Mortgage Investment Opportunities for Private Investors Since 1980

Volume 8: Issue 6 | Date: October 1, 2018


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 the difference between a mini-perm and a bridge loan. We also have lots of cute, clean jokes, some funny pics, and a surprising video of mice and rats fighting back against a cat.


Joke Du Jour

An Irishman, Englishman and Scotsman go into a pub and each order a pint of Guinness. Just as the bartender hands them over, three flies buzz down and one lands in each of the pints. The Englishman looks disgusted, pushes his pint away and demands another pint. The Scotsman picks out the fly, shrugs, and takes a long swallow. The Irishman reaches in to the glass, pinches the fly between his fingers and shakes him while yelling, "Spit it out, ya thief! Spit it out!"


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

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, Alicia Gandy, at (916) 338-3232 Ext. 310.


I Can Explain, Honey


Hot-To-Trot To Make Fix and Flip Loans

Blackburne & Sons is making a huge push into fix and flip lending. Of course we will still make our private money permanent loans on commercial properties nationwide; but we are now also making fix and flip loans across the country.

Please click here to submit a fix and flip loan or a hard money commercial loan or call me, Alicia Gandy, at (916) 338-3232 Ext. 310.


Wedding Joke

During my brother's wedding, my mother managed to keep from crying until she glanced at my grandparents. My grandmother had reached over to my grandfather's wheelchair and gently touched his hand. That was all it took to start my mother's tears flowing. After the wedding, Mom went over to my grandmother and told her how that tender gesture triggered her outburst. "Well, I'm sorry to ruin your moment," Grandmother replied, "but I was just checking to see if he was still alive.”


Perm's, Mini-Perm's, and Bridge Loans

- Today's Lesson, Part 1 -

Apart from construction loans, there are three types of commercial loans in first position - the permanent loan, the mini-perm, and the bridge loan.

A permanent loan is a first mortgage on a commercial property with a term of at least five years. A permanent loan will have some amortization. While a permanent loan may have a term as short as five years, the payments will be collected as if the commercial loan had a 25-year term. A twenty-five year amortization is the normal amortization schedule for commercial loans. If the property is older than 20 years, a bank might even require a 20-year amortization.

Commercial loans with shorter terms are considered either mini-perms (2 years) or bridge loans (1-3 years). What is the difference between a mini-perm and a bridge loan?

Mini-perms are first mortgage loans on brand-new commercial property that are typically given by the bank to give the sponsor time to develop an operating history.


Suppose Alpha Bank makes John Hotelier a $10 million construction loan to build a brand new Quality Comfort Inn. The term of the construction loan was 12 months, and the developer (John Hotelier) finishes on time and on budget. Alpha Bank would prefer to get paid off promptly at maturity, but the bank is wise enough to know that it is very difficult for a business property, like a hotel or RV park, to obtain a takeout loan until its has a two-year operating history. (This being said, the SBA might possibly finance a brand new hotel?)

A takeout loan is just a special type of permanent loan. It looks exactly the same as any other permanent loan, except for the fact that a takeout loan is a permanent loan on a brand new commercial property used to pay off a construction loan. Therefore every takeout loan is a permanent loan, but very few permanent loans are takeout loans.

By the way, commercial construction loans are almost always made by commercial banks. The rare exception is that some life insurance companies will sometimes make huge construction construction loans ($20MM+) on trophy properties, like office towers or huge shopping centers. In general, commercial banks like to make commercial construction loans because the loan term on a construction loan is short (12 to 18 months), and the bank gets to earn its points up-front.

More in Part 2 below.


Our Cats Sidle Up to Our Dogs and Rub Heads - Pretty Sweet


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. 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 is free!


Doppelgänger Joke

One sunny day in Ireland, two men were sitting in a pub, drinking some Guinness, when one turns to the other and says "You see that man over there? He looks just like me! I think I'm gonna go over there and talk to him." So, he goes over to the man and taps him on the shoulder. "Excuse me sir," he starts, "but I noticed you look just like me!" The second man turns around and says "Yeah, I noticed the same thing, where you from?", "I'm from Dublin", second man stunned says, "Me too! What street do you live on?", "McCarthy street", second man replies, "Me too! What number is it?", the first man announces, "162", second man shocked says, "Me too! What are your parents names?", first man replies, "Connor and Shannon", second man awestruck says, "Mine too! This is unbelievable!" So, they buy some more Guinness and they're talking some more when the bartenders change shifts. The new bartender comes in and goes up to the other bartender and asks, "What's new today?" "Oh, the Murphy twins are drunk again.”


