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Volume 7: Issue 4 | Date: May 29, 2019


You are receiving this letter because you either wrote to us or you are a commercial real estate broker client of either Blackburne & Sons or C-Loans, Inc. Today we are going to talk about look-back yields. We also have lots of cute, clean jokes, some funny pics, and a hilarious video of kid fails!


Joke Du Jour

One day, when a golfer was playing golf on a famous golf course in Mumbai, some tourists pointed and said, "Tiger Woods!! Tiger Woods!!” The golfer was feeling pretty cocky because he had indeed just hit a great shot… until tiger came out of the woods.


Private Money Commercial Permanent Loans From $100K to $3.5M Nationwide

Apply Now! Do you need a commercial lender who will actually lend up to 75% LTV? Blackburne & Sons has decided to compete against banks by offering a higher LTV.

Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty?

Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a loan against a portfolio of rental houses?

And don't forget, we will quickly and happily issue you a written Loan Approval Letter - at no charge - that you can use as a fallback and to lure cheaper lenders. After all, everyone wants to lend to you if you already have a commitment. Here is our latest rate sheet.

Blackburne & Sons is looking for commercial real estate loans that are not quite clean enough for a bank. Please click here to submit a hard money commercial loan or call me, Alicia Gandy, at (916) 338-3232 Ext. 310.


- Today's Observation -

What Are Look-Back Yields?

A look-back yield is typically computed when a high-cost lender is preparing his payoff demand on a commercial loan. The borrowers asks, "Hey, lender, I want to pay off your commercial loan. How much do I have to pay you?"

The commercial lender will look back at the loan origination points that he charged, the interest rate on the loan, the prepayment penalty, any exit fee, and the size of the balloon payment to make sure that he has earned a certain minimum annual return. This look-back yield is all agreed to in advance between the lender and the borrower, so there is no sneakiness here.

Why would a lender add a look-back yield requirement (minimum annual return) to a commercial loan?

Let's suppose a lender makes a commercial loan to a borrower who specializes in flipping rundown apartment building. It's a super-risky deal. The note rate was 8% interest. There were three loan origination points to the bridge lender, ten discount points to the bridge lender's mortgage fund, and a five-point exit fee. Since the term of this commercial loan was scheduled to be just two years, the lender expected to earn over 17% annually.

But a problem developed. The existing apartment tenants refused to move out, so the apartment builder flipper had to spend 18 months in court to finally evict them. Then he was finally able to start the two-year project of renovating and selling the building. Even though the flipper was 18 months late in paying off his balloon, the lender saw no point in foreclosing of him because the flipper was very competent, and he moving as fast as he legally could.

When the loan finally paid off 18 months past maturity, the lender realized that he had gotten seriously shafted. During that extra 18 months, the lender had earned just 8%, which was the nominal rate, and not 17%. The nominal rate is the rate on the face of the note.

His yield was thereby diluted by the delay in the balloon payment to just 14.5%. Had the high-cost bridge lender included a minimum look-back yield provision, he would have earned the 17% that he was expecting. Read more on George's blog.

Earn Up To 12% Interest


Dog Joke

My dog used to chase people on a bike a lot. It got so bad, finally I had to take his bike away.


Business Purpose Rental Home Loans in Most States

Apply Now! Please pay special attention to the following: Unlike other hard money brokers, Blackburne & Sons Realty Capital Corporation makes home loans with a 15-year term (30-year amortization), and there is NO prepayment penalty. Our competitors make just three-year or five-year bridge loans. Our loans are clearly better because you may want to hold the property. These loans are sometimes known as buy-to-rent loans.

Historically, Blackburne & Sons was mostly a commercial lender. This has now changed. We are aggressively aggressively seeking non-owner occupied home loans. We have already closed loans in the following states, and our attorney can quickly research your state to verify that we can lend there. Unfortunately, in a handful of states, an NMLS license is not enough.

