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Volume 9: Issue 4 | May 4, 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 just how incredibly low are the rates of conduit commercial lenders right now. We also have lots of cute, clean jokes, some funny pics, and a funny video of a border collie who has trained his neighbors to play fetch with him.


Joke Du Jour

A lost dog strays into a jungle. A lion sees this strange, new kind of animal from a distance and says with caution, “This guy looks edible. I’ve never seen his kind before.” The lion therefore starts rushing towards the dog with menace. The dog starts to panic, but, as he's about to run, he sees some bones lying next to him. Suddenly the dog gets an idea and says loudly, “Mmm, that was some good lion meat!” The lion abruptly stops and says, “Whoa, this guy may be tougher than he looks. I better leave while I can.” Sitting in a nearby tree, a monkey witnesses everything. The monkey realizes the he can benefit from this situation by telling the lion what really happened. The lion says angrily, “Get on my back. We'll go get him together.” They start rushing back towards the dog. The dog sees them, and he quickly realizes what must have happened. The dog starts to panic again; but just then he gets another idea. The dog loudly shouts, “Where the heck is that monkey? I told him to bring me another lion an hour ago.”


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.

Commercial: NATIONWIDE


  • 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

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


Market Crash Joke

This stock market crash is worse for me than a divorce. I've lost half my net worth, but I still have a wife.


Free Commercial Loan Software

C-Loans has just developed some brand new commercial loan software that is super-easy to use, even for a complete newbie to commercial real estate finance. You just fill in the blanks. You can then take your professional-looking commercial loan package and submit it to any lender in the country. This new commercial loan software is also 100% free.


Craig's List Joke

I have a 24-pack of Aldi toilet paper rolls. Looking to swap for a 4-bedroom house.


Learn Commercial Real Estate Finance

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Learn How to Easily Find Hundreds of Commercial Mortgage Loans. Learn How to Quickly Underwrite the Deals. Learn Over 100 New Commercial Mortgage Finance Terms. Get That Confidence You Know You've Been Lacking. Learn Exactly Where to Place Your Loan. Access to Hundreds of Lenders. Learn How to Package Your Deal. Most Important of All - Learn How to Collect Your Fee. Just $549.

Now available online!


Indian Joke

Q: Why are all of the Indian reservations being attacked?

A: Because they have TP.


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.


Movie Joke

Q: Who's going to direct the new Coronavirus film?

A: Tintin Quarantino


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.


Pasta Virus Joke

The coronavirus is much like pasta. It was invented by the Chinese, but spread by the Italians.


- Today's Opportunity -

Conduit Rates Are Soooo Low

Conduit loans, also known as CMBS loans, enjoy a fixed rate for a whopping ten years.  Unlike a fixed-rate commercial loan from a bank, there is no rate readjustment after five years. The rate is fixed for the entire ten years. With ten-year Treasuries at just 0.79%, there has never been a better time in history to get a ten-year, fixed-rate conduit loan.

Conduit loans are priced at some negotiated spread over the higher of ten-year Treasuries or corresponding interest rate swaps. Today (3/8/20), ten-year Treasuries are at 0.79%, and ten-year interest rate swaps are at 0.81%. Therefore we will use the higher of the two indices - interest rate swaps.

Okay, but what is the spread or margin over the index? Conduits are pricing their office, retail, and industrial commercial permanent loans at 140 to 290 basis points over the index.  Therefore, we are talking about conduit commercial loans priced at between 2.21% to 3.71%. Wow! 

So who gets the 2.21% rate, and who has to pay 3.71%? It depends on the loan size, the risk, the debt yield ratio and the tenancy. The larger the deal, the smaller the spread. The safer the deal, the lower the spread. For example, if your property is located on Madison Avenue in New York City, you will enjoy a lower spread than a deal located on a nice retail street in Salt Lake City. Madison Avenue is a more proven location.

There are some properties, however, that sell for such incredibly low cap rates - for example, Madison Avenue in New York City - that the debt yield can be too low. This is a bad thing.  Sometimes the debt yield ratio on that Salt Lake City property can be more attractive to a CMBS investor.

The quality of your tenants also determines your spread over the index. Quality refers to strength of your tenants. If you have a shopping center anchored by Target or Krogers, you will enjoy a tighter spread than a shopping center anchored by a mom and pop grocery story.


Hand Sanitizer Joke

Did you hear that New York State developed its own hand sanitizer to combat COVID-19?  They filled small bottles with water from the Hudson River. That stuff can kill anything.


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.


Time Traveler Joke

I think my wife is a time traveler. I've seen that doctors are now saying you should avoid close physical contact to stop the spread of coronavirus. Somehow she knew about this years ago.


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. 


Battery Joke

I had to remove the battery from my carbon monoxide detector. The constant beeping was giving me a headache and making me feel sick.


Too Busy to Broker Commercial Loans? Refer Them Instead!

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


Need a NMLS License? Need to Renew Your CE Hours?

This fun instructor makes these hours bearable.


Gray Hair Joke

I found my first gray hair today. Things like this don't normally bother me, but I found it in my Big Mac. Eeeuuu.


Use Cheddar Stacks to Get Commercial Loans

Imagine 19 business men and women, all working in industries centered around real estate. Each has an app on their cell phone that makes it easy to shoot each other leads. Folks, referral leads are worth THIRTY leads from advertising. Click here for more details.


Video - Border Collies Are So Smart


FREE Commercial Loan Brokerage Training From an Industry Veteran And Attorney

The C-Loans Blog: info.c-loans.com

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.


Final Funny (PG-13)

An old man goes to confession. He tells the priest that on Friday night, he’d been in the bar, when he met a young woman. “She was maybe 22,” he says. “She was a gorgeous blonde. I started lusting, Father.” “Yes, lust is a dangerous sin.” says the priest. “There’s more,” says the man. “We went back to her place and made passionate love for hours.” The priest pauses. “And how long has it been since your last confession?” “This is my first confession ever, Father." “How is this your first confession?” asked the confused priest. “I’m Jewish,” answered the old man. “Then… why are you telling me all this?” asked the priest. “Telling you?” said the old man, "I’m telling everyone!”

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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