C-LOANS BANKER LETTER
This letter is intended only for commercial mortgage loan officers working for banks and hard money lenders. Today we are going to talk about DIP financing.
And of course, because this is C-Loans (the jokesters), we have lots
of cute, clean jokes, some funny pics, and a funny video of cats being attacked by a cucumber.
Hey guys, if we make you chuckle today, won't you please-please-please refer a turndown this week to CommercialMortgage.com?
Joke Du Jour
Q: What did the snail say when riding on a turtle?
A: Weeeee! :-)
As My Cat Was Headed Out One Evening...
DIP financing is short for debtor-in-possession financing. When a borrower files a Chapter 11 bankruptcy, the reorganization kind of bankruptcy, he retains title and possession of his assets. He is called a debtor-in-possession. The bankruptcy court stays (stops) any further collection action against him while he prepares a plan of reorganization that will repay his creditors in full.
While the debtor is in Chapter 11, it is possible to obtain, with the permission of the court, new financing that will be senior to all existing debt. The debtor must convince the court and a committee of his creditors that the cash infusion will allow him to repay his debts in full. This type of bankruptcy financing is called DIP financing, and Blackburne & Sons makes DIP loans.
I just wrote a wonderful blog article that explains DIP financing using a real-life example. All of my 400 blog articles are free training lessons in commercial real estate finance. If you want to become a more successful commercial real estate loan officer, be sure to subscribe to my free blog.
Snow White Joke
This mother tells the story: When my daughter was three, we watched Snow White and The Seven Dwarfs for the first time. The wicked queen appeared, disguised as an old lady selling apples, and my daughter was spellbound. Then Snow White took a bite of the poisoned apple and fell to the ground unconscious. As the apple rolled away, my daughter spoke up, "See, Mom, she doesn't like the skin either."
Are You a Hungry Bank?
Because we own two big portals, C-Loans.com and CommercialMortgage.com, my companies see a ton of commercial loan requests.
Blackburne & Sons will bring its bankable deals to you. All you have to do is to be willing to increase your interest rate on our deals by 0.625% and underwrite the deal at the higher rate. For example, if you are currently quoting 5.0%, simply quote 5.625% and do your debt service coverage calculation at 5.625%. Once a year, we will send you an invoice for our share of the interest rate.
This is not a yield spread premium. We do NOT want points on the backside because you would have to create a huge prepayment penalty. Instead, the arrangement is simply a contingent premium. When your loan pays off, our small annuity simply ends. We accept the risk.
Interested? Simply write to me, attorney George Blackburne, and in the subject line, please type, "Contingent Premium Agreement", and we'll send you our one-page agreement.
And guys, when you speak with your boss, remind him that Blackburne & Sons is a $55 million company that was founded way back in 1980. Because old man Blackburne's sons, George IV (32) and Tom (31), work for the company, the company is likely to survive another 37 years. Long-term relationships are important in banking, especially when deposits are pretty easy to attract.
"Two overweight, middle-aged women are on their daily walk. They were discussing how hard it is to lose weight as one gets older. One woman complained that she remained apple-shaped. The other woman said that no matter how much she exercised, there was too much fat on her backside and thighs, and it seemed like it was there to stay. Her friend agreed, saying, "It's true. The lard works in mysterious ways."
Join CommercialMortgage.com For Free
Want to close a few more commercial loans? Your bank can now be listed on CommercialMortgage.com ("CMDC") for free.
if CMDC is free to both banks and borrowers, how do you make any
Our hard money commercial mortgage company, Blackburne & Sons (est. 1980), works the subprime leads generated by the site. Basically your bank is our loss leader. Your low-rate loan programs are our dirt-cheap toilet paper that brings shoppers into the store. Ha-ha! If you close a loan, we make nothing.
Click here to list your bank on CMDC and receive totally FREE commercial real estate loan leads.
Once upon a time there were two little skunks named "In" and "Out." They lived in a hollow tree with their mother. Sometimes In and Out played outside, but other times they played inside. One day, In was out and Out was in. The mother skunk asked Out to go out and bring In in. So Out went out and in a few minutes, he came in with In. "My my, Out," she said, "how did you find In so quickly?" Out just smiled and said, "Instinct."
Would You Please Refer Your Commercial Loan Turndowns to CommercialMortgage.com?
If you have to turn down a commercial real estate loan this week, would you kindly refer your borrower to CommercialMortgage.com? If none of our 3,000+ different commercial lenders can help him, the deal
probably isn't do-able. Thanks so much!
A 90-year-old man said to his doctor, "I've never felt better. I have an 18-year-old bride who is pregnant with my child. What do you think about that?"
The doctor considered his question for a minute and then said, "I have an elderly friend who is a hunter and never misses a season. One day when he was going out in a bit of a hurry, he accidentally picked up his umbrella instead of his gun. When he got to the creek, he saw a beaver sitting beside the stream. He raised his umbrella and went, 'bang, bang', and the beaver fell dead. What do you think of that?"
The 90-year-old said, "I'd say somebody else shot that beaver." The doctor replied, "My point exactly."
Ever Wonder What a C-Loans Application Looks Like?
Here's a sample commercial loan application.
Botanist Roy Noble had always dreamt of ending world hunger. After years of research, his hard work paid off. He developed a strain of peas that would grow virtually anywhere. It grew fast, kept long without spoiling, and was more nutritious than even soybeans. He was an instant worldwide hero.
There were awards and parades, and naturally the new strain of peas was named Noble. After enjoying the fame and fortune for a while, Roy established a fund to award a monetary prize each year to botanists and horticulturists who were making significant contributions to their fields.
