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

Structuring loans

Sample loan

Tuesday, October 23rd, 2018

Clay Sparkman
Here is an example of a loan that we recently placed. We like to give samples from time to time.  Not only does this give borrowers and brokers a better idea of the kinds of things that we do, but it also gives them a nice working format for presenting new loans.

Kristopher Gillmore
Fairfield Financial [...]

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Home flipping

Thursday, May 5th, 2016

Clay Sparkman
As you know, our sweet spot is for loans to real estate investors. In particular, we do a lot of fix and flip, fix and hold, REO, short sale , and new construction.
I feel that this recent Washington Post article, by Justin Pierce, “The four things you need to know to flip a home.” [...]

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Our sweet spot: Rehab and Constrcution loans

Thursday, April 21st, 2016

Clay Sparkman
One of the most promising areas at the moment for real estate investors and brokers, by all indications, is new construction, 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 end-buyers (with [...]

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Flexibility and creativity: the beauty of private money loans

Wednesday, November 5th, 2014

Clay Sparkman
This post was first published on this site on July 6th. 2010.

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.  [...]

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Fairfield Financial – rehab and construction loans

Wednesday, March 26th, 2014

Clay Sparkman

As a follow up to my recent posting (Fairfield Financial – getting to know us), I am posting a similar resource, but one that is dedicated solely to rehab and construction loans. Since this is our sweet spot, I thought it would be appropriate to share this as well.
We work with many real [...]

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Fairfield Financial – getting to know us

Thursday, March 20th, 2014

Clay Sparkman
I am often asked to give potential brokers or borrowers a run-down on Fairfield Financial. What kinds of loans do we do? What is our process? What is our tme-line? what are our terms? That kind of thing. Verbally it takes a good hour to cover all the basics, so we at Fairfield have [...]

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The big stretch – repost

Thursday, October 10th, 2013

Clay Sparkman
This article was originally posted at this site in August of 2010. I feel that these essential points are so important for those seeking creative ways to get deals done that I felt I should post it again (I have made some modifications to the original article so as to bring the facts up [...]

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Flexibility and creativity: the beauty of private money loans

Monday, June 17th, 2013

Clay Sparkman
This post was originally published on this site on July 6th. 2010. I feel that the information within is so important to a full understanding of private money flexibility and creativity, that I modified the document, bringing it up to date, and am publishing it here now once again.
Our private money lending programs tend [...]

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Loans we are placing – example

Monday, April 8th, 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 [...]

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Private Money – The Rules of Physics May Not Apply

Wednesday, December 12th, 2012

This article was published in The Scotsman Guide as “2 Private-Money Myths: Debunked” back around the time when the sub-prime market was just beginning to collapse.  I thought it might be of interest to some of you on this blog, and so I’m posting a slightly different version here.

Clay Sparkman

I would like to make [...]

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A private money loan prospectus – Hood Canal, Washington

Monday, September 24th, 2012

Clay Sparkman
(In October of 2011, I posted this item on my Private Money Investor blog. I thought it might be useful to brokers as well—the idea being so that you may (a) see how we present loans to our internal working investors, (b) gain perspective on our entire private money loan process, from start to [...]

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Creative Funding

Wednesday, May 2nd, 2012

Clay Sparkman

As you all know, sometimes we have to be creative to get loans done in this market. One of the most critical aspects of any loan is the Loan to Value ratio, and there are often options for reducing the LTV to make the deal more attractive.
For purchases, the seller carry back is a [...]

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Make your borrower’s projects and submissions More robust

Monday, March 26th, 2012

Clay Sparkman

In the current climate, it’s getting harder than ever to impress potential lenders with your client’s loan scenarios. It may be that times have changed permanently and that it will be years before lenders return to their pre-2007 comfort level. Until then I thought I would make some suggestions to help you to re-think [...]

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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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Private money – getting from point A to point D

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, [...]

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Private Money – 5 DONT’s and 5 DOs

Tuesday, December 20th, 2011

Clay Sparkman

I would say that as much as 75% of our loans are initiated by third-party loan brokers.  We rely heavily on our wholesale broker relationships and dearly value the strong working relationships that we have.  As much as we love our relationships with brokers, it is an ongoing challenge to develop new relationships.
Perhaps the [...]

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Private Money Loan Simulator

Wednesday, December 14th, 2011

Clay Sparkman
I firmly believe that the best way to learn about anything complex is by doing.  The second best way is by example.  If I could provide you with a private money loan simulator I would, but I haven’t figured out how to do that yet (though I assure you, we haven’t given up on [...]

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Auction Buyers Take Note

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 [...]

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On the art of handcrafting loans

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 [...]

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How to broker private money loans when real estate markets are uncertain

Sunday, March 6th, 2011

Clay Sparkman
We’ve been through nearly 3 ½ rough years in the real estate market—and projections seem to indicate that we will finally see clear up-turn in the second half of this year, but no one really knows for sure.  We have managed to survive this down-time (all who are still present please take a moment [...]

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