Your Real Alternative Capital source. Real Estate Funding for Investors by Investors in Delaware, Philly, Baltimore, and the 
Mid-Atlantic Region.
Our Approach & Beliefs
  • Help everyday real estate investors like us secure short-term fix and flip loans or money for new construction (We also can help wholesalers/creative investors with transactional funding!)
  • Focus on building lasting relationships with our Borrowers
  • Create a mutually beneficial long-term relationship that allows our Borrowers to focus on the important things in their business like finding deals
  • ​Focus on assisting our Borrowers in not just securing the appropriate funding but ensuring their ultimate long-term success in real estate (we are not a lend-to-own type lender!)
  • ​Give our Borrowing Partners peace of mind that they can depend on us for funding, so they don't lose deals on the day of closing (we know because it has happened to us!)
Real Alternative Advantage


Fast and Efficient Funding


Lifelong Lending Partnership


Reliable Funding and Resources to Help Scale Your Business


Small Family Run Business Limits the Amount "Bureaucracy" for You to Deal With
How It Works For Borrowers

Complete our 5 minute application

Set up an appointment to meet with Dave and discuss whether this may be the right opportunity for you.

Talk to a representative on the phone

Create a “relationship” 30 day get warming up period (506 (b)).

Send us deal details, so we can conduct Due Diligence 

Get access to potential deals after warming up period finishes.

Get Funded and Close

Conduct due diligence.

Receive draws as the construction work is being completed and verified by our 3rd party inspector

Invest money.

Sell the property, re-pay the loan, and move on to the next project!

Receive quarterly reports and cash flow.

Who You Are
  • A small real estate investor looking for a committed funding partner
  • ​Someone who values dealing with a small family business, who won't leave you stranded on closing day
  • Trying to scale your real estate investing business but lack the necessary funding to do more deals
  •  Someone who is doing deals outside of major cities, where large lenders do not lend
Who You Are NOT
  • Someone who expects to get a loan overnight (we can close in about 7-10 days)
  • An investor expecting to get a loan on a deal with high LTV (we CAN fund your rehab costs, but it NEEDS to be a great deal!)
  • Someone who enjoys doing risky deals with little "meat on the bone"
  • ​A first time investor looking to get the "best" terms around (newsflash - all new investors pay a premium for their capital, regardless of the lender)
Our Team

We understand residential real estate deals because we have closed and evaluated hundreds of deals. Between our team members, we have spent thousands of hours immersed in the real estate world.

We serve the investors who operate on a smaller scale that need reliable funding. We understand there are real estate deals everywhere - as we ourselves have specialized in working in more rural areas. We want to be our borrowers’ partner  by being a resource for more than just money; we want to help guide you and assist in your success, so you avoid making the same mistakes we did!

We are dedicated to making sure you can secure the funding you need when you have truly great deals!


Dave Schmidt III - CEO

Starting in real estate at 22 years old with limited amounts of funding, Dave understands the challenges most real estate investors face when trying to start and scale their businesses. As a full time real estate investor for the last 3 years, Dave has now used his knowledge to start a private lending business that values helping others scale their ventures through Dave's knowledge and experience. Dave started Real Alternative Capital after struggling to find capital for a project in a more rural area, and realized that many other Real Estate Investors like him likely run into similar challenges everyday. His goal is to make sure that if you have truly great deals, that you never struggle to get the funding you need to succeed. 

Dr. Dave Schmidt Jr. - Partner

Having worked alongside and funded many of Dave III's deals, Dr. Schmidt understands the need for small real estate operators to work with flexible lenders - something that is no longer found in traditional banks. Having purchased his own investment properties through bank financing, he realized how cumbersome and time consuming traditional banks really are. His goal in co-founding Real Alternative Capital was to help real estate investors access capital easier while also helping other busy working professional's access quality real estate investment opportunities.

Having worked alongside and funded many of Dave III's deals, Dr. Schmidt understands the need for small real estate operators to work with flexible lenders - something that is no longer found in traditional banks. Having purchased his own investment properties through bank financing, he realized how cumbersome and time consuming traditional banks really are. His goal in co-founding Real Alternative Capital was to help real estate investors access capital easier while also helping other busy working professional's access quality real estate investment opportunities.

Dr. Dave Schmidt Jr. - Partner

Kristina Schmidt - Executive Director

Kristina Schmidt is Dave III’s older sister and Dr. Dave Jr’s daughter. After receiving a degree in Residential Design and Property Management from Virginia Tech, she has been exploring everything real estate for the past 7 years. Since working for one of the country’s largest property management companies, she has a comprehensive understanding of managing rehabs and construction and will provide valuable knowledge and communication to borrowing partners.

FAQs

What type of loans does Real Alternative offer?

We offer residential fix and flip loans, residential new construction loans, and transactional funding for any type deal.

Will I need to bring cash to close?

