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

What to look for in 2013

Clay Sparkman

I rather enjoyed the following article in the www.thefiscaltimes.com (quite an impressive publication at first blush), and thought it would be a good one to share.

“Ten Real Estate Trends to Watch in 2013”


The article begins by noteing that “national home prices have been on the uptick for eight straight months,” and then goes on to identify ten areas to watch closely as probable determinants as to whether or not, and to what extent, this upward trend will continue.

A key word for me, coming away from this article is “construction.” Item #1 notes that “… construction of new homes and apartments needs to be between 1.25 and 1.5 million a year just to keep up with population growth. But since the housing crash, new construction has been at 500,000 units or fewer for 6 years running …”

Item #10 then goes on to note that there is an immense shortage of bank funding available for construction loans. “… only 22 percent of the country’s largest banks are making them …” Further, they point out that “many medium and small builders who rely on loans for regional and community banks aren’t getting the capital they need to launch projects.”

They don’t mention “private money” as an alternative source for such players. They rather seem to suggest the demise or consolidation of these smaller players. Yet, as a purveyor of such, private money is the first thing that comes to my mind. Light bulb! Solution at hand!

I expect that we’ll be doing more construction loans in 2013 than in recent past years. Please feel free to comment, and let me know what you think, with regard to that suggestion and the article in general.

– 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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