Volume 8: Issue 10 | Date: October 27, 2020
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COMMERCIAL BROKER NEWSLETTER
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’ll discuss the difference between a bridge loan and a mini-perm. As always, we have lots of cute, clean jokes, funny pictures, and a video of some African boys dancing. These happy five-year-old are immensely talented.
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Joke Du Jour
The biology class was taking their mid-term exam. The last question was, "Name seven advantages of Mother's Milk.” The question was worth 70 points or none at all.
One student was having a problem thinking of seven advantages; however, he wrote:
1) It is perfect formula for the child.
2) It provides immunity against several diseases.
3) It is always the right temperature.
4) It is inexpensive.
5) It bonds the child to mother, and vice versa.
6) It is always available as needed.
But then the student was stuck. Finally, in desperation, just before the bell rang, indicating the end of the test, he wrote:
7) It comes in two attractive containers that are high enough off the ground where the cat can't get it.
He got an A.
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Free Commercial Loan Software
C-Loans has just developed some brand new commercial loan software that is super-easy to use, even for a complete newbie to commercial real estate finance. You just fill in the blanks. You can then take your professional-looking commercial loan package and submit it to any lender in the country. This new commercial loan software is also 100% free.
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Private Money Commercial Permanent Loans
From $100K to $1.5M Nationwide
Click HERE to 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.
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Have a deal to run by me? Click HERE
George Blackburne IV
Loan Representative
P: (916) 338-3232 Ext. 314
georgeiv@blackburne.com
NMLS #382122
CA DRE #01873244
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Hitchhiker Joke
Picked up a hitchhiker. He asked if I wasn’t afraid he might be a serial killer? I told him the odds of two serial killers being in the same car were extremely unlikely.
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Carpet Joke
Just helped my neighbor throw a rolled up carpet in the dumpster… Her boyfriend would have helped, but he is out of town.
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Business Purpose Rental Home Loans in Most States
Click HERE to 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.
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Commercial: NATIONWIDE
Residential:
- Alaska
- Arizona
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Indiana
- Louisiana
- Maryland
- Michigan
- Missouri
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
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These states are out:
- Idaho
- Minnesota
- Nevada
- North Dakota
- Oregon
- South Dakota
- Utah
- Vermont
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Don't see YOUR state listed above? If you have a real-life deal, we’ll hire our attorney to quickly research its availability.
George Blackburne IV
Loan Representative
P: (916) 338-3232 Ext. 314
georgeiv@blackburne.com
NMLS #382122
CA DRE #01873244
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.
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Mirror Check Joke
Do you ever get up in the morning, look in the mirror, and think, “That can’t be accurate?”
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- Today's Observation -
Bridge Loans vs Mini-Perms
A permanent loan is a first mortgage, secured by a multi-family or commercial property, with a term of at least five years and at least some amortization. A permanent loan cannot just have interest-only payments for the entire term. There must be some principal pay down, usually using a 25-year amortization.
A mini-perm is a first mortgage on multifamily or commercial real estate - made by a lender with low, A-quality, interest rates, like a bank, S&L, or credit union - that has a term of less than five years.
Most mini-perms have a term on two years, although terms of one year and three years are also reasonably common.
In the old days, when interest rates varied, mini-perms were floating rate loans, typically tied to either prime or LIBOR. Nowadays, commercial lenders are desperate for yield, and interest rates have been falling for more than a decade. Therefore, many mini-perms are now written with a fixed rate.
Okay, so what's the difference between a first mortgage bridge loan and a mini-perm? The two loan types look very similar to me. Maybe it's a prestige thing. Yucky, shark-like hard money lenders and mortgage funds make bridge loans. Hoity-toity banks make mini-perms.
But perhaps there really is a difference. Bridge loans are typically made quickly to borrowers in a little bit of a jam. In contrast, banks just saunter down to make mini-perms, taking their sweet, 'ole time.
Mini-perms are also about 2% to 3% cheaper than even the cheapest bridge loan. The reason why is that even the largest bridge lenders have to borrow from some bank to get their dough to make their bridge loans; so obviously the bridge lender has to charge a rate higher than the bank, in order to make a profit.
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Lover Score Joke
I asked my wife if I was the only one she had been with. She said yes, all the others were nines and tens. Ouch! Hahahaha!
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Submit Your “A” Quality Commercial Loans on 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!
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Texting Joke
Me: Sobbing my heart out, “I can’t see you anymore… I’m not going to let you hurt me again.”
Trainer: “It was one sit-up. You did one sit-up.”
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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, George IV, at (916) 338-3232.
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Food Prep Joke
My wife asked me to take her to one of those restaurants where they make food right in front of you. I took her to Subway. That’s when the fight started.
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Aliens Joke
Aliens probably fly by earth and lock their doors.
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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.
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RSVP Joke
Apparently RSVP’ing to a wedding invitation, "Maybe next time", isn’t the correct response.
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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 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).
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Diets Joke
I’m on two diets. I wasn’t getting enough food on one.
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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.
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On a Personal Note
Twice a year, usually once in the spring/summer and once around the holidays, I make it a point to visit my family in Indiana. Unfortunately, due to COVID I had been unable to do so, and it was a little depressing. My father has some heart issues, so while we needed to make sure he was safe, I also felt it was important to see him. We only get so much time on this earth and we need to make the most of it. After consulting with my brother and mother, we decided to surprise my father over labor day weekend. But how do we get there? The idea of taking a plane (essentially a giant petri dish with wings) to visit someone who was “at risk” didn’t seem like the smartest thing to do, so we decided to drive. I can barely sit in a car for 2 hours, but somehow we managed to drive 8-10hrs a day, for 4 days (one way), and made it to Indiana. Once there, my brother set the trap. He invited my parents over for a bbq and just as they were getting ready to eat my partner and I walked in and surprised my father. He was elated. For once my mother kept a secret (she is notoriously bad at it haha) and he was completely shocked.
But that wasn’t the only surprise that trip. While my mother knew were coming to visit, what she did not know was that I had secretly proposed about a month before. It took her a few minutes before she noticed the rings, but when she did both my parents were surprised and excited. In these difficult times, make the time for your family. I promise it will be worth it.
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George Blackburne IV
Loan Representative
P: (916) 338-3232 Ext. 314
georgeiv@blackburne.com
NMLS #382122
CA DRE #01873244
Have a deal to run by me? Click HERE
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Video - These Kids Can Dance!
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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.
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Final Funny (R)
An old man goes to confession. He tells the priest that on Friday night, he’d been in the bar, when he met a young woman. “She was maybe 22,” he says. “She was a gorgeous blonde. I started lusting, Father.” “Yes, lust is a dangerous sin.” says the priest. “There’s more,” says the man. “We went back to her place and made passionate love for hours.” The priest pauses. “And how long has it been since your last confession?” “This is my first confession ever, Father." “How is this your first confession?” asked the confused priest. “I’m Jewish,” answered the old man. “Then… why are you telling me all this?” asked the priest. “Telling you?" said the old man, "I’m telling everyone!”
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Members of the Blackburne Family of Companies
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CA DRE #829677
NMLS #103430
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P: (916) 338-3232
F: (916) 338-2328
4811 Chippendale Dr, Ste. 101
Sacramento, CA 95841
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CA DRE #1330173
NMLS #167100
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