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Volume 9: Issue 6 | Date: October 8, 2019

COMMERCIAL LENDING NEWSLETTER

You are receiving this letter because you are one of my Spartans - my top-producing brokers and investor clients - of whom I am allowed to have 300. Removal instructions are below. Today we’ll discuss why interest rates keep falling. It’s NOT because of the Fed. We also have lots of cute, clean jokes, some funny pics, and a cute video of a dog being a drama queen. Make sure you catch my Final Funny at the very bottom.

Joke Du Jour

The psychiatrist was interviewing a first-time patient. "You say you're here," he inquired, "because your family is worried about your taste in socks?” "That's correct," muttered the patient. "I like wool socks.” "But that's perfectly normal," replied the doctor. "Many people prefer wool socks to those made from cotton or acrylic. In fact, I myself like wool socks.”  "You DO?" exclaimed the man. "With oil and vinegar or just a squeeze of lemon?”

Communists Joke

Q:  Why do communists only write in lower-case letters?

A:  Because they hate capitalism.

Still Making Nationwide Permanent Loans From $100K to $3.5M

Click HERE to Apply Now!

Do you need a commercial lender who will actually lend up to 75% LTV? Blackburne & Sons has decided to compete against banks by offering a higher LTV.

Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage?

Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit?Is your client's company losing money? Is your borrower a foreign national?Do you need a non-recourse loan?

Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a loan against a portfolio of rental houses?

And don't forget, we will quickly and happily issue you a written Loan Approval Letter - at no charge - that you can use as a fallback and to lure cheaper lenders. After all, everyone wants to lend to you if you already have a commitment. Here is our latest rate sheet.

Blackburne & Sons is looking for commercial real estate loans that are not quite clean enough for a bank. Please click here to submit a hard money commercial loan or call me, George IV, at (916) 338-3232 Ext. 314.

Pronunciation Joke

Two tourists were driving through Louisiana. As they were approaching Natchitoches, they started arguing about the pronunciation of the town. They argued back and forth until they stopped for lunch.  As they stood at the counter, one tourist asked the "blonde" employee: "Before we order, could you please settle an argument for us? Would you please pronounce where we are at... VERY SLOWLY?"  The blonde girl leaned over the counter and said... "Burrrrrrrr, Gerrrrrrr, Kiiiiing"

Chameleon Joke

Did you hear about the older chameleon who could no longer change color?   The poor guy developed reptile dysfunction.

- Today's Observation -

Why Interest Rates Keep Falling -

It's NOT the Fed

There are more than $16 trillion in Japanese and European bonds now selling at a negative yield.  Can you imagine loaning $1,000,000 to the German Federal government, receiving no interest payments for ten years, and then only getting $970,000 back at the end?  It seems unimaginable.

Interest rates in the United States resumed their downward march this week, and I predict that Treasury bond yields will eventually go negative.

You might think that the reason why interest rates are falling is because of the Fed.  You're on the right track, but the central bank that is really stirring the pot is the European Central Bank ("ECB").  The population of Europe is old, and it is shrinking.  Most countries in Europe are desperate for workers, and Sweden, Germany, and Norway are actively recruiting them.

Because the counties of Europe are withering, at least in terms of reproduction, the ECB must constantly inject fresh Euros into the EU economy; otherwise, the European money supply would contract like a black hole.  Without Central Bank intervention, the money supply in Europe could easily shrink by 40% in less than six months.  We saw this happen in 2008, at the beginning of the Great Recession.

In order to prevent the entire money supply of Europe from contracting into a black hole (the multiplier effect working in reverse), the ECB has been forced to constantly inject new Euros into the European economy.  Many of these Euros end up in the hands of old gomers like me, and we hoard our savings because we are close to retirement.

Now old gomers are not going to keep one million Euros stuffed under their mattresses, so they take their cash down down to the bank and try to deposit it. "No, thank you," says the bank. "We have more than enough deposits right now. We don't have any place to invest them."

In fact, there are so many banks bidding to own German, Danish, Dutch, and Swedish treasury bonds, they have bid up the prices of the bonds so high that the yields are negative - say, a negative yield of 0.15% annually. 

Now back to our desperate old gomers. "You simply must take my cash, Mr. Banker. If bad guys learn that I am keeping one million Euros under my mattress, they will break in and kill me!" So the banker says to the depositor, "Okay, we'll accept your deposits; but we are going to charge you a negative yield of 0.5% per year." In other words, the old gomer is paying the bank one-half percent per year to hold his cash.

Then the banker invests in bonds with a negative yield of just 0.15%, and the bank profits off the 35 basis-point difference. A basis point is 1/100th of one percent.

European investors are going to keep buying U.S. Treasuries because our yields are positive. This will keep driving down U.S. interest rates for the foreseeable future. Sure, we'll have some periods when interest rates will spike back upwards; but the long-term trend for interest rates is still downward.

Teeth Joke

Q: What is red and bad for your teeth?

A:  A brick

Locker Room Joke

Murphy's Law of Lockers - If there are only two people in a locker room, they will have adjacent lockers.

Business Purpose Rental Home Loans in Most States

Click HERE to Apply Now!

