Volume 5, Issue 4

Newsletter Date:  March 3, 2015


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 give you a real-life example of how blanketing another property can serve as the down payment. And, of course, we have lots of cute, clean jokes, some funny pics, and a hilarious video for you.

Joke Du Jour

A little boy got on the bus, sat next to a man reading a book, and noticed he had his collar on backwards. The little boy asked why he wore his collar that way. The man, who was a priest, said, "I am a Father." The little boy replied, "My Daddy doesn't wear his collar like that." The priest looked up from his book and answered, "I am the Father of many." The boy said, "My Dad has 4 boys, 4 girls and two grandchildren and he doesn't wear his collar that way." The priest, getting impatient, said, "I am the Father of hundreds" and went back to reading his book. The little boy sat quietly thinking for a while, then leaned over and whispered, "Maybe you should wear your pants backwards instead of your collar.”

One Has To Be Soooo Careful These Days

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.

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

Fund Raising Joke

When a young announcer was raising funds on a local public television station, a woman called in and told the volunteer operator she would donate a hundred dollars if the announcer would shave off his beard. He agreed to help the cause and returned to work clean-shaven. The following day, the check arrived from his mother.

True Story: How Blackburne & Sons Created a Down Payment By Blanketing Other Property

This week a farmer came to my home in Indiana and asked me for a $1.3 million loan to buy a farm next door. He had no cash to put down, but he owned a mortgaged farm next to the target farm. I ended up making him an offer that I am pretty sure that he will take. It's a perfect example of how to use other property to create a down payment.

I proposed that Blackburne & Sons make a first mortgage on the farm being purchased and a blanket second mortgage on his current farm. If we had to foreclose on the farms, we would immediately pay off the $550,000 first mortgage on the farmer's current farm, leaving us owning both farms free and clear.

This is an interesting case where the value of the combined farm is worth much more than the sum of the values of two small farms. The reason why is because the farmer would not have to transport his enormous combine (a very fancy tractor) for miles and miles down some narrow, congested country road. Often the inconvenience and cost of equipment transport makes farming a bunch of smaller, widely-dispersed farm parcels economically infeasible. By combining the two farms, the value of this farmland per acre is far greater. This concept is known as assemblage.

You learned some things today: (1) Blackburne & Sons will happily finance farmland; and (2) Often when you assemble two or more parcels, the value of the new, larger parcel is worth far more than the sum of the individual parcels (assemblage); and (3) You can often create a down payment for a cash-poor, property-rich borrower by blanketing other property

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

Why Does She Get So Mad?

Jamaica Joke

"Jamaica has officially decriminalized the possession of small amounts of marijuana for personal use. Which would be great news if anyone in Jamaica had small amounts of marijuana." -- Seth Meyers

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.

Diet Joke

My sister and I were discussing our mutual weight problem one evening, when I challenged her to a contest. If I lost the most weight in the next month, I wouldn't have to pay the $25 that I owed her. If she lost the most weight, I would have to pay up. Anything for an incentive! "All right," said Betty happily. "But let's wait two weeks before we start. There are some things I have to eat first.”

New Apartment Program for "A" Deals

Blackburne & Sons has a terrific 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.

Unbeknownst To The Public...The CIA Has Been Recruiting Cats...

Cake Joke

"How come when you mix water and flour together you get glue and then you add eggs and sugar and you get cake? Where does the glue go?" -- Rita Rudner

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 Weatherman Video

This guy is really funny.

On a Personal Note

This past Sunday, my girlfriend and I took advantage of the nice weather and our free time by volunteering at the Indianapolis Humane Society. We walked dogs, played with cats, and ultimately decided to commit to volunteering regularly. Hopefully, after a few more sessions, I will have built up the courage to walk some of the most troubled dogs, which predominately are pit-bull mixes. And while it is hard to establish a relationship with these animals, knowing most of them will be euthanized, it is gratifying knowing I had a small, yet relevant, part in their happiness.

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!

Final Funny

Two guys were walking in the woods one day, and they all of a sudden came across a bear. The bear noticed them, started growling, and generally getting really mean. The bear started to chase one of the guys, who, as it turns out, was from Czechoslovakia. The bear soon caught up with him, and ate him alive. The other guy turned around and ran for his life.

A little while later, the second guy found a park ranger station and told his story. The ranger took his gun, and they both went out in search of the bear, in order to destroy it. Soon, they came across two bears, one male, and one female. The ranger turned to the other guy and said: "Quick, tell me which bear ate your friend!" The ranger leveled his gun and got ready to shoot. "I'm not really sure," said the other guy, "they both look similar." "QUICK! Make up your mind!" said the ranger. "Okay," said the other, "it was the male."

The ranger promptly aimed and shot the female bear. The male ran off. Using his knife, the ranger cut open the belly of the female and found the body of the other man. "But why didn't you shoot the male when I thought it was the male who ate my friend?" the other man asked. "Well," said the ranger, "I have learned never to trust anyone who says that the Czech's in the male!"

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

 


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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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