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RESIDENTIAL LENDING NEWSLETTER

Volume 8: Issue 11 | October 31, 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 the USDA’s commercial loan program, the Business and Industries Loan. We also have lots of cute, clean jokes, some funny pics, and a funny video about how not to leave a car wash.

Joke Du Jour

One day my home phone rang. It was a salesman from a mortgage refinance company. "Do you have a second mortgage on your home?” "No," I replied. "Would you like to consolidate all your debts?” he asked. "I really don't have any," I said. "How about freeing up cash for home improvements?" he tried. "I don't need any. I just recently had some done and paid cash," I parried. There was a brief silence, and then he asked, "Are you looking for a husband?"

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.

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

Dimes Joke

Little Mary talking to Little Johnny: "I found twenty cents on the sidewalk."

Little Johnny: "That's mine. I dropped a twenty-cent coin there this morning."

Little Mary: "But what I found was two ten-cent coins!"

Little Johnny: "That's it. I heard it break when it hit the ground.”

Fetal Movement Joke

Q; When will my baby move?

A: With any luck, right after he finishes high school.

Face Crean Joke

Q: What kind of face cream do matadors use? 

A: Olay!

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

Misspeling Joke

Q: What word is always spelled wrong in the dictionary? 

A: Wrong.

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.

Crocodile Island Joke

"Indonesia's anti-drug chief is proposing that the country put narcotics offenders in a jail on an island surrounded by crocodiles. The plan is to send the inmates food supplies every day but they will have to survive on their own. This already sounds like a reality TV show I would totally watch.” — James Corden 

- Today's Observation -

The USDA's Commercial Loan Program

Many of the poorest Americans live in rural areas. In order to foster the growth of higher-paying jobs in rural areas, the USDA has developed a commercial loan program that is similar to the successful SBA loan program. It is called the Business and Industries (“B&I”) Loan Program.

In most cases, a borrower who qualifies for an SBA loan will also qualify for a USDA loan, as long as the population in the surrounding 25 miles is relatively low. But why apply for a USDA loan? Why not just apply for an SBA loan?

• Few SBA lenders are enthusiastic about making large loans in very rural areas. Remember, only a portion of an SBA loan is guaranteed by the Federal government. SBA lenders still have a piece of their own tushes exposed and at risk on every deal. Loans in Bum Flowers, Egypt are not terribly appealing to most banks and SBA lenders.
• The maximum loan amount for a USDA loan is a whopping $25 million, and this loan amount can sometimes even be increased. The maximum loan amount for an SBA 7a loan (the 25-year adjustable loan) is just $5 million. The maximum loan amount on a SBA 504 loan (the fixed rate program) is just $10 million.
• A single lender makes the entire loan. There is no need to bring in a community development corporation and conventional lender to make the underlying first mortgage. Anyone who has ever gotten an SBA 504 loan can testify that the process can be buggy, slow, and maddening.
• USDA loans do NOT have to be owner-occupied! Suppose an investor wants to renovate an old, vacant industrial property in the Boonies and lease it to a manufacturing company willing to move to a rural area. The USDA will guaranty such a loan, even though the loan is arguably a subsidy to the wealthy investor.
• Can you imagine the financial benefits of using a USDA loan in an opportunity zone???
• USDA loans enjoy a 30-year amortization, rather than just 25 years.
• The USDA will guaranty 15-year loans on equipment, rather than just 7-years on SBA loans. This greatly frees up cash flow.
• Individual investors, rather than just companies, can qualify for a USDA-guaranteed B&I loan.
• The borrower does NOT need to be a for-profit entity. Non-profit entities are also eligible.

Just click here to apply for a USDA Business and Industries loan.

Vegetables? Yuck!

Think about it... Even Popeye didn't eat his spinach until he absolutely had to.

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.

Engagement Joke

Michelle: "I hear you broke off your engagement to Rob. Why?"

Irina: "It's just that my feelings toward him weren't the same any more."

Michelle: "Are you returning the ring?"

Irina: "No way! My feelings toward the ring haven't changed.”

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!

Time Machine Joke

When I was a little boy, a strange man stepped out of a time machine and punched me for no reason.  Now at last I've managed to build a time machine of my own, I'm going back to when he was a little boy, so I can punch him and see how he likes it.

Too Busy to Broker Commercial Loans? Refer Them Instead!

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

Janitor Joke

Q:  What did the school janitor say when he jumped out of the closet? 

A:  Supplies!

Wedding Joke

At the wedding reception someone yelled, "Would all the married men please stand next to the one person who has made their life worth living." The bartender was almost crushed to death.

Pin Hole Joke

Putting a pin through all of my best friend’s condoms seemed like a good idea at the time. It backfired, though, when I found out my wife is pregnant.

Video - How NOT to Leave a Carwash

Final Funny

"Archaeologists believe they have found the tomb of St. Nicholas beneath an ancient church in Turkey. St. Nicholas, of course, is the basis for the legend of Santa Claus. And they think they found him. Which means now, when my son asks me if Santa is real, I can confidently say, 'Yes! He’s dead though. That's why you didn't get that bike.’” -- James Corden

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