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.
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