C-LOANS BANKER LETTER
This letter is intended only for commercial mortgage loan officers working for banks and hard money lenders. Today we'll explain mezzanine loans in plain English. And, of course, because this is C-Loans (the jokesters), we have lots of cute, clean jokes, some funny pics, and a terrifying video of an unarmed man being attacked by a black panther.
Joke Du Jour
A guy walks into a bar and sees a dog playing poker. The guy is amazed. "Bartender, is that a real dog playing poker?" the guy asks. "Yep, real as can be." the bartender replies. "Is he any good?" the guy asks. "Naw, every time he has a good hand, he wags his tail."
I Please Need a Funny Headline Here
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Ever Wonder What a C-Loans Application Looks Like?
Here's a sample commercial loan application.
An Englishman, a Scotsman, an Irishman, a Latvian, a Chinese, a Japanese, a Kiwi, a Canuck, an Eskimo, a Fijian, a Turk, an Aussie, a Yank, an Egyptian, a Spaniard, a Mongolian, a Tibetan, a Pollack, a Mexican, a Spaniard, a Greek, a Russian, an Estonian, a German, an Indian, an Italian, a Brazilian, a Kenyan, a South African, a Filipino, a Pakistani, a Korean, an Argentinean, a Lithuanian, a Dane, a Finn, a Swede, an Israeli, a Romanian, a Bulgarian, a Serb, a Czech, a Croat, and a Panamanian go to a fancy bar... The bouncer says, "Sorry, guys, but I can't let you in without a Thai."
Please Refer Your Commercial Loan Turndowns to Either CommercialMortgage.com or C-Loans.com
If you turn down a commercial real estate loan this week, would you kindly refer the borrower to CommercialMortgage.com (probably an easier web site name to remember) or C-Loans.com? CommercialMortgage.com sure better be easier to remember! We paid $100,000 just for that domain name. If none of our 4,000 different commercial lenders can help him, the deal probably isn't do-able. Thanks so much!
A Couple of Cute Funnies
Q. Can a kangaroo jump higher than a house?
A. Of course! Houses can't jump.
Q. Why do fish live in saltwater?
A. Because pepper water makes them sneeze.
Mezzanine Loans in Plain English
Mezzanine loans are similar to second mortgages, except a mezzanine loan is secured by the stock of the corporation that owns the property, as opposed to the real estate. If the lender forecloses on the stock, it owns the corporation that owns the building.
Why use a mezzanine loan? Why not just use a garden-variety second mortgage? The answer is that a lender can foreclose on a mezzanine loan in just 5 weeks, as opposed to 18 months. We’ll cover this in more detail further below.
For ease of understanding, I am going to use the words, “corporations” and “stock”, throughout this training article. In real life, title to most large commercial properties these days is held in the name of a limited liability company (“LLC”). LLC’s do not have stock. They have membership interests instead. For our purposes, however, there is little difference between a corporation and a LLC, and corporations and stock are easier terms for most people to understand.
As a lender, should you join C-Loans.com or the faster, easier portal, CommercialMortgage.com? It depends. If you'd like to close an extra couple of commercial loans every year, you should probably just join CommercialMortgage.com. If you are serious about expanding your commercial lending division, however, you should definitely join C-Loans.com. You will get far more applications
A woman goes to the post office to buy stamps for her Christmas cards. Clerk: What denomination do you want? Woman: Oh, good heavens! Have we come to this? Well, give me 50 Catholics and 50 Baptists.
Free Commercial Mortgage Marketing Course
You've got a buddy who works as a commercial loan officer at a neighboring bank, right? We'll trade you the contents of one of his or her business cards for a free commercial mortgage marketing course. We sell this popular course separately on C-Loans.com for $199. Learn how to turn on a flow of SBA and conventional commercial mortgage leads as easily as turning on a spigot.
Important note: This has nothing to do with joining C-Loans as a lender. For more information, please click here.