Thus was born the famous Noble Peas Prize.
With Five Cats, Evenings Are Seldom Boring
at Casa de Blackburne
Join C-Loans.com and Close Five More Loans Every Year, Decade After Decade
As a lender on C-Loans.com, you will receive carefully screened commercial loan applications directly to your email box. Each loan will be the right size, the right type (permanent, construction, bridge, etc.), on the right type of property, and in your exact lending area. And there will be a pretty good volume of them.
With one click you will see an Executive Loan Summary, with the debt service coverage ratio and loan-to-cost ratio already completed for you. Many Executive Summaries contain property pictures as well.
If you see a deal that you like, simply pick up the phone and call the borrower or broker directly, with no one else in your way.
Does it work? C-Loans lenders have closed more than 1,000 commercial real estate loans totaling over one billion dollars. One of our lenders (Trevor Cole Commercial) just closed its 50th loan for C-Loans. Two other have closed 40+ loans for C-Loans.
How much does it cost for your bank to be listed on C-Loans.com? You can pay a monthly fee to be listed on C-Loans.com (see further below), but nobody does that. All 750 of our banks choose to simply bump their normal loan fee up from 1 point to 1.375 points. When the loan closes, we send you an invoice for our software licensing fee. Click here for more details.
American Dream Joke
"New research shows that China has a bigger middle class than America, and more people in China are living what we would call the 'American Dream.' That's when you know things are bad - when even the American DREAM is made in China." -- Jimmy Fallon
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.
Three Beers Joke
An Irishman walks into a pub and orders three beers. The bartender brings him the three beers, and the man proceeds to alternately sip one, then the other, then the third, until they're gone.
When he orders three more, the bartender says, "Sir, don't you like your beer cold? Why don't you start with one, and I'll bring you a fresh one as soon as you're low."
The man says, "You don't understand. I have two brothers, one in Austria and one in America. We made a vow to each other when they moved away that every Saturday night, we'd still drink together. So right now, my brothers have three beers too, and we're drinking together."The bartender thinks it's a wonderful tradition, and every week he sets up the guy's three beers.
Then one week, the man comes in one day and orders only two beers. He drinks them and then orders two more. The bartender says sadly, "Knowing your tradition, I'd just like to say that I hope nothing has happened to one of your brothers." The man replies, "Oh, my brothers are fine -- I just quit drinking."
Few Bankers Are Wise Enough to Listen
During the 37 years since I first founded my commercial mortgage company, I have seen more than 3,000 S&L's, banks, Wall Street subprime commercial lenders (think Lehman Brothers), hard money commercial lenders, and other commercial lenders go bankrupt.
Every day, I call a half-dozen banks to update The Blackburne List. You would be deeply troubled at how often commercial real estate loan officers working for banks get laid off. It's awful! Imagine yourself laid off and working as a mere commercial mortgage loan broker during a severe recession.
However, if you close five commercial loans for C-Loans while you're still working at the bank, I will list your brand new, one-man, commercial mortgage company as if it was a lender on C-Loans. What I actually do is list you as a Proven Broker - an old pro who has proven himself.
Now the question is: Do you think that the Lord will make a special exception in your case when it comes your turn to die? Ha-ha! Are you 100% convinced that your bank will keep paying your $100,000 per year salary when your bank has a zero appetite for making new commercial loans?
Moral of the story: Take care of C-Loans while you are still working for the bank.
Channel Changer Joke
"Scientists have invented a way for you to change channels on your TV with gestures. Yeah, it's great for people who like watching sports completely still. 'Wow! What a catch - nobody move! Oh, now we're watching Lifetime.'" -- Jimmy Fallon
Join C-Loans For a Flat Fee
Is your boss having trouble with the idea of a software company that only gets paid when deals close? If so, just license our software on a flat fee basis.
banks with less than $2 billion in assets, the cost is just $250 per
banks with more than $2 billion in assets and less than $7 billion in
assets, the cost is just $350 per month.
banks with more than $7 billion in assets and less than $15 billion in
assets, the cost is just $500 per month.
banks with more than $15 billion in assets, the cost is just $1,000 per
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 Tom Blackburne, General Manager, or call him at 574-210-6686.
Crossword Puzzle Joke
While doing a crossword puzzle, I asked for my husband's help. "The word is eight letters long and starts with 'm', and the clue is 'tiresome sameness.'" "Monogamy," he answered.
Oh, Won't You Please-Please-Please Refer Your Turndowns to CommercialMortgage.com?
If you have to turn down a bank customer's request for a commercial real estate loan this week,
it will help him immensely if you would please suggest a place for him to look elsewhere. With over 3,000 listed commercial real estate lenders, CommercialMortgage.com is the place to send him. If none of our 3,000+ commercial lenders will finance his deal, then his request simply isn't do-able.
Q: What is a pirate's favorite letter?
A: The sea*
* Arrrrrr is also an acceptable answer.
Sadly, Body Issues Start Early
Would You Mind a $21,250 Referral Fee?
once paid a $21,250 referral fee to a website owner named Alan Dunn of
Spydercube.com for referring us a $17 million deal.
We've made it super easy to refer us commercial loans and to receive big referral fees. Please click here for details.
Funny, Funny Video
These cats think the cucumber is a snake.
Final Funny (R)
An elderly couple was at home watching TV. Phil had the remote and was switching back and forth between a fishing channel and an adult entertainment channel. Mary became more and more annoyed and finally said, "For God's sake, Phil, leave it on the adult channel. You already know how to fish!"
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 CommercialMortgage.com? Thanks!