Mortgage Investment Opportunities for Private Investors Since 1980

Volume 2: Issue 9 | Date: October 29, 2018

PRIVATE CLIENT NEWSLETTER


You are receiving this letter because you are either a high-net-worth client of Blackburne & Sons Realty Capital Corporation (since 1980) or you once applied for a commercial real estate loan of $1 million or more using C-Loans.com or CommercialMortgage.com. Blackburne & Sons and C-Loans, Inc. are sister companies.


Today we’ll discuss how China is challenging the U.S. with a new economic system called, “Authoritarian Capitalism”. Today we have lots of cute, clean jokes, some funny pics, and a short but hilarious video of a cat chasing a ball. Total nutcase. Removal Instructions are below.

 

Joke Du Jour

Two mice meet and start chatting. “Look,” says one after a while, “I’ve got a new boyfriend!” She shows a picture on her mobile phone to her girlfriend. “OMG,” cries the other mouse, “that’s a bat!” “What?!” replies the first mouse. "The guy told me he was a pilot!”

 

You Are Now a Private Client of Blackburne & Sons

Please be sure to tell us when you call. "George asked me to mention that I am a Private Client of the firm.” My loan officers are trained to snap to attention. Our commercial mortgage office number is 916-338-3232.  Alternatively, you can apply for a commercial real estate loan or a non-owner-occuried home loan by clicking here

 

I Said I was Sorry...

 

Want to Speak With a Loan Officer From Blackburne & Sons?

Blackburne & Sons, our private money commercial lending company, continues to seek slightly-flawed first mortgages between $100,000 to $1.5 million on standing commercial properties nationwide.

To apply for a private money commercial loan from Blackburne & Sons, please find your favorite loan officer below:

Alicia Gandy

(916) 338-3232

Ext. 310

NMLS #389678

CA DRE #01430908

George Blackburne

(916) 338-3232

Ext. 314

NMLS #382122

CA DRE #01873244

Tom Blackburne

(916) 338-3232

Ext. 317

NMLS #1014118

CA DRE #01919403

Michael Young

(916) 338-3232

Ext. 312

NMLS #1535540

CA DRE #02012847

 

Ten Miles Joke

When I was a kid, we walked 10 miles to school every day, sometimes in the rain or snow. Man, did we feel stupid when we found out there was a bus.

 

Earn Up to 12% Interest in Your IRA or Your Kid’s College Fund

video

You probably have money set aside for your retirement and for the cost of college for your children and grandchildren. It shouldn't all be invested in the stock market. In California, the first trust deed investment business is huge. A recent law change - the JOBS Act - now allows accredited investors nationwide to also invest in these same first trust deeds and first mortgages. Please click here to receive investment offerings.

 

- Today's Observation -

CHINA'S AUTHORITARIAN CAPITALISM


"China is already challenging the US for technological and geopolitical primacy and flaunting its authoritarian capitalism as an alternative to democracy. Communism couldn’t pose a credible challenge to liberal democracy, but authoritarian capitalism might. In that sense, China’s model represents the first major challenge to liberal democracy since the rise of Nazism.” — Brahma Chellaney, Project Syndicate


Authoritarian capitalism is characterized by the enforcement or advocacy of strict obedience to the authority of the state at the expense of personal freedom, coupled with an economic system in which trade and industry are controlled by private owners for profit, rather than by the state.


Authoritarian capitalism has been tried at least three times in the modern era, and each time it has worked pretty well, for awhile at least. Is authoritarian capitalism, in fact, better than liberal democracy?


By 1922, the Russian Civil War (1918-1922) had reduced the economy of Soviet Russia to tatters. Vladimir Lenin therefore implemented the New Economic Policy (“NEP”) as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, both subject to state control", while socialized state enterprises would operate on "a profit basis". 


The NEP represented a more market-oriented economic policy to foster the economy of the country, which had suffered severely since 1914. The Soviet authorities partially revoked the complete nationalization of industry (established during the period of War Communism of 1918 to 1921) and introduced a system of mixed economy which allowed private individuals to own small enterprises, while the state continued to control banks, foreign trade, and large industries. In addition, the NEP abolished forced grain-requisition and instead introduced a tax on farmers, payable in the form of raw agricultural product.


The result? The Russian economy rebounded strongly. Food production, for example, soared because Russian farmers were now allowed to sell some of their production for cash and thereby had an incentive to produce more. Unfortunately for the Russian people, Lenin died in 1924, and Joseph Stalin discontinued the program in 1928.


In 1932, in the dying days of the Weimar Republic in Germany, 5.6 million Germans were unemployed – many of whom gave their support to the Nazi Party as the only party that offered them hope. By 1934, this unemployment figure had fallen to 2.7 million – a seemingly impossible decrease. By 1936, only 1.6 million people were unemployed, and by 1938 the figure was 0.4 million. Therefore in five years, unemployment had fallen by 5.4 million – 96%. No other west European country came anywhere near this figure – hence it was labelled the “German economic miracle".


In 1990 the GDP of China was just $360 billion. By 2017, the Chinese GDP had skyrocketed to $12.24 trillion - that's trillion with a "T". A reasonable man might ask, "Is authoritarian capitalism a better economic system than social democracy?" Well, we can reasonably say that its a heck of a lot better than pure communism.


We'll never know how well Lenin's New Economic Policy would have performed in the long run because Joseph Stalin terminated the policy in 1928. The kulaks were the high-income farmers of Russia. In 1929 Stalin ordered the elimination of the kulaks as a class, and 1.3 million kulaks were deported, starved to death, and murdered. This kind of casts a pall over the term, "authoritarian".

 

I Can Explain, Honey

 

Need a Commercial Real Estate Loan?

C-Loans.com is a commercial mortgage portal. It will take you just four minutes to complete your mini-app. Then C-Loans will sort through its databank of 750 commercial lenders and produce for you a custom-generated Suggested Lender List containing twenty to thirty lenders who are perfect for your particular deal. You put a check mark next to six lenders and then press, "Submit." Within minutes hungry commercial lenders will be contacting you with offers.

 

Monster Joke

Two monsters went to a Halloween party. Suddenly one said to the other, "A lady just rolled her eyes at me. What should I do?” The other monster replied, "Be a gentleman and roll them back to her."

 

If You Cannot Find a Lender on C-Loans, Then Try Our 2nd Portal


We actually own another commercial mortgage portal, CommercialMortgage.com ("CMDC"). I paid $100,000 just for that domain name. Ouch. Actually it was very worth it. Anyway, CMDC is a much easier and faster commercial mortgage portal than C-Loans. In addition, CMDC enjoys over 3,000 different commercial lenders.


So why shouldn't you just always use CommercialMortgage.com? Unlike CMDC, C-Loans.com actually allows you to submit your commercial loan to dozens and dozens of commercial lenders, six lenders at a time. But if C-Loans doesn't produce just the right lender, then you should move on to CommercialMortgage.com. And best of all, both our our commercial mortgage portals are 100% free.

 

Look at the New Fish

 

Don’t Be Afraid of 7% to 12% First Trust Deeds. We Have Been Selling Them For Almost 40 Years

Blackburne & Sons Realty Capital Corporation was founded way back in 1980. George Blackburne III is an attorney, licensed in both California and Indiana. If you can net 9% interest, you can almost live off your interest (assuming you have a reasonable amount of capital). Important note: If you reside outside of California, you must be an accredited investor. Please click here to receive investment offerings.

video
 

Weather Girl Joke


The weather girl reports, “…. and because of the cold front coming in from Northeast, we can expect about three-inches of snow, or as my colleague, Bill, would say, eight-inches.” 

 

Here's Why You Want to Stay Close to Blackburne & Sons


Founded in 1980, Blackburne & Sons is an old-time syndicator. There are very few of us left. The Tax Reform Act of 1986 pretty much nuked the whole syndication industry off the face of the Earth. Because you know a syndicator, you now have access to some special money.



If you need a fix and flip loan, a buy-to-rent loan, a bridge loan, or even a permanent loan on, say, your single-wide trailer park in Georgia, we'll make you a private money loan. We've been syndicating hard money loans for 38 years.


If you have some dough set aside for your kid's college, and you want to be extra careful with it, we'll put you into a first trust deed investment (6% to 9% yields) on, say, a nice 8-unit apartment building in San Jose, California.


Let's suppose you are richer than Crassus, and you want to speculate in 11% and 12% first trust deeds. We've got them.


Do you find yields of even 11% to 12% too tame? Want a chance to earn 16% or 17%? We put together syndicates to make preferred equity investments.


Are you a wise investor? We put together syndicates to buy investment properties for all cash. (This strategy has my strongest recommendation.) Because you would own the property free and clear, you should be able to weather just about any recession. Right now we are buying industrial buildings close to downtowns in big California cities.


We have not yet raised equity capital for a developer, but if someone brought us a development deal on a small, multi-tenant industrial building located within a mile of downtown of a large California city, we would definitely take a look at it.


Do you own any first mortgage notes? Want to sell a note at a discount? Better yet, why not simply borrow against it? This is called a hypothecation, and we do 'em.


Please be very wise and play close attention to the following:

 

Because every loan we make is a new syndicate (as opposed to a fund investment), Blackburne & Sons is always in the market.


When the stock market has fallen by 40%, when real estate values are falling like a knife, and when your own bank is too terrified to lend you a dime, Blackburne & Sons always has a group of savvy investors willing to lend - admittedly at a price - when blood is running in the streets. We are one of a tiny handful of lenders who remained in the market, making loans, every single day of the Great Recession.


So stick close to us. Syndicators are pretty rare, and now you know one. 

 

And Stop Pinching My Buns!

 

- Continued -

CHINA'S AUTHORITARIAN CAPITALISM


The German economic miracle was not quite what it seemed either. First of all, between 1933 and 1939, a series of laws were passed that effectively made it impossible for Jews to hold a job in Germany. As Jews fled Germany, they left behind jobs that were eventually filled by the unemployed.


Women were also excluded by the Nazi's from many areas of work, creating more job opportunities for men. Aryan women were expected to stay home and make babies.


While many millions of more Germans men found jobs, their average rate of pay in the middle 1930's was considerably less than before the 1929 Stock Market Crash. Staying home unemployed was not an option either. If you chose not to accept a low-paying, manual labor job on the autobahns, you risked being labeled as "work shy" and sent away to a concentration camp.


Lastly, and most importantly, Germany was rearming. In 1933, Germany spent just 3% of their GDP on defense. By 1939, 32% of Germany's GDP was spent on their military build-up, and 22% of all German workers were employed in some form of defense work or steel production.


In the past thirty years, the Chinese Communist Party has made a concerted effort to interfere as little as possible with the growth of capitalism in China. During the Cultural Revolution, which lasted from 1966 to 1976, however, the opposite was true.


The Cultural Revolution was launched in May 1966, after Mao alleged that bourgeois elements had infiltrated the government and society at large, aiming to restore capitalism. To eliminate his rivals within the Communist Party of China, Mao insisted that these "revisionists" be removed through violent class struggle.


China's youth responded to Mao's appeal by forming Red Guard groups around the country. The movement spread into the military, urban workers, and the Communist Party leadership itself. It resulted in widespread factional struggles in all walks of life. There was a mass purge of senior officials.


In the violent struggles that ensued across the country, millions of people were persecuted and suffered a wide range of abuses, including public humiliation, arbitrary imprisonment, torture, hard labor, sustained harassment, seizure of property and sometimes execution. A large segment of the population was forcibly displaced, most notably the transfer of urban youth to rural regions.


Mao officially declared the Cultural Revolution to have ended in 1969, but its active phase lasted until the death of military leader and proposed Mao successor, Lin Biao, in 1971. After Mao's death and the arrest of the Gang of Four in 1976, reformers led by Deng Xiaoping gradually began to dismantle the Maoist policies associated with the Cultural Revolution. In 1981, the Party declared that the Cultural Revolution was "responsible for the most severe setback and the heaviest losses suffered by the Party, the country, and the people since the founding of the People's Republic". (Source: Wikipedia)


Bottom line: The "capitalism" part of the term, "authoritarian capitalism", seems to work very well. Its the "authoritarian" part that seems to always spoil the party - in a very bloody way.

 

Beer Joke


Q:  What’s the proper plural of beer?

A:  Sixpack.

 

Sweet Apartment Loan Program for "A" Deals


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

(916) 338-3232

Ext. 314

NMLS #382122

CA DRE #01873244

Alicia Gandy

(916) 338-3232

Ext. 310

NMLS #389678

CA DRE #01430908

Tom Blackburne

(916) 338-3232

Ext. 317

NMLS #1014118

CA DRE #01919403

Michael Young

(916) 338-3232

Ext. 312

NMLS #1535540

CA DRE #02012847

 

Video - Just Four Seconds Long

Total Nutcase.

 

Final Funny


A four-year-old girl had to have an x-ray taken at the medical office where I worked. She had been in an accident with her bicycle and the doctor was afraid she may have broken her wrist. The girl, however, was very concerned about the procedure, and no matter how her mother tried to calm her, she kept putting up quite a fuss as we led her into the x-ray facility.


When she came out a few minutes later, however, she was calm and all smiles. "They just took a picture of my bones,” she explained to her mother. "Yes, dear," her mom replied. "I told you it was easy. Did everything go well?” "Yup. It was great!" the child exclaimed. "I didn't even have to take my skin off or anything!"

 

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BLACKBURNE & SONS

Realty Capital Corporation

4811 Chippendale Drive

Suite 101

Sacramento, CA 95841

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

CA DRE #829677 // NMLS #103430

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Angela Vannucci

Executive Vice President

Have Questions? Email me.

 

A member of the Blackburne Family of Companies