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 high-volatility commercial real estate loans (HVCRE) loans. And as always, we have lots of great jokes, funny pics, and a funny video starring James Corden.

Joke Du Jour

Little Johnny's father asked him what he wanted for his birthday. "A baby brother," he said. Later that year, his mother came home from the hospital with a baby boy. Little Johnny was delighted. "And what would you like this year for your birthday?" his father asked. Little Johnny said, "If it isn't too uncomfortable for mommy, I'd like a pony."

Nothing Less Than World Domination Will Do

Place Your Commercial Loans With C-Loans.com

New banks have been signing up to join C-Loans.com in droves over the past six months. These guys have been joining C-Loans without a salesperson from C-Loans, Inc. calling on them. They are ravenous for commercial loans, so they sought us out and filled out all of the paperwork to join. It feels like an Oklahoma land rush.

C-Loans.com has 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!

Riot Joke

"Yesterday, a brawl broke out at a Florida airport after Spirit Airlines canceled several flights. To restore control, airport police were forced to fire Cinnabons into the crowd." -- Conan O'Brien

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:

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.

Kim Joke

"Yesterday, Kim Jong Un hurled a series of insults at Barack Obama and Hillary Clinton. In a related story, Fox News has finally found its replacement for Bill O’Reilly." -- Conan O'Brien

My Son, Tom, Just Got a Golden Retriever Puppy.

CommercialMortgage.com

We actually own two competing commercial mortgage portals. Our latest portal, CommercialMortgage.com, is much easier and faster to use.

Orange Joke

Q: What did the chick say when it saw an orange in the nest?
A: Look at the orange mama laid.

HVCRE Loans

HVCRE loan is short for a High Volatility Commercial Real Estate loan. The FDIC defines a HVCRE loan as follows: "With respect to commercial real estate... as a credit facility that, prior to conversion to permanent financing, finances or has financed the acquisition, development, or construction (ADC) of real property."

In plain English, this means that a loan made by a bank to finance the purchase commercial land - including the future site of a multifamily project or a residential subdivision - is considered a HVCRE loan.

An acquisition and development (A&D) loan is a loan used to buy a piece of raw land and to make horizontal improvements. Typically the finished project is either some shovel-ready home sites or some finished commercial or industrial building sites. A&D loans are HVCRE loans.

By the way, the term, horizontal improvements, means to clear the land, to grade it, to bring utilities to the site, and to construct roads, curbs, and gutters.

Commercial construction loans, including the construction of apartments and residential subdivisions, are also considered to be HVCRE loans.

"Boring! Why should I care about HVCRE loans? I'm not a bank. I'm falling asleep here, George.... zzz." Here's why you need to know this term:

(1) If you are trying to place a HVCRE loan, you need to know that the loan will be much harder to close than in the past. Federal regulators are really trying to discourage banks from making many more HVCRE loans.

(2) If a bank makes a HVCRE loan, it must now set aside a very high amount of reserves against losses.

(3) The bank will require the developer to contribute 40% of the total cost of construction. In the past, banks would only require that the developer contribute 20% of the total cost (80% loan-to-cost ratio).

(4) Banks can no longer give the developer credit for the fact that the land has appreciated greatly since he purchased it. Suppose you're a smart developer. You purchased the apartment land in 2010 for $1 million, and its now worth $3 million. The bank can no longer count the $2 million worth of appreciation as equity that you have contributed to the project.

Two Hunters Joke

A group of friends went deer hunting and paired off in two's for the day. That night one of the hunters returned alone, staggering under the weight of an eight point buck. "Where's Henry?" "Henry had a stroke of some kind. He's a couple of miles back up the trail." "You left Henry laying out there and carried the deer back?" "A tough call," nodded the hunter, "but I figured no one is going to steal Henry."

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:

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.

Extra Fries?! Where?!

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.

United Airlines' New Motto

"We put the hospital in hospitality"

"Beating random customers since 2017"

"A bloody good airline"

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

Tiger Joke

Q: Why do tigers live in the jungle?
A: They hate city traffic.

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.

Tooth Joke

Q: What does the tooth fairy give for half a tooth?
A: Nothing. She wants the tooth, the whole tooth, and nothing but the tooth.

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:

Alicia Gandy at 916-338-3232
NMLS # 389678

Tom Blackburne at 574-210-6686
NMLS # 1014118

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

Speeding Ticket Joke

Cop: "You didn't think we give pretty women tickets? You're right, we don't. Sign here.”

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.

Church Joke

When I asked my friend if she was planning to attend church, she just shook her head. "I haven't gone in a long time," she said. "Besides, it's too late for me. I've probably already broken all seven commandments."

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:

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.

Fun Video With James Corden

Pretty cute

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

The children were lined up in the cafeteria of a Catholic elementary school for lunch. At the head of the table was a large pile of apples. The nun made a note, and posted it on the apple tray: "Take only ONE. God is watching." Moving further along the lunch line, at the other end of the table was a large pile of chocolate chip cookies. A child had written a note, "Take all you want. God is watching the apples."

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.

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