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Volume 10: Issue 3 | Date: May 7, 2020
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COMMERCIAL LENDING NEWSLETTER
You are receiving this letter because you are one of my Spartans - my top-producing brokers and investor clients - of whom I am allowed to have 300. Removal instructions are below. Today we’ll discuss the types of commercial loans preferred by lenders during the Coronavirus Crisis. We also have lots of cute, clean jokes, some funny pics, and a hilarious classic video of Archie Bunker about to get “shaved” by a black, woman doctor before an operation. You will split a gut. Hahahaha!
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Joke Du Jour
Heavy snow had buried my van in our driveway. My husband, Scott, dug around the wheels, rocked the van back and forth and finally pushed me free. I was on the road when I heard an odd noise. I got on my cell and called home. "Thank God you answered," I said when Scott picked up. "There's this alarming sound coming under the van. For a minute, I thought I was dragging you down the highway.” There was a pause before Scott replied, "And you didn't stop???”
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Free Commercial Loan Software
C-Loans has just developed some brand new commercial loan software that is super-easy to use, even for a complete newbie to commercial real estate finance. You just fill in the blanks. You can then take your professional-looking commercial loan package and submit it to any lender in the country. This new commercial loan software is also 100% free.
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Club Soda Joke
I was waiting tables at a country club when an elegantly dressed woman spilled Manhattan clam chowder all over her white linen skirt. She began furiously dabbing at it with a napkin. Having plenty of experience with getting out food stains, I asked, "Can I bring you some club soda?” "Young lady," she barked, "I'll be the judge of when I've had enough to drink. Bring me another martini!”
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Still Making Nationwide Permanent Loans From $100K to $1.5M
Do you need a commercial lender who will actually lend up to 75% LTV? Blackburne & Sons has decided to compete against banks by offering a higher LTV.
Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage?
Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit?Is your client's company losing money? Is your borrower a foreign national?Do you need a non-recourse loan?
Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a loan against a portfolio of rental houses?
And don't forget, we will quickly and happily issue you a written Loan Approval Letter - at no charge - that you can use as a fallback and to lure cheaper lenders. After all, everyone wants to lend to you if you already have a commitment. Here is our latest rate sheet.
Blackburne & Sons is looking for commercial real estate loans that are not quite clean enough for a bank. Please click here to submit a hard money commercial loan or call me, George IV, at (916) 338-3232 Ext. 314.
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Takeout Order Joke
Starving after hours of driving nonstop, my husband and I pulled over at a truck stop. While he gassed up the car, I went into the restaurant and placed our large order to go. After writing it all down, the girl behind the register asked, “Will that be all for you?” “No,” I replied a bit defensively. “Some of it’s for my husband.”
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- Today's Opportunity -
Here Are The Types of Loans
Lenders Are Seeking Today
Right now 4,000 commercial banks and 6,000 credit unions are out of the commercial real estate loan market.
Banks were very slow to return to commercial real estate lending after the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. During each of these crises, commercial real estate fell by almost exactly 45%. After taking huge losses in their commercial loan portfolios, most banks did not return to the market for three years.
Will commercial real estate fall by 45% again? I suspect it might. Since banks make 95% of all commercial construction loans, real estate developers are toast. Many may have to wait several years before their projects get funded.
Loans on hospitality properties are obviously off limits. The retail sector is also strongly out of favor.
A mixed use property is one that has apartments over ground floor retail space. Normally Fannie Mae and Freddie Mac, when making their Agency apartment loans, will allow up to 20% of the income to come from the retail space. The disdain for loans on retail properties is so strong today that Fannie Mae and Freddie Mac will not include in their pro forma operating statements one penny of projected retail income.
Are any commercial real estate loans at all being written today? Yes. Although most SBA lenders are swamped with Paycheck Protection Program (PPP) loans, these loans are not terribly profitable. More and more SBA lenders are returning to classic, garden-variety SBA 7a and 504 loans.
But the truly hot market right now is the Small Balance Loan (SBL) Program from Agency Lenders (Fannie and Freddie) on apartments. Interest rates are fixed and in the low-3’s for ten-year, 15-year, and 30-year loans. If you own an existing apartment building, now is the time to consider refinancing it. If you are commercial loan broker, focus your attention on multifamily loans. Theres are the deals that are closing. You will find a dozen Agency lenders, originating for Fannie and Freddie, by using C-Loans.com here.
