Equity Positions

Equity Positions

Every once in a while we get funding requests from borrowers looking for partners rather than loans. Typically (with one exception described below), an equity position won’t replace a monthly interest payment, but it could potentially replace an origination fee.

Fairfield has always been of the opinion that it is better to make the loan and get paid later, than not make the loan at all. If the LTV of a loan can't support Fairfield's fees, we may be able to work something out. Each loan scenario is unique and evaluated on a case by case basis, and for the right scenario we may consider replacing our fee with an appropriate equity position.

Regarding the exception that I mentioned above, we do work with a fund that is more interested in equity positions than loans. This fund is looking for large commercial projects in the $5 Million – $50 Million range, predominately in the western US. These types of deals require some negotiation and open communication, so we're happy to put the borrower in direct contact with the lender should there be in interest between all parties involved.

Please keep in mind that any loan or equity position project is subject to our standard underwriting guidelines. If a project doesn't meet our criteria, the offer of an equity position will not make the loan possible.

If you would like to discuss private money loans further or run a particular scenario by us, contact Kris via e-mail at gillmore@privatemoneysource.com. 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 http://www.privatemoneysource.com.

Sincerely,

Kris Gillmore
Loan Coordinator
Fairfield Financial Services, Inc