August 27, 2018


Volume 18, Issue 6


C-Loans Client Newsletter

You are receiving this letter because you are a commercial mortgage broker client of either Blackburne & Sons or C-Loans, Inc. Removal instructions are below. Today we'll talk about the Debt Service Coverage Ratio. And as always, we have lots of great jokes and funny pics, plus a funny video of some dogs looking guilty. One even rats out his brother! Haha.


Joke Du Jour

My dad's been having a hard time lately. Keeps on losing his keys. Can't hang on to a set of keys to save his life. And he has tried everything too - a little hook next to the door, little bowl next to his bed, keychain makes a noise when you whistle. Nothing worked. So finally, this year for his birthday, the whole family chipped in -- and we put him in a home.


How C-Loans Actually Works

C-Loans Intro

Flares Jokes

A man in North Carolina had a flat tire, pulled off on the side of the road, and proceeded to put a bouquet of flowers in front of the car and one behind it. Then he got back in the car to wait. A passerby studied the scene as he drove by and was so curious he turned around and went back. He asked the fellow what the problem was. The man replied, "I got a flat tahr.” The passerby asked, "But what’s with the flowers? The man responded, "When you break down they tell you to put flares in the front and flares in the back. I never did understand it neither.”


Place Your Loan With C-Loans is a commercial mortgage portal where you can enter a commercial loan in just four minutes and then submit it to hundreds of different commercial lenders with one click.  Please pay particular attention to the word, is not just a list of lenders.  You can actually submit your four-minute application to thirty or forty different lenders, until you find that one bank that is hungry to make a commercial loan right now!  And is free!

And after submitting a commercial loan to six of our banks, be sure to contact Tom Blackburne at 574-210-6686 and get your two free training courses.  For more details, see the section below entitled, "Underwriting Manual, Marketing Course, Fee Agreement, List of 750+ Lenders - Choose TWO"


Chess Dog Joke

A man went to visit a friend and was amazed to find him playing chess with his dog.  He watched the game in astonishment for a while.  "I can hardly believe my eyes!" he exclaimed. "That's the smartest dog I've ever seen.”  

"Nah, he's not so smart," the friend replied. "I've beaten him three games out of five.”


Submit Your Commercial Application Today

Blackburne & Sons continues to seek first mortgages between $100,000 to $3.5 million on standing commercial properties nationwide. We have tons of money right now, so we can do some of the larger loans that in the past were too large for us. One unusual loan product that we offer is our blanket loan against a portfolio of rental homes. We will also hypothecate notes and buy commercial loans at a discount. We also make non-owner-occupied, business purpose, residential loans in many states.

Please be sure to bookmark our commercial mortgage rate sheet right now. To apply for a private money commercial loan from Blackburne & Sons, please find your favorite loan officer below:


Put 'Em Up, Put 'Em Up


Underwriting Manual, Marketing Course, Fee Agreement, List of 750+ Lenders - Choose TWO

If you register on and submit a real-life deal to six of our commercial lenders, we will give you a choice of TWO of the following:

Don’t get confused. If you once filled out a little form to get a free list of 200 commercial lenders or a free commercial loan placement kit, then you have NOT registered on C-Loans. Submitting a commercial loan using C-Loans is a six-step process (but it still only takes about four minutes). Click here to register on and to submit your commercial loan. Once you have submitted your commercial loan to six of our lenders, please email Tom Blackburne and indicate which of the two free gifts that you want.


French Club Joke

When I was in high school, I was in the French club. We didn't really do anything. Every once in a while, we'd surrender to the German club.


We're Now Making Business Purpose Rental Home Loans in All But Eight States

These loans are sometimes known as buy-to-rent loans. For the past 37 years, Blackburne & Sons has exclusively been a commercial lender. This has now changed. We are aggressively seeking non-owner occupied home loans in California and most other states.

The property has to be non-owner occupied, and the purpose of the loan must be for business. The nice thing about business purpose home loans from Blackburne & Sons is that our loans have a 15-year term and no prepayment penalty.

Got a commercial deal nationwide or a business purpose, non-owner-occupied residential deal in one of the above four states? Please call your loan officer:

Alicia Gandy: (916) 338-3232 // NMLS #389678

To apply to Alicia online, please click here.

George Blackburne, IV: (916) 338-3232 // NMLS #382122

To apply to George online, please click here.

Tom Blackburne: (574) 210-6686 // NMLS #1014118

To apply to Tom online, please click here.

Michael Young : (916) 338-3232 // NMLS #1535540

To apply to Michael online, please click here.

Loans made under the California Finance Lenders Law.


Just Say No


CommercialMortgage is a Free Commercial Lender Search Engine

We own a second commercial mortgage portal, (“CMDC”). We paid $100,000 just for that wonderful domain name. CMDC contains almost 4,000 commer-cial lenders, in addition to, and different from, the 750 commercial lenders on If you can’t find the right lender on C-Loans, be sure to try


Louisiana Joke

A senior citizen in Louisiana was overheard saying, "When the end of the world comes, I hope to be in Louisiana .”  When asked why, he replied, "I’d rather be in Louisiana ‘cause everythang happens in Louisiana 20 years later than in the rest of the world."