Submit a Commercial Loan Using the Six-Step C-Loans Process To Six of Our Lenders and Get TWO Free Training Courses

Suppose a commercial real estate loan crosses your desk. If you enter it into and submit it to six of our lenders, you get to choose TWO of the following goodies:

1. The PowerPoint presentation to our $199 Commercial Mortgage Marketing Course.

2. Commercial Loan Broker Fee Agreement that comes with our $199 fee collection course.

3. A regional copy of The Blackburne List with a list of 750+ commercial lenders.

4. Electronic version of our Commercial Mortgage Underwriting Manual ($199) that teaches you all of the necessary ratios.

After you have entered your commercial loan into (a six-step process) and submitted it to six commercial lenders, please send an email with your two choices to Tom Blackburne with the subject line, “Pease Send Me My Two Training Courses”. You can also reach Tom at 574-210-6686.


Cat-Monkey Joke

A drunk guy took a cat home to his wife and said: “See, here is the monkey of the jungle." His wife said laughing, "That's a CAT ..." He said back to his wife, "I am talking to the cat!” (Not surprisingly the man died shortly thereafter.)


You Are Totally Missing the Boat Regarding

For the past two years we have been trading our training courses for big lists of hungry banks. The moment we get these bankers, we throw them onto is not as sophisticated as - you can’t submit your loan at the same time - but there are thousands and thousands of different commercial lenders listed on this free portal, and it is searchable!

One of the most successful commercial mortgage brokers in the entire country is Les Agisim of Trevor Cole Commercial, and I was tickled pink recently to see that Les uses on a regular basis. You would be wise to do what the successful guys do.


Not That There's Anything Wrong With That


The Blackburne List

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.


Playing Doctor Joke

Two married men are in a pub discussing their love life when one says, "Have you ever tried playing doctor?” His buddy says, "No. What's it like?” The man replies, "It's amazing. Me and my wife were playing for about 10 hours.” His buddy, shocked says, “Ten hours!? How the heck did you manage that long?” "I just left her in waiting room for nine-and-a half hours.”


Commercial Mortgage Marketing Course - $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.


One Month Joke

One night a man walks into a bar looking sad. The bartender asks the man what he wants, and the man dejectedly replies, “Oh, just a beer”. The bartender asked the man, “What's wrong? Why are you so down today?” The man said, “My wife and I got into a fight, and she said she wouldn’t to talk to me for a month.” The bartender asked, “So whats wrong with that?” The man said, “Well, the month is up tonight.”


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.


Old Man Joke

Old Man Blackburne was murdered shortly after telling this joke.  See why below:

A plane passed through a severe storm.  The turbulence was awful, and things went from bad to worse when one wing was struck by lightning.  One young woman lost it completely.  She stood up in the front of the plane and screamed, "I don’t want to die a virgin.  If I'm going to die, I want my last minutes on earth to be memorable.  Is there anyone on this plane who can make me feel like a woman?"

For a moment, there was silence.  Everyone stared at the desperate woman at the front of the plane.  Then this cowboy stood up in the rear of the plane.  He was handsome, tall, well-built, with dark brown hair and hazel eyes.  Slowly, he started to walk up the aisle, unbuttoning his shirt as he went, one button at a time.  No one moved.  He removed his shirt.  Muscles rippled across his chest.  She gasped...

Then, he spoke…  “Iron this, and get me a beer.”  (The woman who murdered Old Man Blackburne was later acquitted on the grounds of justifiable homicide.)


Learn Commercial Real Estate Finance - 9hr Video Training Course

Learn How to Easily Find Hundreds of Commercial Mortgage Loans. Learn How to Quickly Underwrite the Deals. Learn Over 100 New Commercial Mortgage Finance Terms. Get That Confidence You Know You've Been Lacking. Learn Exactly Where to Place Your Loan. Access to Hundreds of Lenders. Learn How to Package Your Deal. Most Important of All - Learn How to Collect Your Fee. Just $549.


Essay Joke

Little Johnny's teacher said, "Johnny, your essay on My Dog is exactly the same as your sister’s. Did you copy hers?" she asked. Johnny replied, "No, teacher, it's the same dog!”


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.


Angry Green-Haired Girl Joke

A young ventriloquist is touring the clubs and one night he's doing a show in a small club in a small town in Arkansas. With his dummy on his knee, he's going through his usual dumb green-haired girl jokes, when a green-haired girl in the fourth row stands on her chair and starts shouting, "I've heard enough of your stupid green-haired girl jokes. What makes you think you can stereotype women that way? What does the color of a person's hair have to do with her worth as a human being? It's guys like you who keep women like me from being respected at work and in the community and from reaching our full potential as a person, because you and your kind continue to perpetuate discrimination against, not only green-haired girls, but women in general...and all in the name of humor!" The ventriloquist is embarrassed and begins to apologize, when the green-haired girl yells, "You stay out of this, mister! I'm talking to that little idiot on your knee!”


