{"id":248,"date":"2011-02-28T14:39:28","date_gmt":"2011-02-28T21:39:28","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=248"},"modified":"2011-02-28T14:39:28","modified_gmt":"2011-02-28T21:39:28","slug":"how-to-communicate-your-deals-2","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=248","title":{"rendered":"How to communicate your deals"},"content":{"rendered":"

S. Clay Sparkman and Richard Sundvall<\/em>
\nThere are certain key pieces of information that we need to know when we\u2019re sizing up a deal.\u00a0 Having this information when you contact us can speed up the process considerably.\u00a0 Also, if you have these pieces in hand you can talk about your deal more clearly and present yourself as someone who is professional.\u00a0 Because of the way we work at Fairfield, all of the pieces here are necessary to complete the picture of a scenario in order to get you and your clients a quote on a loan quickly.
\nThis is important: don\u2019t send us everything you have on a scenario and expect us to find the loan in a sea of documents. Sending too much information can overload us quite quickly.\u00a0 We would prefer the basics of the scenario before turning on the document hose.\u00a0 Also, please, never send us your borrower\u2019s personal information unsolicited.
\nDescription of the property<\/strong>
\nWe need to know where it is, what it is, the size and its status.\u00a0 If it\u2019s land, we\u2019ll need to know the zoning and its access to utilities.\u00a0 As an equity lender, we\u2019re all about the property.\u00a0 This will form the basis of our loan.
\nDescription of the Project<\/strong>
\nYou need to be able to tell us what the borrowers plans are for the property.\u00a0 Be prepared to talk about the strengths as well as the weaknesses.\u00a0 You can also give us some perspective by talking about the area around the property and how the borrower\u2019s project compares to other projects that are similar nearby.
\nLoan Amount Requested and Use of Funds<\/strong>
\nWhen you do a rough calculation of loan amount, let us know if your amount is the net amount you need after fees or if you are giving us an amount that includes fees. Also, tell us how the funds will be used.
\n‘As-Is’ Value of the subject property<\/strong>
\nThis is a critical value for us.\u00a0 Even more so than a future value.\u00a0 It\u2019s the first step in making sure the loan works. We base our Front End LTV on this number (pay off plus loan fees divided by \u2018as-is\u2019 value is the formula).\u00a0 Our loans are critically dependent on this value.\u00a0 Also be able to tell us how you derived this number.
\nFuture Value<\/strong>
\nThis is also the finished value or after repair value.\u00a0 Again, be able to tell us how you derived this number.
\nPay Off Amounts or Purchase Price Due<\/strong>
\nWe\u2019ll need to know the balance of any loans that need to be paid off.\u00a0 If the loan involves a purchase, refer to the Purchase Agreement to give us the price AND the expiration of the agreement (which is important to determine if we have enough time to close or not).
\nConstruction Budget (if applicable)<\/strong>
\nThis is a line item listing of all the expenses required to complete any construction on a project.\u00a0 This should include soft costs.
\nInterest Reserve Amount if Requested<\/strong>
\nObviously, since you won\u2019t know the actual rate prior to a quote, you can estimate the amount here or just state how many months your borrower is requesting.
\nRequested Term<\/strong>
\nGenerally our loans are for one year to three years.
\nStatement of Exit Strategy<\/strong>
\nExit is also critical to hard money loans. It is important to us that you have a clear way out of the loan and it\u2019s even more effective if the strategy contains multiple contingencies.\u00a0 For example, if you state the exit strategy is sales, then also tell us what will the borrower do if there are no sales.
\nNumber of Points for Brokers<\/strong>
\nLet us know how many points you are adding for yourself and your referring entities (if there are any).
\nBorrowers stated income per month, stated net worth and mid FICO score<\/strong>
\nThese items are necessary for a quote.
\nThese dozen items may seem like a long list, but each will only take a line or two to answer.\u00a0 We know it\u2019s difficult to pare down the amount of information an enthusiastic borrower can bestow upon you.\u00a0 Borrowers usually know volumes about their deals.\u00a0 Breaking it down to these essential items will give us the picture simply and clearly.\u00a0 It will also allow us to tell you quickly whether on not it\u2019s a loan we can do and at what price.<\/p>\n

— Clay (clay@privatemoneysource.com, 503-476-2909)<\/p>\n

Clay is Vice President of Fairfield Financial, a primary source for private money since 1964.\u00a0 Fairfield is currently targeting loans in OR, WA, AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX.\u00a0 To submit a loan to Fairfield for consideration: <\/em>http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

S. Clay Sparkman and Richard Sundvall There are certain key pieces of information that we need to know when we\u2019re sizing up a deal.\u00a0 Having this information when you contact us can speed up the process considerably.\u00a0 Also, if you have these pieces in hand you can talk about your deal more clearly and present […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[4,8,19],"tags":[37,38,42,43,46,50,54,55,58,59,60,62,63,66],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/248"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=248"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/248\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}