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 how to compete for commercial loans when you have a bazillion competitors. We also have lots of cute, clean jokes, some funny pics, and a funny video that almost killed me.
Joke Du Jour
I came across this exercise, suggested for seniors, to build muscle strength in the arms and shoulders. It seems so easy, so I thought I'd pass it on. The article suggested doing it three days a week. Begin by standing on a comfortable surface, where you have plenty of room at each side. With a 5-lb. potato sack in each hand, extend your arms straight out from your sides and hold them there as long as you can. Try to reach a full minute, then relax. Each day, you'll find that you can hold this position for just a bit longer. After a couple of weeks, move up to 10-lb. potato sacks. Then 50-lb. potato sacks, and then eventually try to get to where you can lift a 100-lb. potato sack in each hand and hold your arms straight for more than a full minute. Once you feel confident at that level, put a potato in each sack.
Back Off! It's Mine-Mine-Mine.
Private Money Commercial Loans Nationwide From $100,000 to $3.5MM
Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? 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?
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.
Ladder Joke
Two friends are talking, one says: “Man, I fell off a thirty-foot long ladder yesterday.” “Oh no, dude, are you alright?!” inquires the other one, shocked. “Yeah, I’m okay. I was only on the second rung at the time.”
Today's Lesson: How To Compete For Commercial Loans When the Market is Flooded With Competitors
There is a new hard money commercial mortgage company forming every week. It has never been easier to raise private money. Investors are desperate for yield and income. The sub-prime and non-prime commercial mortgage market is swarming with new entrants.
So how do you compete for slightly-flawed commercial loans when the market is flooded with competitors? Flashback! You're falling asleep in history class, when all of a sudden - BAM - your teacher smacks the desk in front of you with a yardstick so hard that you mess your undies. "This is going to be on the test!"
Commercial borrowers only call four lenders or mortgage brokers. That's it. Just four of them. Therefore you don't have to have a better quote than every lender in the market. You just have to beat three other lenders.
Banker #1 is in a grumpy mood. Banker #2 (the most common type) is a 55-year-old guy who is just counting the days until retirement. He doesn't even return the borrower's phone call. The third mortgage company is another mortgage broker, but his sweet wife's water just broke. He's running to the hospital.
It reminds me of the old joke about the two campers who wake up with an angry bear mauling their tent. "Why are you putting on your tennis shoes? You'll never outrun a bear." "I don't have to outrun the bear. I just have to outrun you!"
The commercial mortgage market is far from perfect. You don't have to produce the absolute cheapest commercial lender. You just have to produce a hungry commercial lender who is ready, willing, and able to fund the deal. (Brokers so often forget that their clients needs money.)
Okay, now a pitch for my own company: Blackburne & Sons will issue a Loan Approval Letter faster than any commercial lender in the country; and once the borrower signs our Loan Approval Letter, the deal is off the street. And yes, your fee is detailed in our agreement. You're protected.
If you need a non-prime or subprime commercial mortgage loan right now, simply complete this super-easy mini-app.
If you need a bank-quality commercial loan right now from a life company, a commercial bank, or a conduit, you should enter your deal into C-Loans.com.
Optimist Joke
An optimist sees light at the end of a tunnel and thinks it’s an exit. A pessimist sees light at the end of a tunnel and assumes it is an onrushing train. The train conductor sees two drunken fools staggering on the train tracks.
Get a Free Directory of 2,000 Commercial Real Estate Lenders
If you introduce us to just one commercial real estate loan officer who works at a bank, we'll let you download The Blackburne List, a list of 2,000 commercial real estate lenders organized by state, for free. Click here to trade one banker for two thousand.
Red Baron, I Have Been Searching the Skies
Vocabulary Joke
Q: What would you call a dinosaur with a surprisingly impressive vocabulary?
A:
A thesaurus.
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.
Third Child Joke
When your first child eats some earth, a bit of grass or a worm, you take him to the doctor. When your second child eats some earth, a bit of grass or a worm, you spit on a hankie and clean it. When your third child eats some earth, a bit of grass, or a worm, you wonder whether it still needs lunch.
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.
Freak Out!
Accessory Joke
Q: Where’s the best place to hide a body?
A:
Page two of Google.
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 - Each Prank Get Funnier
Collection of pranks that get funnier each time. By the end, I was laughing so hard that I was gasping for breath.
On a Personal Note
The mutual love of basketball was something that always brought my dad and I closer together growing up. Being from Sacramento, it was really easy to fall in love with the Sacramento Kings and their fast-paced offense of their early 2000's teams. We were crushed when we found out referee Tim Donaghy fixed the 2002 Western Conference Championship against the rival LA Lakers. I'm still heartbroken about it to this day.
Sports don't always have real world application, but they are absolutely a great avenue to learn self discipline and strengthen a bond between a father and daughter. I recently bought my daughter her first basketball hoop. I hope she will learn to love the game - but if not, I hope she will at least learn to love the time we will spend together playing and watching the game. Go Kings!
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
My five-year-old nephew wanted to caddy for my brother's golf game. "You have to count my strokes," my brother told him. "How much is six plus nine plus eight?" "Five," answered the nephew. "Okay," my brother said, "Let's go..."
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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