Volume 15 Issue 15

Newsletter Date: November 6, 2015

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 talk about the difference between permanent loans and bridge loans. And as always, we have lots of great jokes, funny pics, and a really cool video of men wearing jetpacks buzzing an airliner.

Joke Du Jour

The French will eat almost anything. A young cook decided that the French would enjoy feasting on rabbits and decided to raise rabbits in Paris and sell them to the finer restaurants in the city. He searched all over Paris seeking a suitable place to raise his rabbits. None could be found. Finally, an old priest at the cathedral said he could have a small area behind the rectory for his rabbits. He successfully raised a number of them, and when he went about Paris selling them, a restaurant owner asked him where he gotten such fresh rabbits. The young man replied, "I raise them myself, near the cathedral. In fact, I have a hutch back of Notre Dame."

Pretty Clever

Place Your Commercial Loans With C-Loans.com

Last year C-Loans.com closed an $18.5 million commercial construction loan. The broker who used C-Loans earned a $92,500 commission.

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!

Arrest Joke

Police arrested two kids yesterday. One was drinking battery acid, and the other was eating fireworks. They charged one and let the other one off.

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 have tons of money right now, so we can do some of the larger loans that in the past were too large for us.

One unusual loan product that we offer is our blanket loan against a portfolio of rental homes. We will 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.

George Blackburne IV: 916-338-3232
To apply to George IV online, please click here

Ed Hupp: 574-219-929-5625
To apply to Ed online, please click here.

Peacock Joke

The highlight of our zoo trip was a peacock showing off its plumage. My four-year-old son was particularly taken with it. That evening, he couldn't wait to tell his father. "Dad, guess what! I saw a Christmas tree come out of a chicken!"

Been There. Felt This. Ouch!

Permanent Loans Versus Bridge Loans

A permanent loan is a first mortgage on a commercial property with a term of at least 5 years and which has at least some amortization. The most common amortization schedule for commercial loans is 25 years. Basically, a permanent loan is just a garden-variety first mortgage on a commercial property. Most permanent loans are made by banks, conduits, life insurance companies, and recently credit unions.

A bridge loan is a short term commercial real loan - usually in a first mortgage position - that is designed to bridge some gap in time. During this time period, the property owner might renovate the property and/or lease it out. Bridge loans are expensive, but bridge lenders pride themselves at being able to close a commercial real estate loan in less than a month.

Bridge loans are often made by private money (hard money) lenders, but they are not the only source of bridge loans. I know of only three commercial mortgage REIT's in the country (there are surely more), and each one of these REIT's is primarily a bridge lender. There is at least one life insurance company that has a bridge loan subsidiary, and each of the money center banks (Bank of America, Wells Fargo Bank, etc.) also has a bridge loan subsidiary. Finally, there are a number of "hedge funds" (funds where every individual investor is accredited) and fund of funds (mortgage investment funds where the largest investors are hedge funds themselves) that make bridge loans. JCR Capital is an example.

BUT, and now we come to the point of this section, not every hard money commercial lender is a bridge lender. Surprisingly, my own hard money commercial mortgage company, Blackburne & Sons, is actually a permanent lender! Huh? Yeah. Only a small portion of our income comes from loan origination fees. We actually make 15-years loans, and we cry every time we get paid off early. The reason why is because we make most of our dough from a profitable loan servicing fee.

Therefore, if you place a commercial loan with Blackburne & Sons, our points are no higher than anyone else, our loans have no prepayment penalty, and our loans have a 15-year term. There is nothing worse than having a balloon payment come due on a commercial property in the middle of a recession. Yikes!

Do you need to place a commercial real estate loan of any size or type? You definitely should enter the deal into C-Loans.com. It's free! And remember, C-Loans has closed over 1,000 commercial real estate loans totaling over $1 billion.

Monopoly Joke

"There are reports that a movie is in the works based on the game Monopoly. They say the movie will be just like the game because it's four hours long and it ends with your family fighting." -- Jimmy Fallon

Small Balance Preferred Equity "Loans"

Do you really understand preferred equity? This free whitepaper will help you to truly understand it. It's written in easy-to-understand layman's language.

You'll use preferred equity in three common scenarios. (1) You have an investor buying a non-owner-user commercial-investment property. The bank refuses to make a first mortgage larger than 60% LTV. The buyer only wants to put down 25%. We'll cover the gap. (2) Your client has a balloon payment coming due, but he can't qualify for a new first mortgage large enough to pay off the old first mortgage. We'll cover the gap. (3) Your client wants to buy out an impossible partner. We'll provide the capital to buy him out.

Got a potential preferred equity deal? Call your favorite B&S loan officer:

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.

George Blackburne IV: 916-338-3232
To apply to George IV online, please click here.

Ed Hupp: 574-219-929-5625
To apply to Ed online, please click here.

Been There. Done This Too.

