Clay Sparkman
It seems that quick flips are becoming quite common again, with the regular small time investor. This is a favorite niche of ours. We particularly like to make these loans happen.
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, 12-13% interest (on most loans), 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. We are presently offering the following program:
Six Month Quick Flip Loan
- Available for quick flip loans (with or without renovation expenses involved)
- 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 2.5 points.
- If the borrower is timely in making his/her payments, there most likely will be an extension offered (but the decision as to whether or not to offer an extension is ultimately at the lender’s discretion). Reasonable progress on the construction work will be a factor.
- No prepayment penalty
We hope you like this program, and we predict that your clients will too. Let us know if we can take a look at a particular project for you.
– 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: auction buying, construction loans, hard money borrowing, hard money brokering, hard money loans, Idaho, Montana, 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
