Clay Sparkman
(Note: I posted the following on my broker blog recently. It is oriented to toward brokers, but at the same time, I think it would be quite useful to those trying to get a handle on investing in private money loans and trying to better understand the process.)
Private money is often [...]
Private money lending - general
Everything you wanted to know about private money but were afraid to ask
Thursday, January 12th, 2012A good time for private money investing (or so we think)
Monday, September 19th, 2011Clay 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 [...]
Squeezing loans into the box (by thinking outside the box)
Thursday, March 17th, 2011Clay Sparkman
As you all know, sometimes we have to be creative to get loans done in this market. One of the most critical aspects of any loan (as you well know) is the Loan to Value ratio, and there are often options for reducing the LTV to make the deal more attractive.
For purchases, the seller [...]
Private loan packaging guidelines
Sunday, October 31st, 2010Clay Sparkman
One of my long term objectives with this blog is to eventually walk with you through all of the private money loan processes and procedures, from the moment of conception until death (death of course not being a bad thing in my chosen metaphor, but simply meaning loan payoff, workout, or foreclosure).
This post deals [...]
What does this mean to us?
Sunday, October 3rd, 2010Clay 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 [...]
Grumblings of a slum lord in the post-bust environment
Friday, September 24th, 2010Guest 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 [...]
The sweet spot
Thursday, September 16th, 2010Clay Sparkman
We are always looking for the sweet spot these days in the real estate market. And by sweet spot, I mean that realm of investments that are on balance less risky and more likely to turn a profit in what is otherwise a jaded real estate market.
I have gone on a bit in my [...]
A way to find qualified commercial borrowers – Lendicom.com
Monday, August 30th, 2010Clay Sparkman
Most private money investors choose to work with brokers. However it is a decision that each private money investor must make independently and with great care—to use or not to use a broker.
The essence of the matter I think is this. If you want a full-time job (and some investors certainly do) then you [...]
Getting started with private money – the dating thing
Thursday, August 5th, 2010Clay Sparkman
I am frequently asked by private money investors: “… so how do we get started investing in private money loans?” You know, there is no simple answer to this question. I tell them that it is kind of like dating. If we are going to do this as an investor/broker team, then they need [...]
A brief unofficial analysis of the private money market for investors
Tuesday, July 13th, 2010Clay 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 [...]
Private Money FAQ
Sunday, February 28th, 2010Clay Sparkman
I realized early on that one of my greatest challenges in the private money lending business was to educate brokers, borrowers, and ultimately lenders regarding private money lending–what it is and when and how and when it should be used. So many people know so little about it, and those who think they know [...]
Trust deed lending – ten mistakes you should never make and ten mistakes you must never make
Saturday, December 19th, 2009Clay Sparkman
Okay, first the ten mistakes you should never make:
(1) Never close a loan without title insurance.
(2) Never close a loan on property that has valuable structures without a valid hazard insurance policy in effect listing you or your entity as loss payee.
(3) Never close a loan leaving property taxes unpaid (unless you are fully [...]
Private money through the looking glass
Sunday, November 22nd, 2009Clay Sparkman
First off, I’d like to point you to a list of 37 private money investment tips posted by Brad Evans of Brad Evans Real Estate Loans. This list has been circulating on the net for quite a few years now. It is one of the more thoughtful comprehensive items that I have come across [...]
The private money lending business: likes and gripes (part III)
Monday, October 19th, 2009Clay Sparkman
I finished Part II with a brief mention of something I quite like about the trust deed system: that is, the option (generally available) to foreclose judicially.
Before moving on, I’d like to offer you a crude little decision tree which may guide investors in making the decision whether to foreclose a given trust deed [...]
The private money lending business: likes and gripes (part II)
Saturday, October 3rd, 2009Clay Sparkman
In Part I, I began a discussion of my gripes and likes regarding the private money lending business and various industry related matters, items, and issues. I allowed myself to amble a bit far afield and concluded by mentioning a book about the legal profession which I personally found to be informing and entertaining. [...]
The private money lending business: likes and gripes (part I)
Thursday, September 24th, 2009Clay Sparkman
I thought it would be kind of fun, and hopefully informative, to write a piece about my likes and gripes regarding the business of private money lending. In other words, these are the things that tend to kick start my emotions and get me going. There is a bit of free association going on [...]
Twenty-five questions you must ask
Tuesday, September 15th, 2009Clay Sparkman
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 of the individual items in future posts. For the sake [...]
Resources – where is all the good stuff?
Sunday, August 30th, 2009Clay Sparkman
As I continue my search for resources that might be useful to those who invest in real estate secured loans, I become increasingly convinced that our particular niche field is somewhat of an intellectual/informational wasteland. Every time I stumble upon an article or site that looks like it might be of interest, it [...]
