Co-Owner

Manages all day to day to activities: payroll, compliance, acquisitions, controller, new office development


Former construction field engineer/superintendent for Bechtel Power Corporation


Electrical engineering degree with a minor in business from Virginia Tech in May 2002

ALCOVA MORTGAGE

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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