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

Posts Tagged ‘trust deed lending’

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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Sample loan

Monday, November 5th, 2018

Clay Sparkman
Here is an example of a loan that we recently placed. We like to show samples from time to time, so investors can see the kinds of loans that we are placing AND the format we use for the executive summary.

Kristopher Gillmore
Fairfield Financial Services, Inc
3327 SE 50th St, Portland, OR 97006
Phone (503) 319-7294 / [...]

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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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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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A guide for private money lenders

Thursday, July 14th, 2016

Clay Sparkman
I thought that this set of blog posts, A Guide For Private Money Lenders (in four parts), by Thad Merrill, was both interesting and informative, and so I thought I’d share them with you. (Ever vigilant: I’m combing the web for you.)

http://www.fortunebuilders.com/becoming-private-money-lender-part-1/
http://www.fortunebuilders.com/becoming-private-money-lender-part-2-breaking-private-money-loan/
http://www.fortunebuilders.com/becoming-private-money-lender-part-3-attract-investors/
http://www.fortunebuilders.com/private-hard-money-lenders-part-4/
Best, Clay
- Clay (clay@privatemoneysource.com, 503-476-2909)
Clay is Vice President of Fairfield Financial, a primary [...]

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Fairfield Financial – Information for investors

Friday, July 8th, 2016

Clay Sparkman
Here is our *Information for Investors* section. It is direct and to the point. It tells you what you can expect of us and what we will expect to you, in a broker-relationship.

http://www.privatemoneysource.com/investors.php
Best, Clay
- Clay (clay@privatemoneysource.com, 503-476-2909)
Clay is Vice President of Fairfield Financial, a primary source [...]

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Private money – the rules of physics may not apply

Friday, June 3rd, 2016

Clay Sparkman
I first posted this article in August of 2009. That was right about when I was just getting started with the blog. It is hard to believe that it has been nearly seven years now. At any rate, I feel that this article deserves a second look (or a first look, if you are [...]

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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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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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Rehab loan in WA state

Monday, April 14th, 2014

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 (a) see the [...]

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Loan offering in Washington state

Thursday, October 17th, 2013

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 [...]

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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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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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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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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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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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Private Money FAQ

Wednesday, January 9th, 2013

Clay Sparkman
I try to update and publish this FAQ every once in awhile, as it is a handy guide to better understanding the market for private money loans in general–and more particularly, how we operate here at FFS. It is written more with brokers and borrowers in mind, but the information here should [...]

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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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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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