Submit Your “A” Quality Commercial Loans Using C-Loans

You old veterans know that commercial lenders are incredibly fickle. One moment a bank loves self storage loans, and the next moment - usually after taking a loss - it wouldn't touch a self storage facility loan with a ten-foot pole.  C-Loans.com is a commercial mortgage portal that was designed with commercial lender fickleness in mind. You fill out one mini-app, and then you can submit your commercial loan application to bank after bank, six at a time, until you find a bank hungry to make a commercial loan today. Mortgage brokers like you have closed over 1,000 commercial real estate loans totaling over $1 billion, so C-Loans clearly works. And C-Loans.com is free!

Math Exam Joke

If I got 50 cents for every failed math exam, I'd have $6.30 now.

Fire Hydrant Joke

A fire hydrant has H-2-O on the inside and K-9-P on the outside.

Learn Commercial Real Estate Finance - 9 Hour Video Training Course

Ark Joke

Does anyone need an ark? I Noah guy!

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.

Thesaurus Joke

I own the world's worst thesaurus.  Not only is it awful, it's awful.

Have You Been Screwed Out of a Big Loan Fee Yet?

Whenever someone boasts of being a good horseman, I always ask him, “Have you ever been thrown?” The correct answer is, “Many, many times”. There is an old saying, “If you ain’t been thrown, you ain't ridden very much.”

Become a Hard Money Lender - Just $549

Because banks are only paying 1% for deposits, it has never been easier to become a hard money lender. Hard money brokers make three to ten times more than generic desk-and-a-phone mortgage brokers. Four-hour video course, How to Find Your Own Private Mortgage Investors. 

Glaciers Joke

Yellowstone tourist: "Look at all those big rocks! Wherever did they come from?"

Yellowstone guide: "The glaciers brought them down."

Tourist (cluelessly): "But where are the glaciers?"

Guide (wearily): "The glaciers ... have gone back for more rocks."

Commercial Mortgage Marketing Course - Freshly Updated in 2019 - $199

Need commercial mortgage leads? This Commercial Mortgage Marketing Course will teach you how to turn on a flow of commercial leads as easily as turning on a spigot.

Now available online!

CB Radio Joke

I knew a guy named Roger... He was huge, about 10-4.

It's the Loan Servicing Income, Folks

No one ever listens to me. Please pay attention! The money in the mortgage industry is in loan servicing fees, and servicing loans is easy. For your first 50 deals, you can just hire a sub-servicing company for $40 per loan per month. I charge my investors $1,583 per month (!!!) for servicing a one-million dollar loan. $1,580 per month minus $40 equals...

The loan servicing portfolio for Blackburne & Sons just broke $53 million this quarter. Since our average loan servicing fee is two percent annually, that means we earn over $1 million per year for servicing just 250 loans. How would you like to walk in the door on the first of each month knowing that you will earn at least $83,000? Find your own private mortgage investors.

Semi-Colon Joke

Did you hear about the semi-colon that broke the law?  He was given two consecutive sentences.

Buy Both Training Courses for Just $849

Click here for more information, or to order, please contact Tom Blackburne at 574-210-6686.

Stolen Office Joke

To whoever stole my copy of Microsoft Office, I will find you.  You have my Word!

Trade One Banker For ONE of the Following Freebies

Man Cave Joke

Definition of a Man Cave: A room you're renting in your wife's house.

Too Busy to Broker Commercial Loans to Us? Refer Them Instead!

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

I spoke with the manager at one of the stores, and he basically said that due to California’s Prop 47 (which downgraded multiple different felonies down to misdemeanors) the police do not enforce shop lifting unless the amount stolen is over $950 worth of goods. If the staff try and stop them, it opens the company up for liability in multiple different ways, and so to avoid liability the company policy is now to let it happen. He secretly told me that since Prop 47 passed, the rate of shoplifting at his store has almost tripled and is now to the point where this location might not be able to stay open. It is incredibly sad to think that our local grocery store might be done in because of these thieves. 

George Blackburne, IV

Loan Representative

P: (916) 338-3232 Ext. 314

georgeiv@blackburne.com

NMLS #382122

CA DRE #01873244

Video - A Drama Queen (Make sure your volume is on)

Final Funny

Two guys grow up together, but after college, one moves to Michigan  and the other to Florida.  They agree to meet every ten years in Vero Beach to play golf.   At age 30, they finish their round of golf and go to lunch.  "Where you wanna go?”  "Hooters.”  "Why?”  "Well, you know, they got the broads, with the big racks, and the tight shorts, and the legs …"  "OK."

Ten years later, at age 40, they meet and play again.  "Where you wanna go?”  “Hooters.”  "Why?”  "Well, you know, they got cold beer and the big screen TVs and everybody has a little action on the games.”  "OK." 

Ten years later, at age 50, they meet and play again.  "Where you wanna go?”  "Hooters.”  "Why?”  "The food is pretty good, and there is plenty of parking.”  "OK."

At age 60, they meet and play again.  "Where you wanna go?”  "Hooters.”  "Why?”  "Wings are half price.”  "OK"

At age 70, they meet and play again.  "Where you wanna go?”  "Hooters.”  "Why?”  "They have six handicapped spaces right by the door.”  "OK."

At age 80, they meet and play again.  "Where you wanna go?”  "Hooters.”  "Why?”  "We've never been there before."

Members of the Blackburne Family of Companies

4811 Chippendale Drive, Suite 101

Sacramento, CA 95841

P: (916) 338-3232

F: (916) 338-2328

CA DRE #00829677 // NMLS #103430