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 upcoming changes to the way that commercial loans are syndicated. We also have lots of cute, clean jokes, some funny pics, and a funny video for you.
Joke Du Jour
A young reporter went to a retirement home to interview an aged but legendary explorer. The reporter asked the old man to tell him the most frightening experience he had ever had. The old explorer said, "Once I was hunting Bengal tigers in the jungles of India. I was on a narrow path, and my faithful native gun bearer was behind me. Suddenly the largest tiger I have ever seen leaped onto the path in front of us. I turned to get my weapon, only to find that the native had fled. The tiger leaped toward me with a mighty ROARRRR! I just soiled myself." The reporter said, "Under those circumstances, anyone would have done the same." The old explorer said, "No, not back then - just now when I went, "ROARRRR!''"
Take Me To Your Leader
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.
Q: Why didn't the lifeguard save the hippie?
A: Because he was too far out, man.
CMBS Loans to Get More Expensive
In the wake of the Great Recession and the enormous losses suffered by buyers of mortgage-backed securities, the Dodd-Frank bill changed the rules. Starting in December, whenever a commercial bank or investment banks syndicates a portfolio of commercial loans, that bank or investment bank must retain 5% of these securities for at least five years. This discourages a bank from dumping any over-leveraged commercial loans into a securization pool.
The big players in the commercial mortgage-backed securities business are Wells Fargo & Company, Deutsche Bank AG and JPMorgan Chase & Company. These banks are not crazy about the idea of holding onto 5% of every commercial mortgage they originate. It dilutes their return on capital.
To compensate, these banks are expected to raise their interest rates on conduit quality commercial loans in the near future. Therefore if you have a commercial mortgage borrower who is procrastinating, kick him in the rear!
If you need a bank-quality commercial loan from a life company, commercial bank, or conduit, you should enter your deal into C-Loans.com.
If you need a non-prime or subprime commecial loan, simply complete this super-easy mini-app.
As Wally Cleaver Used To Say, "You Really Did It This Time, Beaver."
Confused? Wally was Theodore "Beaver" Cleaver's kind, older
brother in the long-running 1950's sit-com, "Leave It To Beaver."
Tony Dow (Wally), after battling depression,
went on to become a renowned painter and sculptor.
Q: Why didn't the lifeguard save the hippie?
A: Because he was too far out, 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.
School Notes Joke
These are real notes written from parents in a Mississippi school district. (Misspellings have been left intact.)
My son is under a doctor's care and should not take P.E. today. Please execute him.
Please excuse Lisa for being absent. She was sick and I had her shot.
Dear School: Please ekscuse John Henry being absent on Jan. 28, 29, 30, 31, 32, and also 33.
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.
Ain't It the Truth
More School Notes
Ethel Pearl could not come to school today because she has been bothered by very close veins.
Please excuse Ray Friday from school. He has very loose vowels.
Please excuse Willie being absent yesterday. He had a cold and could not breed well.
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.
How pork sausage is made.
Don't worry! It's just a gag.
On a Personal Note
This coming weekend is my girlfriend’s birthday. To celebrate, we decided to do a murder mystery party! A dozen or so of our friends have volunteered to participate, and the theme is "Murder On the High Seas". The plot is that one of the guests abroad the cruise ship Indianapolis will die sometime during our cocktail hour. Like a living game of Clue, we won't know who the victim is until the cards are drawn. The survivors will all be given bits and pieces of information about who the real killer is. I will be playing the role of a flirtatious bartender. Will I be the victim? I certainly hope not (although I am pretty sure my girlfriend has had fantasies of bludgeoning me to death with a candle stick in our living room). Maybe I will be the killer? Could it be that a bloodthirsty murderer lurks behind this devilish smile? Stay tuned and find out how it ends!
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!
The phone rang as I was sitting down to my anticipated evening meal and, as I answered, I was greeted with, "Is this Wilhiam Wagenhoss?" This didn't sound anything like my name, so I asked, "Who is calling?" The telemarketer said he was with The Rubberband-Powered Freezer Company or something like that, and then I asked him if he knew Wilhiam personally and why was he was calling this number. I then said, off to the side, "Get really good pictures of the body and all the blood." I then turned back to the phone and advised the caller that he had entered a murder scene and must stay on the line because we had already traced this call, and he would be receiving a summons to appear in the local courthouse to testify in this murder case. I then questioned the caller at great length as to his name, address, phone number at home, at work, who he worked for, how he knew the dead guy and could he prove where he had been about one hour before he made this call. The telemarketer was getting very concerned and his answers were given in a shaky voice. Then I proceeded to tell him that we had located his position at his work place and the police were entering the building to take him into custody. At that point, I heard the phone fall and the scurrying of his running away. My wife asked me, as I returned to the table, why I had tears streaming down my face and so help me, I couldn't tell her for about fifteen minutes. My meal was cold, but oh-so-very enjoyable.
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