Free Lunch

Free Lunch

Do you believe that there is really no such thing as a free lunch? We at Fairfield feel that we have something that comes pretty close. Just for being in the right place at the right time, mortgage professionals can earn a pretty handsome little fee. Here's how it works:

(1) As a representative for a licensed mortgage brokerage, you receive a lead for a loan that doesn't fit into the context of what your company ordinarily chooses to broker. Still, you suspect that it might be a good fit for a private money lender.

(2) You call us, Fairfield (or e-mail us) and tell us a little bit about the loan and advise us that the borrower will be contacting us.

(3) You ask the borrower to contact us.

(4) We work directly with the borrower to determine if this is a loan that we are able to fund. If we fund it, we will pay 1% of the gross amount of the loan to your company at closing. Plus--and this is the clincher--we'll buy you lunch!

So keep an eye out for the following types of loans and have yourself a free lunch.

Commercial Property We make loans on commercial properties of all types, including office buildings, retail buildings, mixed use, restaurants, taverns, motels, car lots, gas stations, mini-storage, malls, industrial properties, and multi-family residential. 75% is generally our maximum.

Renovation We have strong ongoing relationships with many investors who buy fix-up properties and re-sell them. We can generally loan up to 75% of the projected value of a project. Generally we arrange for the financing of the renovation money as well. This is a large niche for us, and one of our preferred loan types.

REO (and other under-market) Property Acquisition We have had a number of borrowers come to us in search of financing to purchase REO properties. We can generally loan up to 75% of the current value of a project, and frequently 100% (or more) of the purchase price. We often work with buyers of discounted HUD properties, for example, and know the process for getting these transactions closed.

Raw Land We will loan on any raw land (i.e., land without infrastructure/utilities) that qualifies as build able. This includes both commercial and residential zoning, urban and rural, and anything from 2,500 square feet to 5,000 acres. With a strong borrower and a good property we will consider loaning as much as 75% of the value. This is pretty much unprecedented in the industry.

Lots and Acreage with Utilities Though the banks seem to be hesitant about loaning on developed land (lots or acreage), we are generally eager to do this type of loan. As much as 20% of all the loans we do fall into this category. Our maximum LTV on developed land is 75%.

Agricultural Properties We have arranged loans for a variety of agricultural and ranch properties. We are a bit more conservative regarding LTV for properties of this sort, with our maximum being about 65%.

Construction We tailor our construction loan programs to meet individual contractor needs. Though more expensive than traditional bank financing, we are more flexible regarding many issues, and have had many contractors return to utilize our construction loan services repeatedly. Our maximum LTV for construction is 75% of the value of the completed project.

Floating Homes The Vice President of Fairfield Financial (that's me) lived on a floating home on the Multnomah Channel for eight years, and was very much a part of that community. We understand the unique issues related to borrowing either to refinance or purchase a floating home. We have loaned money on floating homes that don't fit the bank's strict criteria, and we have frequently loaned money for the upgrade or expansion of an existing floating home. Our maximum LTV for floating homes is 75%.

Manufactured Homes - on private land We are not terribly concerned about the year or model, or whether the home is a singlewide or doublewide. We look at the whole package, home and land, and if the value is there, we can make the loan. Our maximum LTV on manufactured home/land packages is 75%.

Seconds on Investment and Commercial Properties These are generally short-term scenarios, ranging from six months to one year. The loan must be for at least $50,000 in Oregon (due to a certain Oregon usury law), and the maximum CLTV is 75%.

Foreclosure Bailout If there is a good explanation as to why the foreclosure situation occurred and what has changed to remedy the problem (and if the LTV does not exceed 70%) we are frequently able to refinance properties out of foreclosure.

Cash-out Refinances Frequently our borrowers will refinance a property with the intention of pulling cash out. This cash might be used to consolidate bills or to initiate some sort of a project. We can loan up to 75% LTV on cash-out refinances.

Seller Carry-backs A common scenario for us involves a borrower that might be relying on a seller to do a partial carry-back, with our lender going in first position. In this case, the borrower may be coming to escrow with little or no down payment, or in fact, may be pulling cash out of escrow. In these scenarios, we can obtain financing up to 75% LTV and a maximum of 120% CLTV.

Bridge Loans - as short as 3 months Many of our borrowers need short-term solutions, without painful pre-payment penalties. We recognize that private-money is often a short-term solution, and strive to offer reasonable solutions for borrowers needing the money for as little as 3 months. And on certain occasions, we will actually write a loan with no pre-payment penalty or minimum interest.

Fast Closings - less than one week is possible We generally require about two weeks to do a loan, but will do EXPRESS closings in one week or less. We charge an extra point for this service, but can generally succeed as long as we have the full cooperation and support of the borrower.