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 how commercial real estate loans are amortized. And, of course, we have lots of cute, clean jokes, some funny pics, and a hilarious video for you.
Joke Du Jour
There once was a rich man who was near death. He was very grieved because he had worked so hard for his money, and he wanted to be able to take it with him to heaven. So he began to pray that he might be able to take some of his wealth with him. An angel hears his plea and appears to him. "Sorry, but you can't take your wealth with you." The man implores the angel to speak to God to see if He might bend the rules. The man continues to pray that his wealth could follow him. The angel reappears and informs the man that God has decided to allow him to take one suitcase with him. Overjoyed, the man gathers his largest suitcase and fills it with pure gold bars and places it beside his bed. Soon afterward the man dies and shows up at the Gates of Heaven to greet St. Peter. St. Peter seeing the suitcase says, "Hold on, you can't bring that in here!" But, the man explains to St. Peter that he has permission and asks him to verify his story with the Lord. Sure enough, St. Peter checks and comes back saying, "You're right. You are allowed one carry-on bag, but I'm supposed to check its contents before letting it through." St. Peter opens the suitcase to inspect the worldly items that the man found too precious to leave behind and exclaims, "You brought paving stones???"
Some of These Stick Figure Decals Are Getting Pretty Funny
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.
It was the intermission at the opera when Mrs. Sternberg rose from her seat and called: "Is there a doctor in the house? Is there a doctor in the house?!" A man in a tuxedo pushed his way towards her. "I'm a doctor" he said. "Oh, doctor," she said, "Have I got just the loveliest daughter for you..."
Amortizing Commercial Loans
Those of you who broker residential loans know that the most common amortization schedule for home loans is 30 years. Most commercial real estate loans, on the other hand, are amortized over just 25 years. Most commercial loans typically have a loan term of either 5 years or 10 years.
Of course, there are some exceptions. Many apartment loans - even apartment loans from banks - are written with a full 30-year amortization. SBA 7a loan are fully-amortized over 25 years.
However, if a commercial property is older than around 35 years, and the property has not been thoroughly renovated (this is known as a 35-year effective age) most banks will insist on an amortization schedule of just 20 years. Once again, the bank commercial loan will usually have a 5-year or 10-year term.
Need a commercial loan? Simply complete this super-easy mini-app.
There were three guys talking in the pub. Two of them are talking about the amount of control they have over their wives, while the third remains quiet. After a while one of the first two turns to the third and says, "Well, what about you, what sort of control you have over your wife?" The third fellow says, "I'll tell you. Just the other night my wife came to me on her hands and knees." The first two guys were amazed. "Wow! What happened then?" they asked. The third man took a healthy swallow of his beer, sighed and uttered, "She said, 'Get out from under the bed and fight like a man.'"
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 Tom Blackburne at (574) 210-6686.
Perfect Shot Joke
A guy stood over his tee shot for what seemed an eternity, looking up, looking down, measuring the distance, figuring the wind direction and speed, driving his partner nuts. Finally his exasperated partner says, "What the heck is taking so long? Hit the darned ball!" The guy answers, "My wife is up there watching me from the clubhouse. I want to make this a perfect shot." "Give me a break! You don't stand a snowball's chance of hitting her from here."
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.
Now You See It, Now...
Q: How do you fix a broken tuba?
A: With a "tuba glue."
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.
Pretty Cool Video
Well-made video of a flying car
On a Personal Note
This past weekend, my girlfriend (Alex) and I decided to go on a hiking/camping trip in Hoosier National Forest. Alex, having never been camping before in her life, wanted to ‘rough it’. No showers, no toilets, no running water. Me, being an Eagle Scout and therefore an experienced camper, said OK. This was the first mistake of many made over the weekend…
The first night, we left a little late and did not get to our camp site until about 9pm, forcing me to pitch the tent in total darkness. In the morning, we decided to pack everything up that we just set out the night before so that we can hike 2 miles to a better camp site along the water front. This was mistake #2.
The hike was arduous to say the least. Carrying 60+ lbs on my back for 2 miles was no walk in the park. Plus, we decided to take a “short cut” and traveled off the trail. Mistake #3.
The weekend had several more mistakes that were completely avoidable. And as I reflect on the experience, with a sore butt cheek (from a poison ivy steroid shot) and 2 missing toe nails, I am surprisingly ready to do it all again. But next time, I will remember to always* stay on the trail!
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!
A few days after Christmas, a mother was working in the kitchen listening to her young son playing with his new electric train in the living room. She heard the train stop and her son said, "All of you sons of guns who want off, get the heck off now, cause this is the last stop! And all of you sons of guns who are getting on, get your behinds in the train, 'cause we're going down the tracks." The mother went nuts and told her son, "We don't use that kind of language in this house. Now I want you to go to your room, and you are to stay there for TWO HOURS. When you come out, you may play with your train, but I want you to use nice language."
Two hours later, the son came out of the bedroom and resumed playing with his train. Soon the train stopped and the mother heard her son say, "All passengers who are disembarking from the train, please remember to take all of your belongings with you. We thank you for riding with us today and hope your trip was a pleasant one. We hope you will ride with us again soon." She hears the little boy continue, "For those of you just boarding, we ask you to stow all of your hand luggage under your seat. Remember, there is no smoking on the train. We hope you will have a pleasant and relaxing journey with us today." As the mother began to smile, the child added, "For those of you who are annoyed about the TWO-HOUR delay, please see the witch in the kitchen.”
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.
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