March 15, 2022

MORTGAGE STUFF

Volume 22: Issue 2



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 discuss how world trade is breaking down. We also have lots of cute, clean jokes, some funny pics, and a video of The Ghost of Kyiv.

Joke Du Jour

"Scientists here in California have discovered a rare species of legless lizards. Now don't confuse that with spineless snakes; those are called congressmen. That’s totally different.” — Jay Leno

Free Stuff

Free Loan Placement Kit

Commercial Loan Checklist - Ten techniques that will triple your chances of closing

The Blackburne List - 200 commercial lenders by state with their direct contact info

Whitepaper - How to place a loan when banks are scared to lend

Bonus Training Video - Structured finance including topics like mezzanine loans and preferred equity

Why You Must Follow C-Loans on Facebook

You are missing important free training. It takes old man Blackburne four to five hours to write one of our popular blog training articles, but he can knock a short training article about commercial mortgage brokerage or commercial real estate finance (CREF) in minutes. In the past two weeks, he has written mini-articles on why banks hate blanket commercial loans, asset-backed securities, family offices, co-living properties, tuck-under parking, the net-worth-to-loan-size ratio, and an unknown, Federal government, mid-market PPP-like loan that can inject $5 million to $300 million into large businesses struggling to survive the coronavirus crisis.

To view these mini-lessons, come to the Facebook page for C-Loans. Look for a tab with three dots, “…”. The first drop-down selection is, “Follow.” Once you follow our Facebook page you will receive one or two free mini-lessons every week.

Beggar Joke

"I was in a very generous mood today," a woman says to her friend. "I gave a poor beggar $25.” "Thats a lot of money to give away," says her friend. "What did your husband say?” "He said, 'Thank you.’"

Place Your Commercial Loan With C-Loans

C-Loans.com is a true commercial mortgage portal. It allows you to create, in just four minutes, a universal mini-app. You then submit this mini-app to our 750 different commercial lenders.

C-Loans acts like a giant filter that screens out the unsuitable lenders and reduces this huge, unmanageable list of lenders down to a list of just 30 banks, credit unions, and other lenders that are perfect for your deal. You put a checkmark next to six lenders and then press, “Submit.” Within minutes, hungry lenders will be contacting you with offers. And C-Loans is free! 

If you have never checked off six lenders on a list that looks like the image below, then you have never really used C-Loans.com.

Special COVID-19 Notice:  The whole concept of C-Loans.com is that banks are fickle. They pop in and out of the commercial lending market on almost a daily basis. This is especially true during this COVID-19 crisis! We urge you to submit all of your commercial loans through C-Loans and to submit your deal to at least 24 different banks, six per use (just close out and come back in four times). Fortunately we just added several hundred new banks.

Training Stuff

Learn Commercial Real Estate Finance (9 hrs)

Topics include:

• Underwriting
• Marketing
• Fee Collection
• Many More!

$549. Order HERE.

Become a Direct Lender. Learn Loan Servicing (5 hrs)

One reason why hard money brokers make ten times more money than desk-and-phone mortgage brokers is that they approve their own deals!! 

$549. Order HERE.

Save $249 and Get

Both Courses

Just $849!

Order HERE.

- Today's Observations -

World Trade is Breaking Down.

I am Terrified.

There was a time when you could walk into a Wal-Mart store and be stunned at the low prices. Bicycles that retailed for $275 ten years earlier could be purchased for just $79. The reason why was because the world was (relatively) at peace, and free trade was at its apex.  While that bicycle may have have been assembled in China, the tires might have come from Indonesia. The seat covers may have come from Bangladesh, and the sprockets may have come from South Korea. World trade was humming.

In the early 19th Century (1800's), the famous economist, David Ricardo, advocated for world trade, and he coined the expression, comparative advantage. Comparative advantage is working at what you do best, while also giving up the least. For example, if you’re a great plumber and a great babysitter, your comparative advantage is plumbing. This is because you’ll make far more money as a plumber. The opportunity cost of babysitting, on the other hand, is high. Every hour you spend babysitting is an hour’s worth of lost revenue you could have earned from a plumbing job. 

David Ricardo is also credited with being the first economist to systematically consider how two economies can benefit if they choose to trade. He suggested that if one country could produce an item at lower opportunity cost than another country, and the other country could produce a different item at a lower opportunity cost, both countries could benefit by trading some of the goods that they were better at producing for some of the goods the other country was better at producing.

This is what is breaking down across the world. Russia and the Ukraine are the bread-basket of the world. Collectively they produce 30% of the world's wheat. Right now Ukrainian farmers should be fertilizing their winter wheat, but they have no diesel fuel with which to run their farm equipment. One desperate farmer even resorted to siphoning diesel from a gully next to a destroyed Russian tanker truck.

Ukrainian wheat farmers also desperately need more fertilizer. Ammonium nitrate, urea, and potash are all key ingredients in the production of fertilizer. Russia accounts for 23% of ammonia production globally, as well as 14% of urea and 21% of potash production. In response to Western economic sanctions, Russia just banned the export of ammonia, urea, and potash.

Expecting far lower yields, yesterday Ukraine banned the export of wheat. Countries in the Levant - the countries along the Eastern coast of the Mediterranean Sea - used to get almost half of their wheat from Ukraine. From where will it now come? At a minimum, the price of wheat worldwide will be painfully high. For third world countries, the poor may simply be unable to afford it. Will there be bloody riots in Egypt?

