{"id":478,"date":"2012-05-02T12:31:55","date_gmt":"2012-05-02T19:31:55","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=478"},"modified":"2012-05-02T12:31:55","modified_gmt":"2012-05-02T19:31:55","slug":"creative-funding","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=478","title":{"rendered":"Creative Funding"},"content":{"rendered":"<p><em>Clay Sparkman<\/em><strong><br \/>\n<\/strong><br \/>\nAs 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.<br \/>\nFor purchases, the seller carry back is a great strategy. We all know that it\u2019s a buyer&#8217;s market, so a motivated seller is going to have to really entice those buyers. In some instances, the seller will simply accept that the market demands a lower price. However, under the right circumstances, the seller could be willing to carry back 20% of the purchase price as a note in 2nd position. This opens up a lot more financing options.<br \/>\nSometimes if a deal is close, but just a little high on the LTV, brokers will allow us to hold their fees in one of our client trust accounts until certain conditions are met. With riskier development loans, it can make a big difference to the lender if that LTV is a few points lower. By carrying fees in this manner, it gives the lender additional security if the deal goes bad. If the broker is confident in the project, and has the ability to hold off on those fees, it can sometimes make the difference between a pass and an approval to fund.<br \/>\nAnother option is to cross collateralize an additional property. If the borrower is able, putting up an additional property can potentially lower the LTV. At the very least, it will add security to the loan, and show the lender an increased level of commitment by putting more skin in the game.<br \/>\nIf you have a loan that might fit with these parameters, please   e-mail me at     clay@privatemoneysource.com or submit by entering a   brief summary at <a href=\"http:\/\/www.privatemoneysource.com\/loanproposal.php\">http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a>.   Otherwise, if you would like to get a     better feel for our company   and the types of programs we do, please     browse our web site at <a href=\"http:\/\/www.privatemoneysource.com\/\">http:\/\/www.privatemoneysource.com<\/a>.<br \/>\n\u2013 Clay (clay@privatemoneysource.com, 503-476-2909)<br \/>\n<em>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, but is able to  source loans nationwide. To    submit  a     loan to    Fairfield  for        consideration: <\/em><a href=\"http:\/\/www.privatemoneysource.com\/loanproposal.php\">http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[25],"tags":[37,38,42,43,46,54,55,58,59,62,63,64,65,66],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/478"}],"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=478"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/478\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}