Volume 14 Issue 5

Newsletter Date: April 23, 2014

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 we'll discuss the difference between loan-to-value ("LTV") and loan-to-cost ("LTC"). And as always, we have lots of great jokes, funny pics, and a hilarious video for you today too.

Joke Du Jour

Now it was 6 p.m., and I was about to leave the coin laundry where I was employed. My boss called me over and asked if I would mind dropping off someone's laundry on my way home. "It's for my cousin," she apologized, "who's eight months pregnant and can't get out much anymore." I cheerfully agreed and, driving to the address, knocked at the door. A little girl, the sister-to-be, answered. "Hi, there," I said with a big smile. "Is your mommy home?" Holding up the white bundle of clothes, I explained, "I have a delivery for her." The child's mouth dropped, and her eyes went wide. "Mom!" she shrieked, "Come quick! It's the stork!”

In Case Of Emergency...

Submit Your Commercial Mortgage App Today

Blackburne & Sons continues to seek first mortgages between $100,000 to $3.5 million on standing commercial properties nationwide. We'll also hypothecate notes and buy commercial loans at a discount. 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.

Quick Thinker Joke

There was a teenage boy who worked in the produce section of the local market. A man came in and asked to buy half a head of lettuce. The boy said he would go ask his manager about the matter. So he walked into the back and said, "There's some jerk out there who wants to buy only a half a head of lettuce." As he was finishing saying this he turned around to find the man standing right behind him, so he added, "and this here gentleman wants to buy the other half..." The manager okayed the deal, and the satisfied customer went on his way. Later the manager called on the boy and said, "You almost got yourself in a lot of trouble earlier, but I must say I was impressed with the way you got yourself out of it. You think on your feet, and we like that around here. Where are you from, son?" The boy replied, "Canada, sir." "Oh, really? Why did you leave Canada?" asked the manager. The boy replied, "They're all just up-tight, homely women and hockey players up there." "Really," replied the manager, "My wife is from Canada!" The boy replied, "No kidding! What team did she play for?”

Much Lower Rates on Bridge Loans

Historically Blackburne & Sons has never been a bridge lender. Instead, we preferred to make only permanent loans in order to book long-term loan servicing rights. We wanted that loan servicing income to carry us through the Great Recession, which we were convinced was coming.

But the Great Recession is now over. We have just come out with an incredible new bridge loan for commercial properties that starts at 7.9% to 8.9% and just two points for a one-year loan with no prepayment penalty. Call your favorite B&S loan officer for details.

Dating Profile Joke

"A new report claims that posing with a dog in your online dating profile makes you more desirable — and posing with a cat means you're going to die alone." -- Conan O’Brien

Loan-To-Value Versus Loan-To-Cost

One of our loan officers got confused this month when talking to some experienced fix-and-flippers. The property flippers wanted a loan of 80%, and our loan officer thought they were talking about loan-to-value. No-no-no! They were talking about loan-to-cost.

Fix-and-flips loans are like construction loans. Investors don't buy these foreclosures and renovate them unless they will be worth at least 20% more than their cost. The cost includes the purchase price of the REO, the closing costs, the costs of the renovation, the cost of carry (interest), and the selling costs (real estate commissions and closing costs).

Therefore, a fix-and-flip loan, if the project is well-conceived, of 80% of cost is often just 60% or less loan-to-value. Blackburne & Sons will make fix-and-flip loans on rental houses in California and on commercial properties nationwide. Please call your favorite B&S loan officer for a quote.

When Deadly Moths Attack

Tiny Preferred Equity "Loans"

Blackburne & Sons is the ONLY lender in the country making tiny ($100,000 to $600,000) preferred equity "loans" on commercial properties.

As you are painfully aware, most commercial banks today have cut their loan-to-value ratios back to around 58% to 63% loan-to-value.

Blackburne & Sons will make tiny preferred equity investments (sort of like a second mortgage loan) that will take you from 58% LTV up to a 75% CLTV.

In many cases, the mortgage banker who wins the deal is the guy who can get his borrower the most leverage, so you really should promote the heck out of our new preferred equity program.

Amazing Video

Squirrel desperately trying to escape the razor-sharp talons of a hawk.

