Rehab and constuction 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. [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans, REO funding, Short sales
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Wednesday, December 28th, 2011
Clay Sparkman
In the spirit of learning by example, I’d like to take the opportunity to describe an interesting scenario that we put together.
They say that when it rains, it pours. Well, for our borrower it had been pouring for a long time. A long run of bad luck had left him in a difficult situation, [...]
Tags: hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, rehab loans
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Monday, October 24th, 2011
Clay Sparkman
Most likely you have clients who buy distressed properties from time to time–with the intention of making a profit–and need a source of funding to fuel their activities. There are three common ways to buy distressed properties: pre-auction, auction, and post auction (generally referred to as REO). Most investors are forced to buy either [...]
Tags: auction buying, finding lenders, hard money borrowing, hard money brokering, hard money loans, Idaho, Nevada, New York, Oregon, private money borrowing, private money brokering, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales
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Thursday, October 20th, 2011
Clay Sparkman
As I pointed out in a previous mailing, 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 problems solving. I have put many transactions together that [...]
Tags: commercial lenders, Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental
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Thursday, October 6th, 2011
Clay Sparkman
There was November, 2007 and then there were the nearly 4 years now that followed. If you are an acting broker in this market it is because you are a survivor. Darwin’s theory—survival of the fittest—would have been more aptly named, survival of the most adaptable. If you are still here, then it is [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Idaho, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans
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Monday, September 12th, 2011
Clay Sparkman
This week I’d like to address some myths about private money, and hopefully correct some common misconceptions that seem to exist with regard to private money lending as an alternative mechanism for funding the refinance and acquisition of real estate.
Myth: As a broker, I should first try to use conventional bank financing, and if [...]
Tags: Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, rehab loans
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Friday, August 26th, 2011
It is often quite difficult for professionals to get a sense of what hard money is all about and to know when it is the best option for putting a transaction together. I have found that the best way to teach is by example. So to that end I will profile several loans here that [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Idaho, Multifamily, Oregon, private money borrowing, private money brokering, private money loans, real estate, real estate investing, rehab loans
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Tuesday, April 26th, 2011
Clay Sparkman
Because I have found that one of the best ways to learn is by way of example, I like to give frequent examples of actual loans that we have funded. The following loan was funded quite some time ago, but is quite typical of the sort of thing that we are looking to do [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate, real estate investing, rehab loans
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Monday, February 28th, 2011
S. Clay Sparkman and Richard Sundvall
There are certain key pieces of information that we need to know when we’re sizing up a deal. Having this information when you contact us can speed up the process considerably. Also, if you have these pieces in hand you can talk about your deal more clearly and present yourself [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Multifamily, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate, real estate rental, rehab loans, subordinate loans
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Sunday, November 7th, 2010
Guest post by Matthew Whitaker, Managing Member of Magnolia Partners, LLC and Golden Key, LLC
In December of 2007 we were faced with a decision. After three years of successfully flipping properties to low and moderate income buyers, we awoke one day with no buyers and no plan to find new ones. Our dilemma [...]
Tags: Alabama, Commercial loans, construction loans, finding lenders, Quick flip loans, real estate, real estate rental, rehab loans
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Saturday, October 2nd, 2010
Kris Gillmore and Clay Sparkman
Over the past three years we’ve all watched real estate prices come crashing down, in many cases forcing lenders to foreclose and take back the property. Although this is a sad misfortune for some, it is a tremendous opportunity for others. With regard to quick-flip investment property, I have always been [...]
Tags: hard money borrowing, hard money brokering, hard money investing, hard money lending, hard money loans, Multifamily, Oregon, private money borrowing, private money brokering, private money investing, private money lending, private money loans, Quick flip loans, real estate, real estate investing, real estate rental, rehab loans
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Thursday, September 9th, 2010
Clay Sparkman
I recently posted this article on my investor blog, The Private Money Investor. Even though the article is targeted toward investors who put their money into private money loans, I think it is appropriate to post it here. After all … just look around you … this is where the game is.
I have [...]
Tags: construction loans, finding lenders, hard money borrowing, hard money brokering, hard money lending, hard money loans, Las Vegas, Nevada, private money borrowing, private money brokering, private money lending, private money loans, Quick flip loans, real estate, real estate investing, rehab loans
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Wednesday, September 1st, 2010
Clay Sparkman
If you don’t believe that lenders are getting hard to find, read this article from the New York Times: In Hard Times, One New Bank (Double-Wide). Kind of scary, huh?
If you are having trouble finding the ever elusive lenders that you need for your particular client transactions and projects, a web based tool known [...]
Tags: commercial lenders, Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money lending, hard money loans, private money borrowing, private money brokering, private money lending, private money loans, Quick flip loans, real estate, real estate investing, rehab loans, subordinate loans
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Sunday, August 22nd, 2010
Clay Sparkman
In a prior posting, I pointed out that one of the primary advantages of private money is that it allows for creative problem solving due to the flexible nature of the beast. I went on to discuss some of the ways in which one can often make a private money transaction work, on any [...]
Tags: hard money borrowing, hard money brokering, hard money lending, hard money loans, private money borrowing, private money brokering, private money lending, private money loans, Quick flip loans, real estate, real estate investing, rehab loans
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Friday, July 16th, 2010
Clay Sparkman and Richard Sundvall
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 [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money lending, hard money loans, private money borrowing, private money brokering, private money lending, private money loans, real estate, real estate investing, rehab loans, subordinate loans
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Sunday, July 11th, 2010
Clay Sparkman
It is summer at last!
In the Pacific Northwest, that means it is time to play–or for those who are investing in real estate projects, perhaps the reprieve from the rain means that it’s time to get to work on purchase and rehab projects. As much as 80% of the loans that we do are [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money lending, hard money loans, private money borrowing, private money brokering, private money lending, private money loans, Quick flip loans, real estate, real estate investing, rehab loans
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Friday, June 18th, 2010
Clay Sparkman
One of the most promising areas at the moment for real estate investors and brokers, by all indications, is REO, rehab, and quick flip of properties. The opportunity to buy distressed properties at a low price point is evident in many markets. And yet it is difficult for most end-buyers (with a non-profit initiative) [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money lending, hard money loans, private money borrowing, private money brokering, private money lending, private money loans, rehab loans
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