Mortgage Investment Opportunities for Private Investors Since 1980

Volume 2: Issue 8 | Date: September 6, 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 getting financially slapped around. We also have lots of cute, clean jokes, some funny pics, and an awesome video of some big, 'ole alligators.

 

Joke Du Jour

An old man is met by his attorney and is told he is going to be audited. He rides to the IRS office with his attorney, and when he gets there, he begins to talk with the IRS agent. "I bet $200 that I can bite my own eye!" The IRS agent agrees to the bet, believing it an impossible task. The old man laughs, pulls out his glass eye and bites it. The IRS agent is dumb-founded. The old man bets $300 he can bite his other eye. The IRS agent knows there's no way possible to do this, so he once more agrees. The old man cackles, pulls out his dentures, and bites his other eye. Then the old man finally wagers, "I bet you $2,000 that I can stand on the far side of your desk, pee over the desk, and get every single drop into your wastebasket." The agent knows he won't be able to, so once more he agrees. The old man indeed misses, peeing all over the desk and on the paperwork. The IRS agent jumps for joy, but then he notices that the attorney over in the corner is moaning. "Are you all right?" asks the agent. “No!” the attorney groans, "On the way over here, he bet me $4,000 he could pee on your desk, and you'd be happy about it!"

 

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

 

Little Braveheart

 

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

 

Cute Elephant Jokes


Q: Do you know why you never see elephants hiding up in trees?

A: Because they’re really good at it.


Q: How does the elephant get out of the tree?

A: He climbs out onto a leaf and waits until Fall.

 

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 Lesson -

China is Getting Financially Slapped Around

The press has been giving substantial coverage recently to the suffering of American farmers and American manufacturing companies because of the trade war. You should know, however, that the suffering has been far from one-sided. Financially, China is getting seriously slapped around. With the U.S. economy continuing to expand, one could even make an argument that the U.S. is “winning”. "Hey, let’s both slit our wrists and see who bleeds to death sooner.” Ha-ha!


On September 4th, Bloomberg had an excellent article on the subject:


"Donald Trump’s trade war couldn’t have been more poorly timed for the world’s second-largest economy. China’s current account surplus has plunged to near zero and is threatening to tip into a deficit. The yuan’s real effective exchange rate against a basket of trading partners is hovering near a record high, signaling the currency may have room to depreciate.”


I had forgotten the definition of a current account, so I looked it up in Investopedia: "The current account measures imports and exports of goods and services; payments to foreign holders of a country's investments and payments received from investments abroad; and transfers such as foreign aid and remittances.” In other words, China is no longer exporting immensely more stuff to the rest of the world than it is importing.


It true that their trade deficit with the U.S. soared to over $31 billion this past month, but a big reason for this is because China is rushing to ship to the U.S. lots of stuff before Trump’s 25% import duty on $267 billion worth of Chinese goods. The Chinese obviously will slap U.S. imports with an equally painful tariff, but here’s the thing: Because China exports far more to the U.S. than the U.S. exports to China, the Chinese will eventually run out of goods upon which they can levy a tariff. 


Back in March of 2018, Trump sent out his famous tweet on trade wars: "When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore - we win big. It’s easy!” Of course his tweet is a gross over-simplification and ignores the severe damage that inflation will cause, but its hard to argue with the numbers. The Chinese will eventually run out of American exports upon which they can levy a tariff.


But let’s get back to the September 4th Bloomberg article: "The twin pressures pose a challenge to China’s efforts to keep yuan volatility to a minimum and may also undermine a core economic objective: Gaining an enhanced role for the yuan as a means of international payments. The currency’s share in global transactions has fallen to just 1.8 percent from 2.8 percent three years ago. Shanghai stocks have underperformed emerging-market peers in 10 of the past 12 quarters and trade near the lowest valuations in four years.”


Translation: While the U.S. stock market continues to climb, the Chinese stock market is getting slapped around. To make matters worse, investors are moving out the yuan. Who wants to buy Chinese companies during a trade war with the U.S.? Yes, its true that the Chinese have $3 trillion in foreign reserves, but they had $4 trillion in reserves just four year ago. Ten years ago China spend around $1.3 trillion in a single year propping up the yuan.


And to make matter even worse, China has already committed $1 trillion to its Belt and Road Initiative, an ambitious plan to rebuild the old Silk Road both on land and by sea, giving them trade access to 60% of the people on Earth. If the yuan continues to decline, a “mere” $3 trillion in foreign reserves will not last forever.

 

Did You See That the First Text Was a Whale? I Confess That I Missed It At First.

 

Whino Joke

I saw a wino eating grapes. I told him, "No, you gotta wait."

 

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.

 

EpiPen Joke

I have an EpiPen. My friend gave it to me when he was dying. It seemed very important to him that I have it.

 

If You Cannot Find the Perfect 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.

 

Darn You, Auto-Correct!

 

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
 

Bad Day Joke


There was this guy sitting at a bar, just looking at his drink. He stays like that for a half hour. Then a big trouble-making truck driver steps next to him, takes the drink from the guy, and just drinks it all down. The poor man starts crying. The truck driver says, "Come on man, I was just joking. Here, I'll buy you another drink. I just can't stand to see a man cry.”


"No, it's not that," the man replies, wiping his tears, "This day has been the worst day of my life. First, I overslept, and I got in late to the office. My outraged boss fired me. When I left the building to go to my car, I found out it was stolen. The police said that there is nothing they can do. I got a cab to go home, and when I got out, I remembered that I left my wallet. The cab driver just drove away. I then went inside my house, where I found my wife in bed with the gardener. I left my home, walked to this bar, and just when I was thinking about putting an end to my life, you showed up and drank my poison.”

 

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. 

 

Double-Darn You, Auto-Correct!

 

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 - Some Big, 'Ole Gators

Holy cow, they climbed right over a fence!

 

Final Funny

There was an elderly couple who in their old age noticed that they were getting a lot more forgetful, so they decided to go to the doctor.  The doctor told them that they should start writing things down so they don't forget.  They went home and the old lady told her husband to get her a bowl of ice cream.  "You might want to write it down," she said.  The husband said, "No, I can remember that you want a bowl of ice cream."  She then told her husband she wanted a bowl of ice cream with whipped cream.  "Write it down," she told him, and again he said,  "No, no, I can remember: you want a bowl of ice cream with whipped cream."  Then the old lady said she wants a bowl of ice cream with whipped cream and a cherry on top.  "Write it down," she told her husband and again he said,  "No, I got it. You want a bowl of ice cream with whipped cream and a cherry on top."  So he goes to get the ice cream and spends an unusually long time in the kitchen, over 30 minutes.  He comes out to his wife and hands her a plate of eggs and bacon.  The old wife stares at the plate for a moment, then looks at her husband and asks, "Where's the toast?"

 

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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

Angela Vannucci

Executive Vice President

Have Questions? Email me.

 

A member of the Blackburne Family of Companies