{"id":591,"date":"2013-01-23T16:45:23","date_gmt":"2013-01-23T23:45:23","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=591"},"modified":"2013-01-23T16:45:23","modified_gmt":"2013-01-23T23:45:23","slug":"2013-the-year-of-the-quick-flip","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=591","title":{"rendered":"2013 – The year of the quick flip"},"content":{"rendered":"

Kris Gillmore and Clay Sparkman<\/em>
\nOver the past five years we’ve all watched real estate prices come crashing down, in many cases forcing lenders to foreclose and take back the property.\u00a0Although this is a sad misfortune for some, it is a tremendous opportunity for others.\u00a0With regard to quick-flip investment property, we have always been of the opinion that the profit is in the purchase, not in the renovation or sale.\u00a0 And now, more than ever, banks are willing to unload their inventory at a discount below market value.
\nAs you know from previous posts, Fairfield Financial is laser focused on doing these types of loans.\u00a0Here are some guidelines for what we\u2019re looking for and what we\u2019re generally able to fund.
\n65-70% of the ARV – Depending on the area and the strength of the borrower, 65% LTV is our target (including fees), but for a very strong loan we can often get to 70% LTV. We hold construction funds in an escrow account, which enables us to loan based on the ARV, as opposed to the purchase price.
\nLoan Size – Right now our sweet spot is in the $150,000 – $250,000 range, although we’ll consider loans from $50,000 – $750,000.
\n100% Financing – We can finance 100% of the acquisition and rehab costs, assuming that the LTV is appropriate.
\nDown Payment – We do require that the borrower have some skin in the game for at least the first few loans. Generally speaking, this amount can be as little as 5% down, but the down payment is really determined on a case by case basis, depending on the property and the strength of the borrower.
\nSecondary collateral – If a down payment isn’t feasible, we can always consider the use of a second property as collateral. This is another way to put some skin in the game.
\nTerm \u2013 Typically, these are 12 month deals with no prepayment penalty.\u00a0Multifamily rental properties can go up to five years, but this too is determined on a case by case basis.
\nExit Strategy \u2013 As always, this is critical. We’re looking for borrowers with a solid working plan and a clear and likely exit strategy.
\nKnowledge of local market \u2013 This goes hand in hand with the exit strategy. We want to be sure that our borrowers are familiar with the current market trends, and that their plan is consistent with local market activity.
\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.\u00a0 To submit a loan to Fairfield for consideration: <\/em>http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Kris Gillmore and Clay Sparkman Over the past five years we’ve all watched real estate prices come crashing down, in many cases forcing lenders to foreclose and take back the property.\u00a0Although this is a sad misfortune for some, it is a tremendous opportunity for others.\u00a0With regard to quick-flip investment property, we have always been of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[5,13,15,19,21,23,24],"tags":[31,38,42,43,46,50,54,55,58,59,61,62,63,64,65],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/591"}],"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=591"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/591\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}