Clay Sparkman
Do you believe that there is really no such thing as a free lunch? We at Fairfield feel that we have something that comes pretty close. Just for being in the right place at the right time, mortgage professionals can earn a pretty handsome little fee. Think about referring loans to us, when appropriate, rather than brokering them all the way through. It is quite a painless process. Here’s how it works:
(1) As a representative for a licensed mortgage brokerage, you receive a lead for a loan that doesn’t fit into the context of what your company ordinarily chooses to broker. Still, you suspect that it might be a good fit for a private money lender. You e-mail or call us and tell us a little bit about the loan and advise us that you’d like to handle the loan as a referral. (You can also use the online submission mechanism on our website.)
(2) We say whether or not it fits our parameters, and if it does, you go to step #3.
(3) You ask the borrower to contact us.
(4) We work directly with the borrower to determine if this is a loan that we are able to fund. If we fund it, we will pay 1% of the gross amount of the loan to your company at closing. Plus–and this is the clincher–we’ll buy you lunch!
So keep an eye out for the following types of loans and have yourself a free lunch.
Commercial Property – we make loans on commercial properties of all types, including office buildings, retail buildings, mixed use, restaurants, taverns, motels, car lots, gas stations, mini-storage, malls, industrial properties, and multi-family residential. 70% is generally our maximum.
Renovation – we have strong ongoing relationships with many investors who buy fix-up properties and re-sell them. We can generally loan up to 70% of the projected value of a project. Generally we arrange for the financing of the renovation money as well. This is a large niche for us, and one of our preferred loan types.
REO (and other under-market) Property Acquisition – we have had a number of borrowers come to us in search of financing to purchase REO properties. We can generally loan up to 70% of the current value of a project.
Raw Land – we will lend on raw land (i.e., land without infrastructure/utilities) that qualifies as build able. This includes both commercial and residential zoning, urban and rural, and anything from 2,500 square feet to 5,000 acres. With a strong borrower and a good property we will consider loaning as much as 50% of the value. This is pretty much unprecedented in the industry.
Lots and Acreage with Utilities – though the banks seem to be hesitant about loaning on developed land (lots or acreage), we are generally eager to do this type of loan. Our maximum LTV on developed land is 70%.
Construction – we tailor our construction loan programs to meet individual contractor needs. Though more expensive than traditional bank financing, we are more flexible regarding many issues, and have had many contractors return to utilize our construction loan services repeatedly. Our maximum LTV for construction is 70% of the value of the completed project.
Floating Homes – the Vice President of Fairfield Financial (that’s me) lived on a floating home on the Multnomah Channel for eight years, and was very much a part of that community. We understand the unique issues related to borrowing either to refinance or purchase a floating home. We have loaned money on floating homes that don’t fit the bank’s strict criteria, and we have frequently loaned money for the upgrade or expansion of an existing floating home. Our maximum LTV for floating homes is 70%.
Manufactured Homes – on private land – we are not terribly concerned about the year or model, or whether the home is a single-wide or double-wide. We look at the whole package, home and land, and if the value is there, we can make the loan. Our maximum LTV on manufactured home/land packages is 70%.
Seconds on Investment and Commercial Properties – these are generally short-term scenarios, ranging from six months to one year. The loan must be for at least $50,000 in Oregon (due to a certain Oregon usury law), and the maximum CLTV is 50%.
Foreclosure Bailout – if there is a good explanation as to why the foreclosure situation occurred and what has changed to remedy the problem (and if the LTV does not exceed 60%) we are frequently able to refinance properties out of foreclosure.
Cash-out Refinances – frequently our borrowers will refinance a property with the intention of pulling cash out. This cash might be used to consolidate bills or to initiate some sort of a project. We can loan up to 70% LTV on cash-out refinances.
– 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: broker referrals, hard money brokering, hard money loans, private money brokering, private money loans
