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PRIVATE CLIENT NEWSLETTER

Volume 4: Issue 3 | Date: March 2, 2020

You are receiving this letter because you are either a high-net-worth client of Blackburne & Sons Realty Capital Corporation (since 1980) or you once applied for a commercial real estate loan of $1 million or more using C-Loans.com or CommercialMortgage.com. Blackburne & Sons and C-Loans, Inc. are sister companies.

Today we’ll discuss EXACTLY how to profit from the coronavirus crisis. We also have lots of cute, clean jokes, some funny pics, and a hilarious, short video that shows how break-dancing started. 

Joke Du Jour

A man hasn't been feeling well, so he goes to his doctor for a complete checkup. Afterwards, the doctor comes out with the results. "I'm afraid I have some very bad news," the doctor says. "You're dying, and you don't have much time left." "Oh, that's terrible!" says the man. "How long have I got?" "Ten," the doctor says sadly. "Ten?" the man asks. "Ten what?  Months? Weeks? What?!" "Nine…"

You Are Now a Private Client of Blackburne & Sons

Please be sure to tell us when you call. "George asked me to mention that I am a Private Client of the firm.” My loan officers are trained to snap to attention. Our commercial mortgage office number is 916-338-3232. 

Alternatively, you can apply for a business-purpose loan secured by a commercial or non-owner occupied property.

Babies Joke

Four men are in the hospital waiting room because their wives are having babies. A nurse approaches the first guy and says, “Congratulations! You're the father of twins.” “That's odd,” answers the man. “I work for the Minnesota Twins!” A nurse then yells the second man, “Congratulations! You're the father of triplets!” “That's weird,” answers the second man. “I work for the 3M Company!” A nurse goes up to the third man saying, “Congratulations! You're the father of quadruplets." “That's strange,” he answers. “I work for the Four Seasons Hotel!” The last man begins groaning and banging his head against the wall. “What's wrong?” the others ask. “I work for 7-Up!”

Earn Up to 12% Interest in Your IRA or Your Kid’s College Fund

It is important that you please grasp the concept that you could be borrowing from Blackburne & Sons against some rental or commercial property at the very same time that you are using your IRA to invest $30,000 in one of our first trust deed investments. Many of our biggest trust deed investors first came to us twenty years ago as commercial property borrowers.

You probably have money set aside for your retirement and for the cost of college for your children and grandchildren. It shouldn't all be invested in the stock market. In California, the first trust deed investment business is huge. A recent law change - the JOBS Act - now allows accredited investors nationwide to also invest in these same first trust deeds and first mortgages.

Grape Joke

Q: What did the green grape say to the purple grape? 

A: “Breathe, you fool, breathe!”

Very Reasonable Investment Scheduled to Yield 26% Annually

As you consider this investment scheduled to yield 26%, please keep in mind that Blackburne & Sons has been in business for almost forty years, and that I am an attorney licensed in both California and Indiana. This is a real life deal, and I personally believe that this is the best investment we have ever offered in our 40 years in business (established 1980). Why? Because this developer has built sixty hotels. Sixty! Is this a risk-free investment? Of course not, but he probably got pretty good at building hotels after his third completed hotel.

Want to Speak With a Loan Officer From Blackburne & Sons?

Blackburne & Sons, our private money commercial lending company, continues to seek slightly-flawed first mortgages between $100,000 to $1.5 million on standing commercial properties nationwide.

To apply for a private money commercial loan from Blackburne & Sons, please click on your favorite loan officer below to send them an email:

Lamb Joke

If Mary had Jesus, and Jesus is the lamb of God, does that mean Mary had a little lamb?

- Today's Opportunity -

How to Profit From The Corona Virus

China’s economy is about to get clobbered by this coronavirus crisis. The financial hammer is NOT what you think. It's not just the issue of three hundred million workers cowering in their homes. The financial hammer is that the multiplier effect is about to kick into reverse. An enormous deflationary tidal wave is about to wash over China and the rest of the world.

The cause is the fact that Chinese banks are now too frightened to lend, and small business owners in China are now too frightened to borrow. In the meantime, Chinese small business owners, who employ sixty percent of China’s workers, are still making payments on their bank loans. The terrified Chinese banks are either too frightened to lend, or they can’t find any borrowers brave enough to borrow. 

Because the multiplier effect can work in reverse, a $1,000 loan payment from a small business can, if the banks fails to recycle that payment, suck a whopping $20,000 (20:1) out of the Chinese money supply. Chinese borrowers probably send at least $50 billion back to the banks in loan payments every year. Multiplied by twenty, that means that $1 trillion in money is being destroyed annually in China. 

Soon, money will become desperately tight in China. Tens of thousands of small businesses in China will fail, tens of millions of workers will be laid off, further reducing demand for products, and adding to the failures of even more businesses and leading to even more layoffs of workers. It is going to be a deflationary bloodbath.

Okay, now let’s profit from this.

Are you a commercial loan broker? Soon most of the banks will be out of the commercial real estate loan market. Soon subprime Wall Street lenders will be unable to sell their mortgage-backed securities, and they will be forced to leave the market. Soon most of the hundreds of the new hard money mortgage funds will close because they lack any new money to lend.

