Clay Sparkman
This is a re-post:
As you probably know, we work with a lot of people who are doing quick flip properties/projects. That means: buying low, generally fixing up (though not always), and then selling fast, at a fair price, for a nifty profit.
Until now, we have made many such loans, and we have done so as follows: 5 points, 12-14% interest, a one year term, and with no pre-payment penalties.
Lately we have had borrowers asking if we could offer a 6 month term with a lower up-front cost. The idea being that these folks could get in and out in six months or less—and thus save money on the cost of capital.
Well, we finally have an answer to that. Starting today, we are offering the following program:
Six Month Quick Flip Loan
- Available for quick flip loans (with or without renovation expenses)
- 6 month term
- 3 points
- Option to extend for an additional 6 months is assured if borrower is timely on first 5 payments (paid within the grace period), and not past balloon date)
- The additional extension, if exercised, will cost 3 points.
- If borrower is not timely, there may be an extension offered, but the decision as to whether or not to offer an extension is at the lender’s discretion
- No prepayment penalty
That’s it. Sound good? We hope so. Go out there, offer this new product, and get a piece of the action in the quick flip market that is rapidly unfolding around you. We dub 2013 as the year of the quick flip. I’m guessing you do too.
– 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: hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, rehab loans, REO funding, Short sales
