Fairfield Financial Services, Inc. - Private Money Loans, Lending & Borrowing

The Private Money Broker

Promotion: December new broker special

December 7th, 2018

S. Clay Sparkman

As December typically slows down, we often find ourselves torn between (a) just enjoying the holidays, and (b) keeping the business up and running at an acceptable level. (I’ve been through 24 holiday seasons with Fairfield, and it seems like it is always a challenge figuring out how to strategically approach December.)

This might help some of the brokers out there: We are going to offer a special this month that might help some of you get files off your desk which you don’t know what to do with, and hopefully make a client happy and get a nice payday as well.

Here is how it works:

(1) This promotion is only for brokers who have not closed a loan through us previously. We are interested in forming new relations that may be mutually beneficial for many years to come. (Currently, I would estimate that 70% of our borrowers/brokers are repeat clients or come to us via word of mouth.)

(2) We will only be charging 2.5 points on these promotional loans. As a broker, that gives you more room to make more money on the transaction. (This is the lowest point-price that we have ever offered.)

(3) You must register by simply sending an email to me at clay@privatemoneysource.com with the words “REGISTER DECEMBER PROMO” in the subject line.

(4) The loan must be submitted to Fairfield in December (but not necessarily closed in 2018).

(5) The minimum loan size for this promotion shall be $100,000.

That’s about it. Let me know if you have any questions.

All the best in your endeavors this holiday season, Clay

– Clay Sparkman (clay@privatemoneysource.com, 503-476-2909)

Using a private money option

November 26th, 2018

S. Clay Sparkman
Just about every broker should have a private money option to go to. Here are a few quick tips on how to get that going.
(1)   Find a Lending source that you like and trust. Also, make sure that they will work with you, guiding you through the process AND giving you quick feedback as to loans that you run by them on an ongoing basis.
(2)   Read through their loan specification guidelines and discuss these with them so that you have a decent idea of where private money might be a better option than a bank loan.
(3)   Find out what their sweet spots are. Ask them: Where do you bring options or value that a bank cannot?
(4)   If they want large non-refundable deposits up-front, I suggest that you don’t work with them.
(5)   Whenever a loan comes to you that doesn’t fit your ordinary lending criteria, think about private money. Would this scenario be a good fit?
(6)   If you feel like talking this out a bit with someone in the industry, give us a call. We are a small family business, started in Portland, Oregon in 1964. I myself have been at it for about 25 years, and I’m still learning new things every day.
All the best in your endeavors, Clay
– Clay Sparkman (clay@privatemoneysource.com, 503-476-2909)

Promotion: Quick flip loan special extended through end of 2018

November 7th, 2018

Clay Sparkman
Quick flips, rehabs, temporary acquisition loans, short sales, and bridge loans are among the many short-term loans that we most like to do.
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 prepayment 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) or any other short-term loans
  • 6-month term
  • 10-11% (depending on LTV and down-payment)
  • 2.5 points
  • The option to extend for additional months at a rate of a half-point per month may be offered. 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 consideration. The Borrower must be timely on first 5 payments (paid within the grace period), and not past the balloon date.
  • 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

Sample loan

October 23rd, 2018

Clay Sparkman
Here is an example of a loan that we recently placed. We like to give samples from time to time.  Not only does this give borrowers and brokers a better idea of the kinds of things that we do, but it also gives them a nice working format for presenting new loans.

Kristopher Gillmore

Fairfield Financial Services, Inc

3327 SE 50th St, Portland, OR 97006

Phone (503) 319-7294 / Fax (503) 419-4219 / E-mail: gillmore@privatemoneysource.com

REAL ESTATE PROSPECTUS


SECURED LOAN
Purchase and rehab of Single-family residence in xxxxxx, OR
Loan Details

  1. Loan Amount: $240,000
  2. Term: 1 year
  3. Interest Rate: 11%
  4. Monthly Payments: $2,200 Interest Only
  5. Security:  Deed of Trust in 1st Position security interest in real property located at xxxxxxxxxxxxxxxxxxxxxxxx
  6. Projected Value of property by Borrower’s estimate based on recent comps:  $360-$375,000
  7. Projected LTV by Borrower’s estimate based on recent comps: 64% – 67%

Loan Overview
xxxxxxxxxxxxxxxxxxxx are purchasing this property through their LLC, xxxxxxxxxxxxxx, LLC, and are requesting this loan for the purchase and rehab of the property.  xxxxxxx is an experienced realtor, and she and her husband xxxxxxx are experienced real estate investors.  xxxxxxx is a realtor that I’ve used personally, and I’ve referred her to several of our borrowers and lenders to sell their houses.  In addition, Fairfield has used xxxxxxx for valuations on a number of properties that were used as collateral for our loans. After the renovation, they intend to rent this house for $1,500/month. They will be putting approx. 43,000 down toward this purchase, and 30K will be held back for the renovations.
Eventually, they plan to build a 700sf ADU on site, and rent that out for an additional $1,500/month.  They intend to use their HELOC for the construction funds on the ADU; that would not be a part of this loan.  Ultimately, they plan to refi this property and hold it as a rental.  However, they are prepared to sell the property should they be unable to refi.
Property
The property has a 924sf home with a large shop on approx .1/3 acre.  It is a 2-bedroom, one-bathroom home, and photos of the property have been provided in the packet for your review. The listing can also be viewed here: xxxxxxxxxxxxxxxxxx. The listing can also be viewed in the packet as part of the comps that have been provided by the borrower.
A construction budget has also been provided in the packet.  xxxxxxx and xxxxxxx plan to do as much of this work as possible.  Xxxxxxxx is in the process of getting her General Contractor’s license, and plans to get that prior to building the ADU.  They have also included a resume of relevant experience.

