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

A private money loan offering

Clay Sparkman

We are in the process of placing a loan that I really like. We have worked with these borrowers in the past and they have been excellent in both payment and performance.

It has to happen pretty fast (by 9/20, a week from Thursday), and we will most likely place it as a fractional loan (though there is the possibility that–given the tight time frame–we would elect to place it with a single lender.

The prospectus is included below that so you can have a quick fly-over. Is this something that you would consider pursuing?

Let me know. I have a full packet ready to go, and can send it out for you to review, right away, if you have a serious interest.

Kris Gillmore

Fairfield Financial Services, Inc

3327 SE 50th, Portland OR 97206

Phone 503-319-7294, e-mail: gillmore@privatemoneysource.com



A cash out refi of eight bungalow vacation rentals in a popular coastal town in Washington State—both a tourist destination and a desirable community

Loan Details

  1. Loan Amount: $670,000
  2. Term: 3-5 years
  3. Requested Interest Rate: 12%
  4. Security:  Deed of Trust in 1st Position security interest in real property at XXX, WA, 98569
  5. Value by Borrower estimate/comps:  $960,000 – 1,032,000
  6. LTV by Borrower estimate/comps:  65 – 70%

Loan Overview

YYY and ZZZ are a successful Realtor/Builder husband and wife team.  XXX is a prominent realtor in the town in which the property is located, as well as the owner/manager of a property management company.  YYY is a licensed contractor and skilled home builder specializing in small high end homes/cottages.

XXX and YYY took out a private money construction loan in 2011 in order to build eight small bungalows intended for individual sale.  The commercial zoning of the property allows for these bungalows to be used as residences or vacation rentals.  More recently, upon consideration of the potential rental income, they have decided to keep these units as rentals.

Their initial lender has agreed to extend, but only as a rate and term refinance.  They would prefer to pull some cash out for addition furnishings and funds to market the rentals and would prefer a longer term.  Ideally they’d be looking for a loan of 3-5 years, and will exit the loan with a long term conventional refinance of the property. (It should be noted that they have an alternate back-up plan of selling individual units, should their primary exit strategy fail them.)  The loan would be held under their company, QQQ, LLC, with personal guarantees by both XXX and YYY.

Borrower History

This will be our 3rd loan with XXX and YYY.  The two previous loans were both for the construction of small cottages, relatively similar to the subject property.  Their performance with regard to the construction was excellent, as was their pay history.  They exited both these loans with the sale of the properties as planned, with prices on par with their initial projections of value.


Each of the eight units are 432 square feet, with one bedroom, one bath, and loft space that will sleep four people.  They are new construction (with construction beginning at the end of 2011) with a total cost of $755,000 (including soft costs).  Photos and additional descriptions of the property may be viewed on their website at: www.AAA.


XXX has provided several comps, mainly consisting of property that they have built and sold themselves, as well as one additional commercial zoned property on BBB Dr.  She believes that these units could sell at $120,000 each.  (Note: on her 1003, XXX lists the value of these units at 1,032,000, which is slightly higher than the estimate of $120,000 each, or $960,000 total.)

XXX has also commented that their units have always sold for a higher price per square foot than other new construction in the area due to the quality of the construction and components, and she expects the same for these.  Also note that smaller property tends to sell for a high price/square foot than larger property, and with the efficient layout and detailed high quality of construction plus the commercial zoning, these units should be able to be sold at a premium.

Currently, these units are listed for sale at $150,000.  XXX has stated that they are not doing much to market the sale of these properties as they intend to keep them as long term rentals, but at this price point, they would consider selling.  They have made it clear that they would not want to sell any of the properties for much less than $150,000.

Rental Income

Five of the eight units have been available for rent beginning in June.  A detailed breakdown of the rental income from June – August 26th has been provided showing a gross income of $46,343.  XXX has provided the following comments regarding this income:

“Please note that not all units were in service the entire time.  We started with Bungalow 1 in June and added 2, 4 &5 by July 4th.  We then added 6 & 7 and then finally, 8.  We are still working on 3 as it is the ADA unit and is modified so we need to furnish slightly differently.  We hope to have three up and running shortly.

As you can see, the income is pretty good even with our late start, and we are also starting to see reservations start coming in for the fall which is promising for our slower season.”

They anticipate that they can reach 50% occupancy within a year, at which point the property should generate approx. $140,000+/year.  Because they own their own property management company and YYY is able to perform all the maintenance (which should be minimal as this is new construction), expenses will be minimal.

Financial Status

Fairfield was provided with a 1003 for XXX and YYY, who will be personally guarantying the loan.  They state a monthly income of $33,133 and a net worth of $1,313,609.  In addition to the 1003, they have also provided a chart of their liabilities and real estate owned.  These items have been provided and are bookmarked separately in the packet.


XXX and YYY both have fairly consistent credit scores in the mid to upper 600’s.  Their credit payment history is excellent, with the exception of one 30 day late payment that they are disputing.  The loan in which that late payment allegedly occurred has been paid in full.  A credit report has been provided as a separate attachment.

- 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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