Clay Sparkman<\/p>\n
With a double dip real estate depreciation nationwide becoming fact in April, and now with\u00a0 the federal government threatening not to extend government backed financing options large (jumbo) residential loans, this market is hardly getting easier or more predictable.\u00a0 So you might ask, \u201cHow do we get private money loans done in today\u2019s real estate market?\u201d<\/p>\n
Well I can tell you this.\u00a0 Equity comes at a premium.\u00a0 A particular loan scenario may have certain flaws, but if the equity position is strong enough, we can generally place that investment with our investors and they will feel comfortable knowing that if they have to take the property back, they will be unlikely to lose principal or interest given the enormous amount of buffer involved.\u00a0 And even better, if there is a large amount of equity it is very unlikely that the properties would ever come back at auction.\u00a0 First of all, the borrower has a great deal at stake and thus is very likely to make loan payment a priority.\u00a0 And secondly, even if the borrower gets into trouble, there is almost always one more loan or one more rescue option to come in and take you out the existing investment.<\/p>\n
Here are a couple of examples, loans that we are currently packaging for placement.<\/p>\n
Sample 1 – $200,000 loan on a Washington non-OO home which is free and clear.\u00a0 The home is valued at $375,000 and the loan proceeds will be used to pay accumulated business taxes.<\/p>\n
Sample 2 – $60,000 loan on an Oregon coast OO residential foreclosure bailout.\u00a0 The home recently appraised at $162,500.<\/p>\n
So you see the common theme: trouble coupled with large equity positions = good private money loan investment.\u00a0 We\u2019re seeing more and more of this kind of thing.<\/p>\n
So remember the private money investor\u2019s credo:\u00a0 Never lend on a property that\u00a0 you wouldn\u2019t buy for the price of the loan AND any property that you would gladly buy for the price of the loan is a loan worth serious consideration.<\/p>\n
— Clay (clay@privatemoneysource.com, 503-476-2909 or 800-971-1858)<\/p>\n
Clay is Vice President of Fairfield Financial, a primary source for private money loans since 1964.\u00a0 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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Clay Sparkman With a double dip real estate depreciation nationwide becoming fact in April, and now with\u00a0 the federal government threatening not to extend government backed financing options large (jumbo) residential loans, this market is hardly getting easier or more predictable.\u00a0 So you might ask, \u201cHow do we get private money loans done in today\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[2,3,5,18,21,30],"tags":[37,39,40,41,42,43,49,50,51,58,59,60,61],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/426"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=426"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/426\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}