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 the hot commercial property type today is industrial. And, of course, we have lots of cute, clean jokes, some funny pics, and a cool video about female MMA fighter, Rhonda Rousey.
Joke Du Jour
I went out with some friends last night and had a couple too many drinks. Knowing that I was over the limit, I did something that I have never done before. I took a bus home. I arrived home safe and sound, which seemed really surprising as I have never driven a bus before.
I'm Not Sayin'... I'm Just Sayin'...
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.
Bologna Joke
Researchers somewhere studied 75 brands of hot dogs and found some of them contained human DNA ... I guess my bologna really does have a first name. -- Stephen Colbert
Why Industrial Real Estate Is Hot
This week I flew to Las Vegas for the California Mortgage Association's semi-annual training session for hard money mortgage companies. The conference had a number of speakers, but by far the most entertaining and informative speaker was Luis A. Belmonte, the gentleman who gave the economic outlook for the upcoming year.
Mr. Belmonte is a former partner in Lincoln Properties and formerly the Executive Vice President of AMB Institutional Realty Advisors, the asset manager for 15,000,000 square feet of industrial property throughout the United States.
Mr. Belmonte made some very interesting points. First of all, he remains bullish on multifamily due to the fact that leading edge of the children of the Echo Boom generation - the grandsons and granddaughters of the Baby Boomers - have reached the age of sixteen. Soon these 80 million Americans will be forming new households, and they will need apartments.
Office space, in his opinion, is still greatly overbuilt. The office space vacancy rate in most cities remains in the mid-teens. Rents are going nowhere. Retail space - he wouldn't touch it with a ten foot pole. Amazon.com is eating retail's lunch.
But then he got to industrial space. "Industrial space is the best type of commercial real estate in which to be invested today." He gave a number of reasons:
1. There has been almost no new construction of industrial space for eight years.
2. Absorption of industrial space is outpacing new construction in almost every major city.
3. Wages in China have increased dramatically in recent years. It's not that much cheaper to manufacture goods in China anymore. [George's note: The Boston Consulting Group maintains a cost index for the various counties, and China is only 4.5% cheaper than the U.S. right now, mainly because our natural gas / energy costs are tiny compared to the rest of the world.]
4. But then he gave a reason that rocked my world. "For every two square feet of retail space that the internet makes unnecessary, the U.S. needs one square foot of warehouse space" (for internet retailers to store their products).
Need a commercial loan? Simply complete this super-easy mini-app.
Here is My Goal For the Day
Hot Dog Joke
A shocking investigation has found that after testing 75 brands of hot dogs, 2 percent of them contained human DNA. Some of those hot dogs are actually hot Dougs. The report doesn't specify the source of the human DNA. Is it hair? Is it fingernails? Did a lonely factory worker stay late one night and seduce a sausage casing machine? Could your pig in a blanket have a bun in the oven? This news completely changes America's love affair with the all-beef frank. Or should I say the all-Frank beef? -- Stephen Colbert
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.
Hillary's Birthday Joke
"Happy birthday to Hillary Clinton, who turned 68 today. When asked what her favorite gift was, she said, 'Donald Trump.'" -- 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.
Sometimes The Morning Routine Isn't So Routine
Over-Exposure Joke
"The race for president is really starting to get competitive, and Donald Trump recently said that he's actually getting ready to air his first campaign ads. Even the Geico lizard was like, 'I think we already see enough of you on TV, mate.'" -- Jimmy Fallon
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 - Rhonda Rousey Is a Judo and Mixed Martial Arts Expert
Rhonda tells the story about how some bullies messed with her in a movie theater
On a Personal Note
This past weekend was a blast. My girlfriend and I attended a halloween party at a local restaurant. There was a costume contest, photo booth, live DJ, etc. I dressed up as Frankenstein and my girlfriend as the bride of Frankenstein. Although we didn’t win the costume contest, the restaurant owner pulled us aside afterwards and said we should have won! Good thing I wasn’t the real Frankenstein or else I might have tossed the judges out of the restaurant!
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
"Analysts are saying that after last night’s dismal performance at the debate, Jeb Bush’s donors are in 'full panic mode.' Apparently, last night Jeb Bush called his two biggest donors and said, 'Calm down, Mom and Dad.'" -- Conan O'Brien
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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