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RESIDENTIAL LENDING NEWSLETTER
Volume 9: Issue 5 | May 18, 2020
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 the types of commercial loans preferred by lenders during the Coronavirus Crisis. We also have lots of cute, clean jokes, some funny pics, and a hilarious classic video of Archie Bunker about to get “shaved” by a black, woman doctor before an operation. You will split a gut. Hahahaha!
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Joke Du Jour
Heavy snow had buried my van in our driveway. My husband, Scott, dug around the wheels, rocked the van back and forth and finally pushed me free. I was on the road when I heard an odd noise. I got on my cell and called home. "Thank God you answered," I said when Scott picked up. "There's this alarming sound coming under the van. For a minute, I thought I was dragging you down the highway.” There was a pause before Scott replied, "And you didn't stop???”
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Commercial Mortgage Rates Today:
Here are today's commercial mortgage interest rates for permanent loans from banks, SBA 7a loans, CMBS permanent loans from conduits, and commercial construction loans. Be sure to bookmark our Commercial Loan Resource Center, where you will always find the latest interest rates on commercial loans; a portal where you can apply to 750 different commercial lenders in just four minutes; four huge databanks of commercial real estate lenders; a Glossary of Commercial Loan Terms, including such advanced terms as defeasance, CTL Financing, this strange new Debt Yield Ratio (which is different from the Debt Service Coverage Ratio), mezzanine loans, preferred equity, and hundreds of other advanced terms; and a wonderful Frequently Asked Questions section, which is designed to train real estate investors and professionals in the advanced subject areas of commercial real estate finance ("CREF").
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Russell Crowe Joke
“A cannibal once took my sister to see a Russell Crowe movie.”
“Gladiator?” my friend asked.
“No," I replied, "I really miss her.”
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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 Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
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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.
Call or email your favorite loan representative by clicking their picture:
(916) 338-3232
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Club Soda Joke
I was waiting tables at a country club when an elegantly dressed woman spilled Manhattan clam chowder all over her white linen skirt. She began furiously dabbing at it with a napkin. Having plenty of experience with getting out food stains, I asked, "Can I bring you some club soda?” "Young lady," she barked, "I'll be the judge of when I've had enough to drink. Bring me another martini!”
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Takeout Order Joke
Starving after hours of driving nonstop, my husband and I pulled over at a truck stop. While he gassed up the car, I went into the restaurant and placed our large order to go. After writing it all down, the girl behind the register asked, “Will that be all for you?” “No,” I replied a bit defensively. “Some of it’s for my husband.”
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Peace And Quiet Joke
My wife asked if she could have a little peace and quiet while she cooked dinner, so I took the battery out of the smoke detector.
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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.
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Rock Star Joke
A farmer friend of mine used his stimulus check to buy baby chickens. He got his money for nothing and his chicks for free!
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The Blackburne List
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.
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Composition Joke
Teacher: Clyde, your composition about, “My Dog," is exactly like your brother's. Did you copy this?
Clyde: No sir. It’s the same dog.
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- Today's Opportunity -
Here are the Types of Loans
Lenders are Seeking Today
Right now 4,000 commercial banks and 6,000 credit unions are out of the commercial real estate loan market.
Banks were very slow to return to commercial real estate lending after the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. During each of these crises, commercial real estate fell by almost exactly 45%. After taking huge losses in their commercial loan portfolios, most banks did not return to the market for three years.
Will commercial real estate fall by 45% again? I suspect it might. Since banks make 95% of all commercial construction loans, real estate developers are toast. Many may have to wait several years before their projects get funded.
Loans on hospitality properties are obviously off limits. The retail sector is also strongly out of favor.
A mixed use property is one that has apartments over ground floor retail space. Normally Fannie Mae and Freddie Mac, when making their Agency apartment loans, will allow up to 20% of the income to come from the retail space. The disdain for loans on retail properties is so strong today that Fannie Mae and Freddie Mac will not include in their pro forma operating statements one penny of projected retail income.
Are any commercial real estate loans at all being written today? Yes. Although most SBA lenders are swamped with Paycheck Protection Program (PPP) loans, these loans are not terribly profitable. More and more SBA lenders are returning to classic, garden-variety SBA 7a and 504 loans.
But the truly hot market right now is the Small Balance Loan (SBL) Program from Agency Lenders (Fannie and Freddie) on apartments. Interest rates are fixed and in the low-3’s for ten-year, 15-year, and 30-year loans. If you own an existing apartment building, now is the time to consider refinancing it. If you are commercial loan broker, focus your attention on multifamily loans. Theres are the deals that are closing. You will find a dozen Agency lenders, originating for Fannie and Freddie, by using C-Loans.com here.
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TP Joke
My house got TP'd last night. It’s appraised value has now doubled.
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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.
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Quarantine Joke
Quarantine has me as bored as an Amish electrician.
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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.
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Fridge Joke
I swear my fridge just said what the hell do you want now?
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Cable Time Joke
The cable repairman was on my street and asked me what time it was. I told him it is between 1:00 pm and 4:00 pm.
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Video - All in the Family is Classic Series
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Final Funny
A wise old gentleman retired and purchased a modest home near a junior high school. He spent the first few weeks of his retirement in peace and contentment. Then a new school year began. The very next afternoon three young boys, full of youthful, after-school enthusiasm, came down his street, beating merrily on every trash can they encountered. The crashing percussion continued day after day, until finally the wise old man decided it was time to take some action.
The next afternoon, he walked out to meet the young percussionists as they banged their way down the street. Stopping them, he said, "You kids are a lot of fun. I like to see you express your exuberance like that. In fact, I used to do the same thing when I was your age. Will you do me a favor? I'll give you each a dollar if you'll promise to come around every day and do your thing." The kids were elated and continued to do a bang-up job on the trash cans.
After a few days, the old-timer greeted the kids again, but this time he had a sad smile on his face. "This recession's really putting a big dent in my income," he told them. "From now on, I'll only be able to pay you 50 cents to beat on the cans." The noisemakers were obviously displeased, but they did accept his offer and continued their afternoon ruckus. A few days later, the wily retiree approached them again as they drummed their way down the street. "Look," he said, "I haven't received my Social Security check yet, so I'm not going to be able to give you more than 25 cents. Will that be okay?"
"A lousy quarter?" the drum leader exclaimed. "If you think we're going to waste our time, beating these cans around for a quarter, you're nuts! No way, mister. We quit!"
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A member of the Blackburne Family of Companies
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4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
P: (916) 338-3232
F: (916) 338-2328
CA DRE #829677 // NMLS #103430
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