Clay Sparkman
This article was originally posted at this site in May of 2013 at this site. Since then, we have seen the number of construction and fix/flip loans that we do increase significantly. This seems to be a sweet spot for the private money market. That is, we are able to fill what would otherwise be a void in the market–and we are happy to do so. Given that, I thought it would be worth posting this piece again.
It is our opinion and the opinion of many others that banks, though they’ve bounced back in certain areas, have not picked up the slack when it comes to funding rehab, construction, and development loans.
I have been on about this before, so I won’t go into great detail here. I think that the following post makes the case pretty effectively.
2013: Think construction loans
Getting down to brass tacks, we feel that this is a great opportunity for those in the private money business. In particular, we at Fairfield see enormous opportunity, in that (a) this need exists in such a desperate way, and (b) we have been funding and servicing such loans for many years—so it is an easy pickup for our company and for the many brokers that we partner with.
If you aren’t already familiar with our programs in these areas, please consider educating yourself further and seeing if there is not an opportunity for you to offer our products to your current and future clients.
With that in mind, I shall point you toward some prior posts that might help you get a handle on the particulars of our lending in these areas.
Here is our Rehab and construction loan FAQ.
This next article focuses more particularly on quick flips: 2013: The year of the quick flip.
Here is a post regarding our Draw process for rehab and construction loans.
And this post tells you how to go about Calculating LTVs for rehab, development, and construction loans.
I’ve always felt that people learn best by example. So with that in mind, here is an example of an actual loan that we placed.
And here
And here
And here
And here
Let me know if you have any questions, or if you think that you’d like to pursue a particular loan proposal.
— 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: California, Commercial loans, construction loans, Florida, hard money borrowing, hard money brokering, hard money loans, Idaho, Las Vegas, Montana, Multifamily, Nevada, New York, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans, REO funding, Short sales, Washington