Adhesive Tape Joke

A policeman was rushed to the hospital with an inflamed appendix. The doctors operated and advised him that all was well; however, the patrolman kept feeling something pulling at the hairs in his crotch. Worried that he might need a second surgery and the doctors hadn't told him about it, he finally got enough energy to pull his hospital gown up enough so he could look at what was making him so uncomfortable.

Taped firmly across his pubic hair and private parts were three wide strips of adhesive tape, the kind that doesn't come off easily... if at all. Written on the tape in large black letters was the sentence, "Get well soon from the nurse in the Ford Explorer you pulled over last week."Kind of brings tears to your eyes doesn't it?

One-Point Commercial Bridge Loans

Please don't forget about Blackburne & Sons' one-point bridge loan product for commercial properties:

Interest Rate: 12.9%
Loan Fee: 1 point + $950 (nothing up-front)
Term: Six months
Prepayment Penalty: None
Maximum Loan-to-Value Ratio: 65% (70% on purchases) Properties: Multifamily (5+ units), Commercial, and Industrial

More on our one-point bridge loan. Please be sure to also subscribe to my blog by typing your email address right below my ugly mugshot.

Korean Election Joke

"North Korean leader Kim Jong Un won re-election with 100 percent of the vote. They say that when the absentee ballots are counted the percentage could go even higher." -- David Letterman

“The North Korean dictator is in the news again. He was re-elected with 100 percent of the vote. He said, 'I haven't been this happy since I scored 700,000 on the SAT exam.'” -- Conan O’Brien

Place Your Commercial Loans With C-Loans.com

C-Loans.com 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!

Sooooo Mean!

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 individual 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

Monkey Glands Joke

A couple who were having trouble having a baby went to see a doctor. The doctor gave him a revolutionary new injection made from monkey glands, which worked perfectly. Nine months and two weeks later, his wife had a baby. When the nurse came out of the delivery room with the news, he asked, "Is it a boy or a girl?" "We won't know until it comes down off the light fixtures.”

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.

Coffee Joke

"People are now going on dates to coffee bars. This is the worst idea. Four cappuccinos later, your date doesn't look any better." -- Margot Black

Great New Apartment Loan Program

You're probably used to thinking of Blackburne & Sons as a subprime commercial lender, but since our acquisition of CommercialMortgage.com (I paid more than a house), some of the nation's largest commercial mortgage investors are giving us wonderful opportunities. Please be sure to check out our great new apartment program.

To apply for an apartment 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.

Winning Joke

"It doesn't matter whether you win or lose; what matters is whether I win or lose." -- Darrin Weinberg

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.

Steak Joke

One night at the dinner table, the wife commented, "When we were first married, you took the small piece of steak and gave me the larger. Now you take the large one and leave me the smaller. You don't love me anymore." "Nonsense, darling," replied the husband, "you just cook better now.”

Buy Commercial Leads

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

Loans on Marijuana Growing Facilities

A good buddy of mine, Scott Jordan, of All Credit Lending Solutions, asked me to plug for him his brand new and fascinating commercial loan program for medical marijuana warehouses and building purchases nationwide.

The loan sizes can be from $250K to $5 million and up to 65% LTV. Scott's lender will will allow a CLTV of 80%, so if the seller will carry back 20% of the purchase price, the buyer can put just 20% down.

The interest rate ranges from 7.9% to 9.99% on a 3 or 5-year fixed rate loan. His lender will go stated income / stated assets and a FICO score as low as 650 score is allowed. This loan will help the medical marijuana business owner buy the property they are currently leasing or to increase the size of their current grow.

Scott will also handle any needed equipment leasing, so his company can also close the lease for lights, ballasts, and other equipment. You, the broker, can therefore get paid twice - once on the real estate purchase and once on the equipment lease.

Scott shared with me, "I was analyzing a deal yesterday. The ware-house owner has $1.7 MM note on a building worth $3.2 MM. We are going to take his payment from $41,0000 per month to under $14,000 per month, saving him $27,000 per month and giving him a 3-year amortized loan. He was thrilled and was happy to pay me two points. I can also price in two points on the back."

You can reach Scott Jordan at (303) 887-2750.

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C-Loans.com® 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 Bureau of Real Estate -- License Number 01330173

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