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 the bankruptcy rules that a commercial mortgage broker needs to know. We also have lots of cute, clean jokes, some funny pics, and an excellent video for you.
Joke Du Jour
My friend Nancy and I decided to introduce her elderly mother to the magic of the Internet. Our first move was to access Google, and we told her it could answer any question she had. Nancy's mother was very skeptical, until Nancy said, "It's true, Mom. Think of something to ask it." As I sat with fingers poised over the keyboard, Nancy's mother thought for a moment and then responded, "How is Aunt Helen feeling?"
Five Husband Minutes = One Dog Year
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.
"A rare white giraffe has been spotted in Africa. The white giraffe was immediately captured and nominated for an Oscar. -- Conan O'Brien
(A famous black actress recently complained that every Oscar nominee this year was white.)
Bankruptcy Rules You Gotta Know
Suppose you are trying to refinance your client's balloon payment on his office building, but you run out of time. At the advice of his attorney, your client files a Chapter 11 Bankruptcy. The moment he does this, the foreclosing lender becomes subject to an automatic stay. In other words, the foreclosing lender must immediately freeze in his tracks. "Sit, Oboo. Stay!" He can't call and harangue the borrower, and he cannot continue his foreclosure until a bankruptcy judge grants his Motion for Relief From the Automatic Stay. (C'mon, Judge, please-please let me finish off this foreclosure.)
If this is a Chapter 7 Bankruptcy - a liquidation of the debtor's assets in order to partially repay his creditors - a bankruptcy trustee will be appointed to marshal the assets. Liquidation is merely a fancy legal terms that means "convert into cash". A bankruptcy trustee is typically an attorney paid by the court out of the assets of the debtor's estate (and who almost never returns phone calls). To marshal the assets means "to gather up", like a French general assembling his troops before he attacks.
Sometimes it is not necessary to sell everything that the debtor owns in order to satisfy his creditors. Sometimes the debtor just needs some time to reorganize his assets - sell off some assets or refinance some buildings. In such a case, your borrower will merely file a Chapter 11 Reorganization. A trustee is even appointed in Chapter 11 Bankruptcies to be the eyes and ears of the court.
In our imaginary example, your client is now in bankruptcy. You find him a commercial lender (Blackburne & Sons!) still willing to make him a quick loan to pay off his ballooning commercial loan. You can now simply trot your commercial borrower down to the title company and have him sign off, right?
No! If a borrower is in bankruptcy, the new lender needs the bankruptcy court's permission to make the debtor a new loan. "But the bankruptcy trustee said it was okay!" The bankruptcy trustee's permission is not enough. The bankuptcy judge must sign off on it!!! The debtor's bankruptcy attorney will handle this in a motion format that includes the term sheet of the commercial lender (Blackburne & Sons!).
Need a commercial loan from a bank, a conduit, a life company, a non-prime commercial lender, or a hard money lender? Simply complete this super-easy mini-app.
This is Just Mean Spirited
In truth Tom Brady showed some real toughness in that game.
Too Helpful Joke
Working for a judge in a common pleas court, I saw many criminal defendants. One man facing drug charges proved unusually helpful. To determine the exact quantity of the illegal substance allegedly sold, the judge asked the prosecutor how many grams there are in an ounce. As both attorneys checked their notes, the defendant, who had not yet entered his plea, proudly announced, "There are 28.3 grams in an ounce, Your Honor."
Oops. His attorney advised him to plead guilty.
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.
Things you don’t want to hear during your surgery:
- You know, there's big money in kidneys. Heck, the guy's got two of them.
- What do you mean he wasn't in for a sex change?
- Accept this sacrifice, O Great Lord of Darkness!
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.
The Blackburne's Feed Half the Stray Cats and Raccoons in the Neighborhood
Another Mean Spirited Joke
A guy walks into a bar with a dachshund under his arm. The dog is wearing a Jets jersey and a Jets helmet, and he is holding a set of Jets pom poms. The bartender says,"Hey! No pets allowed in here! You'll have to leave!" The man begs, "Look, I'm desperate. We're both big fans, my TV is broken, and this is the only place we can see the game!" After securing a promise that the dog will behave and warning him that if there is any trouble they will be thrown out, the bartender relents and allows them to stay in the bar and watch the game.
The game begins with the Jets receiving the kickoff. They march down field, stop at the 30, and kick a field goal. With that the dog jumps up on the bar and begins walking up and down the bar giving everyone a high-five. The bartender says,"Wow that is the most amazing thing I've ever seen! What does the dog do if they score a touchdown?" "I don't know," replies the owner, "I've only had him for four years."
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.
The ending will deeply touch you.
On a Personal Note
My daughter recently had her 5th birthday party. Reagan wanted a cat themed party, and I wanted something more education driven. We ultimately decided on having a big cat themed party. I, the tour guide for all the little kids, took them on a safari around the world (my house) hitting each major continent and talking about the big cats that are there. Reagan loved the idea of collecting donations to the Exotic Feline Rescue Center instead of getting presents. She also came up with the idea of giving used books away as party favors. We had a HUGE turnout and the party went perfectly. Now, the only problem is finding a way to top this party, next year!
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!
Three bulls heard via the grapevine that the rancher was going to bring another bull onto the ranch. The prospect raised a discussion among them. The first bull says, "Boys, we all know I've been here 5 years. Once we settled our differences, we agreed on which 100 of the cows would be mine. Now, I don't know where this newcomer is going to get his cows, but I ain't givin' him any of mine."
The second bull says, "That pretty much says it for me too. I've been here 3 years and have earned my right to the 30 cows we've agreed are mine. I'll fight 'im till I run him off or kill 'im; but I'm keepin' all of my cows." The third bull says, "I've only been here a year, and so far you guys have only let me have 10 cows to take care of. I may not be as big as you fellows yet, but I am young and virile, so I simply MUST keep all my cows."
They had just finished their big talk when a black, shiny eighteen-wheeler pulls up in the middle of the pasture. This evil-looking tractor trailor looks like Darth Vador on wheels. Bam! The heavy steel ramp booms when it hits the ground. As they watched in terror, the biggest, baddest Son-of-Another-Bull strode down ramp. He must have been 4,700 pounds, and with each step the solid steel ramp bent and groaned in protest.
The first bull says, "Ahem...You know, it's actually been some time since I really felt I was doing all my cows justice. I think I can spare a few for our new friend." The second bull says, "I'll have plenty of cows to take care of if I just stay on the opposite end of the pasture from him. I'm certainly not looking for an argument." They look over at their young friend, the third bull, and find him pawing the dirt, shaking his horns, and snorting up a storm. The first bull says, "Son, let me give you some advice real quick. Let him have some of your cows and live to tell about it."
The third bull says, "Heck, he can have all of my cows. I'm just making sure he knows I'm a bull!"
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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