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RESIDENTIAL LENDING NEWSLETTER
Volume 9: Issue 10 | September 17, 2020
You are receiving this letter because you are a client of either Blackburne & Sons or C-Loans, Inc. Removal instructions are below. Today we’ll discussed the increased likelihood of inflation and new apartment rent control initiatives. As always, we have lots of cute, clean jokes, funny pictures, and a video of the happiest dog on earth.
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Joke Du Jour
When my son graduated from high school, he had to give a speech. He began by reading from his prepared text. "I want to talk about my mother and the wonderful influence she has had on my life," he told the audience. "She is a shining example of parenthood, and I love her more than words could ever do justice.” At this point he seemed to struggle for words. After a pause, he looked up with a sly grin and said, "Sorry, but it's really hard to read my mother's handwriting.”
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Doctor Call Joke
I said to my wife, "I need to call the doctor today.” "Which doctor?" she asked. "No, the regular kind.”
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Business Purpose Rental Home Loans in Most States
Click HERE to Apply Now!
Please pay special attention to the following: Unlike other hard money brokers, Blackburne & Sons Realty Capital Corporation makes home loans with a 15-year term (30-year amortization), and there is NO prepayment penalty. Our competitors make just three-year or five-year bridge loans. Our loans are clearly better because you may want to hold the property. These loans are sometimes known as buy-to-rent loans.
Historically, Blackburne & Sons was mostly a commercial lender. This has now changed. We are aggressively aggressively seeking non-owner occupied home loans. We have already closed loans in the following states, and our attorney can quickly research your state to verify that we can lend there. Unfortunately, in a handful of states, an NMLS license is not enough.
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Commercial: NATIONWIDE
Residential:
- Alaska
- Arizona
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Indiana
- Louisiana
- Maryland
- Michigan
- Missouri
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
Unfortunately these states are out:
- Idaho
- Minnesota
- Nevada
- North Dakota
- Oregon
- South Dakota
- Utah
- Vermont
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What about YOUR state? If you have a real-life deal, we’ll hire our attorney to quickly research its availability.
The property has to be non-owner occupied, and the purpose of the loan must be for business. Remember, the nice thing about business purpose home loans from Blackburne & Sons is that our loans have a 30-year amortization, a 15-year term, and no prepayment penalty.
Call or email your favorite loan representative by clicking their picture:
(916) 338-3232
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ICU Joke
The female skier Picabo Street (pronounced Peek-A-Boo) has been in the news recently. The famous Olympic skier Picabo Street is not just an athlete, she is a nurse. She currently works at the Intensive Care Unit of a large metropolitan hospital. She is not permitted to answer the telephone, however, as it caused simply too much confusion when she would answer the phone and say, "Picabo, ICU…"
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- Today's Observation -
Inflation is Coming And So is Rent Control
It started with Andrew Yang, the Presidential contender who wanted to provide every American adult with a basic income of $1,000 per month. Free money. Then President Trump pushed through a massive corporate and middle class tax cut that blew the Federal budget to Hades.
Next the coronavirus hit. Congress and the President got together and granted U.S. businesses $659 billion in PPP “loans”. These loans were undoubtedly necessary, but they were still a huge injection of new money into the system. The unemployed (admittedly not their fault) got $600 per week in unemployment benefits. Now Congress and the President are developing a new plan to replace the $600 per week unemployment benefits with an even more generous program. What politician could afford to vote against it? This new relief program will mean that the Fed will have to print even more money.
Folks, The Great Debasement has started. Be sure to read my blog article on The Great Debasement. The Fed has printed $11 trillion in the past three years, most of it in the past year. Bank of America, in a letter to its shareholders, was the first to point out the similarities to The Great Debasement in England in the 16th Century.
Gold is going nuts. It may blow past $2,000 per ounce this week, as politicians from both side of the aisle rush to be the more drunken sailor. Free money for everyone! The Roman Republic was doomed the moment Julius Caesar marched his army over the Rubicon (River). In truth, the Rubicon is hardly more than a stream.
Arguably, the American Republic was doomed by the coronavirus. To combat a financial disaster, we had the Fed create a massive amount of new money, which the government passed out liberally. In theory, the economy could recover, and we could return to fiscal discipline. Uh, huh. Sure. Hey, pass me that doobie. Peace, love, and bellbottoms, brother.
At a minimum, inflation will come roaring back. Rents will climb, and you can bet that rent control will start appearing in many more jurisdictions.
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Santa Anna Story
In 1842, Mexican General Antonio López de Santa Anna, the guy who led the attack on the Alamo, had a military burial for his leg. No, that is not a typo. He held a military funeral service filled with cannon fire, speeches, poems, and prayers, in honor of his dearly departed right leg. Four years earlier in 1838, Santa Anna lost his leg during battle with the French. Cannon fire hit his leg and as a result, doctors had to amputate the leg.
