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Volume 8: Issue 5 | Date: August 5, 2018
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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. Did you know that commercial lending is very seasonal? Here is what you do with this knowledge. We also have lots of cute, clean jokes, some funny pics, and a hilarious video of Donald Trump starring in Braveheart. Whether your love him or hate him, you will belly laugh.
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Joke Du Jour
Before going on vacation, I went to a tanning salon. I was under the lights a bit long, and the protective shades I wore left a big white circle around each eye. Gazing at myself in the mirror the next day, I thought, "Man, I look like a clown.” I had almost convinced myself that I was overreacting until I got in line at the grocery store. I felt a tug at my shirt and looked down to see a toddler staring up at me. He asked, "Are you giving out balloons?"
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Still Making Nationwide Permanent Loans From $100K to $3.5M
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, Alicia Gandy, at (916) 338-3232.
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Movies Joke
My mother and I were walking through the mall when a man stopped us to ask if we would take part in a survey. One of the questions was, "Do you think there is too much $ex in movies?" "I don't know," replied my mother. "I'm usually too wrapped up in the film to notice what the rest of the audience is doing.”
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Sometimes Joke
Sometimes...
when you cry,
no one sees your tears.
Sometimes...
when you are in pain,
no one sees your hurt.
Sometimes...
when you are happy,
no one sees your smile.
But fart just ONE TIME!
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- Today's Lesson -
You Can Make Plans Around Commercial Lending's Seasonality
Every year its the same thing. Borrowers are desperate for commercial loans between March 1st and April 15th, and then they absolutely disappear for a month. It’s a good time to take some time off with your family. The summer is busy until August 1st, and then your office phones will sound like a morgue until mid- September. Commercial borrowers are all on vacation, so you might as well take a vacation too.
But then Busy Season begins. Busy Season - the Christmas retail season for commercial real estate finance - begins September 15th and ends November 30th. Commercial lenders will close 40% of their loans for entire year in that short 2.5 month stretch. A commercial mortgage broker would be nuts to schedule a vacation between September 15th and November 30th! We at Blackburne & Sons do not allow vacations between those dates.
Commercial loan applications appear to mortgage brokers like schools of fish appear to a fisherman. The fisherman will go days with lousy hauls of fish, and then a school of fish will appear and his nets will fill to capacity. You can’t be out playing golf and goofing around when the fish are schooling. Get your tail to the office and work until 10:00 pm every night until the school of commercial loan applications moves on. In a few weeks you will be scratching for deals again.
One of my oldest and dearest friends is Bill Owens, who converted his hard money shop into a NYSE-listed REIT during the nadir (low point) of the Great Recession. Almost 40 years ago, Bill Owens taught me commercial real estate finance, and he has remained my kind and generous mentor. He once remarked, after I had called him about a painfully slow commercial loan market, “George, sometimes you just have to go fishing.” Bill would go deep-sea fishing off of Baja California back in the day. And he was right. You can spend tens of thousands of dollars on commercial mortgage advertising, but if the market is sleeping, you are just wasting your money.
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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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Crocodiles Joke
"Indonesia's anti-drug chief is proposing that the country put narcotics offenders in a jail on an island surrounded by crocodiles. The plan is to send the inmates food supplies every day, but they will have to survive on their own. This already sounds like a reality TV show I would totally watch.” — James Corden
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Submit a Commercial Loan Using the Six-Step C-Loans Process To Six of Our Lenders and Get TWO Free Training Courses
Suppose a commercial real estate loan crosses your desk. If you enter it into C-Loans.com and submit it to six of our lenders, you get to choose TWO of the following goodies:
1. The PowerPoint presentation to our $199 Commercial Mortgage Marketing Course.
2. Commercial Loan Broker Fee Agreement that comes with our $199 fee collection course.
3. A regional copy of The Blackburne List with a list of 750+ commercial lenders.
4. Electronic version of our Commercial Mortgage Underwriting Manual ($199) that teaches you all of the necessary ratios.
After you have entered your commercial loan into C-Loans.com (a six-step process) and submitted it to six commercial lenders, please send an email with your two choices to Tom Blackburne with the subject line, “Pease Send Me My Two Training Courses”. You can also reach Tom at 574-210-6686.
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Maturity Joke
My wife accused me of being immature. I told her to get out of my fort.
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You Are Totally Missing the Boat Regarding CommercialMortgage.com
For the past two years we have been trading our training courses for big lists of hungry banks. The moment we get these bankers, we throw them onto CommercialMortgage.com. CommercialMortgage.com is not as sophisticated as C-Loans.com - you can’t submit your loan at the same time - but there are thousands and thousands of different commercial lenders listed on this free portal, and it is searchable!
