Volume 5, Issue 12

Newsletter Date:  October 13, 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 talk about how multifamily property values have peaked. And, of course, we have lots of cute, clean jokes, some funny pics, and an amazing video of courage.

Joke Du Jour

I was flying from San Francisco to Los Angeles. By the time we took off there had been a 45-minute delay, and everybody on board was ticked. Unexpectedly we stopped in Sacramento on the way. The flight attendant explained that there would be another 45-minute delay, and if we wanted to get off the aircraft, we would reboard in 30 minutes. Everybody got off the plane except one gentleman who was blind.

I noticed him as I walked by and could tell he had flown before because his seeing eye dog lay quietly underneath the seats in front of him throughout the entire flight. I could also tell he had flown this very flight before because the pilot approached him and, calling him by name, said, "Keith, we're in Sacramento for almost an hour. Would you like to get off and stretch your legs?" Keith replied, "No thanks, but maybe my dog would like to take a walk."

Picture this: All the people in the gate area came to a completely quiet standstill when they looked up and saw the pilot walk off the plane with the seeing eye dog! The pilot was even wearing sunglasses. People scattered. They not only tried to change planes, they also were trying to change airlines!

Oh How The Times Have Changed

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.

Gambling Joke

Whenever I go to casinos, I always see the most ridiculous sign that says: "If you have a gambling problem, call 1-800-GAMBLER." I thought about it for a moment and dialed the number. When they answered, I asked, "I have an ace and a six. The dealer has a seven. What do I do?"

Multifamily Property Values Have Peaked

Multifamily has just enjoyed a wonderful season in the sun. For the reasons listed below, I suspect that season is now almost over.

1. During the Great Recession, millions of Americans were foreclosed upon and evicted from their homes.

2. These evicted Americans needed a place to live. They couldn’t just go out and buy a new home because their good credit had been devastated. They had to go out and rent an apartment.

3. In most cases, their former homes were either uninhabitable (trashed) or temporarily out of the rental pool because the foreclosing bank was overwhelmed by the sheer volume of homes upon which it had foreclosed.

4. New apartment construction ceased almost completely between 2007 and 2009.

5. As a result, apartment rents and rental home rents rose sharply, attracting new capital and home renovators. Hedge funds bought up thousands and thousands of homes, renovated them, and then rented them out. Fix-and-flip became the hot new concept in wealth creation. Tens of thousands of additional homes were renovated and sold to new owner-occupants. Between these two strategies, hundreds of thousands of homes were returned to the rental pool, reducing the demand for apartments.

6. The cost of renting an apartment slowed its meteoric rise.

7. Banks started making apartment construction loans again in late 2009. Thousands of new rental units have subsequently come on line, further reducing the upward pressure on rents.

8. As rents started to stabilize, so did apartment building values.

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

Camoflauge...No Longer Just For Wild Animals

Drug Dealer Wife Joke

I think my wife is selling drugs. Yesterday I was running a little bit late for work and the phone rang. I answered it. Before I could say anything, a male voice on the line said, "Hey honey, is that DOPE gone yet?"

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.

Data Breach Joke

"I read that Donald Trump's hotel chain may have experienced a data breach that may have exposed people's debit and credit card information to hackers for more than a year. When asked how he planned on fixing the situation, Trump was like, 'I'm going to build a huge firewall.'" -- Jimmy Fallon

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.

Run, Toto, Run!

Great White Shark

"I discovered I scream the same way whether I'm about to be devoured by a Great White or if a piece of seaweed touches my foot." -- Kevin James

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.

Video - And Don't Even THINK of Coming Back!

Courageous dog drives off two enormous grizzly bears

On a Personal Note

I recently took my 5yr old daughter to her first ballet lessons. I was not sure what to expect, but I made sure she at least looked the part of a professional ballet dancer. Apparently a hot pink leopard print leotard is NOT the standard attire, but that is ok. My daughter ran with it and had a blast. She was the talk of the class because of her “totally cool” outfit and apparent free spirit (aka I forgot to tell her she is supposed to mimic the teacher!).

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

An elderly man lay dying in his bed. Nearing the final curtain, he smelled the aroma of his favorite chocolate chip cookies wafting upstairs from the kitchen below. Gathered his last remaining strength, he managed to roll out of bed. Leaning against the wall, he slowly made his way out of the bedroom. With even greater effort, he forced himself down the stairs, gripping the railing with both hands. With labored breath, he leaned against the door-frame, gazing into the kitchen. Were it not for death's agony, he would have thought himself already in heaven, for there, spread out upon newspapers on the kitchen table, were literally hundreds of his favorite chocolate chip cookies. Was it heaven? Or was it one final act of heroic love from his devoted wife, seeing to it that he left this world a happy man? Mustering one great final effort, he threw himself toward the table, landing on his knees in a rumpled posture. His parched lips parted; the wondrous taste of the cookie was already in his mouth; seemingly bringing him back to life. The aged and withered hand, shakingly made its way to a cookie at the edge of the table, when it was suddenly smacked with a spatula by his wife. "Don't touch those!" she said, "They're for the funeral."

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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