October 19, 2021

MORTGAGE STUFF

Volume 21: Issue 5





C-Loans Client Newsletter

You are receiving this letter because you are a commercial mortgage broker client of either Blackburne & Sons or C-Loans, Inc. Removal instructions are below. Today we'll discuss why China has hit a brick wall. We also have lots of cute, clean jokes, some funny pics, and an educational video on the global chip shortgage.

Joke Du Jour

Why do demons and ghouls hang out together? Because demons are a ghoul's best friend!

Free Stuff

Free Loan Placement Kit

Commercial Loan Checklist - Ten techniques that will triple your chances of closing

The Blackburne List - 200 commercial lenders by state with their direct contact info

Whitepaper - How to place a loan when banks are scared to lend

Bonus Training Video - Structured finance including topics like mezzanine loans and preferred equity

Why You Must Follow C-Loans on Facebook

You are missing important free training. It takes old man Blackburne four to five hours to write one of our popular blog training articles, but he can knock a short training article about commercial mortgage brokerage or commercial real estate finance (CREF) in minutes. In the past two weeks, he has written mini-articles on 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.

Vampire Joke

What’s it like to be kissed by a vampire? It’s a pain in the neck.

Place Your Commercial Loan With C-Loans

C-Loans.com is a true commercial mortgage portal. It allows you to create, in just four minutes, a universal mini-app. You then submit this mini-app to our 750 different commercial lenders.

C-Loans acts like a giant filter that screens out the unsuitable lenders and reduces this huge, unmanageable list of lenders down to a list of just 30 banks, credit unions, and other lenders that are perfect for your deal. You put a checkmark next to six lenders and then press, “Submit.” Within minutes, hungry lenders will be contacting you with offers. And C-Loans is free! 

If you have never checked off six lenders on a list that looks like the image below, then you have never really used C-Loans.com.

Special COVID-19 Notice:  The whole concept of C-Loans.com is that banks are fickle. They pop in and out of the commercial lending market on almost a daily basis. This is especially true during this COVID-19 crisis! We urge you to submit all of your commercial loans through C-Loans and to submit your deal to at least 24 different banks, six per use (just close out and come back in four times). Fortunately we just added several hundred new banks.

Training Stuff

Learn Commercial Real Estate Finance (9 hrs)

Topics include:

• Underwriting
• Marketing
• Fee Collection
• Many More!

$549. Order HERE.

Become a Direct Lender. Learn Loan Servicing (5 hrs)

One reason why hard money brokers make ten times more money than desk-and-phone mortgage brokers is that they approve their own deals!! 

$549. Order HERE.

Save $249 and Get

Both Courses

Just $849!

Order HERE.

- Today's Observations -

China Is Hitting a Brick Wall

The economic forces lined up against President Xi of China are immense. Most recently, the huge Evergrande default exposed the fact that China has 50 million to 65 million unsold apartments (condo's). A huge percentage of China's GDP - called by many an "economic miracle" - has been in the construction of real estate. Real estate in China is clearly over-built and, more importantly, misdirected. They are taking cold, hard cash and building properties that the Chinese economy does not need.

A slowdown in real estate, where the Chinese people keep at least 60% of their wealth, is now a given. The Evergrande default has exposed to the Chinese people that real estate is horribly overbuilt. A devastating real estate crash in China is a distinct possibility. The Chinese Communist Party ("CCP") is powerful, but even the CCP lacks the economic wherewithal to stem a real estate crash, once a rout has started.

Since the Chinese keep at least 60% of their wealth in real estate, and since even the CCP can't force a financially-nervous populace to buy things (please re-read that last phrase), a correction or a crash in real estate is almost certainly going to rein in this runaway Chinese economy. At an absolute minimum, the Chinese people must now suddenly feel much less wealthy. 

The Evergrande default also exposed another huge problem within China's "rapidly growing" economy. They are building a lot of stuff that the world does not need and counting it towards their published GDP. Suppose, for example, twenty million Chinese people spent years building buggy whips. Western capitalist countries would never do this because the factory would fail within a year for the lack of sales, but in China... Helloooo? Fifty to sixty-five million unsold apartments.

