PRIVATE
CLIENT LETTER
We
met when you used C-Loans.com to apply for a commercial
mortgage. To give you an incentive to read our newsletters
and remain a client, we blatantly bribe you. The bribe:
If you remain on our newsletter list, we will someday -
at your option - give you a long-term, private money commercial
mortgage loan for only one point.
Joke
Du Jour
During
an afternoon practice, a nine year old way out in left field
failed to catch one ball after another. The coach,
getting very impatient with him said, "Just stand over there
and watch me."
The
assistant coach hit a ball in the coach's direction. The
ball hit the ground in front of him. The second ball hit
behind him. The third hit him on the shoulder. He
looks over at the left fielder and yells, "
See what you've done. You've got this position so messed
up, no one can catch a ball here."
How
to Get That One Point Loan
Hard
money lenders used to charge 15 points; but as a private
client of C-Loans you can get a fast, easy, 15-year,
private money commercial mortgage for only 1 point.
(Our normal fee is 3.5 points.) The loan also has
no prepayment penalty.
Just
call Blackburne & Brown, the parent of C-Loans, Inc.,
at 916-338-3232 and tell the receptionist that you are a
"private client" in need of a loan.
The
Danger of Deflation - Part 2
Last
month we wrote to you about how the huge level of existing
debt in the United States is like a black star, sucking
back to the banks all the money supply growth encouraged
by the Fed. To review that article, please click
here.
Today
we will introduce you to the scariest nightmare since Jaws
- the Reverse Multiplier Effect.
You
probably remember the Multiplier Effect. Someone deposits
$100 in Bank A. Bank A sets aside $10 in reserves
and loans out $90 to Mr. Jones. Mr. Jones uses the
$90 loan to buys some used golf clubs from Mr. Smith.
Mr. Smith deposits his $90 in Bank B.
Bank
B then sets $9 aside for reserves and loans out $81 to Mrs.
Fudd. When Mrs. Fudd spends the $81, it lands in Bank
C. And so on. By the time the whole process
winds down, the money supply grows by $600 or so, all because
of that one deposit in Bank A of $100.
Ready
to get chills? The Multiplier Effect works in reverse.
If Bank A receives some monthly payments totaling $100 and
gets too scared to lend it back out, more than $600 gets
sucked out of the money supply! Can you see the effect
that another successful terrorist attack could have on the
economy? Heaven help us if our banks ever stop lending.
More on this next month.
I
Can't Come in to Work Today Because ...
If
it is all the same to you, I won't be coming in to work.
The voices told me to clean all of my guns today.
I
can't come in to work today because I'll be stalking my
previous boss, who fired me for not showing up for work.
Okay?
Yes, I seem to have contracted
some attention-deficit
disorder and, hey, how about them Skins, huh? So,
I won't be able to, yes, can I help you? No, no, I'll
be sticking with Sprint, but thank you for calling.
The
Next Big Thing
Let's
suppose you have just sold one of your rental properties,
and you are looking for a new property into which you will
complete your exchange.
There
are now exchange companies that purchase institutional grade
commercial properties and then sell off a piece of the ownership
of these trophy properties to investors needing exchange
properties.
For
example, suppose an investor is 61 years old, and he is
getting too old to cntinue to manage his 20-unit apartment
building. This investor might sell his 100% ownership
interest in his 20-unit apartment building and then use
the proceeds to buy an 8% ownership interest in a gorgeous,
professionally-managed office tower. Often the exchange
company will master-lease the office tower, thereby providing
the investor with a promised return of 7%.
If
you are slowing down, or if you just can't find a satisfactory
exchnage property, please send
me an email with the words, "Exchange Property"
in the subject.
Goodbye
If
you need a fast, private money loan for only one point,
please call 916-338-3232 and tell our loan officer that
you are a "private client".
If
you need a mezzanine loan, a construction loan, or an "A"
quality permanent loan, we encourage you to come back to
C-Loans and apply to our 750 banks.
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