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Volume 10: Issue 6 | Date: October 19, 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 difference between a bridge loan and a mini-perm. As always, we have lots of cute, clean jokes, funny pictures, and a video of some African boys dancing. These happy five-year-old are immensely talented.
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Joke Du Jour
The biology class was taking their mid-term exam. The last question was, "Name seven advantages of Mother's Milk.” The question was worth 70 points or none at all.
One student was having a problem thinking of seven advantages; however, he wrote:
1) It is perfect formula for the child.
2) It provides immunity against several diseases.
3) It is always the right temperature.
4) It is inexpensive.
5) It bonds the child to mother, and vice versa.
6) It is always available as needed.
But then the student was stuck. Finally, in desperation, just before the bell rang, indicating the end of the test, he wrote:
7) It comes in two attractive containers that are high enough off the ground where the cat can't get it.
He got an A.
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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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Hitchhiker Joke
Picked up a hitchhiker. He asked if I wasn’t afraid he might be a serial killer? I told him the odds of two serial killers being in the same car were extremely unlikely.
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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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Carpet Joke
Just helped my neighbor throw a rolled up carpet in the dumpster… Her boyfriend would have helped, but he is out of town.
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- Today's Observation -
Bridge Loans vs. Mini-Perms
A permanent loan is a first mortgage, secured by a multi-family or commercial property, with a term of at least five years and at least some amortization. A permanent loan cannot just have interest-only payments for the entire term. There must be some principal pay down, usually using a 25-year amortization.
A mini-perm is a first mortgage on multifamily or commercial real estate - made by a lender with low, A-quality, interest rates, like a bank, S&L, or credit union - that has a term of less than five years.
Most mini-perms have a term on two years, although terms of one year and three years are also reasonably common.
In the old days, when interest rates varied, mini-perms were floating rate loans, typically tied to either prime or LIBOR. Nowadays, commercial lenders are desperate for yield, and interest rates have been falling for more than a decade. Therefore, many mini-perms are now written with a fixed rate.
Okay, so what's the difference between a first mortgage bridge loan and a mini-perm? The two loan types look very similar to me. Maybe it's a prestige thing. Yucky, shark-like hard money lenders and mortgage funds make bridge loans. Hoity-toity banks make mini-perms.
But perhaps there really is a difference. Bridge loans are typically made quickly to borrowers in a little bit of a jam. In contrast, banks just saunter down to make mini-perms, taking their sweet, 'ole time.
Mini-perms are also about 2% to 3% cheaper than even the cheapest bridge loan. The reason why is that even the largest bridge lenders have to borrow from some bank to get their dough to make their bridge loans; so obviously the bridge lender has to charge a rate higher than the bank, in order to make a profit.
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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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Mirror Check Joke
Do you ever get up in the morning, look in the mirror, and think, “That can’t be accurate?”
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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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Lover Score Joke
I asked my wife if I was the only one she had been with. She said yes, all the others were nines and tens. Ouch! Hahahaha!
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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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Sobbing Joke
Me: Sobbing my heart out, “I can’t see you anymore… I’m not going to let you hurt me again.”
Trainer: “It was one sit-up. You did one sit-up.”
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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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Food Prep Joke
My wife asked me to take her to one of those restaurants where they make food right in front of you. I took her to Subway. That’s when the fight started.
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Learn Commercial Real Estate Finance - 9 Hour Video Training Course
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Aliens Joke
Aliens probably fly by earth and lock their doors.
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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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RSVP Joke
Apparently RSVP’ing to a wedding invitation, "Maybe next time", isn’t the correct response.
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Diets Joke
I’m on two diets. I wasn’t getting enough food on one.
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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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Toilet Seat Joke
A cold seat in a public restroom is unpleasant. A warm seat is worse
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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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Fourteen Again Joke
I want to be 14 again and ruin my life differently. I have new ideas.
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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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Two Trunks Joke
Q: What is green, four legs and two trunks?
A: Two seasick tourists.
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Rubber Gloves Joke
Confuse your doctor by putting on rubber gloves at the same time he does.
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On a Personal Note
Twice a year, usually once in the spring/summer and once around the holidays, I make it a point to visit my family in Indiana. Unfortunately, due to COVID I had been unable to do so, and it was a little depressing. My father has some heart issues, so while we needed to make sure he was safe, I also felt it was important to see him. We only get so much time on this earth and we need to make the most of it. After consulting with my brother and mother, we decided to surprise my father over labor day weekend. But how do we get there? The idea of taking a plane (essentially a giant petri dish with wings) to visit someone who was “at risk” didn’t seem like the smartest thing to do, so we decided to drive. I can barely sit in a car for 2 hours, but somehow we managed to drive 8-10hrs a day, for 4 days (one way), and made it to Indiana. Once there, my brother set the trap. He invited my parents over for a bbq and just as they were getting ready to eat my partner and I walked in and surprised my father. He was elated. For once my mother kept a secret (she is notoriously bad at it haha) and he was completely shocked.
But that wasn’t the only surprise that trip. While my mother knew were coming to visit, what she did not know was that I had secretly proposed about a month before. It took her a few minutes before she noticed the rings, but when she did both my parents were surprised and excited. In these difficult times, make the time for your family. I promise it will be worth it.
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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 - These Kids Can Dance!
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Final Funny (R)
An old man goes to confession. He tells the priest that on Friday night, he’d been in the bar, when he met a young woman. “She was maybe 22,” he says. “She was a gorgeous blonde. I started lusting, Father.” “Yes, lust is a dangerous sin.” says the priest. “There’s more,” says the man. “We went back to her place and made passionate love for hours.” The priest pauses. “And how long has it been since your last confession?” “This is my first confession ever, Father." “How is this your first confession?” asked the confused priest. “I’m Jewish,” answered the old man. “Then… why are you telling me all this?” asked the priest. “Telling you?" said the old man, "I’m telling everyone!”
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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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