Volume 17 Issue 2

Newsletter Date: February 27, 2017

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 why inflation is about to soar. And as always, we have lots of great jokes, funny pics, and an amazing video of a golf pro showing off a trick putt with three balls.

Joke Du Jour

A little three-year-old boy is sitting on the toilet. His mother thinks he has been in there too long, so she goes in to see what's up. The little boy is sitting on the toilet reading a book, but about every 10 seconds or so he puts the book down, grips onto to the toilet seat with his left hand and hits himself on top of the head with his right hand. His mother asks, "Billy, are you all right? You've been in here for a while." Billy replies, "I'm fine, mommy. I just haven't gone 'doody' yet." Mother says, "Okay, you can stay here a few more minutes; but Billy, why are you hitting yourself on the head?" Billy shrugs and replies, "It works for ketchup..."

Ain't It the Truth

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!

Lion Joke

Ben went on safari with his wife and his sharp-tongued mother-in-law. One evening, while still deep in the jungle, the Mrs. awoke to find her mother gone. Rushing to her husband, she insisted on them both trying to find her mother. Ben picked up his rifle, took a swig of whiskey, and started to look for her. In a clearing not far from the camp, they came upon a chilling sight. The mother-in-law was backed up against a thick, impenetrable bush, and a large male lion stood facing her. The wife said, ''What are we going to do?'' ''Nothing,'' said Ben, ''The lion got himself into this mess - let him get himself out of it.''

Submit Your Commercial Mortgage App Today

Blackburne & Sons continues to seek slightly-flawed 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. We will now even consider land loans.

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:

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

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.

New Pastor Joke

A new pastor moved into town and went out one Saturday to visit his community. All went well until he came to one house. It was obvious that someone was home, but no one came to the door even after he knocked several times. Finally, he took out his card, wrote on the back "Revelation 3:20" and stuck it in the door. The next day, as he was counting the offering he found his card in the collection plate. Below his message was a notation "Genesis 3:10." Upon opening his Bible to the passage he let out a roar of laughter.

Revelation 3:20 reads: (Pastors note) "Behold, I stand at the door and knock. If any man hear my voice, and opens the door, I will come into him, and will dine with him, and he with me."

Genesis 3:10 reads: "And he said, I heard thy voice in the garden, and I was afraid, because I was naked."

Obviously a Killer

Why Inflation Will Soar - and Soon Too!

In addition to owning Blackburne & Sons, I also own C-Loans.com, a commercial mortgage portal. With almost 1,500 commercial loan closings under our belt, C-Loans is a serious player in the commercial real estate finance industry. C-Loans, Inc. has developed software that we license to banks that allows them to receive pre-screened commercial loan applications over the internet.

During the Great Recession, we lost 75% of our lenders. Ouch! And it has been a battle to “sell” (license) our software ever since. Banks had just lost a fortune in their commercial loan portfolios during the slump, and they certainly didn't want to make any more.

Something has changed. We have “sold” our software to at least one or two new banks every business day for the past three-and-a-half weeks. And we didn't even call them. There was zero salesmanship involved. These banks came to us and asked to “buy” it.

Okay, lots of banks are joining C-Loans. [Yawn. Stretch.] Why should I care? The reason all of these banks are suddenly licensing our software again is because they have finally shaken off their fears from the Great Recession. They are anxious to start lending again. It's difficult to overstate the importance of this. Banks are anxious to start lending again.

Remember, when a bank makes a new loan, the proceeds of that loan eventually end up in someone else’s bank. This second bank keeps 5% in reserve and re-lends 95%. This 95% eventually ends up in a third bank. The third bank keeps 5% of that 95% in reserve, and then re-lends 95% of that 95%. The process continues until the original loan amount from the first bank has been lent out twenty times. If the original loan was $1, the U.S. money supply grows by $20. This is called the multiplier effect.

Is an increasing money supply good for business? You betcha! When banks are lending aggressively, consumers have more money (and the confidence) to spend on homes, cars, furniture, and the like. Factory production increases, and these factories hire more workers. As demand for workers increases, eventually wages start to increase. With the country already close to full employment, wages are bound to increase, which gives workers even more money.

Anecdotal: Last week Cisca, my bride of 34 years, and I saw a local cable TV advertisement that lasted an entire minute from a factory in South Bend desperate for workers – one full minute! Around our small town we now see dozens of Help Wanted signs. We were doing a loan in Michigan last month, and I wanted to reassure our private investors that Michigan was an economically healthy state. When I looked up the unemployment rate, it was a mere 5.0%. And on top of this strong economy, the banks are finally now starting to lend? Can you spell b.o.o.m.?

