{"id":778,"date":"2013-08-28T10:48:20","date_gmt":"2013-08-28T17:48:20","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=778"},"modified":"2013-08-28T10:48:20","modified_gmt":"2013-08-28T17:48:20","slug":"the-beauty-of-private-money-loans-when-theyre-right-theyre-right","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=778","title":{"rendered":"The beauty of private money loans – when they're right, they're right"},"content":{"rendered":"

Clay Sparkman<\/em>
\nHistorically we have placed loans in the 12-14% range, but in the current market we are finding that this may be a bit high. Especially if a lender is willing to come down to 10-11%, there are little golden nuggets of opportunity presenting themselves.<\/em>
\nHere, by way of example, is a loan that we just placed. (The prospectus has been redacted to protect the privacy of the parties involved.)<\/em>
\nThe borrower had all kinds of problems, but this loan was a gold nugget to us. Why? Just look at the LTV.
\n<\/em><\/p>\n

Kristopher Gillmore<\/p>\n

Fairfield 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 LOAN SUMMARY<\/span><\/strong><\/p>\n

<\/span><\/strong>
\nSECURED LOAN<\/span><\/strong>
\nRate and Term refinance of property in Superior, Colorado.
\nLoan Details<\/span><\/strong><\/p>\n

    \n
  1. Loan Amount: $158,000<\/li>\n
  2. Term: 3 years<\/li>\n
  3. Interest Rate: 10%<\/li>\n
  4. Monthly Payments: $1,316.67 Interest Only<\/li>\n
  5. Security:\u00a0 Deed of Trust in 1st Position security interest in real property located at XXX, Superior Colorado.<\/li>\n
  6. Estimated Value, based on purchase price in May, 2011:\u00a0 $650,000<\/li>\n
  7. Estimated LTV based on purchase price in May, 2011:\u00a0 24%<\/li>\n<\/ol>\n

    Loan Overview<\/span><\/strong>
    \nThis property was purchased on May 31st<\/sup>, 2011 by XXX LLC, with a guarantee by XXX, who is occupying the property part time.\u00a0 The purchase price was $648,900, and the initial loan was $325,000 with a down payment of approximately $350,000.\u00a0 After a year of interest only payments, the loan was paid in full.
    \nShortly after the loan was paid off, the borrower had an investment opportunity and borrowed 150,000 secured by the same property.\u00a0 The pay history on this loan has been excellent, with one late payment that was promptly submitted after we contacted the borrower (XXX had his payments set up through an auto pay with his bank, but the auto pay expired after one year and he became aware of this after we followed up on the missed payment). The borrower wishes to keep this loan in place, but is looking for a longer term loan at a lower interest rate.\u00a0 The loan would be made to XXX, LLC, with a personal guarantee by XXX.
    \nProperty<\/span><\/strong>
    \nThe subject property is a 5 bedroom, 5 bath, single family residence with 4,321 square feet of living space, including a finished basement.\u00a0 The property sits on a 10,013 sf lot, and was built in 1998.\u00a0 More detailed specs on the property can be viewed at XXX.\u00a0 Updated interior and exterior photos are pending and will be provided in the full loan packet.
    \nIn May of 2011, we performed an inspection of the property and comps that were provided by the borrower.\u00a0 That report has been provided as a separate attachment.
    \nPersonal Financials<\/span><\/strong>
    \nXXX has provided a signed 1003 stating a monthly income of $20,000 and a net worth of $796,000
    \nCredit<\/span><\/strong>
    \nXXX has a mid credit score of 581, and has provided a detailed explanation (attached) as to the circumstances that brought his credit score to be so low.
    \n—
    \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":"

    Clay Sparkman Historically we have placed loans in the 12-14% range, but in the current market we are finding that this may be a bit high. Especially if a lender is willing to come down to 10-11%, there are little golden nuggets of opportunity presenting themselves. Here, by way of example, is a loan that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[14],"tags":[42,43,46,58],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/778"}],"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=778"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/778\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}