You are receiving this letter because you either wrote to us or you are a commercial real estate broker client of either Blackburne & Sons or C-Loans, Inc. Today we'll discuss the bullish case for industrial real estate. We also have lots of cute, clean jokes, funny pics, and a cool video of Rhonda Rousey, the female mixed martial arts expert.

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'...

One-Point Commercial Bridge Loans

Suppose you have listed a commercial property for sale, and the seller is getting antsy. You can often hold him off long enough to find a buyer by getting him a bridge loan. Blackburne & Sons offers a six-month bridge loan for just one point and no prepayment penalty. Please click here to submit a commercial bridge loan mini-app 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).

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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

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? Need a non-recourse commercial 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.

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 private money commercial loan or call me, 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

Buying or Selling a Commercial Property? We'll Help Your Buyer With His Down Payment!

No one else in the entire country does what we do. We add our equity dollars - not debt dollars - to your buyer's down payment to create a down payment large enough to satisfy the bank.

The reason you need us is because banks are now requiring a 40% down payment on the purchase of most commercial-investment properties. To make matters worse, most banks today will not even allow the seller to carry back a second mortgage.

Does your buyer really want to put down 40% of the purchase price? Our small-balance preferred equity solves your problem. Please click here for more information about our preferred equity.

Blackburne & Sons (est. 1980) is a commercial private money lender. We will allow second mortgages behind our own first mortgages!

Please click here to apply for preferred equity or a private money commercial mortgage. You can also call me, Tom Blackburne, at (574) 210-6686.

Overexposure 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

Sometimes The Morning Routine Isn't SO Routine

Sweet Apartment Program for "A" Deals

Blackburne & Sons has an incredible apartment loan program for "A" quality deals. The rate is adjusted according to the desirability of the property and the area, but it starts at 3.87% and 1 point for a fixed rate, 30-year fully-amortized loan. For more details, please call Tom Blackburne at (574) 210-6686.

Fund Raising Joke

"Jeb Bush's campaign announced yesterday that it raised over $13 million last quarter, which means it's doing better than most of the other major campaigns. Or as Jeb put it, 'Crap. What do I gotta do to lose this thing?!'" -- Jimmy Fallon

Two Ways To Earn Referral Fees For Commercial Loans

This one is an absolute no-brainer. You simply put a link to C-Loans.com on your real estate website. We once paid a $21,250 referral fee to a guy who was asleep when the lead came in! Here are the details.

You can also referral commercial loans by hand. Here is our referral fee program.

Political Donors Joke

"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

Video - Rhonda Rousey Is a Judo and Mixed Martial Arts Expert

Rhonda tells 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

Three men worked in the Empire State Building on the 102nd floor. One day the elevator was out of service, so they had to walk up to their office. To pass the time, they decided that one would sing a song, one would tell a joke, and the third would tell a sad story - each taking a turn every floor until they reached the top. Finally, as they reached the 100th floor, one man sang his last song. As they reached the 101st floor, the second guy told his last joke. As they ascended the flight to the 102nd floor, the third man said, "I forgot the key."

Contact Information

4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 Telephone: (574) 210-6686 * Fax: (916) 338-2328
Real Estate Broker -- California Bureau of Real Estate -- License Number 829677