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PRIVATE CLIENT NEWSLETTER

Volume 3: Issue 2 | Date: February 6, 2019

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 talk about an S&P 500 index fund that it not overweighted in FAANG stocks. We also have an equity investment offering scheduled to yield 25.4%. Finally we have lots of cute, clean jokes, some funny pics, and a hilarious video of a stand-up comedian using misheard song lyrics. You’ll be rolling on the floor.

Joke Du Jour

My dad showed me a 30-minute PowerPoint presentation on why one should always wear a condom during (pre-marital relations). All the slides were just pictures of me.

You Are Now a Private Client of Blackburne & Sons

Very Reasonable Investment Scheduled to Yield 25.4% Annually

Property Investment Bulletin

Purchasing Power Joke

I remember when I was a kid, I could go to the store with $1 and come home with 3 bags of chips, 2 candy bars, a Twinkie, and an ice cold drink. Nowadays, they've got cameras everywhere.

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:

Driver's Test Joke

I failed my driving test today. I was driving down a country road with the examiner, when a rabbit ran out right in front of the car. I remembered my instructor had said you should never swerve or try to avoid an animal because it's dangerous, and you could end up causing a more serious accident. You should always just hit it and keep on driving.  Had to chase that little bugger for miles across the fields before I finally got it! 

No cute little bunnies were hurt in the making of this joke.

- TODAY'S OBSERVATIONS -

Finally an S&P 500 Index Fund

That is NOT Overweighted in FAANG Stocks

In my last three Private Client Letters, I have attempted to explain why and how the FAANG stocks got so seriously overvalued. After soaring to extreme highs in the early 1970’s, the Nifty Fifty stocks under-performed the rest of the stock market for almost a decade. I suspect that FAANG stocks will follow this pattern.

You may recall that back on November 4, 2018, weeks before the painful stock market rout, I urged you to get totally out of FAANG stocks and most S&P 500 Index funds. Yes, the FAANG stocks have rallied strongly off their December lows, but even a cat will bounce if it is dropped from a high-enough building. This well-known phenomena is known as a Dead Cat Bounce*.

* Cisca and I love-love-love cats. We have four of them.

I look for the FAANG stocks to resume their downward spiral once a positive trade deal is cut with the Chinese. Why should you sell your FAANG stocks, if you haven’t sold them already, just when a wonderful trade deal is negotiated? Remember the old adage, “Buy the rumor, sell the news.” By the time a positive trade deal is announced, news of its progress will have already have leaked out. Stock prices will have already priced in the good news. I therefore urge you one more time to get totally out of all of your FAANG stocks and most of your S&P 500 Index funds.

But what if you are bullish on stocks in the long run? Why would you have to get totally out of the stock market? It's impossible to time the big rallies that often provide much of the year’s advance, so you may understandably be loath to sell all of your index funds.

I have a recommendation. There is a low-cost S&P 500 Index Fund that is NOT over-weighted in FAANG stocks. Its called the Invesco S&P 500 Equal Weight ETF. Instead of allocating each new investment dollar according to the market capitalization of each stock, as a percentage of the total market capitalization of the S&P 500, this equal weight fund simply invests an equal dollar amount in every stock in the S&P 500 index. 

If the FAANG stocks slowly return to reasonable valuations, this equal weight fund should outperform the normal S&P 500 Index funds over the next few years. 

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

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.

Labor Joke

A woman in labor suddenly shouted, “Shouldn’t! Wouldn’t! Couldn’t! Didn’t! Can’t!” “Don’t worry,” said the doctor, “Those are just contractions.”

Need a Commercial Real Estate Loan?

Brain Surgeon

C O M M E R C I A L M O R T G A G E . C O M

Even More Commercial Lenders

We actually own another commercial mortgage portal, CommercialMortgage.com ("CMDC"). 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.

French Joke

When I was a kid, my parents would always say, "Excuse my French”, after a swear word… I'll never forget that first day at school when the teacher asked did we know any French.

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.

Kids, You're Driving Me Nuts! Go Play Outside.

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, on 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 (8% to 12% 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 25%? We put together syndicates to provide developers with construction equity:

Roseburg Marriott Fairfield Inn Investment Bulletin

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. 

Video - OMGoodness, So Funny!

Final Funny

A woman tells her friend she is getting married for the fourth time.  "How wonderful!  I hope you don't mind me asking, what happened to your first husband?”  "He ate poisonous mushrooms and died.”  "Oh, how tragic! What about your second husband?”  "He also ate poisonous mushrooms and died.”  "Oh, how terrible! I'm almost afraid to ask you about your third husband.”  "He died of a broken neck.”  "A broken neck?”  "He wouldn't eat the mushrooms."

A member of the Blackburne Family of Companies