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

Loan offering in Portland, Oregon

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 types of loans that we are placing, (b) see how we feel that loans should be presented, and (c) be presented with potential investment opportunities.) Keep in mind that this is only the summary. If an investor expresses interest in reviewing the details of a loan, we put the prospectus on top of all of the relevant documentation and send it via e-mail in an Adobe file.

This particular loan is live and we are in the process of placing it as either a fractional or a whole loan, so if you are an accredited investor looking to put a relatively small amount into a fractional loan at this time, please let us know.

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 PROSPECTUS

SECURED LOAN

New construction of property located on SE Fir, Portland OR 97206

Loan Details

  1. Loan Amount: $190,000
  2. Term: 6 Months – with automatic monthly extensions (automatic extension not to exceed an additional 6 months) provided that the payments are timely and the loan is in good standing
  3. Interest Rate: 12%
  4. Monthly Payments: $1,900 Interest Only
  5. Security:  Deed of Trust in 1st Position security interest in real property located at xxx,  Portland OR
  6. Construction Holdback:  $180,000
  7. Projected Value by Borrower’s Estimate based on CMA: $285,000
  8. Projected LTV by Borrower’s Estimate based on CMA:  67%

Loan Overview

yyy and  zzz are the members of aaa, LLC, and will be personally guaranteeing this loan.  Dave Sheldon is a licensed contractor and is the owner of his own construction company, Home Resources, LLC.  zzz is very experienced in rehabbing houses and will be doing the work himself.  His resume has been provided.  To summarize the relationship between yyy and zzz – yyy is the numbers/financial guy with good credit/income and zzz is the contractor.

The borrowers purchased a lot in March of 2014 for $55,000, and have invested approximately $49,675 into the lot to divide the lot into 2 separate buildable lots, totaling $104,675.  A list of these costs has been provided in the full packet for your review.  It should be noted that $30,000 of the $180,000 construction holdback is allocated for site development costs reimbursed to the borrower through the draw process.  Overall, they have a fair amount of skin in the game on this transaction.

The borrowers have secured a different private money loan for new construction on one of those lots, and are requesting this loan through Fairfield to provide funds for new construction on the other lot.  It is their intention to build both houses together to reduce the costs.

The borrower’s intend to exit this loan with the sale of the property.

Pervious Projects with Fairfield

This will be the Third loan that we’ve done with John and yyy and zzz.

The first loan was a purchase rehab loan on a property in Salem, OR, with a construction budget of $22,000.  All of their interest payments were on time, and the construction was completed under budget in approximately 3 months.  The property has been sold, and the total length of the loan was approx. 8 months.  The borrowers have posted photos of the construction by date (including the original pre-construction photos) which can be viewed at: http://s1062.photobucket.com/user/hisfinancing/library/Boulder/Boulder26JUN2013?sort=3&page=1 .  Note – there are other projects on here as well.  The Boulder property was the subject for the above mentioned loan.

The Second Loan was a purchase and rehab loan on a property in Hubbard, OR with a $40,000 rehab budget.  This loan was originated approximately 4 months ago, and the construction was also completed on budget in approximately 3 months.  The loan is in good standing and all of the interest payments have been on time.  Photos of the work can be seen at: http://s1062.photobucket.com/user/hisfinancing/library/3484%20Hillside%20Court?sort=3&page=1 .  This property is currently for sale, and the listing can be viewed at:  http://www.redfin.com/OR/Hubbard/3484-Hillside-Ct-97032/home/26356992

Property Info / Valuation

The borrower’s will be building a 3 bedroom, 2.5 bathroom 2 story craftsman with a 1 car garage.  The home will be 1,800 square feet, and on a 3,700 square foot lot.  Plans for the property as well as a line item budget have been provided in the full packet for your review.

A CMA has been provided by the borrower’s realtor, which based on an average sold $/sf of $159, the borrower estimates a completed value of $285,000.  This CMA has been provided in the full packet for your review.

Income

A signed 1003 has been provided.  Yyy  is stating a monthly income of $8,125, and a worth of $222,279. Zzz has stated an annual income of $60,000, and a net worth of $197,000

Credit

yyy has a mid-credit score of 722, with no accounts past due, and no accounts with any late payments.

Zzz’s mid-credit score was last reported (from the 1st loan) to be 485.  He has reported that his credit is deteriorated because of medical expenses that he incurred in 2010.  He has not yet been able to catch up with those bills.

Note – Initially yyy was going to guarantee this loan alone because he’s the only with decent financials.  However, I told them that it would be more beneficial to have a weak borrower on the hook as well.  Zzz’s personal financials and credit are not good, but his additional personal guarantee certainly doesn’t hurt.

- 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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