Didn't James Bond Walk Across the Backs of Some Crocs?
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Bankers: Get 200 Free SBA Loan Applications
Does your bank want to close more SBA loans? C-Loans.com will give you two hundred SBA loan leads for free, deals that are perfect for your bank. These loans will be the right size. They will be located only in your favorite counties of your favorite states, and these SBA loans leads will be secured by just the type of commercial real estate that you prefer - office buildings, industrial buildings, etc.
Please click here for more information about how to receive 200 free SBA loan applications. The above offer is made only to commercial banks and credit unions.
What if you don't work for a bank or credit union, but your commercial mortgage company services more than $20 million in commercial real estate loans? We have a fine program for you too. Please call Mick Carlson at (574) 855-6292 or click here for more details.
Grandma's Pie Joke
Granny Adams made such beautiful pies. One day I asked her, "How do you get such beautiful pies with the crimps around the edge so even?" "Well, it's a family secret," she said. "But if you promise not to tell, I'll let you in on it." "Okay," I said. "Tell me!" "Well, first, I roll out the dough, making sure it is flat and even. Then I cut out the bottom layer and carefully put in the pie plate and make sure it is firmly against the sides of the plate. "Then I slowly pour in the filling, making sure it's not too full. "Next, I cut out the top layer and carefully put it over the filling. "Finally, I take out my teeth and just run them around the edge of the pie crust, and they make the nicest even impressions you ever did see!"
Join C-Loans For a Flat Fee
Most banks that join C-Loans take advantage of our free guaranteed success program; but a bank can now join C-Loans, get listed on our Suggested Lender Lists, and receive tons of commercial mortgage loan applications for a small monthly fee:
For banks with less than $2 billion in assets, the cost is just $250 per month, and up to three loan officers can receive our SBA and commercial real estate loan leads.
For banks with more than $2 billion in assets and less than $7 billion in assets, the cost is just $350 per month, and up to four loan officers can receive our SBA and commercial real estate loan leads.
For banks with more than $7 billion in assets and less than $15 billion in assets, the cost is just $500 per month, and up to five loan officers can receive our SBA and commercial real estate loan leads.
For banks with more than $15 billion in assets, the cost is just $1,000 per month, and up to ten loan officers can receive our SBA and commercial real estate loan leads.
Important note: In all of these cases, the bank owes nothing more, even if it closes a loan.
To join C-Loans using our new flat-fee program, please email Mick Carlson, General Manager, or call him at 574-855-6292.
But, once again, most banks joining C-Loans, take advantage of our free guaranteed success program, where the bank only pays C-Loans, Inc. a software licensing fee of 0.375 points (just 25 bps. on deals over $5MM) if it closes a commercial loan from C-Loans. Most banks simply increase their normal loan origination fee from 1.0 point to 1.375 points to cover the cost of using our software and receiving our leads. This makes C-Loans effectively free to the bank.
To join using our guaranteed success program - effectively free to the bank - simply use this super-easy form to join C-Loans as a lender.
Cat Lady Joke
"Police are looking for a woman who stole $3,000 worth of cat-grooming supplies at an airport baggage carousel. Police describe the suspect as 'single.'" -- Seth Meyers
Referring Your Turndowns to C-Loans.com (or CommercialMortgage.com) Gives Your Customers a Good Place to Look
If you have to turn down a bank customer's request for a commercial loan, it will help him if you could suggest a place for him to look elsewhere. With 750 different commercial real estate lenders participating on C-Loans.com, if your customer can't qualify for a commercial mortgage from us, he probably won't qualify anywhere. Thank you so much!
"A dog in Seattle is making news after commuters noticed it had been riding the bus to a local park all by itself. Everyone says the dog is amazing, while the dog said, panicking, 'I gotta find that blind guy. I'm in a lot of trouble if I don't find him.'" -- Jimmy Fallon
How To Close Investor Commercial Loans When Your Loan Committee Won't Exceed 62% LTV
Suppose one of your better bank customers wants to buy a commercial building, not for his company, but rather just for investment. The deal cash flows perfectly at 75% LTV, but your nervous Loan Committee cuts the deal back to just 62% LTV. "Gosh, I have been a good bank customer for decades. I thought my own bank would take better care of me."
