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 hypothecations - a loan secured by another loan. And, of course, like always, we have lots of cute, clean jokes, several funny pics, and an interesting video for you.
Joke Du Jour
A man hasn't been feeling well, so he goes to his doctor for a complete checkup. Afterward, the doctor comes out with the results. "I'm afraid I have some very bad news," the doctor says. "You're dying, and you don't have much time left." "Oh, that's terrible!" says the man. "Give it to me straight, Doc. How long have I got?" "Ten," the doctor says sadly. "Ten?" the man asks. "Ten what? Months? Weeks? What?" The doctor shakes his head and says, "Nine..."
Illusions of Grandeur
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? 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 hard money commercial loan or call me, Tom Blackburne, at (574) 210-6686.
A British friend of mine once found himself at a dinner party sitting next to an attractive American woman. The conversation turned to cricket, and the woman asked my friend to explain the game. He agreed and embarked on a lengthy explanation of the mysteries of "silly mid-on," "fine-leg," "googly," "chinaman" and the like. At the end he sat back, exhausted. The woman looked at him, shaking her head in wonderment, "That really is remarkable. And to think they do it all on horseback."
Commercial Loan Hypothecations
Isaac Investor works hard all of his life, investing in and managing apartment buildings. At age 67, Isaac finally sells his last apartment building for $2 million and retires to Florida. As part of the deal, Isaac carries back a $1.85 million first mortgage at 7.0%.
In Florida, Isaac meets 48-year-old Lola La Boom-Boom, a real bombshell, and they begin a passionate love affair. As part of the deal, Isaac promises her diamonds and a brand new car.
Suddenly Isaac needs $200,000 in cash. He doesn't want to sell his $1.85 million first mortgage note because the mortgage company is demanding a $350,000 discount!
So Isaac comes to Blackburne & Sons, and he pledges his first mortgage note receivable (Isaac receives monthly payments from the former buyer of his apartment building) in return for a $200,000 loan. Isaac pays just three points on $200,000 loan - as opposed to giving up a $350,000 discount on his first mortgage note receivable. A loan secured by another loan is called a hypothecation.
Need a commercial loan, including a note hypothecation? Simply complete this super-easy mini-app.
Broken Computer Joke
Our new office computer system was down as much as it was working. My co-worker Cathy decided to stay late one evening to catch up on the work that had accumulated. On her way home, a police officer stopped her for speeding. "What a perfect end to an awful day!" she exclaimed. "Our computer is up, then down -- up, then down. I stay late to catch up, and now this!" The officer was unaffected by Cathy's griping and he went to his car to prepare a citation. After what seemed an eternity, he returned with her license and registration. As he handed them to her, he smiled and said, "Our computer is down."
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. For more information, please call Tom Blackburne at (574) 210-6686.
Passing Gas Joke
An elderly woman goes to the doctor. She says, "Doc, it's terrible, I pass gas all the time. Fortunately, it's odorless and silent, otherwise I'd be mortified. For example, I've passed gas ten times just since we've been talking, but it's odorless and silent so you can't tell." The doctor gives her some green pills and tells her to take one a day and come back in a week. The woman comes back after taking the pills for a week. She says, "Doc, there's been a change but not for the better. I still pass gas all the time, but while it's still silent, now it smells terrible!" The doctor says, "Well, I'm glad we cleared up your sinus blockage. Now we'll have to work on your hearing."
The Original Star Trek Was a Great Show, But ...
New Apartment Program for "A" Deals
Because we have been in the commercial mortgage business for over 34 years, and because we own CommercialMortgage.com, Blackburne & Sons has been allowed to join just five other mortgage bankers to offer an incredible new apartment loan program for "A" quality deals. These loans close in our name and are sold to an institutional investor which purchased almost $400 million in apartment loans last year.
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 30-year fully-amortized loan. For more details, please call Tom Blackburne at (574) 210-6686.
Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well-preserved body, but rather to skid in sideways, chocolate in one hand, wine in the other, body thoroughly used up, totally worn out, and screaming, "Woo-hoo! What a ride!"
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.
Sweet Video of a Woman Sings an Elephant to Sleep
On a Personal Note
Since it's inception, I have been a huge fan of the ABC show Shark Tank. If you are not familiar with the show, aspiring entrepreneurs pitch their business or product to a group of potential investors, called "sharks", seeking an investment deal. From the simple question of the last 12 months sales number to the always tricky and telling "customer acquisition cost" question, each entrepreneur is drilled on the spot, hence the name "Shark Tank." While most people crumble under the pressure and fail to make a deal, one will occasionally survive the "Shark Tank" and walk away with money needed to make their dreams come true.
After watching close to every episode, I have learned that there is a single common element to each deal. Despite the drastic range in products and business types, they always fulfill a specific need in the market. Here at Blackburne & Sons, we have several loan products that fulfill a need in the commercial mortgage market. We offer small balance preferred equity, 30/15 year private money loans and 1-point bridge loans, all of which can help you and your borrower get the money they need to make their dreams come true (and we are much nicer than the Shark Tank...) Please call me with any questions!
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!
Perfect Summer Day
A perfect summer day is when the sun is shining, the breeze is blowing, the birds are singing, and the lawn mower is broken.
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.
DRE# - 01919403
BLACKBURNE & SONS REALTY CAPITAL CORPORATION
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
Phone: (574) 210-6686
Fax: (916) 338-2328