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Volume 8: Issue 4 | February 25, 2019

You are receiving this letter because you are a client of either Blackburne & Sons or C-Loans, Inc. Removal instructions are below. Today we'll discuss why it's so hard for a small homebuilder to get a construction loan these days. We also have lots of cute, clean jokes, some funny pics, and a hilarious video of a stand-up comedian using misheard song lyrics. You'll be rolling on the ground! Ha-ha!


Joke Du Jour

My dad showed me a 30-minute PowerPoint presentation on why one should always wear a condom during (pre-marital relations). All the slides were just pictures of me.


Business Purpose Rental Home Loans in Twenty States

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; but we can definitely 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

Unfortunately the following states are out:

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

What about YOUR state? If you have a real-life deal, we’ll hire our attorney to quickly research its availability.

The property has to be non-owner occupied, and the purpose of the loan must be for business. Remember, 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.

Got a commercial deal nationwide or a business purpose, non-owner-occupied residential deal in one of the above states?

Call or email your favorite loan representative by clicking their picture:

(916) 338-3232


Driver's Test Joke

I failed my driving test today. I was driving down a country road with the examiner, when a rabbit ran out right in front of the car. I remembered my instructor said you should never swerve or try to avoid an animal because it's dangerous, and you can end up causing a more serious accident. You should always just hit it and keep on driving. Had to chase that little bugger for miles across the fields before I finally got it! (No cute little bunnies were hurt in the making of this joke.)


Fifteen-Year Fix-and-Flip Loans for Residential Properties 

Most fix-and-flip lenders make one or two-year loans. If the market turned (a very real risk today) and houses stopped selling, the flipper might be forced to sell his cherry house at a loss in order to pay off the balloon. Had he had gotten a 30-year amortization, 15-year fix-and-flip loan from Blackburne & Sons, he could have simply rented out the property and enjoyed a positive cash flow until the time time was right to sell again.

Our fix-and-flip loans have no pre-payment penalty, so you can use them for 60 days or 15 years.

Click here to apply for a loan.


Meth Joke

Even though my girlfriend is a meth addict, she is still so beautiful… That hair, those eyes, that tooth.


- Today's Observation -

Why Small Homebuilders Can’t Get Construction Loans

In the old days, before the Great Recession, the builder of a small subdivision, say, twenty homes, could buy the land and pay for the architectural and engineering fees, and that would be enough equity. Banks would make residential subdivision construction loans of 80% of cost.

Then the Great Recession hit, and banks got clobbered in construction lending. Since then, developers of small subdivisions have been forced to contribute 35% of the total cost of the project. This means, in addition to the land cost, architectural fees, and engineering fees, the developer had to contribute a whole lot of cash.

To make matters worse, new banking regulations forbade banks from considering anything other than the developer’s actual cost of the land as equity. In other words, if a developer bought the land for $500,000 during the nadir (very low point) of the Great Recession, and the land is now clearly worth $1,000,000 - the bank must value the land for equity purposes at just $500,000. 

It’s no wonder that so few small subdivisions are being started. What’s the solution? I dunno. The developer just has to be either wealthier or have lots of friends with money.


French Joke

When I was a kid, my parents would always say, "Excuse my French”, after a swear word… I'll never forget that first day at school when the teacher asked did we know any French. 


Are You Wise Enough To Pay Attention?

There are literally hundreds of private money mortgage companies out there today, and you can probably get a decent loan from most of them. But here’s the thing. Virtually all of these hard money shops are newbies (since 2009), and they are funds. The problem with hard money mortgage funds is that they don’t survive recessions. As soon as a recession hits, the investors rush to withdraw. Suddenly the hard money shop running the fund has no money with which to lend and earn loan fees. With little income coming in, the hard money shop closes.

Think I am full of beans? There were 300 hard money mortgage businesses in 2006. Fewer than ten survived.

Why do you care?

You have lost your relationship with these lenders! Success in real estate finance is all about relationships. Consider the fact that Blackburne & Sons has been in business for almost 40 years. We survived the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. We were just about the only hard money shop in the country to remain in the market every day of the Great Recession.

Most of you will ignore this. The handful of wise investors and brokers will build a relationship with Blackburne & Sons. Winter is coming.


Labor Joke

A woman in labor suddenly shouted, “Shouldn’t! Wouldn’t! Couldn’t! Didn’t! Can’t!” “Don’t worry,” said the doctor, “Those are just contractions.”


Hungry for Commercial Loans Too

Blackburne & Sons is also looking for hard money first mortgage loans - up to $1.5 million - secured by commercial properties nationwide. Our private money loans almost never have a prepayment penalty. Click here to submit a quick application.


Hippie Joke

What do you call the wife of a hippie? Mississippi.


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Para-Olympics Joke

Seven wheelchair athletes have been banned from the Para-Olympics after they tested positive for WD40.


The Blackburne List - Freshly Updated in 2019

The Blackburne List is a list of over 2,500 commercial lenders located nationwide. It is available for purchase for just $79.95. Is money tight? You can also buy one of our three Regional Lists (750+ lenders) for just $39.95.


Final Funny

A woman tells her friend she is getting married for the fourth time. "How wonderful! I hope you don't mind me asking, what happened to your first husband?” "He ate poisonous mushrooms and died.” "Oh, how tragic! What about your second husband?” "He also ate poisonous mushrooms and died.” "Oh, how terrible! I'm almost afraid to ask you about your third husband.” "He died of a broken neck.” "A broken neck?” "He wouldn't eat the mushrooms.”


Too Busy to Broker Commercial Loans to Us? Why Not Refer Them Instead?

We once paid a $21,250 referral fee. Here is our referral fee program.


Video - OMGoodness, So Funny

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The C-Loans Blog

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.



Realty Capital Corporation

4811 Chippendale Drive

Suite 101

Sacramento, CA 95841

P: (916) 338-3232

F: (916) 338-2328

CA DRE #829677

NMLS #103430


A member of the Blackburne Family of Companies