Clay Sparkman During the past five years we’ve–most of us who make our money in the real estate market (in one way or another)–had a pretty rough time. Certainly, few of us ever anticipated that we were in for a slump of five+ years. And, of course, there have been the false-starts along the way […]
construction loans
Good news for real estate markets: could this be the actual turn around we've been waiting for?
Monday, November 12th, 2012Hard Money – Not As Expensive As You Think
Wednesday, August 22nd, 2012Clay Sparkman We’ve had a lot of developers call us over the years to talk about construction loans for single-family homes (or fix and flip type properties). They’ve traditionally gone through banks and have enjoyed rates as low as 7% for their projects. However, these days, some of those banking relationships aren’t there anymore, so […]
Calculating LTVs for rehab, development, and construction loans
Friday, January 20th, 2012Clay Sparkman We thought a quick primer on LTV calculation for projects involving construction would be of use to most of those who utilize or broker private money. You really need to use two LTVs. We use a Front End LTV (F-LTV) as well as an After Repair Value (ARV) or Final LTV (LTV), when […]
Private money – getting from point A to point D
Wednesday, December 28th, 2011Clay Sparkman In the spirit of learning by example, I’d like to take the opportunity to describe an interesting scenario that we put together. They say that when it rains, it pours. Well, for our borrower it had been pouring for a long time. A long run of bad luck had left him in a […]
On the art of handcrafting loans
Thursday, October 20th, 2011Clay Sparkman As I pointed out in a previous mailing, our private money lending programs tend to be fairly rigid with regard to LTV requirements, but quite forgiving with regard to other issues. One of the nice things about private money is that it allows for creative problems solving. I have put many transactions together […]
