Volume 4: Issue 10 | Date: November 3, 2020
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PRIVATE CLIENT NEWSLETTER
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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 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-olds 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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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.
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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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Earn Up to 12% Interest in Your IRA or 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.
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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.
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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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Want to Speak With a Blackburne & Sons Loan Rep?
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:
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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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- 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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Need a Commercial Loan?
C-Loans.com is a commercial mortgage portal. It will take you just four minutes to complete your mini-app.
Then C-Loans will sort through its databank of 750 commercial lenders and produce for you a custom-generated Suggested Lender List containing twenty to thirty lenders who are perfect for your particular deal.
You put a check mark next to six lenders and then press, "Submit." Within minutes hungry commercial lenders will be contacting you with offers.
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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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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.
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.
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Quickly Find 30 Commercial Lenders For Your Deal
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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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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.
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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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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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Schedule a Zoom Meeting With Angela Today!
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ANGELA VANNUCCI
President
angelav@blackburne.com
P: (916) 338-3232
F: (916) 338-2328
CA DRE #1425852 / NMLS #389465
BLACKBURNE & SONS
Realty Capital Corporation
www.blackburneandsons.com
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
CA DRE #00829677 / NMLS #103430
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A member of the Blackburne Family of Companies
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