{"id":522,"date":"2012-09-24T11:36:37","date_gmt":"2012-09-24T18:36:37","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=522"},"modified":"2012-09-24T11:36:37","modified_gmt":"2012-09-24T18:36:37","slug":"a-private-money-loan-prospectus-hood-canal-washington","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=522","title":{"rendered":"A private money loan prospectus \u2013 Hood Canal, Washington"},"content":{"rendered":"

Clay Sparkman<\/em>
\n(In October of 2011, I posted this item on my Private Money Investor blog<\/a>. I thought it might be useful to brokers as well\u2014the 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 finish (we pride ourselves in being 100% transparent with regard to all parts of our process, and (c) get a better idea of how you, as a broker, might want to present working summaries of loans that you are working on. This is the nitty gritty of it\u2014where the rubber meets the road. This is the heart of what we need to know conceptually in order to make a decision and move toward a quote on your loan.)
\nFrom time to time, I post a prospectus for a loan that we are currently in the process of placing. This serves three purposes: (1) It gives readers a window into the kinds of loans that we are placing, (2) It provides an example of how are loans are initially presented, and (3) It gives investors the opportunity to inquire about the investment if they are interested in doing so.
\nThe prospectus, which is shown here, is the high-level presentation, or executive summary, of the loan.\u00a0 Having read the prospectus you should have a pretty good idea what the loan\/borrower\/project is all about and what this loan looks like as a potential investment.
\nWhen an investor wishes to fully evaluate a loan investment, we send a full packet in Adobe Acrobat format (generally between 50 and 200 pages) password protected, and with all backup documentation to support and inform the investor in detail regarding the known relevant particulars of the loan.
\nPlease note that this prospectus has been redacted (name and address info) since it is being broadly distributed. If a particular investors is interested in evaluating a loan, then of course the presentation is not redacted.
\nIf you are interested in discussing private money loans in general or this one in particular, you may contact me at sparkman@lendicom.com or Kris Gillmore, who is coordinating this loan, at 503-319-7294, or gillmore@privatemoneysource.com.<\/p>\n

Kristopher Gillmore<\/p>\n

Fairfield Financial Services, Inc<\/strong><\/p>\n

3327 SE 50th St, Portland, OR 9706<\/p>\n

Phone (503) 319-7294 \/ Fax (503) 419-4219 \/ E-mail: gillmore@privatemoneysource.com<\/a><\/p>\n

REAL ESTATE PROSPECTUS<\/span><\/strong><\/p>\n

SECURED LOAN<\/span><\/strong>
\nCash out refi of SFR in Tahuya, WA
\nLoan Details<\/span><\/strong><\/p>\n

    \n
  1. Loan Amount: $200,000<\/li>\n
  2. Term: 36 Months<\/li>\n
  3. 6 months minimum interest<\/li>\n
  4. Interest Rate: 13%<\/li>\n
  5. Monthly Payments: $2,166.67 \u00a0Interest Only<\/li>\n
  6. Security:\u00a0 Deed of Trust in 1st Position security interest in real property at XXXXXXXXXX, Tahuya, WA 98588<\/li>\n
  7. Current Value by Appraisal:\u00a0 $390,000<\/li>\n
  8. LTV based on Appraisal:\u00a0 51%<\/li>\n<\/ol>\n

    Loan Overview<\/span><\/strong>
    \nMr. xxx is the owner and president of a software development company, YYY, Inc.\u00a0 Beginning in 2002, both the company and Mr. XXX\u2019s family experienced some setbacks which would ultimately put him behind on his payroll taxes.\u00a0 Mr. XXX\u2019s attorney is ready to file the taxes, but they are waiting for the funds before they file.\u00a0 The estimated cost of the payroll taxes is $137,000 + interest. \u00a0A detailed letter of explanation has been provided.
    \nIn 2010, Mr. XXX\u2019s mother in law passed away, leaving the free and clear (minus 2009-2011 property taxes) subject property to Mr. XXX and his wife Mrs. XXX.\u00a0 The borrowers have requested this loan to pay the back payroll taxes.\u00a0 The borrowers have a great emotional attachment to this house, so their intent is to keep this property as a vacation home and exit this loan with a conventional refi.\u00a0 If the payments are too much to handle, they would then consider renting the property.\u00a0 As a 3rd<\/sup> option, if they are unable to refi and\/or find a suitable tenant they would sell the property to exit this loan.
    \nProperty<\/span><\/strong>
    \nThe Subject property is a 2 story 2,321sf house located on the Hood Canal in Tahuya, WA.\u00a0 There are 3 bedrooms, 3 baths, and the house sits on a .15 acre lot.\u00a0 Photos and more details of the property can be found in the appraisal that has been provided for your review.
    \nValuation<\/span><\/strong>
    \nA recent appraisal with an inspection date of May 31, 2011 has been provided.\u00a0 Four comps were used by the appraiser to value this property, leading to a suggested value of $390,000.\u00a0 There is a large range in the date of these sales, and the appraiser does make adjustments to the price given the declining market.\u00a0 A search of Zillow.com shows a number of houses (of reasonably comparable size) for sale in this area ranging from $310,000 to $795,000.\u00a0 Given the decrease from original list prices on the higher priced homes on the appraisal, and the overall feel of the market right now, $390,000 seems to be a reasonably conservative estimate of value.
    \nIncome<\/span><\/strong>
    \nMr. XXX states a monthly income of $8,180 and Mrs. XXX states a monthly income of $5,000.\u00a0 In addition, Mr. XXX sold a portion of his business and has been receiving monthly payments of $5,000.\u00a0 There is a balloon due on May 1, 2012, in which Mr. XXX should receive approx. $100,000.\u00a0 A copy of this note has been provided.\u00a0 \u00a0Mr. XXX and Mrs. XXX state a combined a net worth of $341,402.\u00a0 A 1003 has been provided for your review.
    \nCredit<\/span><\/strong>
    \nA recent credit report has been provided showing scores of 655, 627, and 644 for Mr. XXX, and scores of 686, 698, and 705 for Mrs. XXX.\u00a0 Please note \u2013 there are red flags on this report with regard to the SSN entered for Mrs. XXX.\u00a0 When this credit report was pulled, 6124 was incorrectly entered as the last 4 digits of Mrs. XXX\u2019s SSN, when it should have been 5124.
    \n\u2013 Clay (clay@privatemoneysource.com, 503-476-2909)
    \nClay 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>    http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    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\u2014the 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[9,12,14,15,25,26,1],"tags":[42,43,44,45,46,53,54,55,56,57,58,67],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/522"}],"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=522"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/522\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}