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RESIDENTIAL LENDING NEWSLETTER

Volume 8: Issue 5 | May 21, 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 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 a tiger came out of the woods.

Business Purpose Rental Home Loans in Twenty 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.

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

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.

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

- 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?

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.

Click here for free training in commercial real estate finance.

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."

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.

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?”

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.

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." 

Learn Commercial Real Estate Finance - 9hr Video Training

Post Turtle Joke

While suturing a cut on the hand of a 75 year old rancher, whose hand was caught in the gate while working cattle, the doctor struck up a conversation with the old man. Eventually the topic got around to one of the political candidates.

The old rancher said, "Well, ya know, that candidate is a 'Post Turtle'."

Not being familiar with the term, the doctor asked him what a 'post turtle' was.

The old rancher said, "When you're driving down a country road you come across a fence post with a turtle balanced on top, that's a 'post turtle'."

The old rancher saw the puzzled look on the doctor's face so he continued to explain.

"You know they didn't get up there by themselves, they don't belong up there, they don't know what to do while they're up there, and you just wonder what kind of dummy put them up there to begin with."

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.

Golf Joke

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."

Too Busy to Broker Commercial Loans to Us? Refer Them Instead!

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

Video - Hilarious Kid Fails

Final Funny

In a very exclusive private school near California's Silicon Valley, a third-grade teacher was lecturing her upper high-class students about the less fortunate. She asked them each to write an essay about a poor family in the area. 

One young girl's paper began: 

"Once upon a time there was a poor family. The father was poor. The mother was poor. The children were poor. The nannies were poor. The pool man was poor. The personal trainer was poor. The gardeners were poor. This was a very poor family."

A member of the Blackburne Family of Companies

4811 Chippendale Drive, Suite 101

Sacramento, CA 95841

P: (916) 338-3232

F: (916) 338-2328

CA DRE #829677 // NMLS #103430