Having trouble viewing this email? Click here.

Home | Rates | Apply for a Loan | George's Blog

RESIDENTIAL LENDING NEWSLETTER

Volume 8: Issue 9 | September 10, 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 how important cost is in commercial real estate finance during recessions. We also have lots of cute, clean jokes, some funny pics, and a stunning video of a shark on the beach with a human leg in its mouth.

Joke Du Jour

My girlfriend told me she was leaving me because I kept pretending to be a Transformer. As she walked away that final time, I shouted, "No, wait! I can change.” 

Girlfriend's Birthday Joke

My girlfriend isn’t talking to me because apparently I ruined her birthday. I’m not sure how I did that – I didn’t even know it was her birthday.

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.

We can lend in the following states:

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

Paris Joke

A boy asks his Dad one day, "Dad, why is my sister called Paris?” His Dad replies, "Because she was conceived in Paris.” The boy says, “Oh, okay. Thanks, Dad.” His Dad says, "You're welcome, Backseat."

Ugly Joke

I asked my Mom if I was ugly. She said, "I told you not to call me Mom in front of people."

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

Breakage Joke

Beer Bottle: If you break me, you get one year of bad luck.

Mirror: Are you kiddin' me? If you break me, you get seven years of bad luck.

Condom: Hahaha... (Condom walks off laughing.)

Eyebrows Joke

I told my girlfriend she drew her eyebrows too high. She seemed surprised.

- Today's Observation -

During Recessions, Cost Becomes a Big Deal

This strong economy cannot continue forever. Sooner or later we are going to have a recession. When that recession finally hits, commercial real estate lenders are not going to want to talk about the "fair market value" of your commercial property. They will be fixated completely on cost.

By “cost”, they mean, “What did you pay for the property? How much did you put down?” The reason they will be zeroed in on cost is because very few commercial properties will be selling, and when commercial properties do sell during a recession, they sell at deep discounts to their former fair market values. 

Example:

Your loan client buys an industrial building for $1 million. Four years later, the property has soared in value to $1.6 million. Then the recession hits, and your client’s $750,000 balloon payment comes due. Uh-oh. Because comparable sales are impossible to find, banks are going to base their valuations upon the purchase price - your client’s actual cost. To make matter worse, they will cut their loan-to-value ratios back to just 65%. Suddenly your client will have to come to the closing table with $100,000 in cash, just to refinance his $750,000 loan.

Moral of the story:

If your client has any balloon payments coming due in the next three years, he better get off his tush and refinance them now!

Tortoises Joke

A young man was a very slow worker and subsequently found it difficult to hold down a job.  After a visit to the employment office, he was offered work at the local zoo. When he arrived for his first day, the keeper, aware of his reputation, told him to take care of the tortoise section. Later, the keeper dropped by to see how the young man was doing and found him standing by an empty enclosure with the gate open. "Where are the tortoises?" he asked. "I can't believe it," said the new employee, "I just opened the door and whoosh, they were gone!”

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.

Trans Joke

My wife accused me of being a transvestite, so I packed her things and left.

Dubai Joke

Q: What's the difference between Dubai and Abu Dhabi?

A: The people in Dubai don't like The Flintstones, but the people in Abu Dhabi dooooo.

Too Busy to Broker Commercial Loans? Refer Them Instead!

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

Roulette Joke

A lady is having a bad day at the roulette tables in Vegas. She's down to her last $50. Exasperated, she exclaims to the whole table, "What rotten luck I've had today! What in the world should I do now?” A man standing next to her suggests, "I don't know, why don't you play your age?” He walks away, but moments later, his attention is grabbed by a great commotion at the roulette table. Maybe she won! He rushes back to the table and pushes his way through the crowd. The lady is lying limp on the floor, with the table operator kneeling over her. The man is stunned. He asks, "What happened? Is she all right?” The operator replies, "I don't know. She put all her money on 36, and when 47 came up, she just fainted!”

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.

Video - Kinda Gross

Bull Shark with a human leg in its mouth.

Final Funny

An old woman walked up and tied her old mule to the hitching post. As she stood there, brushing some of the dust from her face and clothes, a young gunslinger stepped out of the saloon with a gun in one hand and a bottle of whiskey in the other. The young gunslinger looked at the old woman and laughed, “Hey, old woman, have you ever danced?"

The old woman looked up at the gunslinger and said, “No, I never did dance. Never really wanted to.” A crowd had gathered as the gunslinger grinned and said “Well, you old bag, you're gonna dance now," and started shooting at the old woman's feet. The old woman prospector -- not wanting to get her toe blown off -- started hopping around. Everybody was laughing.

When his last bullet had been fired, the young gunslinger, still laughing, holstered his gun and turned around to go back into the saloon. The old woman turned to her pack mule, pulled out a double-barreled shotgun, and cocked both hammers. The loud clicks carried clearly through the desert air, and the crowd stopped laughing immediately.

The young gunslinger heard the sounds, too, and he turned around very slowly. The silence was almost deafening. The crowd watched As the young gunman stared at the old woman and the large gaping holes of those twin barrels. The barrels of the shotgun never wavered in the old woman's hands, as she quietly said, “Son, have you ever kissed a mule's a$$?"

The gunslinger swallowed hard and said, “No, Ma'am... but I've always wanted to."

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