Mortgage Stuff Newsletter -
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Volume 13 Issue 6

Newsletter Date: November 19, 2013

MORTGAGE STUFF (C-Loans Client Letter)

You are receiving this letter because you are a commercial mortgage broker client of either Blackburne & Sons or C-Loans, Inc. Removal instructions are below. Today I am going to show you how appraisers arrive at a cap rate for a commercial property. In addition - as always - we have lots of great jokes, gags and funny pictures too.

Joke Du Jour

There I was, sitting at the bar staring at my drink, when a large, trouble-making biker steps up next to me, grabs my drink, and gulps it down in one swig. "Well, whatcha' gonna do about it?" he says menacingly. When I burst into tears, the biker says, "Come on, man, I didn't think you'd CRY. I can't stand to see a man crying." "This has been the worst day of my life," I say. "I'm a complete failure. I was late to a meeting, and my boss fired me. When I went to the parking lot, I found my car had been stolen, and I don't have any insurance. I left my wallet in the cab I took home, only to find my wife in bed with another man. Then my dog bit me. So I came to this bar to work up the courage to put an end to it all. I buy a drink, I drop a capsule in, and I sit here watching the poison dissolve. Then you show up and drink the whole thing! But hey, enough about me, how's your day going?"

Never Leave the Two Alone!

Submit Your Commercial Mortgage App Today

Blackburne & Sons continues to seek first mortgages between $100,000 to $2.5 million on standing commercial properties nationwide. Please be sure to bookmark our commercial mortgage rate sheet right now.

To apply for a private money commercial loan from Blackburne & Sons, please find your favorite loan officer below:

Tom Blackburne: 574-210-6686
To apply to Tom online, please click here.

Alicia Gandy: 916-338-3232
To apply to Alicia online, please click here.

Desmond Stoll: 916-338-3232
To apply to Desmond online, please click here.

Rocky Joke

One Halloween a trick-or-treater came to my door dressed as "Rocky" in boxing gloves and satin shorts. Soon after I gave him some goodies, he returned for more. "Aren't you the same 'Rocky' who left my doorstep several minutes ago?" I asked. "Yes," he replied, "but now I'm the sequel. I'll be back four more times tonight too."

Actually the very best of the Rocky movies was the last one, Rocky Balboa (Rocky VI). I still remember the advice that Rocky gave to his son:

"The world ain't all sunshine and rainbows. It is a very mean and nasty place. It will beat you to your knees and keep you there permanently if you let it. You, me or nobody is going to hit as hard as life. But it ain't about how hard you're hit, it is about how hard you can get hit and keep moving forward, how much can you take and keep moving forward. That's how winning is done!"

My wife and I also saw Sylvestor Stallone's new movie, also starring the "Governator", Escape Plan. It was a surprisingly good flick, considering the two actors are approaching 70.

How Are Cap Rates Computed?

When an appraiser wants to figure out the cap rates at which nearby commercial properties are selling, he starts first by by gathering up the offering memorandums on recently sold commercial properties. By the way, an Offering Memorandum is a sales brochure, prepared by the listing real estate broker, that describes the commercial property that is for sale, includes color pictures, and contains a pro forma operating statement on the property. Please be sure to look at the sample offering memorandum.

From the offering memorandum, the appraiser gathers the Net Operating Income number. Using the NOI and the actual sales price, the appraiser can quickly compute the cap rate. How exactly does he do this? Well, let's look at the definition of cap rate.

Cap Rate = (NOI / Purchase Price) x 100%

For this example, let's assume that the appraiser looked at the original offering memorandum of a recently-sold 8-unit apartment project and plucked off the number, $48,619, as the NOI. The building eventually sold for $1,055,000. Let's plug, chug, and then compute our cap rate:

Cap Rate = ($48,619 / $1,055,000) x 100%

Cap Rate = .046 x 100%

Cap Rate = 4.6%

More on commercial loans and cap rates.

Speeding Mother Joke

My mom has a lead foot, so I was not surprised when a state trooper pulled us over as we were driving through Georgia. Hoping to get off with a warning, Mom tried to appear shocked when he walked up to the car. "I have never been stopped like this before," she said to the officer. "What do they usually do, ma'am," he asked, "Shoot the tires out?"

Place Your Commercial Loans With is a commercial mortgage portal where you can enter a commercial loan in just four minutes and then submit it to hundreds of different commercial lenders with one click. And C-Loans is free!

Good Advice

We're Now Making Home Loans in California

For the past 33 years Blackburne & Sons has exclusively been a commercial lender. That has now changed. We are now aggressively seeking non-owner-occupied home loans in California.