In general you will always need to bring roughly 10% of the loan amount to closing in cash. We will also verify that you have the cash reserves to make the anticipated monthly payments. You will also need to bring additional cash to close if you are not purchasing at 65% of the ARV that we conservatively estimate.

Does Real Alternative Capital fund rehab costs?

Yes, we are willing to fund the rehab costs depending on the deal. We typically lend up to 65% of the ARV, if you have a good enough deal we are certainly able to fund some or all of those construction costs.

Why should I work with Real Alternative Capital?

We have been in your shoes before being full time real estate investors. We started the company to establish long-term relationships with investors that share the same beliefs as us. We know how hard it can be working with large lending companies who do not make it clear whether they will lend on your deal or not. We do everything in house: from loan applications, to underwriting, customer service, and loan servicing. You will primarily deal with Dave Schmidt III, Dave Schmidt Jr., or Kristina Schmidt, because we are a family run company.

Do I need to have a property under contract to get a pre-approval?

No you do not need to have the property under contract. You can go through the application process before you find the right deal for peace of mind that you can get the funding you need. Pre-approval takes 24-48 hours.

Do we accept second lien positions?

We only take second lien positions where we are already in the first lien position.

How fast can you close?

After receiving all necessary documents such as: an appraisal and inspection report, we can close as fast as 10 days. In some cases we can close without an appraisal. Transactional funding can be approved sooner if we have all the necessary paperwork. 

What is the minimum loan amount? Maximum Amount?

Our minimum loan amount is $50,000 and our maximum loan amount is $2,000,000.

What kind of experience or track record does Real Alternative require?

Although we prefer experienced borrowers, we ALL have to start somewhere. So we will consider any deals on a case-by-case basis. Please note if you are a less experienced borrower, the underwriting process and loan process may take longer and we may ask for more paperwork. 

What percentage of the deal will Real Alternative fund?

We will fund up to 90% of the purchase price and 100% of the rehab cost but maximum ARV is 65%. On new construction 90% of the purchase price (land) and 100% of the rehab cost but maximum ARV is 70%.

Do I need an appraisal for you to lend?

We only do appraisals when we are unable to do our own valuations. We primarily value our properties instead of hiring an appraiser, this saves us valuable time and money.

Am I responsible for the appraisal (if needed)?

You can order the appraisal but it is imperative that you have the appraiser contact Real Alternative so they know what type of appraisal is needed. We are also happy to order the appraisal for the property, but ultimately you will be responsible for the cost of appraisal.

How is my loan amount determined?

We verify values through not only through a third party appraisal, but through our own software and underwriting guidelines. Estimating ARV conservatively and accurately is our number one goal.

Will I need insurance on the property?

Yes. It is imperative that you have the appropriate coverage (equal to or greater than the loan amount) for the property and that Real Alternative Capital is listed as the additionally insured. In the case of properties in flood zones, the proper insurance will be required depending on FEMA flood class.

Will Real Alternative Capital lend on owner occupied houses?

No, we cannot lend on ANY owner occupied home or lend to an individual (don't worry, setting up an LLC to receive the funds on is a very SIMPLE process).

Do I need a business entity in order for Real Alternative to lend to me?

Yes, we can ONLY lend to business entities (LLC's, LLP's, Corporation's). You will be required to set up an entity if you do not have one prior to closing; if you need assistance Dave and his team have set up countless LLC's, it's easy, cheap, and fast to set up an LLC in most states.

Where do I need to close my deal if receiving funds from Real Alternative?

All deals must be closed through a closing/title company. All borrowers must have legal representation. All borrowers must have Title Insurance for the Lender as well. 

Where does Real Alternative Capital lend?

Real Alternative Capital lends predominately in the following states: Delaware, Maryland, Pennsylvania, New Jersey and Virginia.

Will I have to sign a personal guarantee?

Yes, you will always have to sign a personal guarantee UNLESS you are borrowing out of a Self Directed IRA.

Will Real Alternative Capital lend to Self Directed IRA's and QRP's?

Yes, we will require more "skin in the game" but we will in fact lend to SDIRA's.

What are the fees associated with our loans?

Origination fees will be 3 points and 13% Interest per year. Other costs are: Commitment/Valuation Fee of $450, Underwriting Fee of $950, a legal fee to our attorney directly from the HUD for $750 and inspector fee of $125 per draw. 

Are there pre-payment penalties?

No, there are no prepayment penalties, but there will be a minimum amount of monthly interest payments, which is usually 3 months.

How often will I need to make payments?

All loan payments will be made monthly. Currently we do not "withhold" any monthly interest payments.

How do I make draw requests?

After the work has been completed, the borrower will send an email with a draw request form to info@realalternativecapital.com. Once the request is received, we will send an inspector to go inspect the work. After notification of a successful inspection, we will release the funds within 24 hours. The draw process usually takes 4-5 business days from start to finish.

© 2021 Real Alternative Capital

© 2021 Real Alternative Capital

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