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Peace and Quiet Joke
My wife asked if she could have a little peace and quiet while she cooked dinner, so I took the battery out of the smoke detector.
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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.
Commercial Loans: NATIONWIDE
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Don't see YOUR state listed above? If you have a real-life deal, we’ll hire our attorney to quickly research its availability. Call or email me today!
George Blackburne IV
Loan Representative
P: (916) 338-3232 Ext. 314
georgeiv@blackburne.com
NMLS #382122
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 30-year amortization, a 15-year term and no prepayment penalty.
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Rock Star Joke
A farmer friend of mine used his stimulus check to buy baby chickens. He got his money for nothing and his chicks for free!
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Submit Your “A” Quality Commercial Loans Using C-Loans
You old veterans know that commercial lenders are incredibly fickle. One moment a bank loves self storage loans, and the next moment - usually after taking a loss - it wouldn't touch a self storage facility loan with a ten-foot pole. C-Loans.com is a commercial mortgage portal that was designed with commercial lender fickleness in mind. You fill out one mini-app, and then you can submit your commercial loan application to bank after bank, six at a time, until you find a bank hungry to make a commercial loan today. Mortgage brokers like you have closed over 1,000 commercial real estate loans totaling over $1 billion, so C-Loans clearly works. And C-Loans.com is free!
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Composition Joke
Teacher: Clyde, your composition about, “My Dog," is exactly like your brother's. Did you copy this?
Clyde: No sir. It’s the same dog
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Free Commercial Loan Placement Kit
Includes a list of 200 commercial lenders and a short (5 minutes), superb video on structured finance (mezzanine loans, preferred equity, and venture equity). Go here.
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TP Joke
My house got TP'd last night. It’s appraised value has now doubled.
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CommercialMortgage.com
Just Keeps Getting Better and Better
Every day we add two to five new banks and credit unions to CommercialMortgage.com. With almost 4,000 banks, credit unions, and other commercial lenders, CommercialMortgage.com is by far the largest databank of commercial lenders in the country.
Do you understand that CommercialMortgage.com is absolutely free to use? The lenders listed do NOT jack up their loan fee in order to pay a software licensing fee to C-Loans, Inc. One of the most successful commercial mortgage brokers in the entire country is Les Agisim of Trevor Cole Commercial, and Les uses CommercialMortgage.com all of the time. You would be wise to do what the successful guys do.
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Bored Joke
Quarantine has me as bored as an Amish electrician.
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Learn Commercial Real Estate Finance - 9 Hour Video Training Course
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Icy Joke
People think "icy" is one of the easiest word to spell... Come to think of it, I see why.
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It's the Loan Servicing Income, Folks
No one ever listens to me. Please pay attention! The money in the mortgage industry is in loan servicing fees, and servicing loans is easy. For your first 50 deals, you can just hire a sub-servicing company for $40 per loan per month. I charge my investors $1,583 per month (!!!) for servicing a one-million dollar loan. $1,580 per month minus $40 equals...
The loan servicing portfolio for Blackburne & Sons just broke $53 million this quarter. Since our average loan servicing fee is two percent annually, that means we earn over $1 million per year for servicing just 250 loans. How would you like to walk in the door on the first of each month knowing that you will earn at least $83,000? Four-hour video course. Find your own private mortgage investors.
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Fridge Joke
I swear my fridge just said what the hell do you want now?
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Cable Time Joke
The cable repairman was on my street and asked me what time it was. I told him it is between 1:00 pm and 4:00 pm.
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The Blackburne List - Updated in 2019
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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Inland Joke
A married couple is sleeping when the phone rings at 3:00 am. The wife picks up the phone, and, after a few seconds, replies, “How am I supposed to know? We’re 200 miles inland!” Then she hangs up. Her husband rolls over and asks, "Sweetheart, who was that?” “I don’t know,” the wife replied, “Some dumb gal asking if the coast is clear.”
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Have You Been Screwed Out of a Big Loan Fee Yet?
