Clay Sparkman
Summer is just around the corner!
In the Pacific Northwest, that means it is time to play–or for those who are investing in real estate projects, perhaps the reprieve from the rain means that it’s time to get to work on purchase and rehab projects. As much as 80% of the loans that we do are loans to builders, developers, renovators, and quick-flip artists. We have creative funding for all types of projects.
As an example: we had a borrower approach us about obtaining the funds to purchase and rehab three little mill homes in a small town east of Salem. The real estate market in this town has fallen flat and so the borrower was able to tie these properties up for the amazing price of $32,500 each (mind you these are small but respectable little houses). Though his credit was rough (due to some bad breaks with the sale of a business venture), he had an excellent plan for rehabbing and marketing these properties to Salem residents looking for bedroom community tranquility. What’s more, the borrower was able to offer some additional collateral in the form of a second against a small commercial building that he owned and leased for a tidy profit.
We were able to loan him 100% of the purchase money, 100% of his rehab money, and 100% of the closing costs. The loan of $145,000 was closed in less than ten days (well before his purchase agreement expired), and the borrower–though paying a 5% commission and 15% interest–was not particularly concerned about these costs, as he was able to get in and out of the loan in just a few months time; and with no prepayment penalty, he turned a handsome profit on this venture.
These are the types of things that private money was made for. When done right, private money is a win-win-win business (with a few extra wins thrown in on most transactions).
As a broker in a tough market, you should not only be looking for these types of transactions, but you should be going out and getting them. Don’t sit and wait for the business to come to you, go get it!
If you need guidance on how to market private money loans to builders, developers, renovators, and quick-flip artists–give Fairfield Financial a call. That is what we are about. That is what we do. And we can’t do it without you.
— Clay (clay@privatemoneysource.com, 503-476-2909)
Clay is Vice President of Fairfield Financial, a primary source for private money since 1964. Fairfield is currently targeting loans in OR, WA, AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX. To submit a loan to Fairfield for consideration: http://www.privatemoneysource.com/loanproposal.php
Tags: Colorado, commercial lenders, construction loans, hard money borrowing, hard money brokering, hard money loans, Idaho, Las Vegas, Montana, Nevada, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales, Washington
