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

Rehab loan offering in Oregon

S. Clay Sparkman

We’ve had a lot of nice solid little loans come in lately. As you know, we have a tradition of, from time to time, presenting 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, (b) how we feel that loans should be presented, and (c) be presented with potential investment opportunities. Keep in mind that this is only the summary. If an investor expresses interest in reviewing the details of a loan, we put the prospectus on top of all of the relevant documentation and send it via e-mail in an Adobe file. This particular loan is live and we are in the process of placing it, so if you have an interest, please let us know.

Kristopher Gillmore

Fairfield Financial Services, Inc

3327 SE 50th St, Portland, OR 97006

Phone (503) 319-7294 / Fax (503) 419-4219 / E-mail: gillmore@privatemoneysource.com



Loan against two properties:  The use of funds for Subject property 1 is for cash out and rehab.  This property is free and clear. The use of funds for Subject property 2 is a for the purchase and rehab of the property

Loan Details

  • Loan Amount: $330,000
  • Term: 24 Months
  • Interest Rate: 12%
  • Monthly Payments: $3,300  Interest Only
  • 6 month Interest Reserve:  $19,872
  • Security:  (Subject 1) Deed of Trust in 1st Position security interest in real property at xxx, Nehalem OR
  • Subject 1 As-Is Value by Borrower’s Estimate:  $180,000
  • Construction Holdback Subject 1:  $25,515
  • Subject 1 Projected Value by Borrower’s Estimate/comps:  $240,00
  • Security:  (Subject 2) Deed of Trust in 1st Position in real property at yyy, Nehalem, OR
  • Subject 2 As-Is Value by Borrower’s Estimate/Tax Assessed Value: $267,000
  • Construction Holdback Subject 2:  $26,618
  • Subject 2 Projected Value by Borrower’s Estimate/comps: $320,000
  • Combined As-Is Value by Borrower’s Estimate:  $447,777
  • Front End CLTV by Borrower’s Estimate: 63%
  • Total Combined Projected Value of Subject 1 and Subject 2 by Borrower’s Estimate/comps: $560,000
  • Total CLTV based on Projected Value by Borrower’s Estimate/comps: 59%

Loan Overview

The Borrower, xxx, under her company yyy, LLC is looking for a $330,000 loan secured by two properties.  Subject 1 is currently free and clear with the exception of some property tax liens that will be paid at closing.  Subject 2 is currently under contract for purchase at $161,000.  Details on each property are provided below.

xxx is an experienced rehabber, who reported to have purchased and sold 7 houses, two of which were over 100 years old.  Furthermore, she grew up in a construction oriented family.  Her father, brother, and nephew are roofers, and she also has contractors, concrete professionals, painters, and a plumber in the family.

Subject 1

xxx, under her company yyy, LLC, owns this property free and clear.  She reports investing approximately $30,000 for improvements to the property, and is requesting $25,515 to complete the renovation.  The budget with proposed improvements, as well as a list of completed improvements has been provided for your review.

The property was built in 1954, and is 1,684 Square feet on .36 acres.  The property has 3 bedrooms, 2 baths, and covered carport.  The property is currently vacant and in the process of being renovated.

Subject 2

xxx currently has this property under contract for $161,000.  She believes this is greatly undervalued, and that the bank that owns the property doesn’t know what they have.  The current tax assessed value of this property is $267,000, which is what xxx believes to be a more realistic as-is value.  She is requesting $26,618 for cosmetic renovations to this property.  The budget and list of proposed improvements has been provided for your review.

This property was built in 1920, and is 2,688 square feet on 1.04 acres.  It has 6 Bedrooms, 2 bathrooms, a parlor, laundry room, 2 car garage, and 10 foot ceilings throughout the house.

Exit Strategy

The borrower will exit this loan through the sale of the properties, and has requested a release clause to allow for individual sales of the property.

Property / Valuation

Comps have been provided by a local realtor and were used to estimate the completion values of each property.  These comps can be viewed through the following link: www.xxx

The borrower feels that after the renovations, her properties will be just as nice as the comps, but will be superior in location.  Ultimately, she believes that she will be able to sell Subject 1 for approximately $240,000 and Subject 2 for approximately $340,000

A site visit by one of Fairfield’s inspectors is scheduled for 10/7 (pending a tentative commitment of funds) in order to evaluate the sufficiency of the borrower’s construction budgets as well as evaluate the comps that she has provided.


A signed 1003 has been provided by the borrower, who is stating a monthly income of $5,000 and a net worth of $222,000.

In addition, there is 6 months of interest reserve included in this loan which will allow her to build her cash reserves.  If she is unable to sell either of the properties within this time frame, she is confident that she’ll be able to service the debt from her cash reserves and monthly income.


xxx has a mid-credit score of 612.  Her credit report shows very little debt – a total of $2,632

– 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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