One of the most successful commercial mortgage brokers in the entire country is Les Agisim of Trevor Cole Commercial, and I was tickled pink recently to see that Les uses CommercialMortgage.com on a regular basis. You would be wise to do what the successful guys do.
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Looks Like a Good Place For a Park
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Free Copy of The Blackburne List
The Blackburne List is a list of over 2,500 commercial lenders located nationwide. We just spent almost $30,000 and three months updating this list.
The Blackburne List 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. But why spend money at all?
We will trade you one of our three Regional Lists for the contact information of just one banker making commercial real estate loans. If you refer us three bankers, you will own the list for all three regions. Together you will own the entire Blackburne List.
Note: CommercialMortgage.com is so stuffed with bankers that I am getting ready to shut down this offer. This offer ends August 31, 2018.
There is another way that you can access The Blackburne List. Our newest portal, CommercialMortgage.com, is an online way to search the entire Blackburne List for the 30 lenders most suitable to make your commercial loan. CommercialMortgage.com ("CMDC") is also 100% free!
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Blood Joke
Lawyer: I have some good news and some bad news.
Client: Well, give me the bad news first.
Lawyer: They found your blood all over the crime scene.
Client: Oh no, I'm ruined! What's the good news?
Lawyer: Your cholesterol is down to 130!
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Paranoia Joke
A woman walks into a library and asked if they had any books about paranoia. The librarian says, "They're right behind you!"
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Yelp Joke
"Yelp is going to start showing what restaurants scored on their health inspections. If you want to know how your favorite restaurant did, trust me, no you don't.” — Jimmy Fallon
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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? Find your own private mortgage investors.
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Crocs Joke
"Is everyone here familiar with Crocs? Well, there's a brand-new style that have just been introduced: High-heel Crocs! High-heel Crocs - for the woman who wants to let everyone know that she's the drunkest mom at the kid's pool party.” — James Corden
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We're Now Making Business Purpose Rental Home Loans in 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.
- 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 me:
Alicia Gandy
Senior Loan Representative
P: (916) 338-3232
gandy@blackburne.com
NMLS #389678
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Stallion Joke
Q: How do you turn a stallion into a pig?
A: You marry him.
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The Sweet Apartment Loan Program For "A" Deals
Blackburne & Sons has a terrific apartment loan program for "A" quality deals. Our fixed rate is adjusted according to the desirability of the property and the area, but it starts at 3.87% and 1 point for a 30-year fully-amortized loan. For more details, please call Alicia Gandy at (916) 338-3232.
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Polynesia Joke
Polynesia: Memory loss in parrots.
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Free Mortgage Broker Fee Agreement
You probably think that fee agreements are designed for the situations where the borrower closes the deal and doesn’t pay you. This rarely happens. What happens far more often is that a borrower flat-out lies to you or he cancels on you. I have used my fee agreement to successfully obtain judgments of over $1 million in fees. I’ll trade you my famous fee agreement for a bona fide banker making commercial loans. Hint: You are NOT a banker.
CommercialMortgage.com is so stuffed with bankers that I am getting ready to shut down this offer. This offer ends August 31, 2018.
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Hole Joke
If you rip a hole in a net, there are actually fewer holes in it than there were before.
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Final Funny
For a computer programming class, I sat directly across from someone, and our computers were facing away from each other. A few minutes into the class, she got up to leave the room. I reached between our computers and switched the inputs for the keyboards. She came back and started typing and immediately got a distressed look on her face. She called the teacher over and explained that no matter what she typed, nothing would happen.
The teacher tried everything. By this time I was hiding behind my monitor and quaking red-faced. I started to type, "Leave me alone!” They both jumped back, silenced. "Whaa??" the teacher blubbered. Then I typed, "I said leave me alone!" The kid got really upset. “I didn't do anything to it, I swear!" It was all I could do to keep from laughing out loud. The conversation between them and HAL 2000 went on for an amazing five minutes.
Me: "Don't touch me!"
Her: "I'm sorry, I didn't mean to hit your keys that hard."
Me: "Who do you think you are anyway?!" Etc.
Finally, I couldn't contain myself any longer and fell out of my chair laughing. After they had realised what I had done, they both turned beet red. Funny, I never got more than a C- in that class.
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Read the C-Loans Blog
Pick up lots of great commercial brokerage practice tips for free.
Click here and bookmark it.
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BLACKBURNE & SONS
Realty Capital Corporation
4811 Chippendale Drive
Suite 101
Sacramento, CA 95841
P: (916) 338-3232 // F: (916) 338-2328
CA DRE #829677 // NMLS #103430
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George Blackburne III, Esq.
Owner and President
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A member of the Blackburne Family of Companies
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