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Archaeology Joke
Two women archaeologists are down in Mexico excavating an ancient Mayan burial ground looking for some remains to take back to their museum. Unfortunately, everything they run across is badly decomposed. One of the two says, "We don't seem to be having much luck.” The other replies, "Keep on digging, honey. A good Mayan is hard to find!”
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Fifteen-Year Fix-and-Flip Loans for Residential Properties
Most fix-and-flip lenders make one or two-year loans. If the market turned (a very real risk today) and houses stopped selling, the flipper might be forced to sell his cherry house at a loss in order to pay off the balloon. Had he had gotten a 30-year amortization, 15-year fix-and-flip loan from Blackburne & Sons, he could have simply rented out the property and enjoyed a positive cash flow until the time time was right to sell again.
Our fix-and-flip loans have no pre-payment penalty, so you can use them for 60 days or 15 years.
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Lake Superior Factoid
You could combine the water of the remaining four great lakes, and Lake Superior is still bigger. Superior is approximately 1,330 feet deep, 350 miles long, and 160 miles wide. It contains enough water to cover the land of both South and North America.
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The Blackburne List
The Blackburne List is a list of over 2,500 commercial lenders located nationwide. It is available for purchase for just $79.95. Is money tight? You can also buy one of our three Regional Lists (750+ lenders) for just $39.95.
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Heart Attack Joke
Two years after my heart attack, I was teaching my college course when I felt discomfort in my chest. I paused the class to pop my medication and felt better quickly. “Now, if I ever do have a heart attack,” I told my students, “I will give extra credit to whoever gives me CPR.” One of them shouted out, ”How much?”
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Are You Wise Enough To Pay Attention?
There are literally hundreds of private money mortgage companies out there today, and you can probably get a decent loan from most of them. But here’s the thing. Virtually all of these hard money shops are newbies (since 2009), and they are funds. The problem with hard money mortgage funds is that they don’t survive recessions. As soon as a recession hits, the investors rush to withdraw. Suddenly the hard money shop running the fund has no money with which to lend and earn loan fees. With little income coming in, the hard money shop closes.
Think I am full of beans? There were 300 hard money mortgage businesses in 2006. Fewer than ten survived.
Why do you care?
You have lost your relationship with these lenders! Success in real estate finance is all about relationships. Consider the fact that Blackburne & Sons has been in business for almost 40 years. We survived the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. We were just about the only hard money shop in the country to remain in the market every day of the Great Recession.
Most of you will ignore this. The handful of wise investors and brokers will build a relationship with Blackburne & Sons. Winter is coming.
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Hungry for Commercial Loans Too
Blackburne & Sons is also looking for hard money first mortgage loans - up to $1.5 million - secured by commercial properties nationwide. Our private money loans almost never have a prepayment penalty.
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Wrong Hotel Joke
His wife returned from the morning shopping expedition and called her husband into the kitchen. "Frederick," she said heavily, "When you came home last night you told me you had been to the Grand Hotel with Mr. Wilson. I just met Mrs. Wilson, and she said you were both at the Trocadero. Why did you lie to me like that.” Her husband groaned and massaged his head. "When I came home last night I couldn't say 'Trocadero.’"
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Airfare Joke
I couldn't decide whether to go to Salt Lake City or Denver for vacation, so I called the airlines to get prices. “The airfare to Denver is $300," said a cheery salesperson. "And what about Salt Lake City?” I asked. "We have a really great rate to Salt Lake - $99.00, but there is a stopover." "Where?" I asked. "Denver."
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Video - The Happiest Dog on Earth
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Final Funny
Several years ago, when I lived in New York and flew to customer sites often, my wife would usually drop me off at Newark (N.J.) airport and pick me up when I returned. On one trip, I was only going to be gone for a few days, so I drove myself, and parked the car at Newark.
When I returned, the weather was lousy, and it was late at night. I wanted nothing more than to get home to the comfort of my wife and my own bed. When I arrived, the storm was very loud, with crashing thunder and severe lightning. As I came into my bedroom about 2 a.m., I found my two children, Alex (3) and Cindy (12), in bed with my wife, Carolyn, apparently scared by the loud storm.
I resigned myself to sleeping in the guest bedroom that night. The next day, I talked to the children, and explained that it was okay to sleep with Mom when the storm was bad, but when I was expected home, please don't sleep with Mom that night. They said okay.
After my next trip several weeks later, Carolyn and the children picked me up in the terminal at the appointed time. Since the plane was late, everyone had come into the terminal to wait for my plane's arrival, along with hundreds of other folks waiting for their arriving passengers. As I entered the waiting area, Alex saw me, and came running shouting "Hi, Dad! I've got some good news!" As I waved back, I said loudly, "Hi, Alex! And what is the good news?" "The good news is that nobody slept with Mommy while you were away this time!" Alex shouted.
The airport became very quiet, as everyone in the waiting area looked at Alex, then turned to me, and then searched the rest of the area to see if they could figure out exactly who his Mom was.
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A member of the Blackburne Family of Companies
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4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
P: (916) 338-3232
F: (916) 338-2328
CA DRE #829677 // NMLS #103430
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