Whenever someone boasts of being a good horseman, I always ask him, “Have you ever been thrown?” The correct answer is, “Many, many times”. There is an old saying, “If you ain’t been thrown, you ain't ridden very much.”
The same is unfortunately true of commercial mortgage brokerage. You will screwed out of a loan fee of $10,000 or more at least twice per year for your entire career. Now I am NOT talking about the borrower closing the loan and not paying you. That rarely happens. What these dastardly borrowers do is lie to you or cancel on you.
You would be a flipping idiot not to pay a lousy $199 for my ninety-minute video training course, Fee Collection For Commercial Mortgage Brokers. It includes my famous fee agreement. Go ahead and ignore this section. You will cry, I absolutely guarantee you.
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Smoke Shop Joke
I went to a smoke shop to discover that it has been replaced by an apparel store… Clothes, but no cigar.
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Commercial Mortgage Marketing Course
Need commercial mortgage leads? This Commercial Mortgage Marketing Course will teach you how to turn on a flow of commercial leads as easily as turning on a spigot.
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Washing the Car Joke
Yesterday I was washing the car with my son. He said: “Dad, can’t you just use a sponge?”
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Russell Crow Joke
“A cannibal once took my sister to see a Russell Crowe movie.”
“Gladiator?” my friend asked.
“No," I replied, "I really miss her.”
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On a Personal Note
Our newest dog Gypsy is quite a character. In addition to being the incredibly sweet and affectionate, she is also whip smart. She learned the usual sit/stay/lie down/shake routine in the first day and learned how to fetch just by watching our other two dogs. Unfortunately she has discovered some less than desirable tricks, such as opening doors. She has realized that if she jumps up (mind you she is very small dog. 15lbs and no more than a foot tall) and smacks the handle the door will open. She is particularly fond of going into our guest room, which has our turtles in it. Why that room? Well because of the delicious turtle food of course! Before the lockdown, I was worried pet food was going to be in low supply so I made sure to buy dog and turtle food in bulk. We get back from the store one day to find that she had devoured a 6 month supply of turtle food! She was so full she could barely move and I don’t even want to talk about the gas it gave her…
But it gets worse. Thinking we learned our lesson, we ordered more turtle food online and this time, we put it in a dresser drawer. There is now way this dog could open up a dresser right? Wrong. Not a week later, we come home and again find the guest room door open, drawer open and a very full and very self-satisfied Gypsy wagging her tail greeting us. Somehow, she was able to open up the dresser drawer. I am 90% sure she thinks this is a game of “hide the turtle food” and she is winning. Now we keep the turtle food on the top shelf in the closet, but if she figures out a way to get that then I am not sure what we are going to do!
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George Blackburne IV
Loan Representative
(916) 338-3232 Ext. 314
georgeiv@blackburne.com
NMLS #382122
CA DRE #01873244
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Video - All in the Family is a Classic Series
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Final Funny
A wise old gentleman retired and purchased a modest home near a junior high school. He spent the first few weeks of his retirement in peace and contentment. Then a new school year began. The very next afternoon three young boys, full of youthful, after-school enthusiasm, came down his street, beating merrily on every trash can they encountered. The crashing percussion continued day after day, until finally the wise old man decided it was time to take some action.
The next afternoon, he walked out to meet the young percussionists as they banged their way down the street. Stopping them, he said, "You kids are a lot of fun. I like to see you express your exuberance like that. In fact, I used to do the same thing when I was your age. Will you do me a favor? I'll give you each a dollar if you'll promise to come around every day and do your thing." The kids were elated and continued to do a bang-up job on the trash cans.
After a few days, the old-timer greeted the kids again, but this time he had a sad smile on his face. "This recession's really putting a big dent in my income," he told them. "From now on, I'll only be able to pay you 50 cents to beat on the cans." The noisemakers were obviously displeased, but they did accept his offer and continued their afternoon ruckus. A few days later, the wily retiree approached them again as they drummed their way down the street. "Look," he said, "I haven't received my Social Security check yet, so I'm not going to be able to give you more than 25 cents. Will that be okay?"
"A lousy quarter?" the drum leader exclaimed. "If you think we're going to waste our time, beating these cans around for a quarter, you're nuts! No way, mister. We quit!"
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Members 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 #00829677 // NMLS #103430
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