COMMERCIAL BROKER NEWSLETTER
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 talk about exit fees. We also have lots of cute, clean jokes, some funny pics, and a super-interesting video.
Joke Du Jour
After ten years, the wife starts to think their child looks a little odd, so she decides to do a DNA test. She finds out that the kid is actually from completely different parents. Wife: “Honey, I have something very serious to tell you.” Husband: “What's up?” Wife: “According to DNA test results, this is not our kid.” Husband: “Well, don't you remember? When we were leaving the hospital, you saw the baby had pooped his diaper. Then you said, ‘Please go change the baby, I'll wait for you here.’ So I went inside, got a clean one, and left the messy one there.”
Private Money Commercial Permanent Loans Nationwide From $100,000 to $3.5MM
Do you need a purchase money lender who will actually go to 75% loan-to-value? 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? 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 invest-ments, etc.? Do you need a loan against a portfolio of single family homes?
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.
"When I die, I want to die like my grandfather, who died peacefully in his sleep; not screaming like all the passengers in his car." -- Unknown
What is an Exit Fee?
An exit fee is like a prepayment penalty, except the fee is owed when the loan pays off, regardless of whether the loan is paid off early, exactly on time, or late.
I was reading a tombstone this week issued by George Smith Partners describing a $7.4MM bridge loan that they had recently closed. What was interesting about this loan was that they had structured the deal with an increasing exit fee. I had never heard of an increasing exit fee before.
"The loan is structured with an increasing exit fee in lieu of an upfront lender origination fee to minimize upfront costs and incentivize the Borrower to execute the business plan in a timely manner... After an initial 12 month spread maintenance period, the exit fee is 1.33% for months 13 through 24, increasing to 1.66% for months 25 through 30 and 2.00% for months 31 through 36."
Only Blackburne & Sons Can Do This:
Blackburne & Sons has some truly unique and super cool programs:
- We'll give you a bridge loan on your commercial property for only one point! There is no prepayment penalty.
- We allow sellers to carry back a second mortgage behind our first mortgage.
- We will actually lend up to a 75% loan-to-value ratio. Banks claim they will lend up to 75% LTV, but in real life they will only go 68% LTV.
- We are the only lender in the country offering small balance preferred equity. We'll raise as little as $100,000 if your client can't come up with a full 30-35% down to satisfy the bank.
- We offer private money (loosey-goosey underwriting) commercial loans with a 15 year term. Our competitors offer 2- to 3-year bridge loans. We offer 15-year permanent loans with no prepayment penalty. Never again will you have a balloon payment come due during a recession.
- We have a terrific apartment permanent program that can compete with agency loans.
- We buy commercial first mortgages (usually at a discount).
- Instead of discounting your wonderful commercial first mortgage, consider pledging it as collateral for a smaller loan. This is called a hypothecation. We make loans secured by mortgage notes owned by the borrower.
"I think that's how Chicago got started. A bunch of people in New York said, 'Gee, I'm enjoying the crime and the poverty, but it just isn't cold enough. Let's go west.'"-- Richard Jeni
Free Copy of the Blackburne List
The Blackburne List is a list of over 2,500 commercial lenders located nationwide. We just spent almost $30,000 and three months updating this list.
The Blackburne List is available for purchase for just $79.95. Is money tight? You can also buy one of our three Regional Lists (750+ lenders) for just $39.95. But why spend money at all?
We will trade you one of our three Regional Lists for the contact information of just one banker making commercial real estate loans. If you refer us three bankers, you will own the list for all three regions. Together you will own the entire Blackburne List.
There is another way that you can access The Blackburne List. Our newest portal, CommercialMortgage.com, is an online way to search the entire Blackburne List for the 30 lenders most suitable to make your loan. Use of CommercialMortgage.com is also 100% free!
"If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there is a man on base." -- Dave Barry
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.
"My mom said she learned how to swim when someone took her out in the lake and threw her off the boat. I said, 'Mom, they weren't trying to teach you how to swim.'" -- Paula Poundstone
Do You Need a Commercial Loan Right Now?
If you need a non-prime, subprime, or slightly-flawed commercial loan, simply complete this super-easy mini-app to Blackburne & Sons.
If you need a bank-quality commercial mortgage loan right now from a life company, commercial bank, or 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.
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.
Marriage: The only sport in which the trapped animal has to buy the license.
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.
Code of Honor Joke
Code of Honor: Never approach a friend's girlfriend or wife with mischief as your goal. There are just too many women in the world to justify that sort of dishonorable behavior... unless she's really attractive. -- Bruce Friedman
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 35% to 40% down payment on the purchase of many 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 35% to 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.
"Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself... -- Mark Twain
Two Ways To Earn Referral Fees For Commercial Loans - We Once Paid $21,250.
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.
Video - Incredible Moments 2017
Rapid fire collection of video clips - beautiful, scary, and amazing.
On a Personal Note
My 7-month-old golden retriever puppy named Bernie is a handful. He is very much the rough and tumble outdoorsy dog that he was bred to be. And to no one's surprise, he went head first into a swamp for a swim on our last hiking excursion two weeks ago. I didn't think anything of it until the next morning when one of his eyes became swollen, pink, and seeping ooze overnight. Two days later, Bernie had become completely blind in both eyes! In panic mode, we rushed him to a 24 hour vet clinic. After paying oodles of money on blood work, urine analysis, lung fluid analysis, and seeing an ophthalmologist, they were not able to determine what caused his blindness. The next day Bernie was given a series of anti-fungal, anti-viral, and steroid medications to go home with, based on the assumption that this was either a tick-borne illness or fungal/bacterial from the swamp. It just didn't make sense for this to be hereditary or cancerous, given his age. Two weeks later, we still aren't exactly sure what caused the sudden blindness, but I am so thankful to say Bernie has regained much of his eyesight back! The medication is working. :)
I say all that to say this: This past winter here in the Midwest was incredibly mild, which has caused a spike in numerous forest dwelling, infectious critters and contagions such as ticks (Lyme disease is at an all time high), mosquitoes, poison ivy, and stagnant water-based bacteria and fungi, of course. Be extra careful this summer and fall when venturing into the woods, and remember to keep your pups out of the swamps!
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 (R)
A girl from New York and a girl from the west coast were seated side by side on an airplane. The girl from New York, being friendly and all said, "So, where ya from?" The west coast girl said, "From a place where they know better than to use a preposition at the end of a sentence." The girl from New York sat quietly for a few moments and then replied: "So, where ya from, (w)itch?"
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