Clay Sparkman
This has been a tough four years for many of us, so in celebration of the anniversary of the sub-prime collapse, I thought it would be nice to start off by having a little fun. With that in mind, I have prepared a top ten list, Top Ten Ways you Know it Might be Time to Consider Private Money. This is all done for the sake of laughter, so I hope you get that much out of it. It actually tends to reinforce some of the stereotypes that I work hard all year long to dispel regarding private money and private money borrowers. Still – just this one time, I couldn’t resist. Drum roll please…
Top Ten Ways you Know it Might be Time to Consider Private Money
10. The bank asks you to return the promotional pen which they gave you last month.
9. Your neighbor keeps throwing orange peels and egg shells on your house because they think it is a compost pile.
8. You are continually confusing your FICO score with your bowling score.
7. The Account Rep for your favorite lending institution laughs so hard that he suffers a hernia and is rushed off to the hospital before you can finish telling him about your loan request.
6. When figuring your net worth on a 1003, you include as assets: your karma, your winning smile, your exotic house cat Mrs. Buttons, and your $5,000 instructional video course on how to make a million bucks investing in real estate.
5. The bank officer repeatedly refers to your floating home as a “boat”, and insists on using terms like “port” and “bow”, and “thar she blows.”
4. Meth lab shmeth lab! (A true real estate investor doesn’t let minor obstacles stand in her way.)
3. Your down-payment consists of twelve cases of Budweiser empties, an IBM 386 computer, and a Tim Duncan rookie card.
2. Your timeline is so short that you are working on a scheme which involves flying an escrow team westward to the international dateline and closing the deal at 12,000 feet.
1. The land which you hope to borrow against is so raw that it bleeds when you stick a fork in it.
Even though it is likely that none of the above apply to you or your client, private money might still be a good option to consider. In fact, there are many reasons to use private money. Simply put: Institutions do the stuff inside the box (and I’m not sure they do that any more), and we do the stuff outside the box. The banks don’t get on our turf and we don’t go on theirs. We figure that’s a pretty good arrangement.
– 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: Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Multifamily, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans, REO funding, Short sales
