Volume 4, Issue 12

Newsletter Date:  November 3, 2014


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. Today we'll talk about why commercial foreclosures sell at such a large discount. And, of course, we have lots of cute, clean jokes and funny pics, along with a side-splitting video, for you.

Joke Du Jour

The only way to pull off a Sunday afternoon "quickie" with their 8-year-old son in the apartment was to send him out on the balcony with a Popsicle and tell him to report on all the neighborhood activities... He began his commentary as his parents put their plan into operation - "There's a car being towed from the parking lot," he shouted. "An ambulance just drove by! Looks like the Andersons have company. Matt's riding a new bike! Looks like the Sanders are moving! Jason is on his skate board!" After a few moments he announced, "The Coopers are making love." Startled, his mother and dad shot up in bed. Dad cautiously called out, "How do you know they're making love?" "Jimmy Cooper is standing on his balcony with a Popsicle."

Tranquilizer Darts, Excellent Disciplinary Tool For Parents...

Private Money Commercial Loans Nationwide From $100,000 to $3.5MM

Is your client's commercial property partially vacant? 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? We make slightly scratched-and-dented commercial loans.

Our hot, new product is a blanket loan against a portfolio of rental homes. Rental homes? Yup, as long as there are at least five homes or units, we consider this to be a commercial loan. We even offer a partial release clause. This loan is ideal for speculators.

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, Tom Blackburne, at (574) 210-6686.

Contractions Joke

I was very pregnant, and it was rotten luck when, several days before my due date, my husband fell from the porch roof, sprained both ankles and was restricted to crutches. So when I went into labor and he couldn't drive, I took the wheel, stopping every time I had a contraction. Finally, we got to the hospital. I dropped him at the maternity entrance, and he hobbled off to the admitting desk, where the nurse told him to go to the emergency room. No, it's my wife," he told her. "She's in labor." "Where is she?" the nurse asked. "She's parking the car and bringing in the bags."

Commercial Foreclosures Sell at Huge Discounts

I have been in the hard money commercial mortgage business for over 34 years now, and I cannot remember EVER selling a commercial foreclosure at a profit. Blackburne & Sons has lost money on almost every commercial property upon we which we have foreclosed.

Why do commercial foreclosures ("REO's") sell at such large discounts? I believe it's because there is a Federal banking regulation that financially punishes commercial banks for keeping REO's on their books for longer than a few months. As a result, commercial banks are always in a huge hurry to sell off their REO's.

Because commercial banks are so anxious to get their REO's off the books, they often sell them for a small fraction of their true value. Unfortunately most commercial real estate investors know this. The moment commercial real estate investors learn that a listed commercial property is an REO, they immediately reduce their potential offers by 40%. "After all, everyone knows that the bank has to dump the property for a song in order to quickly get it off the books." The bottom line is that everyone wants a deal when they buy a commercial foreclosure.

At Blackburne & Sons, we understand this. If you are buying a commercial foreclosure from a bank, we often require a smaller down payment because we know that a certain amount of value is already built into the deal. We'll even lend you some extra dough to fix up the property.

Need a commercial loan? Simply complete this super-easy mini-app.

Stockbrokers Joke

Two stockbrokers went to lunch. The one said to the other, "Let's relax while we eat and talk about something other than the market for once." "Good idea. Let's talk about women." "Okay... common or preferred?"

Small Balance Preferred Equity ($100K to $1MM)

If an investor wants to buy a leased commercial property, banks today will seldom lend more 58% to 62% LTV. Your buyer only wants to put down 25% of the purchase price

Quick, easy preferred equity from Blackburne & Sons fills in the missing piece of the capital stack. We'll add our $150,000 in equity dollars to your client's $250,000 down payment to create a down payment large enough to satisfy the bank. Think of our preferred equity as tiny Joint Venture investments.

For more information, please call Tom Blackburne at (574) 210-6686.

Lions Joke

A young missionary on his first trip to Africa is away from camp having devotions in a quiet clearing, as was his custom. This one particular day, while reading his Bible, a lion comes and lays down right beside him; so close that the hot warm smell of his breath is wafting over him. He is, as you would suppose, exceedingly uneasy. He closes his eyes, praying... but when he opens them he sees another approach from the brush, which proceeds to lie down on the other side of him. Convinced as he is that this is a test of his faith, he determines to return to his Bible reading. As soon as he does so, the two lions pounce upon and devour him. Moral of the story: Don't read between the lions.

They Also Make A Substitute For Story Time!

New Apartment Program for "A" Deals

Because we have been in the commercial mortgage business for over 34 years, and because we own CommercialMortgage.com, Blackburne & Sons has been allowed to join just five other mortgage bankers to offer an incredible new apartment loan program for "A" quality deals. These loans close in our name and are sold to an institutional investor which purchased almost $400 million in apartment loans last year.

The 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 Tom Blackburne at (574) 210-6686.

Last Man Joke

"I wouldn't mind being the last man on Earth, just to see if all of those girls were telling me the truth." -- Ronnie Shakes

Too Busy to Broker Commercial Loans to Us? Why Not Just Refer Them Instead? We Make It Easy!

We once paid a $21,250 referral fee. Here is our referral fee program.

Hilarious Video

This was performed one time only on the Johnny Carson Show in 1990's. It was a good thing they taped it because it was never done again. Steve Martin, as The Great Flydini, and he doesn't say a word.

On a Personal Note

The fall season is a beautiful time of year and when tied in with pumpkin carving, costumes, and haunted houses, Halloween has become my favorite holiday. In the spirit of getting scared, I spent last weekend in Salem, MA - home of the Salem Witch Trials. The experience was interesting and fun, but unfortunately, I did not encounter any friendly ghosts as I had hoped. Maybe next year I will look into overnight tours of haunted former insane asylums or prisons. I canít wait!

Don't Forget About C-Loans.com

We have a whole new crop of hungry commercial lenders on C-Loans, so if you have a commercial loan you're trying to place, it takes just four minutes to submit your deal to 750 commercial lenders. And remember, C-Loans.com is free!

Discipline Joke

One Sunday in a Midwest city a young child was acting up during the morning worship hour. The parents did their best to maintain some sense of order in the pew, but they were losing the battle. Finally, the father picked up the little fellow and walked sternly up the aisle on his way out. Just before reaching the safety of the foyer, the little one called loudly to the congregation, "Pray for me! Pray for me!"

Get a Free E-Book on CREF

This free e-book contains seven of George's best blog articles on the subject of commercial real estate finance.

Contact Information

Tom Blackburne
BRE# - 01919403
NMLS# - 1014118
BLACKBURNE & SONS REALTY CAPITAL CORPORATION
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
Phone: (574) 210-6686
Fax: (916) 338-2328
Email
: tommy@blackburne.com

 


Featured Links


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Just input the email address of a borrower or broker and earn one-eighth of a point at closing!  That's $1,250 for a $1 million loan.  Click here.

 

Our Training Course Includes Over 60 Minutes on Fee Collection.  No One Has Collected From More Lying, Deadbeat Borrowers Than George.  You Can Order the Fee Agreement and Collection Training Separately for $199.

Call Mick (574) 855-6292 or email him at mcarlson@blackburne.com

 

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4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 telephone: (574) 210-6686 * Fax: (916) 338-2328
Real Estate Broker -- California Bureau of Real Estate -- License Number 01330173

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