Free Written Directory of 2,000 Commercial Lenders

Please notice I said TWO THOUSAND commercial lenders, not just 200. Imagine if you had scores and scores of commercial lenders for every deal. And did I mention it was free? To get your free list.

Ashley Madison Joke

"Ashley Madison claimed that there were over 5.5 million women looking to have an affair on their site, but recently it was revealed that only 12,000 women were real and the rest were computer-controlled robots. A former user named David Poyet is suing them for misleading him. That's right, a guy on Ashley Madison feels cheated." -- Conan O'Brien

One-Point Commercial Bridge Loans

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

Interest Rate: 9.9% to 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

Book Joke

"We have Bill O'Reilly here tonight. He's the author of the new book "Killing Reagan," as well as "Killing Lincoln," "Killing Kennedy," and "Killing Jesus." So Bill’s gonna sit in that chair, and I'm gonna sit waaaay over there.” — Jimmy Fallon

Business Loans Not Secured By Real Estate

I'm talking here about unsecured business loans, equipment loans, leases, inventory loans, factoring, accounts receivable financing, asset-backed lines of credit, etc.

The reason you want to get into the business of brokering business loans is because such loans close in 10 to 14 days, NOT three months.

C-Loans.com is now offering business financing. Please click here if you are trying to pace a business loan not secured by real estate.

Firearms Joke

"During last night’s debate, Donald Trump said he would feel more comfortable if his own employees brought firearms to work. When they heard that, many of Trump’s Hispanic employees said, 'No problemo.'" -- Conan O'Brien

We're Now Making Home Loans in California

For the past 34 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:

George Blackburne IV at 916-338-3232
NMLS # 382122

Alicia Gandy at 916-338-3232
NMLS # 389678

Tom Blackburne at 574-210-6686
NMLS # 1014118

Clone Joke

A scientist, on hearing the miracles of cloned sheep, decided to ignore all warnings and clone himself. Soon he would have another him; doubling his work capacity and providing company on those all-night research binges. But a problem developed. His new double looked just like him, sounded just like him, and acted just like him; but whenever he spoke a pure stream of filthy language spewed forth.

The terrible twin talked such a blue streak he made dead sailors blush. Soon, the scientist could take it no more. He lured his lewd lookalike to an ocean cliff, crept up behind him and pushed his dirty doppelganger over the edge. He stayed just long enough to see the rude replica disappear into the surf, then slipped quietly home, free at last! But he didn't get away with it. The whole thing had been seen by neighbors. Eventually he was arrested and charged with making an obscene clone fall.

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

Important note: This nine-hour video course now also includes my $399 audio course on Intermediate Commercial Real Estate Finance - all for the same $549 cost. This 9-hour video course 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.

Course Adjustment Joke

One foggy night, as the admiral was walking along the deck of his battleship, he saw the light of another ship approaching in the distance. Quickly he went down to the radio room and had a message sent: "Adjust your course 10 degrees starboard." But the message came back "Adjust your course 10 degrees port" This began to anger the admiral, so he thought he needed to make himself clear. He sent the message "This is an order from an Admiral. Adjust your course 10 degrees starboard." But the message came back "I am a petty officer, second class. Adjust your course 10 degrees port" If the admiral was angry before, he was furious now. No way did he take orders from a petty officer! He ordered a message sent which would make his position clear. "This is a nuclear battleship. Adjust your course 10 degrees starboard." And again the message came back "This is a lighthouse. Adjust your course 10 degrees port."

Great 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:

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

George Blackburne IV: 916-338-3232
To apply to George IV online, please click here.

Ed Hupp: 574-219-929-5625
To apply to Ed online, please click here.

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

Video - Jetmen Buzz Passenger Airliner

Dubai is doing a lot of cool thing to bring attention to their amazing city.

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.

Final Funny (PG-13)

Shortly after take-off on an outbound evening Air Lingus flight from Dublin to Boston, the lead flight attendant nervously made the following painful announcement in her lovely Irish brogue, "Ladies and gentlemen, I'm so very sorry, but it appears that there has been a terrible mix-up by our catering service. I don't know how this has happened, but we have 103 passengers on board, and unfortunately, we received only 40 dinner meals. I truly apologize for this mistake and inconvenience.” When the muttering of the passengers had died down, she continued, "Anyone who is kind enough to give up their meal so that someone else can eat will receive free, unlimited drinks for the duration of our 5-hour flight.” Her next announcement came about 2 hours later: "If anyone is hungry, we still have 40 dinners available."

Buy Commercial Leads

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

Here's the most important reason why you want to buy leads from C-Loans. Once you close five loans for us, we will list you on our Suggested Lender List as a Proven Broker. If you ever achieve this distinction, the rest of your career will be a breeze. Three or four perfect commercial leads will appear in your email box daily until you retire.

Get a Free e-Book on CREF

I've assembled my best commercial real estate finance training articles into a wonderful e-book that is yours free.


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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 mcarlson@blackburne.com

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.

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

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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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