{"id":553,"date":"2012-12-04T13:09:59","date_gmt":"2012-12-04T20:09:59","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=553"},"modified":"2012-12-04T13:09:59","modified_gmt":"2012-12-04T20:09:59","slug":"the-kinds-of-things-we-are-doing-an-example","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=553","title":{"rendered":"The kinds of things we are doing – an example"},"content":{"rendered":"

Clay Sparkman<\/em>
\nFrom time to time, I like to publish the prospectus for a loan that we have placed. I do this for two reasons. One: so you can get an idea of the kinds of loans that we do, and two: so you can see how a nice tight loan presentation should look.
\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. So here you go. If this reminds you of any loans currently sitting on your desk, consider getting in touch with us. We may be able to assist.<\/p>\n

Kristopher Gillmore<\/p>\n

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

16055 SW Walker Road, #247, Beaverton OR 97006<\/p>\n

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

<\/span><\/strong><\/p>\n

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

<\/span><\/strong>
\nSECURED LOAN<\/span><\/strong>
\nCash out refi of property in Pacific City, OR
\nLoan Details<\/span><\/strong><\/p>\n

    \n
  1. Loan Amount: $320,000<\/li>\n
  2. Term: 36 Months<\/li>\n
  3. Interest Rate: 12%<\/li>\n
  4. Monthly Payments: $3,200.00 \u00a0Interest Only<\/li>\n
  5. Security:\u00a0 Deed of Trust in 1st Position security interest in real property at xxx, Pacific City, OR<\/li>\n
  6. Value by Borrower CMA:\u00a0 $637,175<\/li>\n
  7. LTV based on Borrower CMA:\u00a0 50%<\/li>\n<\/ol>\n

    Loan Overview<\/span><\/strong>
    \nxxx, LLC purchased the subject property in 2006 for $780,000.\u00a0 Currently, they owe approx. $150,000 on the property, and they are looking for cash out refi of $320,000 to provide funds for a subdivision project in California.
    \nSince the purchase of the property in 2006, the following improvements (xxx \u2013 managing member of yyy, LLC) have been made:
    \n“We newly painted the entire interior and applied oil based preservative on the exterior shingle siding.\u00a0 We widened the concrete driveway 3′ and perimeter house walkways 1′.\u00a0 We installed new granite kitchen counters and all new appliances.\u00a0 We installed all new custom blinds throughout the house, as well as new light fixtures in the dining area.\u00a0 We installed new carpet throughout the house.\u00a0 We installed a new Master Bath shower with custom tile & glass block from Germany, and a new shower head.\u00a0 Finally, we installed a comprehensive security system.\u00a0 The total cost was $45,000+\/-.”
    \nCurrently, the property is only used as a 2nd<\/sup> \/ vacation home by the borrower.\u00a0 It is not being rented out, although the borrower believes that it could be rented out for a min. of $300\/night or $36,000\/year (based on occupancy 1\/3 of the year) as a vacation rental.
    \nTo exit this loan, the borrower has stated 2 options.\u00a0 For the first option, the loan would be paid back from the proceeds of the sub development project, which xxx believes will come to fruition in the next 12-18 months.\u00a0 The other option would be through the sale of this property, or another property that he owns.
    \nProperty \/ Valuation<\/span><\/strong>
    \nThe property is a 4 bedroom, 3 bath home of 2,317sf.\u00a0 It sits on .11 acres, and is reported by the borrower to be the best location in Shorepine Village, at the base of the beach ramp with no houses between it and the ocean.
    \nTo estimate the value of this property, a CMA has been provided by xxx.\u00a0 It should be noted that the comps used in the CMA are all active listings<\/strong>.\u00a0 A search on Zillow.com     http:\/\/www.zillow.com\/homes\/comps\/62823756_zpid\/<\/a> was performed showing all the sales of public record in this area, although there is a tremendous difference in the $\/SF of these sold properties.\u00a0 There are not many sold houses with a comparable location with regard to an open view of the beach.\u00a0 There is however on sale on record a few doors down for $171,000, which is just under $100\/sf.\u00a0 Compared to the other sales and active listings in the neighborhood, this number seems abnormally low.
    \nIncome<\/span><\/strong>
    \nA signed 1003 has been provided by xxx, stating a monthly income of $13,500.\u00a0 He states total assets of $3,349,175 and a net worth of $2,918,143.
    \nCredit<\/span><\/strong>
    \nA recent credit report has been provided showing scores of 678, 698, and 728.\u00a0 There is 1 30 day late payment reported on a Shell Citibank card that occurred over 2 years ago, but otherwise his credit history is perfect.
    \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 From time to time, I like to publish the prospectus for a loan that we have placed. I do this for two reasons. One: so you can get an idea of the kinds of loans that we do, and two: so you can see how a nice tight loan presentation should look. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[14,15,26],"tags":[37,38,39,42,43,46,53,54,55,58,61,62],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/553"}],"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=553"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/553\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}