BTW, this is also true for Indiana, where I (old man George III) live.  But we have lots of water.


Learn Commercial Real Estate Finance - 9hr Video Training

It would be a lot easier to close your commercial deals if you actually knew the subject matter. Are you finally ready to learn the financial ratios and the advanced terminology of commercial real estate finance? Just $549.


Friends With Babies Joke

"I only have, like, three really good friends, and they get worse every year. And it's gotten to the point where I think they'd rather hang out with their own kids than hang out with me. I'm like, 'Alright, but really, where's the loyalty, man? I've known you for 25 years. How long have you known your baby -- like a month? Alright, Judas, whatever.’” — Arj Barker


Become a Hard Money Lender

It’s the servicing income, silly! We make more than $85,000 per month, whether we close a loan or so. Just hire a sub-servicing company to service your deals. Four-hour video course, How To Find Your Own Private Mortgage Investors. Just $549.


Loving Dad Joke

Now that I'm a dad, I'll call my dad, ask for advice.  He always says the same thing, "How'd you get this number?"


Get Both Courses For Just $849

Save $249


I Guess Dolphins See Pink Whales, Rather Than Pink Elephants




For decades I taught live classes in commercial mortgage brokerage (I am much too old now.) The single most important lesson in all of commercial real estate finance (“CREF”) is the Debt Service Coverage Ratio. I would therefore spend an hour-and-a-half teaching the use of this ratio. 

I would always then pick some unsuspecting victim out of the crowd, and I would ask her, “Now what’s the name of this ratio that we have been talking about?” The poor victim would reply something like, “The Debt Ratio?” “How about you, sir?” He would stammer and stutter, and then he would reply meekly, “The Service Ratio?” The audience would laugh, but they would all be secretly thinking, “I’m sure glad that he didn’t ask me.”

I would then ask them to say out loud, “Debt Service Coverage Ratio.” Three times. Out loud. Like kindergarten. Ha-ha! In fairness, the name of the ratio doesn’t just trickle naturally off of the tongue. How are we going to remember the name of this ratio?

We are talking about a loan, and obviously “debt” is another name for a loan. But what does it mean to service the debt? Think of a server at a restaurant. He provides service to, and attend to, the diners. He makes them happy and satisfied. And how to do we make a lender happy and satisfied? We make the payments on his loan! So debt service means the annual payments on the loan. 

By the way, all debt service calculations are, by custom, performed on an annual basis. Darn! You could squeak out a slightly larger loan if you could do the calculations on a monthly basis. Nice try.

Now back to the Debt Service Coverage Ratio. Three times. Out loud. Okay, now let’s tackle the word, “coverage”. I rode horses for four years as part of the famous Culver Black Horse Troop (this incredible military high school is why the Blackburne’s moved to Indiana, even though the company is still located in Sacramento). Because I rode horses, when I think of “coverage", I think of a stallion covering a mare. It’s not a bad metaphor. Normally the stallion is about 25% larger than the mare.

Okay, so without talking about horses doing the wild thing, the Debt Service Coverage Ratio (“DSCR”) is defined as:

DSCR = NOI / Debt Service

NOI stands for the property’s Net Operating Income. This is the bottom line number of the Pro Forma Operating Statement that you will prepare for your lender. Commercial lenders today require that this ratio exceed 1.25.

Interest rates have been going up. The best rate offered by banks has increased from 3.875% three years ago to 6% today. The Debt Service Coverage Ratio is once again important in sizing commercial loans.


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.” The same is unfortunately true of commercial mortgage brokerage. You will screwed out of a loan fee of $10,000 or more at least twice per year for your entire career. Now I am NOT talking about the borrower closing the loan and not paying you. That rarely happens. What these dastardly borrowers do is lie to you or cancel on you. You would be a flipping idiot not to pay a lousy $199 for my ninety-minute video training course, Fee Collection For Commercial Mortgage Brokers. It includes my famous fee agreement. Go ahead and ignore this section. You will cry, I absolutely guarantee you.


Confession Joke

"It's been a big year for my eight-year-old. Two months ago, he made his first confession. Took the cops four hours to break him. He's got some willpower.” -- Brian Kiley


How To Generate Commercial Leads Like Turning On a Spigot

I have been marketing for commercial loans for almost 40 years. I have wasted well over $175,000 on marketing campaigns that were complete busts. Direct mail. Postcards. Classified ads. Magazine ads. Google ads. Complete busts. Here is what works.


Final Funny

Q: What's black and brown and looks good on a lawyer?

A: A Doberman pinscher.

NMLS #167100

CA DRE #1330173


4811 Chippendale Drive, Suite 101

Sacramento, CA 95841

P: (916) 338-3232

F: (916) 338-2328


NMLS #103430

CA DRE #829677