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 explain why the banks aren't making even terrific commercial loans.
Joke Du Jour
“Last week, I hosted a meeting of mortgage lenders,” continued last night’s emcee. “They got together all the mortgage lenders in Britain who are still in business. I felt sorry for the guy. All alone…"
Line of Credit for Property Flippers in California
Are you buying California foreclosures and then flipping them? If so, please call me, George Blackburne, at 574-360-2486. I have a special line of credit program that you'll love.
We can go up to 60% loan-to-value on purchases of foreclosed property without appraisals. The rate is 8.9% and the fee is 3.5 points. These are 1-year loans, with the option of extending, for an additional fee, for one more year.
The minimum loan is $1.5 million, and the maximum loan is $10 million. These bridge loans can be used to either buy homes or commercial property. There is no prepayment penalty.
Remember, the property must be located in California. If you have a deal (in California!), please call me, George Blackburne, on my cell phone at 574-360-2486.
A guy goes into a bank and he says, "I’d like to talk to you about a loan." The banker replies, "Great! How much can you lend us?"
Banks Are Not Even Making Terrific Loans
The other day we presented a commercial loan to over 80 banks in Ohio. The loan was less than 10% loan-to-value, the borrower had a credit score of almost 800, and the debt service coverage ratio was over 5.0. Five-point-oh? Yup. And he was bringing $2.5 million in fresh cash into the deal.
Seventy-nine of these banks still turned the deal down. Why? They didn't have any dough with which to make new loans.
So why are the banks so short of funds these days? Banks historically make short term loans. They like loans to pay off early so they can then re-lend the funds to the next guy, earning nice fees in the process. Banks are out of lending capital because most of their short term loans from before the meltdown have still not yet paid off.
Costume Party Joke
"I got kicked out of a costume party for wearing nothing but a red shirt. I guess no one had heard of Winnie the Pooh." -- Kellen Erskine
Lender Who is Actually Making Commercial Loans
Blackburne & Sons, our hard money affiliate, is going gangbusters right now making permanent loans on commercial properties using private money. Got a deal? Please call Mike Thurman at 916-338-3232 or email him a package to firstname.lastname@example.org.
When two Australian girls, ages 10 and 12, got stuck in a storm drain, they were lucky to have a cell phone and reception. And they quickly put that technology to work. No, they didn’t call police—they updated their Facebook statuses to "Lost under the streets." The girls were eventually rescued, but only after friends called for help. Source: switched.com
Here's a Hot Niche Where You Can Specialize
Farmer Mac is the secondary market for farm loans. It's very similar to Fannie Mae. Few hard money lenders will make loans on cropland, even if the borrower just barely missed qualifying for Farmer Mac.
Blackburne & Sons loves to make loans on cropland. Got a deal? Please call Warren More at 916-338-3232 or email him a package to email@example.com.
Pit Bulls Maul Child to Death
Three Pit Bull Terriers and a German Shepherd mix mauled a seven-year-old little boy to death this week in rural Illinois, just a few hours from our home. The boy was just walking over to his little buddy's house to play.
Nadya Suleman, aka the Octomom and the mother of 14, has arranged with PETA to place a sign on her front lawn. It reads "Don't let your dog or cat become an 'octomom.' Always spay or neuter."
Adding Lots of Credit Unions
We added several credit unions this month to our growing databank of credit unions who are hungry to make commercial loans. Remember, C-Loans.com is free.
Real Life Phantom
A phantom serial killer had vexed German police for two years. Their only clue: DNA found at 39 crime scenes. But according to the German magazine Bild, after hundreds of detectives were deployed, the mystery was solved: The DNA belonged to the woman who made the cotton swabs used to collect samples at the scenes of the crimes.
Create a PDF of Your Loan Package
Earlier I told you about how we had to submit a really terrific commercial loan to over 80 different banks in Ohio before finally (hopefully) placing it. It helped immensely that we had reduced the loan package to a PDF that we could ship by email.
