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RESIDENTIAL LENDING NEWSLETTER
Volume 10: Issue 3 | March 5, 2021
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 briefly discuss President Biden's $1.9 trillion stimulus plan. As always, we have lots of cute, clean jokes, funny pictures, and a funny video of winter fails that should put a smile on your face.
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Joke Du Jour
What did our parents do to kill boredom before the internet?
I asked my 10 brothers and sisters and they didn't know either.
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Stain Joke
"The Dallas Public Library displays one of the original copies of the Declaration of Independence - also the only copy stained with barbecue sauce." -- Conan O'Brien
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- Today's Observation -
Getting Away With Printing $1.9 Trillion
We are certainly living in interesting times. As the future Dictator of the World, Xi Jinping, continues to mobilize his 1.4 billion citizens for world conquest [just joking?], the Biden Administration continues its quest to print up $1.9 trillion in new money to rescue the U.S. economy.
It's ironic. I am a Republican and a fiscal conservative, but right now, I generally agree with Biden's plan. We have to do something; otherwise, the U.S. money supply will contract like an imploding black star. Let me explain.
Loans have payments, and America sure has a lot of loans outstanding. As Carl Sagan, the famous astronomer, might have said, "Trillions and trillions of them."
Congress, the U.S. Treasury, and the Federal Reserve can create all kinds of new money, but much of this new money just gets used to make all of the monthly interest payments on our existing debt.
Here's a metaphor that might explain this concept. Picture the breakfast table in your kitchen. Now cover it with 36 sponges. Next, take your tea kettle, fill it with water, and then slowly pour the contents over the various sponges.
This is what is happening to the U.S. money supply. Each time the Federal government prints up new debt and then has the Fed buy it - thereby monetizing the debt - its like refilling that tea kettle with more water.
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Yes, if we keep refilling that tea kettle, those sponges will eventually become over-saturated. They will no longer hold any more water. Water will then spill all over the table, down the sides, and onto the floor. We will have horrible hyper-inflation.
But right now, those sponges are still holding water. In fact, those sponges are hungry for more water. The banks want their loan payments, so we have to keep creating new money.
For the next few years, Congress should be able to keep deficit spending and the Fed should be able to continue its campaign of quantitative easing, without having the dollar completely collapse.
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Yes, the dollar fell 6.7% last year. A free-falling dollar would be the sign that the game was finally over. At that point in time, Congress would have to stop deficit-spending and the Fed would have to greatly reduce quantitative easing. That would send interest rates higher, which should greatly curtail inflation.
But for right now, we are in an unusual economic zone, when we can apparently create massive amounts of new money, at little immediate cost.
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Why You Must Follow
C-Loans on Facebook
You are missing important free training like why banks hate blanket commercial loans, asset-backed securities, family offices, co-living properties, tuck-under parking, the net-worth-to-loan-size ratio, and an unknown, Federal government, mid-market PPP-like loan that can inject $5 million to $300 million into large businesses struggling to survive the coronavirus crisis.
To view these mini-lessons, come to the Facebook page for C-Loans. Look for a tab with three dots, “…”. The first drop-down selection is, “Follow.” Once you follow our Facebook page you will receive one or two free mini-lessons every week.
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FREE Brokerage Training From an Industry Veteran And Attorney
The C-Loans Blog: info.c-loans.com
Every week we publish one or two new blog articles that train commercial brokers in commercial real estate finance. We try to have fun with it, including lots of funny pics. If you want access to this FREE training, subscribe to George's blog by clicking the button below.
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Jury Selection Joke
A prospective juror in a Dallas District Court was surprised by the definition of voluntary manslaughter given the panel: "An intentional killing that occurs while the defendant is under the immediate influence of sudden passion arising from an adequate cause, such as when a spouse's mate is found in a 'compromising position.'"
"See, I have a problem with that passion business," responded the jury candidate. "During my first marriage, I came in and found my husband in bed with my neighbor. All I did was divorce him. I had no idea that I could have shot him."
She wasn't selected for the jury.
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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
- Colorado
- Delaware
- Florida
- Georgia
- Hawaii
- Illinois
- 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
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Unfortunately these states are out:
- Idaho
- Minnesota
- Nevada
- North Dakota
- Oregon
- South Dakota
- Utah
- Vermont
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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Wallpaper Joke
A young woman decided to redecorate her bedroom. She wasn't sure how many rolls of wallpaper she would need, but she knew that her friend next door had recently done the same job and the two rooms were identical in size.
"Buffy," she said, "how many rolls of wallpaper did you buy for your bedroom?" "Ten," said Buffy. Based on Buffy's input, the girl bought the ten rolls of paper and did the job - but she had 2 rolls leftover.
"Buffy," she said. "I bought ten rolls of wallpaper for the bedroom, but I've got 2 left over!" "Yeah!" said Buffy. "So did I."
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Apple Joke
"Apple has changed back their design of the peach emoji to look more like a butt after people were upset the new design no longer looked like a butt. So you see, people - sometimes democracy DOES work!" -- Conan O'Brien
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Video - Winter Fails. Try Not to Laugh!
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Final Funny - Ordering a Pizza in 2022
CALLER: Is this Pizza Hut?
GOOGLE: No sir, it's Google Pizza.
CALLER: I must have dialled a wrong number, sorry.
GOOGLE: No, sir, Google bought Pizza Hut last month.
CALLER: Okay, I would like to order a pizza.
GOOGLE: Do you want your usual, sir?
CALLER: My usual? You know me?
GOOGLE: According to our caller ID data sheet, the last 12 times you called you ordered an extra-large pizza with three cheeses, sausage, pepperoni, mushrooms and meatballs on a thick crust.
CALLER: Super! That’s what I’ll have.
GOOGLE: May I suggest that this time you order a pizza with ricotta, arugula, sun-dried tomatoes and olives on a whole wheat gluten-free thin crust?
CALLER: What? I don’t want a vegetarian pizza!
GOOGLE: Your cholesterol is not good, sir.
CALLER: How the hell do you know that?
GOOGLE: Well, we cross-referenced your home phone number with your medical records. We have the result of your blood tests for the last 7 years.
CALLER: Okay, but I do not want your rotten vegetarian pizza! I already take medication for my cholesterol.
GOOGLE: Excuse me sir, but you have not taken your medication regularly. According to our database, you purchased only a box of 30 cholesterol tablets once at Lloyds Pharmacy, 4 months ago.
CALLER: I bought more from another Pharmacy.
GOOGLE: That doesn’t show on your credit card statement.
CALLER: I paid in cash.
GOOGLE: But you did not withdraw enough cash according to your bank statement.
CALLER: I have other sources of cash.
GOOGLE: That doesn’t show on your latest tax returns, unless you bought them using an undeclared income source, which is against the law!
CALLER: WHAT THE HECK!
GOOGLE: I'm sorry sir, we use such information only with the sole intention of helping you.
CALLER: Enough already! I'm sick to death of Google, Facebook, Twitter, WhatsApp and all the others. I'm going to an island without the internet, TV, where there is no phone service and no one to watch me or spy on me.
GOOGLE: I understand sir, but you need to renew your passport first. It expired 6 weeks ago...
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A member of the Blackburne Family of Companies
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555 University Avenue, Suite 150
Sacramento, CA 95825
P: (916) 338-3232
F: (916) 338-2328
CA DRE #829677 // NMLS #103430
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