Valuation
xxxxxxx has provided a CMA as well as a written Comp value Analysis explaining the logic used in her valuation. This has been provided in the packet for your review. Ultimately, they estimate the projected value of the property to be in the range of $360,000-$375,000

Income
A Commercial application has been provided by the borrower with both xxxxxxx and xxxxxxx’x financials, as they will be personally guaranteeing the loan.  They report a combined income of $190,899, and a net worth of $513,918.
Credit
The borrowers have also provided their own credit reports, which are included in the packet. xxxxxxx has a mid-credit score of 697, and xxxxxxx has a mid-credit score of 619.  These reports have been provided in the packet for your review.

Promotion: Best promotion we have offered in 54 years

June 5th, 2018

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) or any other short-term loans
  • 6-month term
  • 10-11% (depending on LTV and down-payment)
  • 2.5 points
  • The option to extend for additional months at a rate of a half-point per month may be offered. 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 consideration. The Borrower must be timely on first 5 payments (paid within the grace period), and not past the balloon date.
  • 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

Some interesting real estate and hard money loan articles

May 2nd, 2018

Clay Sparkman
As I go about my way, trying to make sense of real estate markets in various parts of the US and in the US in general AND trying to determine what that means for the private money loan business, I come across articles that I feel are probably share-worthy. In that spirit, I have linked to several articles here which you may find interesting and/or useful
7 Questions to Ask Hard Money Lenders
10 Things I Wish I Had Known Before I Bought a Foreclosure
Seattle-area home-price growth from current boom has surpassed last decade’s bubble
The most profitable ZIP codes in the Triangle for flipping houses
All the best in your endeavors,
– 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

Greatest Promo Offer by Fairfield – Private Money Loans

December 6th, 2017

Clay Sparkman
We at Fairfield would like to run a special loan program to give this holiday season (and the sluggish period typically coming out of it) a kick in the butt. Hey, we can celebrate with our families and friends, and still get a few things setup and ready to go in 2018, right?
Here is how it will work: Starting immediately, we are offering a significant cut in our private money loan rates. Our regular charge for a 12-month bridge, construction or rehab loan (with no prepayment penalty) is generally 4 points and 11%–with the rate dependent on the particulars of the loan.
For the months of December (2017), and January and February (2018), we are offering (via brokers and other third-parties, and directly to borrowers as well) 12-month private money loans (with no prepayment penalty) priced at 4 points and 11%, and with no additional fees (we ordinarily charge three separate loan prep and processing related fees). We will also be giving a one-point rebate fee to the broker or third-party arranging the loan, or to the borrower (if the loan is arranged directly via the borrower). (Also note: Longer terms may be arranged but must be negotiated and will most likely be somewhat more expensive.)
Thus (and this is the best that we have ever offered): the effective rate for these loans will be 3 points and 11% for one year, with no additional fees or prepayment penalties.
The conditions are as follows of this promotion are as follows
(1)   You must register with FFS by sending an e-mail to clay@privatemoneysource.com with “REGISTER PROMO2018” in the subject line and your name, company name, and phone number in the body of the e-mail, no later than 1/15/18.
(2)   You must submit a summary of your loan no later than 1/31/18, and FFS must approve the summary.
(3)   You must submit a complete loan packet, as required by FFS, no later than 2/28/18.
(5)   The loan must close no later than 3/31/18.
Check out our web site for details re our loan criteria, our packaging guidelines, and our process.
www.privatemoneysource.com
I encourage you to sign up and give it a try. The real estate market is up and rising, and we are just now entering the construction season of 2017–one that I expect to be the best we have had in quite some time.
All the best in your endeavors, Clay
– 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

House flipping wisdom worth noting

August 16th, 2017

Clay Sparkman
I try to keep an eye out for good information on the status of property flipping. Here are a few things that I have come across recently.
With regard to the best cities for home flipping (as of May):
The 25 Best Cities for Flipping a House
Taylor Tepper at Money
May 25, 2017
http://time.com/money/4784913/house-flipping-best-25-cities/
Another article of a similar ilk (quite recent).
Richie Bernardo, Senior Writer at WalletHub
2017’s Best Places to Flip a House
August 1, 2017
https://wallethub.com/edu/best-cities-to-flip-houses/23158/
This is a good article from 2016. The ideas are still applicable.
House Flipping in 2017: 5 Tips to Help You Turn a Profit
Nathan Pyles at House Flip Mentor
September 12, 2016
http://www.houseflipmentor.com/house-flipping-tips-for-2017/
And here’s some good information.
Home-Flipping Profits Just Hit An All Time High: These 10 States Offer The Highest Return Potential
by Tyler Durden at Zero Hedge
Mar 17, 2017
http://www.zerohedge.com/news/2017-03-17/home-flipping-profits-just-hit-all-time-high-these-10-states-offer-highest-return-po
Let me know if you have any other indicators that you use. We would like to hear about them.
– 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

