Structuring loans
Tuesday, 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 [...]
Tags: broker referrals, Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Multifamily, Oregon, private money borrowing, private money brokering, private money investing, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans
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Thursday, May 5th, 2016
Clay Sparkman
As you know, our sweet spot is for loans to real estate investors. In particular, we do a lot of fix and flip, fix and hold, REO, short sale , and new construction.
I feel that this recent Washington Post article, by Justin Pierce, “The four things you need to know to flip a home.” [...]
Tags: auction buying, bank loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate, real estate investing, real estate rental, rehab loans, REO funding, Short sales, Washington
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Thursday, April 21st, 2016
Clay Sparkman
One of the most promising areas at the moment for real estate investors and brokers, by all indications, is new construction, REO, short sale, rehab, and quick flip properties. The opportunity to buy distressed properties at a low price point is evident in many markets. And yet it is difficult for most end-buyers (with [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, rehab loans, REO funding, Short sales
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Wednesday, November 5th, 2014
Clay Sparkman
This post was first published on this site on July 6th. 2010.
Our private money lending programs tend to be fairly rigid with regard to LTV requirements but quite forgiving with regard to other issues. One of the nice things about private money is that it allows for creative problem solving. [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money loans, Multifamily, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales
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Wednesday, March 26th, 2014
Clay Sparkman
As a follow up to my recent posting (Fairfield Financial – getting to know us), I am posting a similar resource, but one that is dedicated solely to rehab and construction loans. Since this is our sweet spot, I thought it would be appropriate to share this as well.
We work with many real [...]
Tags: Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, rehab loans, REO funding, Short sales, Washington
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Thursday, March 20th, 2014
Clay Sparkman
I am often asked to give potential brokers or borrowers a run-down on Fairfield Financial. What kinds of loans do we do? What is our process? What is our tme-line? what are our terms? That kind of thing. Verbally it takes a good hour to cover all the basics, so we at Fairfield have [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Multifamily, Oregon, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales, subordinate loans, Washington
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Thursday, October 10th, 2013
Clay Sparkman
This article was originally posted at this site in August of 2010. I feel that these essential points are so important for those seeking creative ways to get deals done that I felt I should post it again (I have made some modifications to the original article so as to bring the facts up [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Multifamily, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, rehab loans, REO funding, Short sales, subordinate loans
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Monday, June 17th, 2013
Clay Sparkman
This post was originally published on this site on July 6th. 2010. I feel that the information within is so important to a full understanding of private money flexibility and creativity, that I modified the document, bringing it up to date, and am publishing it here now once again.
Our private money lending programs tend [...]
Tags: commercial lenders, Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, Multifamily, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans, REO funding, Short sales, subordinate loans
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Monday, April 8th, 2013
S. Clay Sparkman
Every now and then I like to present one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that we are placing, and (b) how we feel that loans should be presented. Keep in [...]
Tags: hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, rehab loans
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Wednesday, December 12th, 2012
This article was published in The Scotsman Guide as “2 Private-Money Myths: Debunked” back around the time when the sub-prime market was just beginning to collapse. I thought it might be of interest to some of you on this blog, and so I’m posting a slightly different version here.
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Clay Sparkman
I would like to make [...]
Tags: hard money borrowing, hard money brokering, hard money investing, hard money lending, hard money loans, private money borrowing, private money brokering, private money investing, private money lending, private money loans, trust deed investing
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Monday, September 24th, 2012
Clay Sparkman
(In October of 2011, I posted this item on my Private Money Investor blog. I thought it might be useful to brokers as well—the idea being so that you may (a) see how we present loans to our internal working investors, (b) gain perspective on our entire private money loan process, from start to [...]
Tags: hard money borrowing, hard money brokering, hard money investing, hard money lending, hard money loans, Oregon, private money borrowing, private money brokering, private money investing, private money lending, private money loans, trust deed investing
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Wednesday, May 2nd, 2012
Clay Sparkman
As you all know, sometimes we have to be creative to get loans done in this market. One of the most critical aspects of any loan is the Loan to Value ratio, and there are often options for reducing the LTV to make the deal more attractive.
For purchases, the seller carry back is a [...]
Tags: Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales, subordinate loans
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Monday, March 26th, 2012
Clay Sparkman
In the current climate, it’s getting harder than ever to impress potential lenders with your client’s loan scenarios. It may be that times have changed permanently and that it will be years before lenders return to their pre-2007 comfort level. Until then I thought I would make some suggestions to help you to re-think [...]
Tags: Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales, subordinate loans
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Friday, January 20th, 2012
Clay Sparkman
We thought a quick primer on LTV calculation for projects involving construction would be of use to most of those who utilize or broker private money.
You really need to use two LTVs. We use a Front End LTV (F-LTV) as well as an After Repair Value (ARV) or Final LTV (LTV), when evaluating loans. [...]
Tags: construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental, rehab loans, REO funding, Short sales
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Wednesday, December 28th, 2011
Clay Sparkman
In the spirit of learning by example, I’d like to take the opportunity to describe an interesting scenario that we put together.
They say that when it rains, it pours. Well, for our borrower it had been pouring for a long time. A long run of bad luck had left him in a difficult situation, [...]
Tags: hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, rehab loans
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Tuesday, December 20th, 2011
Clay Sparkman
I would say that as much as 75% of our loans are initiated by third-party loan brokers. We rely heavily on our wholesale broker relationships and dearly value the strong working relationships that we have. As much as we love our relationships with brokers, it is an ongoing challenge to develop new relationships.
Perhaps the [...]
Tags: hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans
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Wednesday, December 14th, 2011
Clay Sparkman
I firmly believe that the best way to learn about anything complex is by doing. The second best way is by example. If I could provide you with a private money loan simulator I would, but I haven’t figured out how to do that yet (though I assure you, we haven’t given up on [...]
Tags: Commercial loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, Oregon, private money borrowing, private money brokering, private money loans
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Monday, October 24th, 2011
Clay Sparkman
Most likely you have clients who buy distressed properties from time to time–with the intention of making a profit–and need a source of funding to fuel their activities. There are three common ways to buy distressed properties: pre-auction, auction, and post auction (generally referred to as REO). Most investors are forced to buy either [...]
Tags: auction buying, finding lenders, hard money borrowing, hard money brokering, hard money loans, Idaho, Nevada, New York, Oregon, private money borrowing, private money brokering, Quick flip loans, real estate rental, rehab loans, REO funding, Short sales
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Thursday, October 20th, 2011
Clay Sparkman
As I pointed out in a previous mailing, our private money lending programs tend to be fairly rigid with regard to LTV requirements, but quite forgiving with regard to other issues. One of the nice things about private money is that it allows for creative problems solving. I have put many transactions together that [...]
Tags: commercial lenders, Commercial loans, construction loans, finding lenders, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate investing, real estate rental
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Sunday, March 6th, 2011
Clay Sparkman
We’ve been through nearly 3 ½ rough years in the real estate market—and projections seem to indicate that we will finally see clear up-turn in the second half of this year, but no one really knows for sure. We have managed to survive this down-time (all who are still present please take a moment [...]
Tags: commercial lenders, Commercial loans, construction loans, hard money borrowing, hard money brokering, hard money loans, private money borrowing, private money brokering, private money loans, Quick flip loans, real estate, real estate investing, real estate rental, rehab loans
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