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BANKER LETTER
Volume 8: Issue 13
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Date: October 21, 2020
This letter is intended only for commercial real estate loan officers working for banks, credit unions, conduits, and hard money lenders. 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.
Hey guys, if we make you chuckle today, won't you please-please-please refer a turndown this week to CommercialMortgage.com? Seriously, guys, this searchable portal is free, and it contains thousands of commercial lenders. You really are doing them a favor.
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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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HitchhikerJoke
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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- 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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Free Commercial Loan Leads
C-Loans.com, is our original portal. C-Loans.com has been phenomenally successful, boasting over 1,000 commercial loan closings totaling over $1 billion. We will list banks on C-Loans.com for free, and they will receive free leads by email, as well as calls and emails directly from borrowers.
If the bank closes a commercial loan, however, the bank owes to C-Loans.com a software licensing fee of between 25 to 50 bps (usually 37.5 bps.) In real life, all of our banks simply bump their normal loan fee from 1.0 points to 1.375 points, so C-Loans.com effectively costs the bank nothing. Please click here to get listed on C-Loans for free. (You must be a bona fide direct commercial lender servicing at least $20 million in commercial loans.)
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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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How C-Loans Actually Works
Think of C-Loans.com as a giant filter. We start with 750 participating commercial lenders. Every time you enter more information into the application - loan amount, property type, loan type, state, credit - dozens of lenders are filtered out. Upon completion, you are left with a list of 20 to 30 perfect lenders. You put a check mark next to six lenders at a time and press submit. Soon you are receiving quotes and offers. No good offers? Come back and submit to six more lenders, then six more, and so on. And C-Loans.com is free!
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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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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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Won't You Please-Please-Please Refer Us Your Commercial Mortgage Turndowns?
If you have to turn down a commercial loan this week, you would really be helping your customer if you referred him to CommercialMortgage.com. The domain name is easy to remember.
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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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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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Become a Hard Money Lender
One reason why hard money brokers make ten times more money than desk-and-a-phone mortgage brokers is that they approve their own deals!! Four-hour video course, How To Find Your Own Private Mortgage Investors. Just $549.
Now available online!
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Would You Mind a $21,250 Referral Fee?
We once paid a $21,250 referral fee to a website owner named Alan Dunn for referring us a $17 million deal. Please click here for details.
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Aliens Joke
Aliens probably fly by earth and lock their doors.
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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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Toilet Seat Joke
A cold seat in a public restroom is unpleasant. A warm seat is worse.
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Video - These Kids Can Dance
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FREE Commercial Loan Brokerage Training
From an Industry Veteran and Attorney
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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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www.C-Loans.com
4811 Chippendale Drive
Suite 101
Sacramento, CA 95841
P: (574) 210-6686
F: (916) 338-2328
CA DRE #1330173
NMLS #167100
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Tom Blackburne
General Manager
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