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RESIDENTIAL LENDING NEWSLETTER
Volume 9: Issue 6 | June 4, 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 discuss whether we might all be in a declining industry, much like the buggy whip business became obsolete with the arrival of the automobile. We also have lots of cute, clean jokes, some funny pics, and an amazing little video of a bobcat jumping.
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Joke Du Jour
During their vacation and while they were visiting Jerusalam, George's mother-in-law died. With death certificates in hand, George went to the American Consulate Office to make arrangements to send the body back to the states for proper burial.
The Consul, after hearing of the death of the mother-in-law, told George that the sending of a body back to the states for burial is very, very expensive. It could cost as much as $5,000. The Consul continues, in most cases the person responsible for the remains normally decides to bury the body here. This would only cost $150.
George thinks for some time and answers, "I don't care how much it will cost to send the body back; that's what I want to do." The Consul, after hearing this, says, "You must have loved your mother-in-law very much, considering the difference in price." "No, it's not that," says George. "You see, I know of a case from many years ago of a person that was buried here in Jerusalem. On the third day, he rose from the dead! I just can't take that chance.”
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Commercial Mortgage Rates Today
Here are today's commercial mortgage interest rates for permanent loans from banks, SBA 7a loans, CMBS permanent loans from conduits, and commercial construction loans. Be sure to bookmark our Commercial Loan Resource Center, where you will always find the latest interest rates on commercial loans; a portal where you can apply to 750 different commercial lenders in just four minutes; four huge databanks of commercial real estate lenders; a Glossary of Commercial Loan Terms, including such advanced terms as defeasance, CTL Financing, this strange new Debt Yield Ratio (which is different from the Debt Service Coverage Ratio), mezzanine loans, preferred equity, and hundreds of other advanced terms; and a wonderful Frequently Asked Questions section, which is designed to train real estate investors and professionals in the advanced subject areas of commercial real estate finance ("CREF").
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Marijuana Joke
A new study found that marijuana use among people over 65 has gone up 250 percent in recent years. One woman said, "I like to smoke up before watching, 'Jeopardy!' I call it my daily doobie.” — Jimmy Fallon
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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 Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
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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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Steel Joke
"You know, I really don't think I need buns of steel. I'd be happy with buns of cinnamon." — Ellen DeGeneres
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Wrong Student Joke
While visiting a country school, the Chairman of the Board of Education became provoked at the noise the unruly students were making in the next room. Angrily, he opened the door and grabbed one of the taller boys, who seemed to be doing most of the talking. He dragged the boy to the next room and stood him in the corner. A few minutes later, a small boy stuck his head in the room and pleaded, "Please, sir, may we have our teacher back?”
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911 Joke
Dispatcher: "Nine-one-one. What's the nature of your emergency?"
Caller: "My wife is pregnant, and her contractions are only two minutes apart."
Dispatcher: "Is this her first child?"
Caller: "No, you idiot! This is her husband.”
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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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Squirrel Fire Joke
"A couple in Michigan is being sued for $2 million after they burned down their apartment complex while trying to cook a squirrel with a blowtorch. I'm not an accountant, but it SOUNDS like they might not have $2 million.” — Seth Meyers
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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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Vampire Joke
Q: What do you call a fat vampire slayer?
A: Puffy!
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- Today's Observation -
Is Commercial Real Estate Obsolete
My wife and I love getting delicious and exotic meals delivered to our door from various nearby restaurants. How soon before before a bunch of smart restauranteurs set up kitchens in cheap industrial parks and rely 100% on DoorDash and GrubHub?
For the past four months, the workers at Blackburne & Sons have been working from home, with perhaps one different worker per day working out of the office. Zoom, scanning, PDF’s, email, and Dropbox work quite well, and my employees have no commute. Yeah, baby! :-) We’ve worked out of the same 1,600 sf office for 25 years now, so even if we someday needed to expand, we’ll simply hire virtual workers. We’ll never rent more office space.
For at least fifty years, many small-time bookkeepers, real estate brokers, and property managers have worked from a little office in their homes. How soon before larger firms maintain just a token office and only meet with their clients using Zoom? Do we need so much office space?
We have already seen Amazon’s business grow by 30% during this crisis. People like having their staple goods delivered to their door. The future of retail simply must lie in providing experiences, not just rows of goods on shelves; but even if stores become cool places to hang out and view new things, the overall demand for retail space simply must fall.
Gesch, if I were a commercial architect, I might be tempted to jump off a bridge. Not only are 99% of all banks out of the commercial construction lending market, but the demand for new commercial space will almost certainly plunge by 50%. Sixty percent? More?
This three-month COVID quarantine has changed our world. Multifamily and residential projects will still be hot. If you are in the loan business, I urge you to focus your attention there. I have fantasies of large, master-planned, live-work subdivisions in Indiana, where water is plentiful (the vegetation here is so lush and green) and land is cheap. Every house would have an attached home-office, with a separate entry, and three visitor parking spaces.
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Space X Joke (I sure hope Elon's manned launch goes well.)
Q: What do you call a peanut in a spacesuit?
A: An astronut!
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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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Medicine Joke
Laughter is the best medicine, but in certain situations, the Heimlich maneuver may be more appropriate.
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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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Dust Joke
A visiting minister waxed eloquent during the offertory prayer. He began, with arms extended toward heaven and a rapturous look on his upturned face,"Without you we are but dust... " He would have continued, but at that moment my daughter, who surprisingly was listening, leaned over to me and asked, quite audibly in her shrill little girl voice, "Mom, what is butt dust?”
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Video - This Bobcat Can Really Jump
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Final Funny
A Sunday School teacher of preschoolers was concerned that his students might be a little confused about Jesus Christ because of the Christmas season emphasis on His birth. He wanted to make sure they understood that the birth of Jesus occurred a long time ago, that He grew up, etc. So he asked his class, "Where is Jesus today?” Steven raised his hand and said, "He's in heaven." Mary was called on and answered, "He's in my heart." Little Johnny, waving his hand furiously, blurted out, "I know! I know! He's in our bathroom!!!”
The whole class got very quiet, looked at the teacher, and waited for a response. The teacher was completely at a loss for a few very long seconds. He finally gathered his wits and asked Little Johnny how he knew this. And Little Johnny said, "Well...every morning, my father gets up, bangs on the bathroom door, and yells 'Jesus Christ, are you still in there?'!"
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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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