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

Archive for January, 2012

Calculating LTVs for rehab, development, and construction loans

Friday, January 20th, 2012

Clay Sparkman

We thought a quick primer on LTV calculation for projects involving construction would be of use to most of those who utilize or broker private money.
You really need to use two LTVs. We use a Front End LTV (F-LTV) as well as an After Repair Value (ARV) or Final LTV (LTV), when evaluating loans. [...]

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Hard money – it doesn’t have to be so hard

Thursday, January 12th, 2012

Clay Sparkman
In my 18 years of working with loan brokers on private money transactions, one of the most significant difficulties I have encountered has been simply making our process understood—in other words, explaining the sort of information, the timelines, and the expectations that are suitable and necessary to a private money transaction.  It seems [...]

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Everything you wanted to know about private money but were afraid to ask

Friday, January 6th, 2012

Clay Sparkman
Private money is often misunderstood. Many industry professionals know very little about it, and fallacies and misconceptions tend to dominate the collective wisdom. As you know, as a subscriber to this list, I have made it my mission to try to educate professionals regarding the realities of private money. In this capacity, I spend [...]

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