Clay Sparkman
Here is an example of a loan that we recently placed. We like to give samples from time to time. Not only does this give borrowers and brokers a better idea of the kinds of things that we do, but it also gives them a nice working template for presenting a loan.
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
REAL ESTATE PROSPECTUS
SECURED LOAN
Cash out Refi on SFR in Mulino, OR
Loan Details
- Loan Amount: $150,000
- Term: 12 Months
- Interest Rate: 10%
- Monthly Payments: $1,375.00 Interest Only on 15152 Union Mills, Mulino, OR 97042
- 3 Month minimum interest guarantee
- Security: Deed of Trust in 1st Position security interest on 15151
- Current value by Borrower’s opinion based on CMA: $567,390
- Projected LTV by Borrower’s opinion based on CMA: 26%
Loan Overview
xxx bought the subject property lot for $65,000 with cash out of pocket, and built a spec house with an approximate cost of $350,000, all with his own cash.
Currently, xxx is under contract to purchase another house that he intends to rehab and sell. The cost of that house (which will not be collateral on this loan) is $165,000, which xxx is able to cover, but he would have no funds remaining to rehab the house. The purpose of this loan is to provide cash to the borrower so that he will have the funds to renovate that house.
Property
The subject property is 3,300 square feet (the borrower reported 3,300 but the CMA reports 3,000 which was an estimate when the report was done 6 months ago) and sits on .95 acres. There are 4 bedrooms and 3 bathrooms. Currently, The property is approximately 95% complete, needing only the final electrical and Plumbing inspection before he can get a certificate of occupancy. A few photos have been provided by the borrower, but we will be doing a property inspection to take a more comprehensive set. Those photos will be provided after the inspection (early next week).
Valuation
The borrower’s realtor has provided a CMA for a suggested list price $567,390 based on a $/SF of $189/SF. However, this shows a square footage of 3,000 and the borrower reports that it’s actually around 3,300. The borrower believes that the home should sell for approx. $600,000, but for the purposes of this report we’ll go with the lower realtor estimate. The CMA has been provided in the packet for your review.
Income
A 1003 has been provided by the borrower. xxx owns XYZ Coin and Jewelry, and takes a monthly draw of $1,800 and $12,000 each quarter from another company that he owns. He reports having no debt, and approximately 1,150,000 in real estate.
Credit
xxx has a mid-credit score of 727. Aside from a credit card with a $252 balance, xxx has no debt or any history of a loan. He did tell me that this is the 1st loan he’s ever gotten in his life.
Check out our web site for details re our loan criteria, our packaging guidelines, and our process.
www.privatemoneysource.com
I encourage you to sign up and give it a try. The real estate market is up and rising, and we are just now entering the construction season of 2017–one that I expect to be the best we have had in quite some time.
All the best in your endeavors, Clay
– Clay (clay@privatemoneysource.com)
Vice President of Fairfield Financial, lending since 1964. Currently targeting loans in Oregon and Washington, with potential to loan in: AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX. To submit a loan to Fairfield Financial for consideration: http://www.privatemoneysource.com/loanproposal.php
Tags: construction loans, hard money borrowing, hard money brokering, hard money investing, hard money lending, hard money loans, Oregon, private money borrowing, private money brokering, private money investing, private money lending, private money loans, real estate investing
