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

Posts Tagged ‘investing’

Private money – whole loans vs fractional share loans

Thursday, November 29th, 2018

S. Clay Sparkman
This issue nearly always comes up in early conversations with new potential investors. Working with private money investors, we are able to fund loans in two different ways.
(1)  Single loan/single investor – This is probably most common. It is quite simple. A potential investor evaluates a loan, and if she chooses to do [...]

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Will Amazon’s HQ2 sink Seattle’s housing market?

Tuesday, November 13th, 2018

S. Clay Sparkman
Will Amazon’s HQ2 sink Seattle’s housing market?
https://www.seattletimes.com/business/real-estate/will-amazons-hq2-sink-seattles-housing-market/
Probably not much, but it should pump up the markets in NYC and DC even furthur.
Best,
Clay
- Clay (clay@privatemoneysource.com, 503-476-2909)
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 [...]

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Getting started with private money investing

Thursday, October 25th, 2018

Clay 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 to [...]

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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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Two hicks from Oregon go to Malibu – a cautionary tale

Thursday, January 25th, 2018

Clay Sparkman
I first posted this Blog piece on 11.11.09 at this site.
The runway was drenched in sunlight as our plane touched down that morning at LAX.  It was a golden balmy day.  We grabbed our bags and headed for the rental car kiosks.  I don’t recall how it happened exactly, but the fellow at the [...]

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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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Resources for private money profesionals

Friday, January 6th, 2017

Clay Sparkman
I posted this article in 2011, and am sad to say that I haven’t come across much in the way of new resources since. I’m going to re-post, with a few small changes, and please let me know if you know of any useful resources available to private money professionals.

These days–with uncertain markets—tools and [...]

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Private money for maijuana grow and sell operations

Thursday, December 29th, 2016

Clay Sparkman
Good article in the Los Angeles Times:
Lending money to pot businesses is a high-risk move: ‘This is not for the faint of heart’
A few years back, this was starting to look like a pretty good place to consider investing your private money. Several things were favorable: (1) The general trend nationwide was clearly toward [...]

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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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10 things You should do before you start investing

Tuesday, September 27th, 2016

Clay Sparkman
Most of my discussions on this blog have to do with private money investing, and trends related to such.
I cam across a Lifehacker article recently–one that I had saved in The Pocket to read *later* (if you know what I mean), and was reminded that before one can make sensible private money investing decisions/choices, [...]

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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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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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Rehab loan offering in Oregon

Thursday, October 3rd, 2013

S. Clay Sparkman
We’ve had a lot of nice solid little loans come in lately. As you know, we have a tradition of, from time to time, presenting one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that we [...]

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A private money loan offering

Wednesday, September 11th, 2013

Clay Sparkman

We are in the process of placing a loan that I really like. We have worked with these borrowers in the past and they have been excellent in both payment and performance.
It has to happen pretty fast (by 9/20, a week from Thursday), and we will most likely place it as a fractional [...]

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Sweet private money loans

Tuesday, August 27th, 2013

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 [...]

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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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Auto-private-money-fractional-lending

Thursday, June 13th, 2013

Clay Sparkman
This is an interesting blog post.
http://www.mymoneyblog.com/realty-mogul-review.html
It tells about a new site where you can go to make $5k private money fractional loans automatically, without the bother of actually dealing with a broker, borrower, or such. Apparently you don’t have to even bother making any decisions about the investment. That might be nice, except …!
Well [...]

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Good news for modern real estate investors

Thursday, May 30th, 2013

Clay Sparkman
Well, if this isn’t good news, I don’t know what is:
http://us.news-republic.com/Web/ArticleWeb.aspx?regionid=1&articleid=9562167
It appears that now is the time to be investing in real estate and real estate loans. We finally have a turn-around market that might actually be *real* and might actually be steady.
Let’s hope it keeps going this way. There are so many factors, [...]

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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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Finding qualified commercial private money borrowers

Monday, April 22nd, 2013

Clay Sparkman
This item was originally posted on this site on 4/30/10. I had a sense that it might be relevant once again, and so I have rewritten it slightly and am posting here again. I hope you find it useful.
Most private money investors choose to work with brokers.  However it is a decision that each [...]

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Loans we are placing – example

Friday, April 5th, 2013

S. Clay Sparkman
Every now and then I like to present one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that we are placing, and (b) how we feel that loans should be presented. Keep in mind that this [...]

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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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Twnety-five questions you must ask (re-post)

Friday, February 22nd, 2013

Clay Sparkman
I originally published this article on this blog in September of 2009. It is as relevant ans useful, I believe, today as it was then.

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 [...]

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Rehab and construction loan FAQ

Friday, February 15th, 2013

Clay Sparkman
One of the most promising areas at the moment for real estate investors and brokers, by all indications, is REO, short sale, rehab, and quick flip properties.  The opportunity to buy distressed properties at a low price point is evident in many markets.  And yet it is difficult for most [...]

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Draw process for rehab and construction loans

Wednesday, February 6th, 2013

Clay Sparkman
We plan to do as many rehab and construction loans as we can this year. We see great potential in that area. Builders are under-building (by a substantial number of units, and going back 3+ years), and this is mostly because banks haven’t recovered to the point where they are comfortable [...]

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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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Where do you go to learn about private money lending?

Wednesday, January 16th, 2013

Clay Sparkman
I can’t tell you how many times I have been asked by prospective private money investors, “Where do I go to learn more about this? Where are the books? Where are the articles? where are the websites”
I have generally had to shrug my shoulders and say, “Uh …. you know, I really [...]

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The quest for quality private money loans

Friday, October 5th, 2012

Clay 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 [...]

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Sample loan prospectus

Tuesday, October 2nd, 2012

Clay Sparkman
I’m not sure how many of you have made loans with us before, so I thought I would post a prospectus for a loan that we placed recently. The prospectus which is shown here is the high level presentation, or executive summary of the loan.  Having read the prospectus you should have a pretty [...]

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Too good not to share

Monday, July 2nd, 2012

Clay Sparkman
I figured this was too good not to share. After all, when The New York Times speaks …
http://www.nytimes.com/2012/06/28/business/economy/new-indications-housing-recovery-is-under-way.html
I’ll try to get back to posting more frequently. I’ve been a bit at a loss as to what to post lately. If anyone has anything they’d like to know more about, please let me know.
– Clay [...]

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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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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 private money loan prospectus – Hood Canal, Washington

Friday, October 21st, 2011

Clay Sparkman
From time to time, I post a prospectus for a loan that we are currently in the process of placing. This serves three purposes: (1) It gives readers a window into the kinds of loans that we are placing, (2) It provides an example of how are loans are initially presented, and (3) It [...]

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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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The top ten red flags that you may not want to lend to a particular fix and flip borrower

Tuesday, August 30th, 2011

Clay Sparkman
There are some good things happening out there, but these last (nearly) four years now have been tough. There are plenty of negative signs in the economy as a whole, but I am actually somewhat bullish at this point about real estate markets in general and private money investing in particular. Still, these are [...]

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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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