Will farmers in the Ukraine even be allowed to plant? Will Russia be allowed to sell its wheat?  Farm land prices here in the U.S. are skyrocketing. We can grow more wheat here in the U.S., but that takes away land from corn and soybean production (feed for livestock). Meat prices will surely be increasing.

Then there is China. The cold war between China and the rest of the world is causing many international companies to seek alternative locations for their parts plants. China is no longer a reliable parts supplier because it may soon invade Taiwan. Crushing sanctions would surely follow, and trade with China would come to a screeching halt. How are you going to get widget parts for your huge doohickey plant in France or in the United States when China is blockaded?

It's going to take some time before Vietnam, Bangladesh, and India can pick up the parts manufacturing slack. At a minimum, costs will be higher. And that assumes that enough container ships survive a shooting war with China. If American aircraft carriers are sinking, you can bet that it will be open season on container ships and oil tankers going into and out of China.

Then there is nickel. Every electric vehicle ("EV") battery requires a a heavy chunk of nickel.  The latest and greatest EV batteries, the ones that get the super-extended mileage, use significantly more nickel than the first generation EV batteries. Three days ago, Russia banned the export of nickel. 

Where will this all end? Will the standard of living of almost everyone on Earth fall by 40%?  More? I dunno. Things could get ugly. Why do you care? You may deeply and intimately care when the U.S. stock market finally wakes up to the threat that world trade is breaking down.

Got a Slightly Flawed Commercial Loan? Call Blackburne & Sons

Click HERE to Apply Now!

Blackburne & Sons continues to seek first mortgages between $100,000 to $2 million on standing commercial properties nationwide. We particularly like Gentlemen’s Clubs. 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.

Call or click on your favorite loan representative to email:

CLICK ME!

to send an email

CLICK ME!

to send an email

CLICK ME!

to send an email

Dog Joke

My dog is worried about the economy because Alpo is up to 99 cents a can. That's almost $7.00 in dog money.” — Joe Weinstein

Need Leads?

We've Got 'em!

1) C-Loans Lender Vault

2) CommercialMortgage.com

Referral Fees

Referring Partner Links

Refer Hard Money Deals

Free Training Courses

Are you desperate to learn commercial real estate finance, but you’re as poor as a church mouse? Get four free training courses.

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.

Commercial: NATIONWIDE

Residential:

• Alaska
• Arizona
• California
• Delaware
• Florida
• Georgia
• Hawaii
• Illinoise
• Indiana
• Louisiana
• Maryland
• Michigan
• Missouri
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Oklahoma
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas
• Virginia
• Washington
• West Virginia
• Wisconsin

No Job is Safe Anymore!

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 click on your favorite loan representative to email:

CLICK ME!

to send an email

CLICK ME!

to send an email

CLICK ME!

to send an email

Lead Foot Joke

My mom has a lead foot, so I was not surprised when a state trooper pulled us over as we were driving through Georgia. Hoping to get off with a warning, Mom tried to appear shocked when he walked up to the car. "I have never been stopped like this before," she said to the officer. "What do they usually do, ma'am," he asked, "shoot the tires out?” 

More Training Stuff

Marketing Course

I have been marketing for commercial loans for almost 40 years. I have wasted well over $175,000 on marketing campaigns that were busts. Here is what works.

$199. Order HERE.

Underwriting

Learn 100 commercial mortgage finance terms and 15 financial ratios. Learn about debt service coverage ratios, operating expense ratios, construction loans, and more!

$199. Order HERE.

Fee Collection

You would be a flipping idiot not to pay a lousy $199 for my 90 minute video training course, Fee Collection For Commercial Mortgage Brokers. It includes my famous fee agreement.

$199. Order HERE.

How To Earn Huge Referral Fees

Please click here after viewing the video.

Global Warming Joke

"There's a lot of talk about how global warming will be a disaster for future generations. When you think about it, it's hard to care. What have these future generations ever done for us?" -- Jimmy Kimmel

Need a NMLS License?

Need CE Hours?

CommercialLenders.com

You can buy for just $79.95 a large list of 2,500 commercial lenders. Once you have The Blackburne List of Commercial Real Estate Lenders nationwide, you can easily make a half-dozen phone calls and place the loan yourself. 

Video - The Ghost of Kyiv

Final Funny

There I was, sitting at the bar staring at my drink when a large, trouble-making biker steps up next to me, grabs my drink, and gulps it down in one swig. "Well, whatcha' gonna do about it?" he says menacingly, as I burst into tears. "Come on, man," the biker says, "I didn't think you'd CRY. I can't stand to see a man crying."

"This is the worst day of my life," I say. "I'm a complete failure. I was late to a meeting, and my boss fired me. When I went to the parking lot, I found my car had been stolen, and I don't have any insurance. I left my wallet in the cab I took home, only to find found my wife in bed with another man. Then my own dog bit me."

"So I came to this bar to work up the courage to put an end to it all. I buy a drink, I drop a capsule in, and I’m sitting here watching the poison dissolve. Then you show up and drink the whole thing! But enough about me. How's your day going?"

NMLS #167100

CA DRE #1330173

555 University Ave, Ste 150

Sacramento, CA 95825

P: (916) 338-3232

F: (916) 338-2328

NMLS #103430

CA DRE #829677