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RESIDENTIAL LENDING NEWSLETTER
Volume 9: Issue 7 | June 24, 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 finding a home for your commercial loan during this recessionary period. As always, we have lots of cute, clean jokes, funny pictures, and a video of what it's like being stung by a Murder Hornet.
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Joke Du Jour
The World Health Organization has determined that dogs cannot contract Covid-19. Dogs previously being held in quarantine will be released. To be clear, WHO let the dogs out.
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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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Mad Joke
Wife: "I'm mad!"
Husband: "Again or still?"
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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 Mexico
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- West Virginia
- Wisconsin
Unfortunately these states are out:
- Idaho
- Minnesota
- Nevada
- North Dakota
- Oregon
- South Dakota
- Utah
- Vermont
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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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Carded Joke
The other day I got carded at the liquor store. While I was taking out my ID, my old Blockbuster card fell out. The clerk shook his head, said, “Never mind,” and rang me up.
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Glasses Joke
A man went to his doctor and said, "Help me, doctor. I think my eyesight is getting worse.” The doctor asked the man to look out the window. "Tell me what you see," he said, pointing. "I see the sun," the man replied. The doctor turned to him and asked, "Just how much farther do you want to see?"
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Waiting List Joke
Maury and his wife showed up to a very popular restaurant, but it was very crowded. Mrs. Maury went up to the hostess and asked, "Will it be long?” The hostess appeared to ignore her and kept writing in her book, so she asked again, "How much of a wait?” The hostess then looked up and said, "About ten minutes.” A short time later they heard an announcement over the loudspeaker, "Willete B. Long, your table is ready."
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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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Burglary Joke
Victim (after burglary): "They stole everything from my house but the soap and towels.”
Policeman: "Why, those dirty crooks!"
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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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Baby Lunch Joke
My husband is wonderful with our baby daughter, but he often turns to me for advice. Recently I was in the shower when he poked his head in to ask, "What should I feed Lily for lunch?” "That's up to you," I replied. "There's all kinds of food. Why don't you pretend I'm not home?” A few minutes later, my cell phone rang. I answered it to hear my husband saying, "Yeah, hi, honey. Uh…what should I feed Lily for lunch?"
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- Today's Observation -
Here is How to Find a Lender
in Today's Market
After having survived the S&L Crisis, the Dot-Com Meltdown, and the Great Recession, when commercial real estate fell by almost exactly 45% each time, I can tell you that the banks are going to be very, very slow in returning to the commercial real estate lending market.
But here’s the thing: On different days, in different markets, on different property types, different banks are going to pop in and out of the market. They are going to make one or two commercial loans, and then they are going to jump back out of the market. It’s a confidence thing. One day the CEO is convinced that the worst is over. The next day he will read a scary article in the Wall Street Journal, and the bank will be out of the market again. This will probably continue for at least 18 more months, if not longer.
Okay, so what do you do? The answer is that you may have to submit your commercial loan request to as many as sixty different banks before finding the right home for it. Sound impossible? It’s not. Just make a PDF of your loan package and send it to each bank by email. Voila! You’ll be surprised how fast the process goes.
The easiest way to accomplish this is by using C-Loans.com. Not only do we give you a free list of twenty to forty suitable lenders, but you can also quickly make your C-Loans app into a PDF. Then you can submit that PDF to twenty to forty of your own banks as well. This is a numbers game.
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Pediatrician Joke
We brought our newborn son, Adam, to the pediatrician for his first checkup. As he finished, the doctor told us, "You have a cute baby.” Smiling, I said, "I bet you say that to all new parents.” "No," he replied, "just to those whose babies really are good looking.” "So what do you say to the others?" I asked. "He looks just like you."
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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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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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Fetch Joke
I trained my dog to fetch me beer… It may not sound too impressive, but he gets them from the neighbors fridge!
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Brazilian Joke
I'm sitting in a cafeteria next to a woman who was engrossed in her newspaper. One of the headlines blared: "12 Brazilian Soldiers Killed." She shook her head at the sad news. Then, turning to me, she asked, "How many is a Brazilian?"
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Video - Getting Stung By A Murder Hornet
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Final Funny
A man having lunch at a Chinese restaurant noticed that the table had been set with forks, not chopsticks. He asked why. The waiter said, "Chopsticks are provided only on request."
"But," the man countered, "if you gave your patrons chopsticks, you wouldn't have to pay someone to wash all the forks."
"True," the waiter shot back, "but we'd have to hire two more people to sweep the floor."
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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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