The sister company of C-Loans, Blackburne & Sons, raises small balance JV equity for such deals, and we'll raise as little as $100,000. We'll add our equity to your customer's down payment to create a down payment large enough to satisfy your Loan Committee.
Got a potential deal? Please complete this simple preferred equity application or call Angela Vannucci at 916-338-3232.
I Please Need a Funny Headline Here
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I was recovering from surgery when a charity representative phoned asking me to take part in a door-to-door fund-raising effort. "Sorry," I replied, "but I've been incapacitated." Undaunted, the caller kept trying to convince me to change my mind and volunteer. I interrupted and said, "I'm incapacitated. Do you know what that means?" She hesitated. "It means your head was cut off?”
Would You Mind a $21,250 Referral Fee?
We once paid a $21,250 referral fee to a website owner named Alan Dunn of Spydercube.com for referring us a $17 million deal. Not long ago we paid our friends at RealWebFunds.com an $11,000 referral fee.
We've made it super-easy to refer us commercial loans and to receive big referral fees. Please click here for details.
Video - Viewer Discretion Advised
Unarmed man attacked by a vicious black panther.
Dog House Joke
Eric is sitting at the bar staring morosely into his beer. Tom walks in and sits down. After trying to start a conversation several times and getting only distracted grunts he asks Eric what the problem is. "Well," said Eric, "I ran afoul of one of those trick questions women ask. Now I'm in deep trouble at home." "What kind of question?" asked Tom. "My wife asked me if I would still love her if when she was old, fat and ugly." "That's easy," said Tom. "You just say 'Of course I will'". "Yeah," said Eric, "That's what I did, except I said, 'Of course I DO....'"
Why CommercialMortgage.com Really Is Free For Banks To Join
Stop! This has nothing to do with joining C-Loans.com. This is a totally different portal with totally different rules.
You can list your bank on CommercialMortgage.com in just four minutes for free. There is no set-up charge. There is no monthly fee. You don't even owe a fee if you close a deal. Unlike C-Loans.com, your listing is truly 100% free.
Your bank could surely stand to make a few more commercial loans. You would be absolutely nuts (or incredibly lazy) not to add your bank to this very active new portal (1,100 commercial loan app's in the first three weeks). Please click here to add your bank to CommercialMortgage.com.
Are you confused as to how C-Loans, Inc. could afford to spend $250,000 creating a new commercial mortgage portal that competes against its own flagship site, C-Loans.com? How can we afford to provide this site for free to both the borrowers and bankers?
The Blackburne family of commercial mortgage companies (est. 1980) also includes Blackburne & Sons Realty Capital Corporation. This hard money commercial mortgage company makes 15 year commercial loans nationwide using the funds of our 1,500 private investors. We earn a 2% loan servicing fee (200 bps!) on these loans, so if a loan stays outstanding for 15 years, we earn 33 points, including our typical 3-point origination fee. That's $330,000 in gross profit on a hard money loan of just $1 million.
By creating this free new portal, we get to look at every commercial loan that enters CommercialMortgage.com. Picture us as a grizzly bear, knee deep in the river, during salmon spawning season. So take your free listing on CommercialMortgage.com and run. Our new portal really is 100% free to your bank.
"The biggest dog in the world lives in the U.K. and on its hind legs stands at 7 feet, 6 inches tall. When asked if he likes being taken for a walk, his owner said, 'I love it.'" -- Jimmy Fallon
One Final Pathetic Plea
If you won't let us pay you a referral fee, won't you please-please refer your commercial mortgage turndowns to C-Loans.com or to CommercialMortgage.com? Thanks!