RESIDENTIAL LENDING NEWSLETTER

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 talk about a subordination for a partial pay down. And, as always from Blackburne & Sons, we have lots of clean jokes, gags, and funny video for you.

Joke Du Jour

This lady tells the story: When I was six months pregnant with my third child, my three-year-old came into the room as I was just getting in the shower. She said, "Mommy, you are getting fat!” I replied, "Yes, honey, remember Mommy has a baby growing in her tummy.” "I know," she replied, "but what is growing in your butt?”

Business Purpose Rental Home Loans in Over TEN States

These loans are sometimes known as buy-to-rent loans. For the past 37 years, Blackburne & Sons has exclusively been a commercial lender. This has now changed. We are aggressively seeking non-owner occupied home loans in these states:

California
Florida
Arizona
Washington
New Jersey
Missouri
Maryland
Ohio
Alaska
New York
Texas
Virginia
Probably your state too. Call for details. We'll make a simple call to our attorneys.

*Nevada and Minnesota are unfortunately out.

The property has to be non-owner occupied, and the purpose of the loan must be for business. The nice thing about business purpose home loans from Blackburne & Sons is that our loans have a 15-year term and no prepayment penalty.

Got a commercial deal nationwide or a business purpose, non-owner-occupied residential deal in one of the above four states? Please call us at (916) 338-3232:

Alicia Gandy

Ext. 310

NMLS #389678

George Blackburne, IV

Ext. 314

NMLS #382122

Michael Young

Ext. 312

NMLS #1535540

Tom Blackburne

Ext. 317

NMLS #1014118

Army Recruit Joke

Fifty-one years ago, Herman James, a North Carolina mountain man, was drafted by the Army. On his first day in basic training, the Army issued him a comb. That afternoon the Army barber sheared off all his hair. On his second day, the Army issued Herman a toothbrush. That afternoon the Army dentist yanked out four of his teeth. On the third day, the Army issued him a jock strap. The Army has been looking for Herman for 51 years.

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 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.

Please click here to apply for a loan.

Deceased Dog Joke

Mom and Dad were trying to console Susie, whose dog had recently died. "You know, it's not your fault that the dog died. He's probably up in heaven right now, having a grand old time with God.” Susie, still crying, said, "What would God want with a dead dog?”

Buy and Hold Residential Loans

Because Blackburne & Sons makes its dough off of loan servicing fees, we love-love-love to make long-term residential loans. If the borrower has good credit, we can be pretty aggressive on the loan-to-value ratio. To apply for a non-owmer-occcupied residential loan, please click here.

Missing Wife Joke

The man approached a very beautiful woman in a large supermarket and asked, "You know, I've lost my wife here in the supermarket. Can you talk to me for a couple of minutes?" "Why?" she asks. "Because every time I talk to a beautiful woman, my wife appears out of nowhere.”

The Subordination For a Partial Pay-Down

- Today's Observation -

Borrower Bob bought his house after the Great Recession from a fix-and-flipper, who agreed to carry back a $150,000 contract of sale (or first mortgage) on the house. Since then, Bob, a contractor, totally modernized the property, putting in a new kitchen and new appliances. He installed beautiful hardwood floors throughout the house, and he also knocked down some walls and created an open floor plan between the kitchen and the family room. The house has increased at least $75,000 in value.

Now Bob’s contracting business needs to expand, but because Bob was forced to declare bankruptcy during the Great Recession, Bob cannot simply refinance his house to get at his equity. Bob therefore comes to Blackburne & Sons with his problem. Blackburne & Sons then suggests a plan. We will make him a $175,000 new first mortgage, but we need the old fix-and-flipper to subordinate his loan. Why would the fix-and-flipper agree to do this? Because Bob offered him a $50,000 pay-down on his $150,000 first mortgage, if the fix-and-flipper would agree to subordinate his $100,000 remaining mortgage to Blackburne & Sons’ new first mortgage.

Folks, we do this all of the time, and it works great! The fix-and-flipper is thrilled as well because he can take that $50,000 early pay-down and parley it into $125,000 in matter of months.

Mime Class Joke

A young lady was a theater major applying for fall semester classes. At the end of the busy day she goes back to her dorm and enters in a huff of anger. "What's wrong, Shelly?" asks her roommate. "Well, all the acting classes are filled. I couldn't even get into Mime class.” "Why not?” "How should I know? You can't get a word out of those people!”

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. Click here to submit a quick application.