Sorry, folks, we are ONLY licensed to make non-owner-occupied home loans in California. We cannot make home loans in any other state; but we will make invidual commercial loans or blanket residential loans (5+ houses) nationwide.

Got a nationwide commercial deal or a California non-owner-occupied residential deal? Please call your California Loan Officer:

Alicia Gandy at 916-338-3232
NMLS # 389678

Desmond Stoll at 916-338-3232
NMLS # 1013512

Finn Joke

"Helsinki, Finland, has been named the world's most honest city by Readers Digest. You can always trust a Finn, unless it's attached to a shark." -- Craig Ferguson

Nine-Hour Video Course on How to Broker Commercial Mortgage Loans

This is my bread-and-butter course that teaches you how to market for commercial loans, how to underwrite them (the ratios), how to place them, and how to collect your fee. Thousands of very happy commercial mortgage brokers have taken this course. Details.

Broken Computer Joke

I work in a busy office, and when a computer goes down, it causes quite an inconvenience. Recently one of our computers not only crashed, but it also made a noise that sounded like a heart monitor. "This computer has flat-lined," a co-worker called out with mock horror. "Does anyone here know how to do mouse-to-mouse?"

Now Is the Time to Jump Into Hard Money!

Sooner or later the light bulb will go on for you. The real mortgage in mortgage banking is in loan servicing fees. We service around $50 million in hard money loans for a loan servicing fee of almost 2% per year.

Four-hour training course, How to Find Your Own Private Mortgage Investors. $499. Please click here for details.

You can buy both of my famous training courses, How to Broker Commercial Mortgage Loans and How to Find Your Own Private Mortgage Investors, for just $799. Please call Mick Carlson at 574-855-6292.

Earn Big Referral Fees. We've Made It Really Easy.

Blackburne & Sons will pay you a referral fee of 20% of our loan fee, just for providing us with the name and the phone number of a prospective commercial mortgage borrower. We once paid a referral fee of $21,250 to a guy named Alan Dunn.

Just click here to refer us a commercial loan.

My Son Just Got a Used But Nice Mini Cooper

So my wife just sent him this video.

Buy Commercial Leads

You can buy commercial leads from C-Loans for just $1 to $9, plus 37.5 bps. when the deal closes.

The World's Most Foolish Mortgage Broker

I would nominate the broker who does not subscribe to my blog. Folks, I have a bad ticker. I had a heart attack and a triple bypass 10 years ago, at the ripe, young age of just 50. This blog is my desperate attempt to pass on a lifetime of knowledge and experience in commercial real estate finance to my wonderful sons, George IV and Tom, before I suddenly drop dead. You can spy on this wonderful training for free.

Let me put it another way. Every single lesson in every one of my expensive training courses started out first as a free blog article. Hellooo?

So please go to my blog right now, find my ugly picture, and insert your email address in the space immediately below. You will learn soooo much. I am starting to get into some really advanced and sophisticated subjects right now.

Featured Links

Apply for a Commercial Loan
List of Lender Phone Numbers
Learn Commercial Mortgage Finance
Find Your Own Private Investors
Market for Commercial Loans
Fee Collection Course
Earn Referral Fees in Your Sleep
Combo Packages
Cool Mortgage Broker Stuff
Cool Lender Stuff
Cool Realtor Stuff
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Contact Us

Learn to Broker $10MM Commercial Deals.

9-Hour Video Program Including Marketing, Underwriting, Packaging, Placement and Fee Collection. Just $499.

For details, click here or call Mick Carlson at 574-855-6292

Refer Loans to C-Loans By Hand and Earn Huge Referral Fees

Just input the email address of a borrower or broker and earn one-eighth of a point at closing! That's $1,250 for a $1 million loan. Click here.

Our Training Course Includes Over 60 Minutes on Fee Collection. No One Has Collected From More Lying, Deadbeat Borrowers Than George. You Can Order the Fee Agreement and Collection Training Separately for $199.

Call Mick at (574) 855-6292 or email him at

Got a Mortgage Web Site? Earn $5,000 Referral Fees in Your Sleep!

Just Click Here


Just $2 to $3 Each
Plus 37.5 Bps on Closing.

Click Here for More Details

Read the C-Loans Blog

Pick up lots of great commercial brokerage practice tips for free.

Click here and bookmark it.

Service Your Own Loans
4-Hour Video Course, How to Find Your Own Private Mortgage Investors - Just $499

Click here for details

Sign Up for This Newsletter!

Click HERE® is sponsored by C-Loans, Inc. — For more information, contact Mick Carlson
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 telephone: (574) 855-6292 * Fax: (916) 338-2328
Real Estate Broker -- California Department of Real Estate -- License Number 01330173

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