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

Analysis

The west coast is on fire

Tuesday, March 6th, 2018

Clay Sparkman
Between Seattle, Portland, San Francisco, LA, and San Diego, home prices are off the charts. We broker short-term loans to real estate investors, so if you wish to invest in trust deeds in these markets, consider contacting us.
And check out these two recent articles:
A Third of U.S. Homebuyers Are Bidding Sight Unseen
Seattle-area home market [...]

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Five potentially useful indicators of the likely movement of value

Friday, August 11th, 2017

Clay Sparkman
Any good real estate investor should be attempting  to assess whether property values are rising, falling, or holding in the area of his/her latest potential investment. After all, the core question when buying investment property (particularly short-term) is, “what is value likely to do in the [...]

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A book that we must read

Thursday, January 19th, 2017

Clay Sparkman
This book strikes me as a must read for anyone in the lending business. I have not read it yet, but I intend to get started now. Have any of you read it, and if so, what was your take away?
Here
The Unbanking of America: How the New Middle Class Survives
Lisa Servon. Houghton Mifflin [...]

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Examining an FAQ about Trust Deed investing

Tuesday, December 20th, 2016

S. Clay Sparkman
TNG (The Norris Group) published the following FAQ on their site. I thought it might be fun to go through this and see where I agree and perhaps disagree, and offer my annotations (in red).
Frequently Asked Questions About Trust Deed Investing
1. What is a trust deed investor?
A trust deed investor is a person [...]

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Twenty-eight questions you must ask

Friday, October 7th, 2016

Clay Sparkman
I first wrote and published this piece in its original form in September of 2009. I am of the firm belief that the key to success (defined as: having fun and maximizing your return, two closely correlated phenomena), is rigorous and comprehensive vetting of the loan proposal. If you do this right, the rest [...]

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Leading real estate value indicators

Tuesday, August 23rd, 2016

Clay Sparkman
Of particular interest to private money investors is to analyze and spot potential trends in real estate pricing. I recently posted an article, Three potentially useful indicators of the likely movement of property values, which proposed three potential indicators to watch.
The following article, Unlike prices, real estate jobs not back at peak, published in [...]

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Several perspectives on private money and changes happening in the industry

Tuesday, May 24th, 2016

Clay Sparkman
With regard to forward thinking (that is, how is the industry changing?): I thought you might appreciate this article, Private Lending Sector Making Big Noise for Real Estate Investors, by Ben Stoodley:
Here
Certainly he is correct with regard to his interpretation of current trends, and one must wonder how far this might all [...]

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Into the mainstream

Friday, May 13th, 2016

Clay Sparkman
I thought that this recent article in The National Real Estate Investor would be worth sharing with the private money investors in this group. It certainly rings true with those of us at Fairfield, as we have had to work with our investors to adapt our programs and strategies to a changing market (becoming [...]

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Three potentially useful indicators of the likely movement of property values

Monday, April 25th, 2016

Clay Sparkman
Any good private money investor should be attempting  to assess whether property values are rising, falling,  or holding in the area of his/her latest potential investment. After all, the core issue  when assessing investment risk is LTV, and if the “V” part of “LTV” falls during the time of your investment, your investment is [...]

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25 questions you must ask

Friday, January 22nd, 2016

Clay Sparkman
I originally published this article in September of 2009 on this blog.
I’m going to make a list today of twenty-five important questions that I believe an investor must ask prior to funding any private money loan transaction.  I’m not going to elaborate much on each particular item here, but will drill down on each [...]

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The cost of hard money

Friday, October 23rd, 2015

Clay Sparkman
After 50 years in the hard money business (as a family operation)  and 20+ years personally, you’d think we’d know what to expect. But let’s face it, no one really knows what to expect in the complex globally based financial world.
For my first 15 or so years working in the hard money industry, I [...]

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Fix and flip big

Wednesday, August 21st, 2013

Clay Sparkman
This is interesting. I had wondered why we have not seen as many REO type fix and flip property loans as I had expected. I was informed by an individual quite recently that they had read an article about two very large entities that were going to the banks and buying all of the [...]

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We may be done wandering through the forest

Thursday, June 27th, 2013

Clay Sparkman
I got this upbeat article as a special alert on my smart phone this week. It seems that finally the real estate market it pulling the rest of the economy forward, instead of the other way around. I would say that it’s official. Hallelujah!
Housing, regional factory data show economy’s stamina
http://us.news-republic.com/Web/ArticleWeb.aspx?regionid=1&articleid=10246360
On the other hand, a [...]

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Private money investors: Mind the gap

Wednesday, May 8th, 2013

Clay Sparkman
It is our opinion and the opinion of many others that banks, though they’ve bounced back in certain areas, have not picked up the slack when it comes to funding rehab, construction, and development loans.
I have been on about this before, so I won’t go into great detail here. I think that the following [...]

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How to read an appraisal

Friday, March 29th, 2013

Clay Sparkman
This article was originally published, on The Private Money Broker Blog. on 8/9/10. Some two and a half hears later, I feel it is worthy to be modified slightly and published again. Whatever you do in the real estate business, I highly recommend that you give this post a good read.
The most [...]