There is an incredible software program that asks you a series of simple questions and then makes your commercial loan into a gorgeous PDF. You can even import pictures into your package.
What does this software cost? Nothing! Simply input your commercial deal into C-Loans and then submit it six lenders. At the bottom of the departure page you'll find a button that will turn your C-Loans application into a gorgeous PDF. You can then download the PDF to your desktop and submit it to hundreds of your own commercial lenders, outside of the C-Loans System.
"You have the honesty of Abe Lincoln and the charm of the guy who shot him." — Dane Cook to Simon Cowell
Reuse Our Video Training Course Over and Over
If you order our famous 9-hour video course, How to Broker Commercial Mortgage Loans, you can use this training course again and again to train new loan agents in your office. The cost is still only $499.
An escalator can never break—it can only become stairs.
You Need Loan Servicing Income
The fastest and easiest way to build a loan servicing portfolio is to become a hard money lender. Our four-hour video course, How to Find Your Own Private Mortgage Investors, is just $499.
There's always a lot to be thankful for if you take time to look for it. For example, I'm sitting here thinking how nice it is that wrinkles don't hurt.
Train Your Entire Staff in Commercial in One Day
You are paying a fortune to keep your doors open. You can't afford to throw away good commercial leads. For only $5,000 I will fly out to your office and train your entire staff in commercial mortgage marketing, underwriting, packaging, placement, and fee collection. Suddenly your income potential doubles with no increase in monthly overhead. I have already trained more than 50 companies. For details please call Alicia Gandy at 916-338-3232..
Sea Monster Joke
Q: What do sea monsters eat?
A: Fish and Ships.
Buy Commercial Leads for Just $1 to $2 Each
Most lead sellers want $20 to $50 apiece for commercial leads. C-Loans sells them for just $1 to $2 each - plus 37.5 basis points if you close the loan. Click here for more details.
"Here is a very odd story. A woman in Tennessee is now suing a local pharmacy after buying what she thought were birth control patches. They turned out to be nicotine patches. The good news, her new baby is now down to a half a pack a day." -- Jay Leno
Consult with George for Just $375/Hour
With just a 30 to 60 minute consultation I may be able to help you with your commercial mortgage marketing, your underwriting, your placement of a particular commercial deal, or your fee collection problems. Click here for details.
"A couple of days ago, there were UFO sightings in New Jersey. But don't worry, it's not an invasion — they were just looking for a place to dump a body." -- David Letterman
Training My Boy
In my 2006 book, The Reverse Multiplier Effect, I wrote the following dedication, "Set a noble goal and work towards it every day."
My "noble goal" in life was to someday pass on my company to my sons, George IV and Tommy. Therefore it has been a huge thrill for me to train, first, George IV, and now Tommy, in commercial real estate finance. Hopefully they will someday stand on my shoulders and reach much greater heights.
In addition to my basic training course, young Tom and I are using my blog, Commercial Real Estate Loan Tips, as a series of lesson plans for his training. If you are not regularly reading this blog, you are missing out on a lot of free commercial finance training.
Okay, now here is where it gets really cool. Tom and I both have MacBooks, with built-in video conferencing software. Two days a week, I am able to train him at his apartment near Purdue (near his girlfriend who has a year left at Purdue), two hours away from Plymouth, Indiana, using video conferencing. "Hey, stop goofing around and pay attention, Tom. Eyeballs on me." How cool is that?! :-)
This Southerner wrote: "I went fishing this morning. After a short time I ran out of worms. Then I saw a cottonmouth with a frog in his mouth. Frogs are good bass bait. Knowing the snake couldn't bite me with the frog in his mouth, I grabbed him right behind the head, took the frog, and put it in my bait bucket."
"Now the dilemma was how to release the snake without getting bit. So I grabbed my bottle of Jack Daniels and poured a little whiskey in its mouth. His eyes rolled back, he went limp. I released him into the lake without incident and carried on fishing using the frog."
"A little later, I felt a nudge on my foot. There was that same snake, this time with two frogs in his mouth. Life is good in the South."