What about inflation? Yup, it’s coming. Look for wage push inflation, as labor costs rise. Wage push inflation is a general increase in the cost of goods that is preceded by, and results from, an increase in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide.

We are going to see some inflation, but definitely not runaway inflation. Don’t forget that the Federal Reserve, in order to re-inflate the money supply during the Great Recession, bought on the order of $4.5 trillion (with a "T") worth of bonds, including Treasury bonds, corporate bonds, and mortgage-backed securities. When the Fed finally wants the money supply growth to slow down, all it has to do is to start selling off these bonds. This is called open market operations. My $10 K-Mart crystal ball is predicting that inflation will reach 3.5% annually before the Fed seriously starts to put on the brakes.

Simple Prank

Get a new bar of soap and paint it with clear nail varnish. Let it dry, and then place it out to be used. (Since water can't reach the soap, it will never lather. Ha-ha!)

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.

We Serve Five Cats (and One More Outside)

Free Written Directory of 750 (or Even 2,500) Commercial Lenders

Please notice I said 750 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.

Racket Joke

Q: What's black and white and makes a lot of noise?
A: A zebra with a drumset.

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

Thunderstorm Joke

One summer evening during a violent thunderstorm a mother was tucking her small boy into bed. She was about to turn off the light when he asked with a tremor in his voice, "Mommy, will you sleep with me tonight?" The mother smiled. "I can't dear," she said. "I have to sleep in Daddy's room." The little boy replied with a shaking voice, "The big sissy."

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.

Elephant Joke

Two elephants meet a totally naked guy. After a while, one elephant says to the other, "I really don't get how he can feed himself with that thing!"

We're Now Making Business Purpose Rental Home Loans in Other States Too

For the past 36 years Blackburne & Sons has exclusively been a commercial lender. That has now changed. We are aggressively seeking non-owner-occupied home loans in California and now a few other states.

In addition to California, Blackburne & Sons will now consider non-owner-occupied home loans in the following additional states, as long as the purpose of the loan is for business:

  1. Florida
  2. Ohio
  3. Indiana
  4. Georgia
  5. Washington
  6. Arizona

Because of licensing issues, 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 business purpose, non-owner-occupied residential deal in California or one of the above states? Please call your 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

Old West Joke

Historians have recently discovered that Annie Oakley, famed sharp-shooter of the Old West, had a sister. The sister, Carrie, gained some renown in her day as a singer in various saloons throughout the West; but it was not until after her death that she was very widely known. Today, countless bars are dedicated to Carrie Oakley.

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.

Art Thief Joke

Recently a guy in Paris nearly got away with stealing several paintings from the Louvre. However, after planning the crime, getting in and out passed security, he was captured only 2 blocks away when his van ran out of gas. When asked how he could mastermind such a crime and then make such an obvious error, he replied, "I had no Monet to buy Degas to make the Van Gogh."

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.

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

Jaw Dropping Putting Video

He putts three balls in a row. The last ball he hits goes in first. The first ball hit goes in last.

This guy can really putt.

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

A nun, really needing to go to the bathroom, walked into a neighborhood pub. The place was hopping with music and dancing, but every once in a while the lights would turn off. Each time after the lights would go out the place would erupt into cheers. When the revelers saw the nun, however, the room went dead silent.

The nun walked up to the bartender and asked, "May I please use the restroom?" The bartender replied, "I really don't think you should." "Why not? " the nun asked. "Well, there is a statue of a naked man in there, and his most private part is covered only by a fig leaf." "Nonsense," said the nun, "I'll just look the other way."

So the bartender showed the nun the door at the top of the stairs, and she proceeded to the restroom. After a few minutes, she came back out, and the whole place was hopping with music and dancing again. However, they did stop just long enough to give the nun a loud round of applause. She went to the bartender and said, "Sir, I don't understand. Why did they applaud for me just because I went to the restroom?"

"Well, now they know you're one of us," said the bartender. "Would you like a drink?" "But I still don't understand," said the puzzled nun. "You see," laughed the bartender, "every time the fig leaf is lifted on the statue, the lights go out in the whole place. Now, how about that drink, Sister?"

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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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

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

Click here and bookmark it.

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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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