Buy Both Training Courses for Just $849

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


Perm's, Mini-Perm's, and Bridge Loans

- Today's Lesson, Part 2 -

Okay, so John Hotelier has just completed his hotel, but in order to qualify for a takeout loan, he needs to establish a two-year operating history. Fortunately, John had negotiated with Alpha Bank for a two-year mini-perm at the conclusion of his construction loan.

The forward takeout commitment - a mini-perm is a form of forward takeout commitment - cost John one point. If he chooses to exercise the forward takeout commitment, he has to pay Alpha Bank an additional half-point or one-point fee at the time that the mini-perm funds.

The typical terms of a mini-perm are prime plus 1% to prime plus 2%, twenty-five years amortized, two years due, and no prepayment penalty.

What is a forward takeout commitment? A forward takeout commitment is just a letter from a bankable lender promising to deliver a takeout loan at some time in the future, assuming the developer has achieved certain things. In John's case, those conditions were that he complete the project according to plans and specifications. What was NOT a condition was the requirement that the hotel achieve a certain occupancy rate. That's the whole purpose of the mini-perm commitment - for John to have time to open the hotel and start to increase his average occupancy rate.

Now third type of first mortgage (quite possibly a second mortgage) is the bridge loan. A bridge loan is a commercial loan, usually with interest-only monthly payments, with a term of one to three years, which gives the borrower time to accomplish certain things, such as leasing out the property, renovating the property, or selling it.

So what the difference between a mini-perm and a bridge loan? Mini-perms are almost always secured by brand new commercial property, and their interest rates are bank rates. Even the cheapest bridge lender has rates that are 2% to 3% higher than those of the bank.


Bitcoins May Have Taken a Beating, But They Did NOT Fall to Almost Zero


We're Now Making Business Purpose Rental Home Loans in TEN 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 these states:

  1. California
  2. Florida
  3. Arizona
  4. Washington
  5. New Jersey
  6. Missouri
  7. Maryland
  8. Ohio
  9. Alaska
  10. New York
  11. Texas
  12. Virginia
  13. Probably your state too. Call for details.
  14. Nevada and Minnesota are unfortunately out.

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 me:

Alicia Gandy

Loan Representative

P: (916) 338-3232 Ext. 310

NMLS #389678


KFC Joke

KFC in Asia? Korean Fried Cat. Eeeuuuu.


The Sweet Apartment Loan Program For "A" Deals

Blackburne & Sons has a terrific apartment loan program for "A" quality deals. Our fixed rate is adjusted according to the desirability of the property and the area, but it starts at 3.87% and 1 point for a 30-year fully-amortized loan. For more details, please call Alicia Gandy at (916) 338-3232 Ext. 310.


Laughing Prayer Joke

A good friend was waiting nearby while his young son prayed silently before going to bed. Suddenly the boy burst out laughing. "Reggie!" scolded his father, "Why are you laughing during prayer?” "But Dad," the boy answered, "you told me that prayer is talking to God as to a friend, and I just told him a joke."


Too Busy to Broker Commercial Loans to Us? Why Not Refer Them Instead?

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


Courageous Video - Brave Little Mice and Rats Fight Back

He fought like a cornered rat.


On a Personal Note

There is a brand new TV show that comes on Monday nights after “The Voice” called “Manifest”. This show is so entertaining and leaves you on the edge of your seat. It’s about an airplane, Montego Air Flight 828 that took off for their flight and experienced some major turbulence. They landed safely and the crew and passengers were relieved. But in the span of those few hours, the world had aged five years -- and after mourning their loss, their friends, families and colleagues had given up hope and moved on. The passengers had no idea they were actually gone for that long, and they had not aged one bit. Now, faced with the impossible, they're all given a second chance. But as their new realities become clear, a deeper mystery unfolds, and some of the returned passengers soon realize they may be meant for something greater than they ever thought possible. I definitely recommend watching this new series!

Alicia Gandy

CA DRE #01430908

NMLS #389678


Final Funny

Two friends meet in the street. The one man looked rather forlorn and down in the mouth. The other man asked, "Hey, how come you look like the whole world caved in?” The sad fellow said, "Let me tell you. Three weeks ago, an uncle died and left me ten thousand dollars.” "I'm sorry to hear about the death, but a bit of good luck for you, eh?"

"Hold on, I'm just getting started. Two weeks ago, a cousin I never knew kicked the bucket and left me twenty thousand, free and clear.” "Well, you can't be disappointed with that!” "Yep. But, last week my grandfather passed away. I inherited almost one hundred thousand dollars.”

"Incredible... so how come you look so glum?” "Well, this week... nothing!"


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Realty Capital Corporation

4811 Chippendale Drive

Suite 101

Sacramento, CA 95841

P: (916) 338-3232 // F: (916) 338-2328

CA DRE #829677 // NMLS #103430

George Blackburne III, Esq.

Owner and President

CA DRE #00623143

NMLS #103430


A member of the Blackburne Family of Companies