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

Sample loan prospectus

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 good idea what the loan/borrower/project is all about and what this loan looks like as a potential investment.

When an investor wishes to fully evaluate a loan investment, we send a full package in Adobe Acrobat format (generally between 50 and 200 pages) password protected, and with backup documentation to support and inform the investor in detail regarding the known relevant particulars of the proposed loan.

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



Cash out refi of property in Pacific City, OR

Loan Details

  1. Loan Amount: $320,000
  2. Term: 36 Months
  3. Interest Rate: 12%
  4. Monthly Payments: $3,200.00  Interest Only
  5. Security:  Deed of Trust in 1st Position security interest in real property at xxx, Pacific City, OR
  6. Value by Borrower CMA:  $637,175
  7. LTV based on Borrower CMA:  50%

Loan Overview

xxx, LLC purchased the subject property in 2006 for $780,000.  Currently, they owe approx. $150,000 on the property, and they are looking for cash out refi of $320,000 to provide funds for a subdivision project in the San Diego area.

Since the purchase of the property in 2006, the following improvements (xxx – managing member of yyy, LLC) have been made:

“We newly painted the entire interior and applied oil based preservative on the exterior shingle siding.  We widened the concrete driveway 3′ and perimeter house walkways 1′.  We installed new granite kitchen counters and all new appliances.  We installed all new custom blinds throughout the house, as well as new light fixtures in the dining area.  We installed new carpet throughout the house.  We installed a new Master Bath shower with custom tile & glass block from Germany, and a new shower head.  Finally, we installed a comprehensive security system.  The total cost was $45,000+/-.”

Currently, the property is only used as a 2nd / vacation home by the borrower.  It is not being rented out, although the borrower believes that it could be rented out for a min. of $300/night or $36,000/year (based on occupancy 1/3 of the year) as a vacation rental.

To exit this loan, the borrower has stated 2 options.  For the first option, the loan would be paid back from the proceeds of the sub development project, which xxx believes will come to fruition in the next 12-18 months.  The other option would be through the sale of this property, or another property that he owns.

Property / Valuation

The property is a 4 bedroom, 3 bath home of 2,317sf.  It sits on .11 acres, and is reported by the borrower to be the best location in Shorepine village, at the base of the beach ramp with no houses between it and the ocean.

To estimate the value of this property, a CMA has been provided by xxx.  It should be noted that the comps used in the CMA are all active listings.  A search on Zillow.com http://www.zillow.com/homes/comps/62823756_zpid/ was performed showing all the sales of public record in this area, although there is a tremendous difference in the $/SF of these sold properties.  There are not many sold houses with a comparable location with regard to an open view of the beach.  There is however on sale on record a few doors down for $171,000, which is just under $100/sf.  Compared to the other sales and active listings in the neighborhood, this number seems abnormally low.


A signed 1003 has been provided by xxx, stating a monthly income of $13,500.  He states total assets of $3,349,175 and a net worth of $2,918,143.


A recent credit report has been provided showing scores of 678, 698, and 728.  There is 1 30 day late payment reported on a Shell Citibank card that occurred over 2 years ago, but otherwise his credit history is perfect.

— 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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