PRIVATE CLIENT NEWSLETTER
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Volume 6: Issue 1 | Date: February 17, 2022
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You are receiving this letter because you are either a high-net-worth client of Blackburne & Sons Realty Capital Corporation (since 1980) or you once applied for a commercial real estate loan of $1 million or more using C-Loans.com or CommercialMortgage.com. Blackburne & Sons and C-Loans, Inc. are sister companies.
Today we’ll make the case for gold. As always, we have lots of cute, clean jokes, funny pictures, and a video of the best of Betty White.
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Joke Du Jour
A fellow came into a bar and ordered a martini. Before drinking it, he removed the olive and carefully put it into a glass jar. Then he ordered another martini and did the same thing. After an hour, when he was full of martinis and the jar was full of olives, he staggered out. "Well," said a customer, "I never saw anything as peculiar as that!" "What's so peculiar about it?" the bartender said. "His wife sent him out for a jar of olives.”
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You are a Private Client
of Blackburne & Sons
Please be sure to tell us when you call. "George asked me to mention that I am a Private Client of the firm.” My loan officers are trained to snap to attention. Our commercial mortgage office number is 916-338-3232.
Alternatively, you can apply for a business-purpose loan secured by a commercial or non-owner occupied property.
Blackburne & Sons, our private money commercial lending company, continues to seek slightly-flawed first mortgages between $100,000 to $1.5 million on standing commercial properties nationwide.
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Alicia Gandy
916-338-3232 Ext. 310
gandy@blackburne.com
DRE #01430908
NMLS #389678
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George Blackburne IV
916-338-3232 Ext. 314
georgeiv@blackburne.com
DRE #01873244
NMLS #382122
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Cello Joke
"A cellist in Oregon was arrested after police found over 100 pounds of marijuana in his car trunk. Thankfully, when they pulled him over, he didn't resort to violins.” — Seth Meyers
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- Today's Observation -
The Case for Gold
Two very senior strategists for Blackstone, the same brilliant folks who bought up tens of thousands of rental houses eight years ago, recently issued their list of the Ten Surprises of 2022.
This is the 37th year that Byron Wien and Joe Zidle have given their views on a number of economic, financial market, and political surprises for the coming year. Byron and Joe define a "surprise" as an event that the average investor would only assign a one out of three chance of taking place, but which the two believe is "probable," having a better than 50% likelihood of happening.
One his surprises is that the price of gold will rally by 20% in 2022 to a new record high. Despite strong growth in the US, investors will seek the perceived safety and inflation hedge of gold amidst rising prices and market volatility. Gold will reclaim its title as a haven for newly minted billionaires, even as cryptocurrencies continue to gain market share.
I personally think they make a good case. While gold can be a decent, if not the best, hedge against inflation,
gold is one of the rare investments
that is not the debt of another.
When the stock and bond market are crashing, as everyone is fleeing to cash, gold typically falls the least. Make no mistake; gold still falls during financial crashes - like the S&L Crisis, the Dot-Com Meltdown, and the Great Recession - because even the baby and his bathwater are for sale.
Gold typically falls the least, however, because it is not the debt of another. Gold cannot default. That is a wonderful thing when household names and Fortune 500 companies are defaulting on their bonds and going bankrupt.
How will Bitcoin and other cryptocurrencies do during the next financial crisis? I suspect they will underperform, and some might even go to zero. Anonymous entries in a blockchain remind me an awful lot of “eyeballs” during Dot-Com Mania. Most (all?) big financial crises involve huge losses in some sort of malinvestment (a boneheaded investment), and cryptocurrencies would sure fit that bill. The two smart guys from Blackstone, guys who are clearly smarter than me, only suggest that cryptocurrencies will continue to win converts. We’ll see.
The markets, especially the real estate market, are due for their regular meltdown, which seems to happen every 10 to 14 years. It has now been 14 years since the Great Recession.
The property meltdown in China may be the trigger. Will the Chinese authorities be able contain the Evergrande Crisis to the peeing section of their swimming pool? I doubt it. Some little kid, lining the parade, just shouted out, "President Xi is naked,” and “the Chinese real estate market is greatly overbuilt.” Smart kid, huh? Haha.
So maybe its time to own a little gold in your portfolio.
