Fairfield Financial Services, Inc. - Private Money Loans, Lending & Borrowing

Sweet private money loans

Clay Sparkman

Historically we have placed loans in the 12-14% range, but in the current market we are finding that this may be a bit high. Especially if a lender is willing to come down to 10-11%, there are little golden nuggets of opportunity presenting themselves.

Here, by way of example, is a loan that we just placed. (The prospectus has been redacted to protect the privacy of the parties involved.)

What’s not to like?

Kristopher Gillmore

Fairfield Financial Services, Inc

16055 SW Walker Road, #247, Beaverton OR 97006

Phone (503) 319-7294 / Fax (503) 419-4219 / E-mail: gillmore@privatemoneysource.com

REAL ESTATE LOAN SUMMARY

SECURED LOAN

Rate and Term refinance of property in Superior, Colorado.

Loan Details

  1. Loan Amount: $158,000
  2. Term: 3 years
  3. Interest Rate: 10%
  4. Monthly Payments: $1,316.67 Interest Only
  5. Security:  Deed of Trust in 1st Position security interest in real property located at XXX, Superior Colorado.
  6. Estimated Value, based on purchase price in May, 2011:  $650,000
  7. Estimated LTV based on purchase price in May, 2011:  24%

Loan Overview

This property was purchased on May 31st, 2011 by XXX LLC, with a guarantee by XXX, who is occupying the property part time.  The purchase price was $648,900, and the initial loan was $325,000 with a down payment of approximately $350,000.  After a year of interest only payments, the loan was paid in full.

Shortly after the loan was paid off, the borrower had an investment opportunity and borrowed 150,000 secured by the same property.  The pay history on this loan has been excellent, with one late payment that was promptly submitted after we contacted the borrower (XXX had his payments set up through an auto pay with his bank, but the auto pay expired after one year and he became aware of this after we followed up on the missed payment). The borrower wishes to keep this loan in place, but is looking for a longer term loan at a lower interest rate.  The loan would be made to XXX, LLC, with a personal guarantee by XXX.

Property

The subject property is a 5 bedroom, 5 bath, single family residence with 4,321 square feet of living space, including a finished basement.  The property sits on a 10,013 sf lot, and was built in 1998.  More detailed specs on the property can be viewed at XXX.  Updated interior and exterior photos are pending and will be provided in the full loan packet.

In May of 2011, we performed an inspection of the property and comps that were provided by the borrower.  That report has been provided as a separate attachment.

Personal Financials

XXX has provided a signed 1003 stating a monthly income of $20,000 and a net worth of $796,000

Credit

XXX has a mid credit score of 581, and has provided a detailed explanation (attached) as to the circumstances that brought his credit score to be so low.

- Clay (clay@privatemoneysource.com, 503-476-2909 or 800-971-1858)

Clay is Vice President of Fairfield Financial, a primary source for private money loans since 1964.  Fairfield works with a broad range of private money investors, in a broker capacity, finding, underwriting, presenting, closing, servicing, and when necessary, assisting in the workout of difficult loans.



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