Clay Sparkman
Generally speaking we are quite willing to consider small loans. We realize that we will never get rich doing small loans, but we also remember what got us where we are. The large loans can be quite fickle, coming and going as they please, but the small loans seem to be there when we all need them the most. The large loans help us buy that new flat screen TV; the small loans put food on the table.
So this week I thought I’d profile a small loan that we closed previously, so as to give you a sense of the kind of thing that I’m talking about here. We had a woman come to us looking to borrow money against a free and clear small commercial condo in Gresham, Oregon. It is a tiny space being leased to a local barber. There were some potential negatives: (1) the borrower didn’t know what the value of her property would be and didn’t have an appraisal, (2) she was looking to pull cash out to use for personal purposes, and (3) the residential portion of the condo had not completely sold after construction of the building and so were being utilized as rentals. Overall though, we liked this loan. The borrowers were basically solid, the property was basically new and attractive, and the tenant had a good track record.
We felt it unreasonable to require a commercial appraisal in order to make a $60,000 loan—so we looked at all the available info: original purchase price, income, and one or two local comps, and were able to settle on a basic opinion of value.
We made the loan: 65% LTV, 13.5%, 3 years, and with no pre-payment penalty or minimum interest—so the borrower would be able to repay as soon as a conventional option became available to her–without taking an additional hit.
Bring us your small loans. We’ll give them close look. We’ll give them a fair chance.
If you would like to discuss private money loans further or run a particular scenario by us, please e-mail him at clay@privatemoneysource.com. Otherwise, if you would like to get a better feel for our company and the types of programs we do, please browse our web site at http://www.privatemoneysource.com.
– 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, finding lenders, hard money borrowing, hard money brokering, hard money loans, Oregon, private money borrowing, private money brokering, private money loans
