Volume 16 Issue 3

Newsletter Date: February 28, 2016

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 underwriting commercial loans based strictly on the debt service coverage ratio and underwriting them on a global income basis. And as always, we have lots of great jokes, funny pics, and an amazing video for you.

Joke Du Jour

The sheriff of a small town was also the town's veterinarian. One night the phone rang, and his wife answered. An agitated voice inquired, "Is your husband there?" "Do you require his services as a sheriff or as a vet?" the wife asked. "Both!" was the reply. "We can't get our dog's mouth open, and there's a burglar in it."

Fun Wife

Please insert Hunger Games Pic here

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!

Tooth Fairy Joke

I was playing tooth fairy when my daughter suddenly woke up. Seeing the money in my hand, she cried out, "I caught you!" I froze and tried to think of an explanation for why I, instead of the tooth fairy, was putting the money under her pillow--but her next words let me off the hook. "You put that money back!" she said indignantly. "The tooth fairy left that for me!"

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.

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

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

Labor Joke

A guy calls the hospital. He says, "You gotta send help! My wife's going into labor!" The nurse says, "Calm down. Is this her first child?" He says, "No! This is her husband!"

I Totally Misunderstood

Please insert Exercise Pic here

Global Underwriting of Commercial Loans

When you apply for a commercial real estate loan from a bank, the bank is legally required to make sure that the deal cash flows. In fact, the bank will usually insist on a 1.25 debt service coverage ratio. The debt service coverage ratio is defined as the property's Net Operating Income (NOI) divided by the annual debt service on the proposed loan, all multiplied by 100%.

Debt service is just a fancy way of saying the principal and interest payments on the proposed loan.

It makes a difference whether you compute the debt service coverage ratio using annual numbers or using monthly numbers. The proper way - the more conservative way - is to peform this calculation using annual numbers.

The problem is that often the borrower cannot qualify for a large enough commercial loan if the loan amount is based solely on the debt service coverage ratio.

Private money lenders, like Blackburne & Sons, have an advantage in that we can consider outside income, like the borrower's salary or his other net rental income. When you underwrite a commercial loan using outside income, its called global income underwriting.

This is George III (the founder and old man) writing to you today. I am extremely bullish on the future of the U.S. economy, so I have recently asked Blackburne & Sons' Loan Committee to loosen up on our underwriting. We will now make commercial loans up to 70% loan-to-value... and up to 75% on many deals.

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!

Whiskey Fishing Joke

The rain was pouring down. It was cold. And there, standing in front of a big puddle in the middle of the city square, was an old Irishman, drenched, holding a stick, with a piece of string dangling in the water. A passer-by stopped and asked, "What are you doing?" "Fishing,” replied Pete. Feeling sorry for the old man, the guy says, "Come on, there's a pub. Have a drink with me, and let’s get out of the cold rain." In the warmth of the pub, as they sip their whiskies, the guy asks Pete about his fishing, "So how many have you caught today?" "You're the eighth.” says Pete.

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.

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

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

I've Had a Tough Morning. Don't!

Please insert Warning Pic here

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.

Donuts Joke

"A self-driving car in Southern California got stuck going in circles without anyone behind the wheel. Police had to use spike strips to get it to stop, which is the first time in history that cops put a stop to making doughnuts." -- Jimmy Fallon

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

Italian Bread Joke (PG-13)

The 87-year-old told his younger friend, "Well, I eat Italian bread every day. It keeps your energy level high, and you'll have great stamina with the ladies." So, on the way home, the 80-year-old friend stops at the bakery. As he was looking around, the lady asked if he needed any help. He inquired, "Do you have any Italian bread?" She said, "Yes, there's a whole shelf of it. Would you like some?" He said, "I want five loaves." She said, "My goodness, five loaves? Don't you think that by the time you get to the fifth loaf it'll be hard?" He replied, "Holy sh*t ... does everybody in the world know about Italian bread but ME?!"

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.

BO Joke

Doctor, doctor, these pills you gave me for body odor...
What's wrong with them?
They keep slipping out from under my arms!

We're Now Making Home Loans in California

For the past 35 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:

Tom Blackburne at 574-210-6686
NMLS # 1014118

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

Alicia Gandy at 916-338-3232
NMLS # 389678

Eye Exam Joke

The blonde went to an eye doctor to have her eyes checked for glasses. The doctor directed her to read various letters with the left eye, while covering the right eye. The blonde kept getting mixed up as to which eye was which; so the eye doctor, in disgust, took a paper sack, with a hole to see through, and put it on her head to cover up the appropriate eye. Then he had her read the letters.

As he did so, he noticed the blonde had tears streaming down her face. "Look," said the doctor, "there's no need to get upset about getting glasses." "I know," agreed the blonde, "But I kind of had my heart set on wire frames."

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.

Retirement Dinner Joke (PG-13)

A priest was being honored at his retirement dinner after 25 years in the Parish. A leading local politician and member of the congregation was chosen to make the presentation and to give a little speech at the dinner. However, the politican was delayed, so the priest decided to say his own few words while they waited.

"I got my first impression of the parish from the first confession I heard here. I thought I had been assigned to a terrible place. The very first person who entered my confessional told me he had stolen a television set, and, when questioned by the police, was able to lie his way out of it. He had stolen money from his parents, embezzled from his employer, had an affair with his boss's wife, taken illegal drugs, and had given an STD to his cousin. I was appalled. But as the days went on, I learned that my people were not all like that. I had indeed come to a fine parish full of good and loving people..."

Just as the priest finished his talk, the politician arrived full of apologies at being late. He immediately began to make the presentation and gave his talk: "I'll never forget the first day our parish priest arrived," said the politician. "In fact, I had the honor of being the first person to go to him for confession."

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.

Amazing Video

This limbless man is a dancer.

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.

Vacation Joke

"A New York plastic surgeon has announced that he is creating 'vacation breasts,' which are implants that would last two to three weeks. That’s amazing, isn’t it? Who gets a three-week vacation?" -- Seth Meyers

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.


Featured Links

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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 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.

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.

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

Click here for details

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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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