This is great news for you. Borrowers will be desperate for commercial loans, and you know one of the only commercial lenders that will remain in the market. I have told you for years that we intentionally do not use a fund. We quickly put together a fresh syndicate to fund every single loan. This is why Blackburne & Sons was in the market, making new commercial loans, every single day of the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. 

Are you a commercial broker (commercial real estate sales broker)? Lots and lots of business owners will be desperate for cash, and many will be willing to list their properties for sale. Get out there and talk to every business owner and every commercial property owner that you know. The next two years should be a field day for listings for you.

Are you a real estate investor? The best time to invest is when blood is running in the streets, and sadly I greatly fear that there will soon be plenty of blood in the streets. But please grasp this concept: Commercial real estate fell by 45% during the S&L Crisis. Within three years, values reached new highs. Commercial real estate fell by 45% during the Dot-Com Meltdown. Within three years, values reached new highs. Commercial real estate fell by 45% during the Great Recession. Within three years, values reached new highs.

When commercial real estate values have fallen by 35% (not 45%), get out there and BUY something. If values simply recover, you will have earned 53.8% on your money. Why not wait until commercial real estate has fallen by 45%? You will end up buying nothing! In every real estate depression for the past forty years, real estate values soared from their nadir (low point) to a full recovery in a matter of weeks. Don’t get greedy!

Bear Conversation Joke

A priest, a minister, and a rabbi want to see who’s best at his job. So they each go into the woods, find a bear, and attempt to convert it. Later they get together. The priest begins: “When I found the bear, I read to him from the Catechism and sprinkled him with holy water. Next week is his first communion.” “I found a bear by the stream,” says the minister, “and preached God’s holy word. The bear was so mesmerized that he let me baptize him.” They both look down at the rabbi, who is lying on a gurney in a body cast. “Looking back,” he says, “maybe I shouldn't have started with the circumcision.”

Here's Why You Want to Stay Close to Blackburne & Sons

Founded in 1980, Blackburne & Sons is an old-time syndicator. There are very few of us left. The Tax Reform Act of 1986 pretty much nuked the whole syndication industry off the face of the Earth. Because you know a syndicator, you now have access to some special money.

If you need a fix and flip loan, a buy-to-rent loan, a bridge loan, or even a permanent loan on, say, on your single-wide trailer park in Georgia, we'll make you a private money loan. We've been syndicating hard money loans for 40 years.

If you have some dough set aside for your kid's college, and you want to be extra careful with it, we'll put you into a first trust deed investment (8% to 12% yields) on, say, a nice 8-unit apartment building in San Jose, California.

Let's suppose you are richer than Crassus, and you want to speculate in 11% and 12% first trust deeds. We've got them.

Do you find yields of even 11% to 12% too tame? Want a chance to earn 16% or 25%? We put together syndicates to provide developers with construction equity:

Please be very wise and play close attention to the following:

 

Because every loan we make is a new syndicate (as opposed to a fund investment), Blackburne & Sons is always in the market.

When the stock market has fallen by 40%, when real estate values are falling like a knife, and when your own bank is too terrified to lend you a dime, Blackburne & Sons always has a group of savvy investors willing to lend - admittedly at a price - when blood is running in the streets. We are one of a tiny handful of lenders who remained in the market, making loans, every single day of the Great Recession.

So stick close to us. Syndicators are pretty rare, and now you know one.

Geography Joke

A bank robber pulls out gun points it at the teller, and says, "Give me all the money or you're geography!" The puzzled teller replies, "Did you mean to say 'or you're history?'" The robber says, "Don't change the subject!”

Quickly Find 30 Commercial Lenders For Your Deal

Diplomacy Joke

Diplomacy is the art of telling people to go to hell in such a fashion they ask for directions.

Apply to Blackburne & Sons For a (Very Soft) Hard Money Loan

Here is a scenario that might tickle you. You could have $100,000 from your self-directed IRA spread out among four or five first trust deeds from Blackburne & Sons, and at the very same time you could be borrowing $250,000 from Blackburne & Sons on an apartment building that you are fixing up in Boston. Not every hard money lender is the same. Our loans have a 30-year amortization (almost interest-only), a 15-year term, and no prepayment penalty. You never want to have a hard money loan ballooning during a recession. 

Legal Proof Joke

A man went to his lawyer and told him, "My neighbor owes me $500 and he won’t pay up. What should I do?" "Do you have any proof he owes you the money?" asked the lawyer. "Nope," replied the man. "OK, then write him a letter asking him for the $5,000 he owed you," said the lawyer. "But it's only $500," replied the man. "Precisely. That’s what he will reply, and then you’ll have your proof!”

Video - Funny, Short

How breakdancing got started.

Final Funny

And finally: A new, young MD doing his residency in OB was quite embarrassed performing female pelvic exams. To cover his embarrassment, he had unconsciously formed a habit of whistling softly. The middle aged lady upon whom he was performing this exam suddenly burst out laughing and further embarrassed him. He looked up from his work and sheepishly asked, "I'm sorry. Was I tickling you?” She replied, “No, doctor, but the song you were whistling was, 'I wish I were an Oscar Meyer Wiener.’"

A member of the Blackburne Family of Companies