We can lend in the following states:

  • New Jersey
  • Missouri
  • Maryland
  • Alaska
  • Ohio
  • Florida
  • New York
  • California
  • Washington
  • Arizona
  • Texas
  • Hawaii
  • Virginia
  • Delaware
  • Indiana
  • Louisiana
  • Hawaii
  • North Carolina
  • Georgia
  • Pennsylvania
  • Michigan
  • Louisiana

Unfortunately the following states are out:

  • Nevada
  • Minnesota
  • Idaho
  • Oregon
  • South Dakota
  • Vermont
  • North Dakota
  • Utah

Don't see YOUR state listed above? If you have a real-life deal, we’ll hire our attorney to quickly research its availability.

Alicia Gandy

Loan Representative

P: (916) 338-3232 Ext. 310


NMLS #389678

The property has to be non-owner occupied, and the purpose of the loan must be for business. The nice thing about business purpose home loans from Blackburne & Sons is that our loans have a 30-year amortization, a 15-year term and no prepayment penalty.


Pigmy Joke

A hunter walking through the jungle found a huge dead elephant with a pigmy standing beside it. Amazed, he asked: "Did you kill that?” The pigmy said, "Yes.” The hunter asked, "How could a little bloke like you kill a huge beast like that?” "I killed it with my club.” The astonished hunter asked, "How big is your club?” The pigmy replied, "There's about 60 of us."


Download Your Free Guide, "How To Find Houses To Flip"

Download your free guide here.


Submit Your “A” Quality Commercial Loans Using C-Loans

You old veterans know that commercial lenders are incredibly fickle. One moment a bank loves self storage loans, and the next moment - usually after taking a loss - it wouldn't touch a self storage facility loan with a ten-foot pole. C-Loans.com is a commercial mortgage portal that was designed with commercial lender fickleness in mind.

You fill out one mini-app, and then you can submit your commercial loan application to bank after bank, six at a time, until you find a bank hungry to make a commercial loan today. 

Borrowers and commercial brokers have closed over 1,000 commercial real estate loans totaling over $1 billion, so C-Loans clearly works. And C-Loans.com is FREE!

Apply for a loan now!


Hot-To-Trot To Make Fix and Flip Loans

Blackburne & Sons is making a huge push into fix and flip lending. Of course we will still make our private money permanent loans on commercial properties nationwide; but we are now also making fix and flip loans across the country.

Please click here to submit a fix and flip loan or a hard money commercial loan or call me, Alicia Gandy, at (916) 338-3232.


Egg Joke

The golfer sliced a ball into a field of chickens, striking one of the hens and killing it instantly. He was understandably upset and sought out the farmer. “I’m sorry,” he said, “My terrible tee-shot hit one of your hens and killed it. Can I replace the hen?” “I don’t know about that,” replied the farmer, mulling it over. “How many eggs a day do you lay?”



Even More Commercial Lenders

Every day we add two to five new banks and credit unions to CommercialMortgage.com. With almost 4,000 banks, credit unions, and other commercial lenders, CommercialMortgage.com is by far the largest databank of commercial lenders in the country.

Do you understand that CommercialMortgage.com is absolutely free to use? The lenders listed do NOT jack up their loan fee in order to pay a software licensing fee to C-Loans, Inc. One of the most successful commercial mortgage brokers in the entire country is Les Agisim of Trevor Cole Commercial, and Les uses CommercialMortgage.com all of the time. You would be wise to do what the successful guys do.


Girlfriend Joke

As a man serviced an alarm system at a jewelry store recently, the saleswoman let him know that the store was having a 20 percent off sale. 

"I bet your girlfriend would love it if you bought her something," she suggested. 

"I don't have a girlfriend," he answered. 

"No girlfriend? Why not?" 

"My wife won't let me." 