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Earn Up to 12% Interest in Your IRA or Kid’s College Fund
It is important that you please grasp the concept that you could be borrowing from Blackburne & Sons against some rental or commercial property at the very same time that you are using your IRA to invest $30,000 in one of our first trust deed investments. Many of our biggest trust deed investors first came to us twenty years ago as commercial property borrowers.
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You probably have money set aside for your retirement and for the cost of college for your children and grandchildren. It shouldn't all be invested in the stock market. In California, the first trust deed investment business is huge. A recent law change - the JOBS Act - now allows accredited investors nationwide to also invest in these same first trust deeds and first mortgages.
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Sweet Zoo Joke
This nice lady tells the story: My favorite spot at our local zoo is the House of Night, where nocturnal creatures crawl and fly about. One very bright day, I stepped into the exhibit and was plunged into total darkness. Almost immediately, a small hand grabbed mine. And who do you belong to?" I asked. His answer came swiftly, "I'm yours until the lights come on!”
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Why You Should Stay Close to Blackburne & Sons
Founded in 1980, Blackburne & Sons is an old-time syndicator. There are very few of us left. The Tax Reform Act of 1986 pretty much nuked the whole syndication industry off the face of the Earth. Because you know a syndicator, you now have access to some special money.
Because every loan we make is a new syndicate (as opposed to a fund investment), Blackburne & Sons is always in the market.
So stick close to us. Syndicators are pretty rare, and now you know one.
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Apply to Blackburne & Sons Very Soft Hard Money Loans
Here is a scenario that might tickle you. You could have $100,000 from your self-directed IRA spread out among four or five first trust deeds from Blackburne & Sons, and at the very same time you could be borrowing $250,000 from Blackburne & Sons on an apartment building that you are fixing up in Boston.
Not every hard money lender is the same. Our loans have a 30-year amortization (almost interest-only), a 15-year term, and no prepayment penalty. You never want to have a hard money loan ballooning during a recession.
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C-Loans.com is a commercial mortgage portal. It will take you just four minutes to complete your mini-app.
Then C-Loans will sort through its databank of 750 commercial lenders and produce for you a custom-generated Suggested Lender List containing twenty to thirty lenders who are perfect for your particular deal.
You put a check mark next to six lenders and then press, "Submit." Within minutes hungry commercial lenders will be contacting you with offers.
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Mime Joke
"According to a new study, women are more attracted to men who talk less. Which is why you often overhear women say, 'Check out that mime.'” — Conan O'Brien
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FREE Commercial Finance Training
From an Industry Veteran And Attorney
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Video - The Best of Betty White
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Final Funny
A man walks into a bar and asks the bartender, "If I show you a really good trick, will you give me a free drink?" The bartender considers it, then agrees. The man reaches into his pocket and pulls out a tiny rat. He reaches into his other pocket and pulls out a tiny piano. The rat stretches, cracks his knuckles, and proceeds to play the blues. The bartender pours the man a drink on the house and he puts the rat and piano away. After the man finished his drink, he asked the bartender, "If I show you an even better trick, will you give me free drinks for the rest of the evening?" The bartender agrees, thinking that no trick could possibly be better than the first. The man reaches into his pockets again and pulls out the tiny rat and tiny piano. The rat stretches, cracks his knuckles, and proceeds to play the blues. The man reaches into a third pocket and pulls out a small bullfrog, who begins to sing along with the rat's music. While the man is enjoying his beverages, a stranger confronts him and offers him $100,000.00 for the bullfrog. "Sorry," the man replies, "he's not for sale." The stranger increases the offer to $250,000.00 cash up front. "No," he insists, "he's not for sale." The stranger again increases the offer, this time to $500,000.00 cash. The man finally agrees, and turns the frog over to the stranger in exchange for the money. "Are you insane?" the bartender demanded. "That frog could have been worth millions to you, and you let him go for a mere $500,000!" "Don't worry about it," the man answered. "The frog was nothing special. You see, the rat's a ventriloquist."
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Interested in Investing in First Trust Deeds?
Give George a Call Today!
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GEORGE BLACKBURNE IV
georgeiv@blackburne.com
P: (916) 338-3232 Ext. 314
F: (916) 338-2328
CA DRE #01873244 / NMLS #382122
BLACKBURNE & SONS
Realty Capital Corporation
www.blackburneandsons.com
555 University Ave, Ste 150
Sacramento, CA 95825
CA DRE #00829677 / NMLS #103430
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A member of the Blackburne Family of Companies
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