Clay Sparkman
Most likely you have clients who buy distressed properties from time to time–with the intention of making a profit–and need a source of funding to fuel their activities. There are three common ways to buy distressed properties: pre-auction, auction, and post auction (generally referred to as REO). Most investors are forced to buy either pre-auction or REO because they lack either the cash or a mechanism for financing properties in an auction scenario (due to the logistical challenges involved). Pre-auction purchasing is frequently difficult and frustrating due to the high level of competition and the inexperience and often skittish emotional state of the potential seller. REO purchasing is often equally frustrating, as institutions tend to be slow and seemingly irrational in their decision making processes. Seemingly, one of the best ways to buy distressed properties is at auction, and those real estate investors who have a working fund tend to indulge in doing just that. Still, most investors find that from time to time they hit the wall so to speak and are unable, due to temporary cash limitations, to make an attractive buy.
More and more frequently we at Fairfield Financial are being approached by auction buyers wishing to reload their working fund in order to be vigilant and standing ready for the next good opportunity that comes along. We can move quickly to place a loan on one or more of your existing projects (typically we can close in 14 days with solid broker/borrower participation), and with no prepayment penalty you are not locked in; this is consistent with a sensible philosophy of working to turn properties quickly, realizing your profit, and generating further working capital.
Our loan guidelines vary from loan to loan, but generally fall within the limits described below:
Property types
Commercial, business, and investment Properties only: Alaska, California, Colorado, Florida, Idaho, Georgia, Montana, Nevada, New York, Oklahoma, Oregon, Texas, Washington, and Wyoming. (Note: we have temporarily reached our funding allocation in NY and Georgia for this year.)
All property types: Alaska, Nevada, Oregon
Loan Amount: $10,000 to $500,000 presently
Interest rate: 10-15%, depending primarily on credit, LTV ratio, and property inspection
Term of loan: 1-5 years
Amortization: interest only
Loan fee: 5%, but occasionally varies based on particulars of the loan
Other fees: We charge three other fees which vary depending on the size and location of the loan. You can see the fee table for these charges by visiting http://www.privatemoneysource.com/guidelines.php
Prepayment penalties: none
– 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: auction buying, finding lenders, hard money borrowing, hard money brokering, hard money loans, Idaho, Nevada, New York, Oregon, private money borrowing, private money brokering, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales
