MORTGAGE STUFF (C-Loans
Client Letter)
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 underwriting huge commercial construction loans. And as always, we have lots of great jokes, funny pics, and an amazing video of two jetmen buzzing a passenger airliner.
Joke Du Jour
I realized that my five-year-old grandson had been watching too many reality TV shows the day we attended a relative's wedding. As the four bridesmaids walked down the aisle toward the front of the church, he turned to me and asked, "Is this where the groom decides which one he wants to marry?"
Ain't It the Truth
Place Your Commercial Loans With C-Loans.com
Last year C-Loans.com closed an $18.5 million commercial construction loan. The broker who used C-Loans earned a $92,500 commission.
C-Loans.com 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. And C-Loans is free!
Dream Girl Joke
Four years ago I asked out the girl of my dreams for the first time. Today I asked her to marry me. She said "no" both times.
Submit Your Commercial Mortgage App Today
Blackburne & Sons continues to seek slightly-flawed 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. We will now even consider land loans.
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.
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:
Tom Blackburne:
574-210-6686
To apply to Tom online, please click here.
Alicia Gandy:
916-338-3232
To apply to Alicia online, please click here.
George Blackburne IV: 916-338-3232
To apply
to George IV online, please click here.
Marriage Survey Joke
"A new study suggests that marriage is more beneficial for men than women. The results of the study were shouted at me through a locked bedroom door." -- Seth Meyers
As Obama Was Leaving Office...
Underwriting Huge Commercial Construction Loans
The other day a C-Loans customer, a mortgage broker, asked me, "Can C-Loans handle a $50 million commercial construction loan request?" The answer is yes, but it is not easy to qualify for such loans:
The handful of banks making commercial construction loans of this size are very conservative after the drubbing they took during the Great Recession. Therefore, they will only lend up to 60% to 65% loan-to-cost ("LTC"). If the total cost of the applicant's project was, say, $60 million, the developer would have to contribute a whopping $21 million, 35% of the total cost, to the project.
The deal would also have to enjoy a debt service coverage ratio of at least 1.25. With rates so low today, this is not usually a problem.
The construction loan must also be no higher than 65% to 68% loan-to-value (maybe 70% LTV for multifamily). This is not usually a problem unless the project is poorly conceived; i.e., the project, when completed and occupied, is not worth at least 25% more than the cost of construction (profit ratio).
Most developers of huge projects do not have 35% of the total cost of the project to contribute. Construction mezzanine lenders (you'll find some on C-Loans) will sometimes make up the gap in the capital stack between 66% LTC and 80% LTC. The developer still has to contribute 20% of the total cost.
Scale Joke
A man and his friend were exiting a drugstore and at the front door there was a scale. "Look, a scale," the man said to his friend. "Let's see how my new diet is working out." He stepped on the scale. "I can't believe it!" he said as he read the result. "I've been on this diet for two weeks but the scale says I'm heaver than I was before! How can that be?" He pondered this as he stepped off the scale, then had a thought. He took off his jacket and handed it to his friend. "Here, hold my jacket," he said. The friend took the jacket as the man stepped back on the scale. Not much change. "Here," he said as he handed his purchase from the drugstore to his friend. "Hold my Twinkies too."
Small Balance Preferred Equity "Loans"
Do you really understand preferred equity? This free whitepaper will help you to truly understand it. It's written in easy-to-understand layman's language.
You'll use preferred equity in three common scenarios. (1) You have an investor buying a non-owner-user commercial-investment property. The bank refuses to make a first mortgage larger than 60% LTV. The buyer only wants to put down 25%. We'll cover the gap. (2) Your client has a balloon payment coming due, but he can't qualify for a new first mortgage large enough to pay off the old first mortgage. We'll cover the gap. (3) Your client wants to buy out an impossible partner. We'll provide the capital to buy him out.
Got a potential preferred equity deal? Call your favorite B&S loan officer:
Alicia Gandy:
916-338-3232
To apply to Alicia online, please click here.
George Blackburne IV: 916-338-3232
To apply
to George IV online, please click here.
Tom Blackburne:
574-210-6686
To apply to Tom online, please click here.
Help Meeee....
Free Written Directory of 2,000 Commercial Lenders
Please notice I said TWO THOUSAND commercial lenders, not just 200. Imagine if you had scores and scores of commercial lenders for every deal. And did I mention it was free? To get your free list.
Little Sister Joke
A co-worker was telling us about her sister who was coming to visit her for the holidays. Someone asked how old her sister was, at which she paused, thought for a bit, and then answered, "She's half as old as I am, that's how I always remember." So someone else (okay, it was me) said, "That's neat, So every year that you age, she only ages half a year?" My co-worker thought about that, and then said, "Oh, yeah, I guess it only works on even years."
One-Point Commercial Bridge Loans
Please don't forget about Blackburne & Sons' one-point bridge loan product for commercial properties:
Interest Rate: 9.9% to 12.9%
Loan Fee: 1 point + $950 (nothing up-front)
Term: Six months
Prepayment Penalty: None
Maximum Loan-to-Value Ratio: 65% (70% on purchases)
Properties: Multifamily (5+ units), Commercial, and Industrial
Movie Joke
Choosing a movie? Try these extremely abbreviated plot explanations:
- The Shining: A family's first Airbnb experience goes very wrong.
- The Lord of the Rings: Group spends nine hours returning jewelry.
- Titanic: Everyone tries the ice-bucket challenge.
- Beauty and the Beast: Stockholm syndrome works.
- The Chronicles of Narnia: Kid comes out of the closet.
Business Loans Not Secured By Real Estate
I'm talking here about unsecured business loans, equipment loans, leases, inventory loans, factoring, accounts receivable financing, asset-backed lines of credit, etc.
The reason you want to get into the business of brokering business loans is because such loans close in 10 to 14 days, NOT three months.
C-Loans.com is now offering business financing. Please click here if you are trying to pace a business loan not secured by real estate.
License Plate Joke
One of my customers at the department of motor vehicles wanted a personalized license plate with his wedding anniversary on it. As we completed the paperwork he explained, "This way I can't forget the date." A few hours later, I recognized the same young man waiting in my line again. When his turn came, he said somewhat sheepishly, "I need to change the numbers on that plate application."
We're Now Making Business Purpose Rental Home Loans in
Other States Too
For the past 36 years Blackburne & Sons has exclusively been a commercial lender. That has now changed. We are aggressively seeking non-owner-occupied home loans in California and now a few other states.
In addition to California, Blackburne & Sons will now consider non-owner-occupied home loans in the following additional states, as long as the purpose of the loan is for business:
- Florida
- Ohio
- Indiana
- Georgia
- Washington
- Arizona
Because of licensing issues, we cannot make home loans in any other state; but we will make individual commercial loans or blanket residential loans (5+ houses) nationwide.
Got a nationwide commercial deal or a business purpose, non-owner-occupied residential deal in California or one of the above states? Please call your loan officer:
Alicia Gandy at 916-338-3232
NMLS # 389678
Tom Blackburne at 574-210-6686
NMLS # 1014118
George Blackburne IV at 916-338-3232
NMLS # 382122
Anniversary Joke
I'm not the easiest guy in the world to get along with. So when our anniversary rolled around, I wanted my wife to know how much I appreciated her tolerating me for the past 20 years. I ordered flowers and told the florist to enclose a card that read, 'Thanks for putting up with me so long.' When my wife got the delivery, she called me at work. "Just where do you think you going?" she asked. "What do you mean?" I said. She read the card aloud as the florist had written it, "Thanks for putting up with me. So long."
Nine-Hour
Video Course on How to Broker Commercial Mortgage Loans
Important note: This nine-hour video course now also includes my $399 audio course on Intermediate Commercial Real Estate Finance - all for the same $549 cost. This 9-hour video course is my
bread-and-butter course that teaches you how to market for
commercial loans, how to underwrite them (the ratios), how to
place them, and how to collect your fee. Thousands of very happy
commercial mortgage brokers have taken this course. Details.
Dieting Buddy Joke
My friend Kimberly announced that she had started a diet to lose some pounds she had put on recently. "Good!" I exclaimed. "I'm ready to start a diet too. We can be dieting buddies and help each other out. When I feel the urge to go out and get a burger and fries, I'll call you first." "Great!" she replied. "I'll ride with you."
Great Apartment Loan Program
You're probably used to thinking of Blackburne & Sons as a subprime commercial lender, but since our acquisition of CommercialMortgage.com (I paid more than a house), some of the nation's largest commercial mortgage investors are giving us wonderful opportunities. Please be sure to check out our great new apartment program.
To apply for an apartment loan from Blackburne & Sons, please
find your favorite loan officer below:
George Blackburne IV: 916-338-3232
To apply
to George IV online, please click here.
Tom Blackburne:
574-210-6686
To apply to Tom online, please click here.
Alicia Gandy:
916-338-3232
To apply to Alicia online, please click here.
Interesting Video
Two jetmen buzz a passenger airliner.
Earn Big
Referral Fees. We've Made It Really Easy.
Blackburne
& Sons will pay
you a referral fee of 20% of our loan fee, just for providing us
with the name and the phone number of a prospective commercial
mortgage borrower. We once paid a referral fee of $21,250 to a guy
named Alan Dunn.
Just
click here to refer us a commercial
loan.
Final Funny
A wise old gentleman retired and purchased a modest home near a junior high school. He spent the first few weeks of his retirement in peace and contentment. Then a new school year began. The very next afternoon three young boys, full of youthful, after-school enthusiasm, came down his street, beating merrily on every trash can they encountered. The crashing percussion continued day after day, until finally the wise old man decided it was time to take some action.
The next afternoon, he walked out to meet the young percussionists as they banged their way down the street. Stopping them, he said, "You kids are a lot of fun. I like to see you express your exuberance like that. In fact, I used to do the same thing when I was your age. Will you do me a favor? I'll give you each a dollar if you'll promise to come around every day and do your thing." The kids were elated and continued to do a bang-up job on the trash cans.
After a few days, the old-timer greeted the kids again, but this time he had a sad smile on his face. "This recession's really putting a big dent in my income," he told them. "From now on, I'll only be able to pay you 50 cents to beat on the cans." The noisemakers were obviously displeased, but they did accept his offer and continued their afternoon ruckus. A few days later, the wily retiree approached them again as they drummed their way down the street. "Look," he said, "I haven't received my Social Security check yet, so I'm not going to be able to give you more than 25 cents. Will that be okay?"
"A lousy quarter?" the drum leader exclaimed. "If you think we're going to waste our time, beating these cans around for a quarter, you're nuts! No way, mister. We quit!"
Buy
Commercial Leads
You can buy
commercial leads from C-Loans for just $1 to $9, plus 37.5
bps. when the deal closes.
Here's the most important reason why you want to buy leads from C-Loans. Once you close five loans for us, we will list you on our Suggested Lender List as a Proven Broker. If you ever achieve this distinction, the rest of your career will be a breeze. Three or four perfect commercial leads will appear in your email box daily until you retire.
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