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 importance of the borrower's net worth. We also have lots of cute, clean jokes, some funny pics, and a funny Saturday Night Live spoof of the debates.
Joke Du Jour
A seven-year-old boy is sitting at the dinner table with his parents. Suddenly he announces, "Me and Janie next door are gonna get married!" "Oh?" says the mother, amused. "And how old is Janie?" "Six," replies the boy. "Well," says the father, "what are you going to do for money?" "I get 5 dollars a week allowance," says the son, "and Janie gets 2. We figured that if we put them together, we'll be okay." "I see," says the father. "But what are you going to do if you have any children?" "Well," says the boy, "so far we've been lucky."
I'm Not Listening
Private Money Commercial Loans Nationwide From $100,000 to $3.5MM
Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? 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?
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.
Bob Dylan Joke
"Bob Dylan was awarded the Nobel Prize for literature today. Dylan was like, 'This is the greatest honor I've ever received.' Or he might have said, 'Misses gravy's on her ivory steed.' It's impossible to tell.” -- Seth Meyers (Confused? Bob Dylan mumbles horribly.)
The Importance of Net Worth
Let's suppose you get a call from a developer seeking a $10 million construction loan to develop some land. The second most important question you should ask him is, "What is your net worth?"
The Net-Worth-to-Loan-Size Ratio is the developer's net worth divided by the size of the loan request. This ratio should be 1.0 or higher. Many times you will see developers with a net worth of just $2.5 million trying to get a $10 million loan. Folks, its never going to happen. The loan request is just a pipe dream. Move on to your next lead.
"Okay, George, but you mentioned that the question about the developer's net worth is the second question that you should ask. What is the first question?" Answer: "How much equity (skin) does the developer have in the deal?"
If you need a non-prime or subprime commercial mortgage loan right now, simply complete this super-easy mini-app to me here at Blackburne & Sons.
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.
If you still can't find a commercial lender using C-Loans, then try CommercialMortgage.com. Keep in mind that the 3,159 commercial lenders on CommercialMortgage.com are different than the 750 commercial lenders on C-Loans.com.
In any case, you should come visit CommercialMortgage.com right now and take it for a free test drive. You do NOT need a real life commercial loan request.
Stop and Frisk Joke
"The NYPD is apparently teaching its officers how to be more polite. It's true. The last time I got frisked, the cop was like, 'Have you lost weight?'” -- Jimmy Fallon
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.
I Am Buzzing
E. Coli Joke
"A woman in Oregon who was hospitalized for E. Coli after eating Chipotle is suing the company for free Chipotle. It’s all part of Oregon’s Right to Die Law." -- Conan O'Brien
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.
Furniture Joke
A Navy officer was cutting through the crew's quarters of his ship one day and happened upon a sailor reading a magazine with his feet up on the small table in front of him. "Sailor! Do you put your feet up on the furniture at home?" the officer demanded. "No, sir, but we don't land airplanes on the roof either."
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.
He Can Now Check "Petting an Alligator" Off of His Bucket List
Rotation Joke
"I've never been to a hotel with a rotating restaurant on top, but one time I took my girlfriend to a merry-go-round, and I gave her a burrito." -- Mitch Hedberg
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 - SNL Lampoons Clinton and Trump
This is one of the funniest videos I've seen in a while
On a Personal Note
As of this past Friday, I am officially a first time homeowner. Hooray, right? Well, the hard part starts now. Due to my financing, I have only 2 weeks to get my new fixer-upper in working condition. This means I have to put in a new HVAC, water heater, appliances, etc. in a very short timeframe. Everything was going smoothly until I just realized I have a slight bug problem! Hopefully my girlfriend doesn't have an issue sleeping next to ants and a few spiders. I mean it is Halloween season, right?
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
If you can keep your head when all about you are losing theirs... you're probably the executioner.
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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