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The infinte universe of private money

Wednesday, March 13th, 2013

Clay Sparkman
Our private money lending programs tend to be fairly rigid with regard to LTV requirements but quite forgiving with regard to other issues.   One of the nice things about private money is that it allows for creative problem solving.   I have put many transactions together, that initially didn’t appear to be doable, simply by [...]

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Investing in real estate (either directly or indirectly) in 2013: three articles you should read

Friday, February 1st, 2013

Clay Sparkman
On occasion, I try to publish links to articles that are relevant, useful, and interesting. Here are three articles which give useful perspective on the matter of investing in real estate in 2012—each from a different perspective.
A money.cnn article on how to find real estate opportunities in 2013:
http://money.cnn.com/2012/12/01/real_estate/housing-outlook-2013.moneymag/index.html
Dailyresearchhunter.com on global real [...]

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What to look for in 2013

Thursday, January 24th, 2013

Clay Sparkman
I rather enjoyed the following article in the www.thefiscaltimes.com (quite an impressive publication at first blush), and thought it would be a good one to share.
“Ten Real Estate Trends to Watch in 2013″
http://www.thefiscaltimes.com/Articles/2012/12/06/10-Real-Estate-Trends-to-Watch-in-2013.aspx#page1
The article begins by noteing that “national home prices have been on the uptick for eight straight months,” and then goes on [...]

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Good news for real estate markets: could this be the actual turn around we’ve been waiting for?

Wednesday, December 5th, 2012

Clay Sparkman
I posted this on my broker blog post recently. It is slightly dated, but the good news motors on. Let us celebrate the positives. (Yet, at the same time, let’s hope that we don’t go over a certain fiscal cliff, out of control and doing 90 mph. It will be interesting to see how [...]

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I can climb; I just don’t want to fall again

Thursday, August 23rd, 2012

Clay Sparkman
I like what I’m seeing in the New York Times lately regarding real estate recovery. The following article was in yesterdays paper:
Here
It seems that they are convinced that recovery of the real estate markets is underway–though they also suggest that it is likely to be slow.
I’m fine with that. I can whether the climb [...]

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Another good piece of data for real estate markets in the PNW

Friday, February 3rd, 2012

Clay Sparkman
This from a recent article in The Puget Sound Business Journal:
“Sales of larger apartment buildings in King County are on the upswing, setting a record average price per square foot in 2011, according to data supplied by Dupre + Scott Apartment Advisors Inc.
Investors last year paid an average price of $136,509 per unit for [...]

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A few useful and interesting resources for private money professionals

Wednesday, November 9th, 2011

Clay Sparkman
These days–with uncertain markets—tools and resources which provide us with information and data are more crucial than quite possibly ever before.
I am always trying to find more resources that will be of use to both me and readers of this blog. Here are a few items that have popped up lately.
ALTOSResearch offers this wonderful [...]

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Better times are coming in real estate markets and here’s why

Saturday, October 29th, 2011

This Guest post by Jeff Lindikoff

I hope you are enjoying the beautiful fall weather. It is certainly my favorite time of the year and good things are on the horizon for Real Estate Investors.
We have been saying for most of this year that with an election year coming up, the government will [...]

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A good time for private money investing (or so we think)

Monday, September 19th, 2011

Clay Sparkman
We’ve been getting quite a few calls from new investors lately who are interested in investing in trust deed secured loans. This makes a certain amount of sense to me, as a number of factors are lining up to enhance the attractiveness of this type of investing. The factors I have in mind include [...]

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As goes Miami …?

Saturday, July 30th, 2011

Sorry to be so long away from you. I guess the lazy days of summer have been calling. I would like to share an article that I read recently in the New York Times.
http://www.nytimes.com/2011/07/27/business/affluent-buyers-reviving-market-for-miami-homes.html?pagewanted=1&_r=1
It seems that the Miami market, one of the worst hit during the real estate turn down, is on [...]

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There’s something about equity

Thursday, May 19th, 2011

Clay Sparkman
With a double dip real estate depreciation nationwide becoming fact in April, and now with  the federal government threatening not to extend government backed financing options large (jumbo) residential loans, this market is hardly getting easier or more predictable.  So you might ask, “How do we get private money loans done in today’s real [...]

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What does this mean to us?

Sunday, October 3rd, 2010

Clay Sparkman
Okay, I don’t know about you, but whenever I read news about some new development in the real estate market, my first instinct is to say, “What does this mean to me?”  Hey I’m not proud of it, but that’s just how I’m wired.
This past two weeks we read that:
(1)  GMAC and JPMorgan Chase [...]

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Grumblings of a slum lord in the post-bust environment

Friday, September 24th, 2010

Guest post by Brian Blum, Operating Manager, Maverick Structures LLC
I’m a real estate investor.  I see opportunities in buildings – and in numbers, and I use those opportunities to create income and equity.  What I do benefits society, but I’m not going to lie to you – I am driven to do it for my [...]

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A brief unofficial analysis of the private money market for investors

Tuesday, July 13th, 2010

Clay Sparkman
The national economy is in a state of confusion and the local economy is in a state of confusion. So what does this mean for the market for investing in trust deed based loans?
Well of course nobody really knows–and this is just my take on it–but here goes:  First of all, let’s talk briefly [...]

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