We specialize in the origination of high-yield construction loans secured by First Trust Deeds.  The majority of the loans are either Acquisition or development of raw land and/or individual construction loans for single or multi-family residences.

VLD Realty has established repeat lending relationships with local licensed building contractors in the Sacramento area. We know them, how they work and can provide assurances to our clients that they know how and can complete buildings within the terms of their note. And we have also added a real estates lending and marketing group to provide assistance should any builder would like us to help them with the marketing of their homes, an established relationship.

There numerous scenarios and reasons for our borrower clients need for private money.  We do our best to ensure in advance that borrowers have ability to repay your loan per the terms of the note.

Banks spend a lot of time checking borrowers assets, incomes, savings account balances, car loans, verification and load of other not so relevant information when you consider that if a borrower tomorrow turns to the bottle, get cancer, goes broke, loses his job and falls behind, none of the above stated information will matter more than the remaining real estate equity securing the loan. If the collateral offered in any real estate transaction isn’t sufficient to protect one s interest, one should require sufficient additional collateral or simply refuse the offer.

What is your maximum LTV ratio Acquisition and Development loans and Construction loans?

We use the back end LTV by that I mean LTV at the completion of the project. For example: let's say a borrower needs $100,000 for the acquisition of a property and $20,000 for construction funds and thus wishes to borrow $120,000. If the completion value of the property is conservatively figured at $170,000 based on comps provided by the borrower, the back-end LTV will be 120/170 or 71%.

How does the construction money get disbursed?

From time to time, as a borrower completes the construction of a project, the borrower will submit a draw request to Fairfield Financial. Fairfield will review this request and, upon approval, release funds either directly to the subs/suppliers (if requested to do so) or to the borrower (if the borrower has already paid the subs/suppliers). Fairfield is responsible for ensuring that (a) the work is completed to an appropriate quality standard, (b) the project is on-budget (or if not on-budget, appropriate adjustments are made), and (c) that all subs and suppliers get paid for their work on the project. Borrowers are encouraged to make as many draw requests as they require, and if a request is complete and valid, we can generally disburse funds within 24 hours.