Five potentially useful indicators of the likely movement of value

August 9th, 2017

Clay Sparkman
Any good real estate investor should be attempting  to assess whether property values are rising, falling,  or holding in the area of his/her latest potential investment. After all, the core question when buying investment property (particularly short-term) is, “what is value likely to do in the next year or so?” If you sense that values are likely to fall in a certain investment region, you had better take that into account when deciding whether or not to invest, and for how long. And if you decide to invest, given this information (whatever it may lead you to believe), you will be able to better assess your investment risk, potentially reward, and appropriate strategy.
The direction of property values is not an easy thing to predict, but if one really wants to inform themselves with regard to what property values might be doing in the near future, than there are three pretty good things to look at.
But first, what not to count on: If you are looking at whether or not property values are rising, falling or holding today, just remember that this is a trailing indicator. At best it will tell you what is happening now, and even worse, it may be a better indicator of what happened several months ago. Look at this info, but don’t take it very seriously as an indicator of what is going to happen next.
And so, here are five leading indicators that I would recommend you consider:
(1) The rural test: Ask  yourself what property values are doing in rural (or more remote) areas. Those values tend to lead the values of properties in more concentrated areas. So, if you are suddenly witnessing a notable fall in values in rural areas, chances are that other values in the region will follow.
(2) The time-on-market test: Determine what the average time on market is as you assess potential opportunities . For residential properties 3-6 months is fairly normal, and would tend to indicate that values will be holding for awhile. Last time I checked in Portland, the average time on market for residential properties was 1.7. This is a very low number and a very good indicator that values are on the rise.
(3) Look at the ratio of replacement cost to purchase price. If the ratio of replacement cost to purchase price is high, then property values are likely to rise, at least for the near-term future.
(4) Look at the growth rate of a particular area. Portland, Oregon–where we are located–has become a very desirable destination over time, so the growth rate in Oregon just due to people relocating to the state, continued to push prices up for several years after prices in most other states had leveled up. This could have been predicted by looking at a growth-rate curve.
(5) The wild card. This is not a predictor, so much as a red flag. The political situation is such in the USA at this moment in time, that most large markets are weary (stock market, real estate markets, etc). So far, the new administration has seemingly been good for these markets (or certainly not bad), but we may have crossed a line to the point where uncertainty is going to become more and more of a factor in market pricing. so, take this as a general note: Pay attention to what is happening politically, as it may have adverse consequences for economic markets (or even positive consequences in certain markets). As always, we encourage you to keep your investment resources highly diversified, and keep a close eye on the news.
Let me know if you have any other indicators that you use. We would like to hear about them.
– 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

Construction Loan Proposal

July 26th, 2017

Clay Sparkman
We have run this construction loan program on several occasions, and we are so excited about this specific niche that we are going to run a similar promotion in honor and celebration of summer.
As a private money construction lender, we’re able to provide a variety of creative solutions that are just not available via more conventional sources. If the parameters and circumstances are right, we are also able to overlook many issues that might be problematic with more structured lenders. Small to medium construction loans are one of our sweet spots, and we are geared up to make as many as we can this construction season.
Starting immediately, we are offering a significant cut in our construction loan rates. Our regular charge for a 12-month construction loan is 5 points and 10-12%–the rate dependent on the particulars of the loan—but typically 11%.
For the month of July/August/September, we are offering (via brokers and direct to borrowers) 12-month construction loans–for ground up construction priced at 3 points and 10-12% (typically 11% depending on the particulars).
The conditions are as follows of this promotion are as follows
(1)   You must register with FFS by sending an e-mail to clay@privatemoneysource.com with “REGISTER” in the subject line and your name, company name, and phone number in the body of the e-mail, no later than 8/31/17.
(2)   You must submit a summary of your loan no later than 9/7/17, and FFS must approve the summary.
(3)   You must submit a complete loan packet, as required by FFS, no later than 9/15/17, for the loan the same loan for which you submitted a summary in July or August.
(4)   The minimum loan size for this promotion is $200,000.
(5)   The loan must close no later than 9/30/17.
Check out our web site for details re our loan criteria, our packaging guidelines, and our process.
www.privatemoneysource.com
I encourage you to sign up and give it a try. The real estate market is up and rising, and we are just now entering the construction season of 2017–one that I expect to be the best we have had in quite some time.
All the best in your endeavors, Clay
– Clay Sparkman (clay@privatemoneysource.com)
Vice President of Fairfield Financial, lending since 1964.  Currently targeting loans in Oregon and Washington, with potential to loan in:  AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX.  To submit a loan to Fairfield Financial for consideration: http://www.privatemoneysource.com/loanproposal.php