China is not some economic miracle. Their economic miracle is merely the product of having 1.44 billion people and adopting a semi-capitalistic system. That brings up the fact that China is now shrinking. Officially China's population grew by 7 million people last year. That's nonsense. The numbers were fudged to avoid embarrassing President Xi.  The fact that their population is declining means that future economic growth in China has to be the product of increased productivity.  Hmmm.

President Xi's war on big tech only exacerbates the slowdown in China. Threatened by the power of big tech, President Xi has forced the recent retirements of a dozen heads of big tech companies - people like Jack Ma of Alibaba. This would be like forcing Elon Musk, Jeff Bezos, and Tim Cook to retire. Innovation would suffer.

Then there is the current energy crisis in China. Here I can't blame President Xi. He is trying to curtail the use of coal (air pollution, global warming); but the lack of power is slowing the Chinese economy. Many Chinese factories are operating far below their capacity, despite demand.

Then there are the economic sanctions. China claims they had no effect on them. Don't believe it. Add to this the growing dislike and distrust of China throughout the world. If Wal-Mart can buy dresses from either Vietnam or China, guess who now gets the order? Then there is President Xi's war on the Chinese stock market and foreign investment. New foreign investment in Chinese factories has to be falling.

These economic headwinds are simply too strong. China is in a for an economic poop-storm, much like Japan in 1989.

Got a Slightly Flawed Commercial Loan? Call Blackburne & Sons

Click HERE to Apply Now!

Blackburne & Sons continues to seek first mortgages between $100,000 to $2 million on standing commercial properties nationwide. We particularly like Gentlemen’s Clubs. One unusual loan product that we offer is our blanket loan against a portfolio of rental homes. We will also hypothecate notes and buy commercial loans at a discount. We also make non-owner-occupied, business purpose, residential loans in many states. Please be sure to bookmark our commercial mortgage rate sheet right now.

Call or click on your favorite loan representative to email:

CLICK ME!

to send an email

CLICK ME!

to send an email

CLICK ME!

to send an email

Skeleton Joke

Why didn't the skeleton go to the scary movie? He didn't have the guts.

Need Leads?

We've Got 'em!

1) C-Loans Lender Vault

2) CommercialMortgage.com

Referral Fees

Referring Partner Links

Refer Hard Money Deals

Free Training Courses

Are you desperate to learn commercial real estate finance, but you’re as poor as a church mouse? Get four free training courses.

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: NATIONWIDE

Residential:

• Alaska
• Arizona
• California
• Delaware
• Florida
• Georgia
• Hawaii
• Illinoise
• Indiana
• Louisiana
• Maryland
• Michigan
• Missouri
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Oklahoma
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas
• Virginia
• Washington
• West Virginia
• Wisconsin

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 click on your favorite loan representative to email:

CLICK ME!

to send an email

CLICK ME!

to send an email

CLICK ME!

to send an email

Witch Joke

What's a witch's favorite makeup? Ma-scare-a.

More Training Stuff

Marketing Course

I have been marketing for commercial loans for almost 40 years. I have wasted well over $175,000 on marketing campaigns that were busts. Here is what works.

$199. Order HERE.

Underwriting

Learn 100 commercial mortgage finance terms and 15 financial ratios. Learn about debt service coverage ratios, operating expense ratios, construction loans, and more!

$199. Order HERE.

Fee Collection

You would be a flipping idiot not to pay a lousy $199 for my 90 minute video training course, Fee Collection For Commercial Mortgage Brokers. It includes my famous fee agreement.

$199. Order HERE.

How To Earn Huge Referral Fees

Please click here after viewing the video.

Pumpkin Joke

Why did the pumpkin take a detour? To avoid a seedy part of town.

Need a NMLS License?

Need CE Hours?

CommercialLenders.com

You can buy for just $79.95 a large list of 2,500 commercial lenders. Once you have The Blackburne List of Commercial Real Estate Lenders nationwide, you can easily make a half-dozen phone calls and place the loan yourself. 

Video - The Global Chip Shortage

Final Funnies

How do vampires start their letters? Tomb it may concern.

Why are graveyards so noisy? Because of all the coffin.

How do you get rid of demons? Exorcise a lot.

**All jokes taken from countryliving.com**

NMLS #167100

CA DRE #1330173

555 University Ave, Suite 150

Sacramento, CA 95825

P: (916) 338-3232

F: (916) 338-2328

NMLS #103430

CA DRE #829677