Only Blackburne & Sons Can Do This

Blackburne & Sons has some truly unique and super cool programs:

  • We'll give you a bridge loan on your commercial property for only one point! There is no prepayment penalty.
  • We allow sellers to carry back a second mortgage behind our first mortgage.
  • We will actually lend up to a 75% loan-to-value ration. Banks claim they will lend up to 75% LTV, but in real life they will only go 68% LTV.
  • We offer private money (loose-goosey underwriting) commercial loans with 30-year payments and a 15-year term. Our competitors offer 2 to 3-year bridge loans. We offer 15-year permanent loans with no prepayment penalty. Never again will you have a balloon payment come due during a recession.
  • We buy commercial first mortgages (usually at a discount).
  • Instead of discounting your wonderful commercial first mortgage, consider pledging it as collateral for a smaller loan. This is called a hypothecation. We make loans secured by mortgage notes owned by the borrower.

Whisper Joke

My sister had been ill, so I called to see how she was doing. My ten-year-old niece answered the phone. "Hello," she whispered. "Hi, Honey. How's your mother doing?" I asked. "She's sleeping," she answered, again in a whisper. "Did she go to the doctor?" I asked. "Yes. She got some medicine," my niece said softly. "Well, don't wake her. Just tell her I called. What are you doing, by the way?” Again in a soft whisper, she answered, "Practicing my trumpet."


Free Copy of The Blackburne List

Click here to get a free list of 200 commercial lenders, including at least five for every state.

The Blackburne List is a list of over 2,500 commercial lenders located nationwide. We spent almost $30,000 and three months updating this list, and we just finished updating it in 2019. The Blackburne List is available for purchase for just $79.95 at CommercialLenders.com. Is money tight? You can also buy one of our three Regional Lists (750+ lenders) for just $39.95.

You can also search The Blackburne List using CommercialMortgage.com for free.


Learn Commercial Real Estate Finance

9 Hour Video Training

It would be a lot easier to close your commercial deals if you actually knew the subject matter. Are you finally ready to learn the financial ratios and the advanced terminology of commercial real estate finance? Just $549.


FREE Commercial Loan Brokerage Training

From an Industry Veteran And Attorney

The C-Loans Blog: info.c-loans.com

Every week we publish one or two new blog articles that train commercial brokers in commercial real estate finance. We try to have fun with it, including lots of funny pics. If you want access to this FREE training, subscribe to George's blog by clicking the button below.


Two Ways To Earn Referral Fees for Commercial Loans - We Once Paid $21,250

This is an absolute no-brainer. You simply put a link to C-Loans.com on your real estate website. We once paid a $21,250 referral fee to a guy who was asleep when the lead came in! Here are the details.

You can also refer commercial loans by hand. Simply insert your referrals here.


Video - Hilarious Kid Fails


On a Personal Note

On Easter weekend we drove to Las Vegas. It was about a 10 hour drive. Every year my husband’s family has a family reunion, and the last couple of years it has been in Las Vegas. It also happened to be my husband’s grandfather’s 96th birthday. We left on a Thursday and drove half way, and stopped for the night in Bakersfield. We got to Vegas by 1:00 pm on Good Friday. Our daughter and her boyfriend came along with us. We stayed at the Hard Rock Casino & Hotel. It was a very nice place. We got to play in Vegas on Friday, had the reunion on Saturday, walked around Fremont Street (old Vegas), hung out at the pool and relaxed on Easter and drove the entire way back on Monday. Overall, we had a wonderful time and the most important thing was to be able to be there for the grandfather’s 96th birthday. We don’t know how many birthdays are left for him, so it was vital that we made it to the reunion this year. Family is important!

Have a deal to run by me? Click here.


Final Funny

On a beautiful sunny Saturday afternoon my buddy and I stood on the first tee of our Golf Club. He had just pulled out his driver when a young woman in a wedding dress came running up to him, crying. She slaps him in the face, turns, and runs away. My buddy turns to me and says calmly, "I don't know what her problem is. I distinctly told her only if it rained."

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Members of the Blackburne Family of Companies

CA DRE #829677

NMLS #103430


P: (916) 338-3232

F: (916) 338-2328

4811 Chippendale Dr, Ste. 101

Sacramento, CA 95841


CA DRE #1330173

NMLS #167100