Volume 2, Issue 6 Newsletter Date: June 1, 2018
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PRIVATE CLIENT NEWSLETTER
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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.
What happens to the value of the U.S. dollar when the politicians finally grasp that deficits no longer matter? They wouldn’t spend like crazy just to stay in power, would they? Today we have lots of cute, clean jokes, some funny pics, and a super-cool video of the largest snakes on earth. Ooooo. Creepy. Removal Instructions are below.
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Joke Du Jour
The Donald is walking out of the White House and heading toward his limo, when a possible assassin steps forward and aims a gun. A secret service agent, new on the job, shouts, "Mickey Mouse!" This startles the would-be- assassin, and he is captured. Later, the secret service agent's supervisor takes him aside and asks, "What in the heck made you shout Mickey Mouse?” Blushing, the agent replies, "I got nervous. I meant to shout, "Donald, duck!"
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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.
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She's Gorgeous But... (Read her shirt carefully)
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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 $3.5 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 (Loan Goddess): 916-338-3232 Ext. 310
BRE #1430908 // NMLS #389678
To apply to Alicia online, please click here.
George Blackburne IV: 916-338-3232 Ext. 314
BRE #1873244 // NMLS #382122
To apply to George IV online, please click here.
Tom Blackburne: 574-210-6686
BRE #1919403 // NMLS #1014118
To apply to Tom online, please click here.
Michael Young: 916-338-3232 Ext. 312
BRE #2012847 // NMLS #1535540
To apply to Mike online, please click here.
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Trailer Park Joke
Q: What do you call a trailer park in a tornado?
A: Wind chimes.
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Today's Observation: When It Comes To Fiscal Deficits, We Have Broken the Seal
After my sons had reached their mid-twenties (they’re now in their early thirties and owe me more grandchildren), we would occasionally go out and have a few beers together after work. Being old, I would try to sneak to the bathroom to take a pee, but my sons would stop me. “Dad, you can’t break the seal. If you’re drinking beer, the moment you take that first pee, you are doomed to peeing every ten minutes. This is something that you learn in college. Don’t break the seal.”
With this latest tax cut and with trillion-dollar annual deficits projected far into the future, I fear the America has “broken the seal”. Deficits no longer seem to matter. Other than the potential for the destruction of the dollar, deficits arguably don’t matter going forward. The Fed can just buy up any unsold Treasuries. “Hey Melvin, we’ll need another two trillion dollars for next week’s Treasury auction. Just add the appropriate zeroes to the Fed’s account, okay?”
Other than the potential for the destruction of the dollar… aye, there’s the rub.
I like to bet on gravity. If you hold out a brick and drop it, I’ll bet you that its falls to the ground. I’ll also bet you that politicians (in this case Trump, but all politicians love power) will spend like crazy to stay in power. I could easily see the deficits getting larger and larger, until finally the world will lose confidence in the dollar. The dollar’s purchasing power will collapse, and inflation will go ballistic. Let’s call that moment - the instant that the investing world loses confidence in the dollar - The Hyper-Inflationary Moment.
Now we won’t go directly to this Hyper-Inflationary Moment. The Fed will make its courageous stand, when it raises the Federal Funds Rate to 25% or more; but interest rates at this level would (will) devastate the economy. The Fed was created by Congress, and it can be eliminated by Congress.
I have taken you down this imaginary path for a reason. I can’t help but think that if your family is not heavily invested in real estate at the Hyper-Inflationary Moment, they may never be able to afford it again. After all, at that moment, who would want to trade valuable real estate for a currency that is plunging in value.
But you can’t just go out now and buy up lots of real estate using tons of leverage because you have to first survive the Fed’s Last Stand - when the Fed tries to rein in runaway inflation. As I think about the future, I could see countless properties coming back in foreclosure when interest rates climb over 20%. I was in the lending business when Volcker broke the back of inflation. It was a horrible time.
In the old days, I was called Chicken Little for my relentless warnings about deflation. I even wrote a book about it, The Reverse Multiplier Effect, and that book is still available on Amazon. This fear of inflation is new to me. I am almost certainly early, just was I early for the Great Recession; but Blackburne & Sons and our investors survived the deflationary collapse of 2008 because we had prepared our investors years ahead of time. I just can’t help but think that if your family is not heavily invested in real estate at the Hyper-Inflationary Moment, they may never be able to afford it again.
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Memorial Day Joke
In honor of Memorial Day, the teacher I worked with read the Constitution to her third-grade class. After reading "We the people," she paused to ask the children what they thought that meant. One boy raised his hand and asked, "Is that like 'We da' bomb?'"
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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.
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Baby Daddy Joke
"Will the father be present during the birth?" the obstetrician asked solicitously. "Nah," replied the mother-to-be. "He and my husband don't get along.”
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Invest in 7% to 12% First Mortgages
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. Click here for more information.
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Froot Loops Joke
"Froot Loops cereal has added a new flavor, Wild Berry. People who tried the new flavor say it tastes like 'wild berries, plus sugar, minus wild berries.'” — Conan O'Brien
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If You Cannot Find the Perfect Commercial Lender on C-Loans, Then Try Our Second 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.
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Hey, I Resemble That Remark
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Death Penalty Joke
"A federal judge ruled yesterday that California's version of the death penalty is unconstitutional. Apparently the difference is California's version has avocado on it.” — Seth Meyers
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Goodwill Joke
My wife has been missing a week now. The police said to prepare for the worst, so I had to go back down to Goodwill to get all of her clothes back.
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Invest in 7% to 12% First Mortgages
I strongly urge you to get on our email list of private mortgage investors. We sell exclusively by email, and we have been selling such investments for almost 40 years. Click here for more information.
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Coffee Shop Joke
A new celebrity restaurant chain is opening up nationwide. It is a partnership between Kareem Abdul Jabarr, Ryan Coffee, and Sugar Ray Leonard. They're going to call it: "Coffee, with Kareem and Sugar."
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Here is 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 37 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.
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Orange Joke
Q: What's orange and sounds like a parrot?
A: A carrot!
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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 IV: 916-338-3232 Ext. 314
BRE #1873244 // NMLS #382122
To apply to George IV online, please click here.
Alicia Gandy (Loan Goddess): 916-338-3232 Ext. 310
BRE #1430908 // NMLS #389678
To apply to Alicia online, please click here.
Tom Blackburne: 574-210-6686
BRE #1919403 // NMLS #1014118
To apply to Tom online, please click here.
Michael Young: 916-338-3232 Ext. 312
BRE #2012847 // NMLS #1535540
To apply to Mike online, please click here.
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Final Funny
Dear Dad,
It is with great regret and sorrow that I'm writing you. I had to elope with my new girlfriend because I wanted to avoid a scene with Mom and you.
I've been finding real passion with Stacy. She is so nice, but I knew you would not approve of her because of all her piercing's, tattoos, her tight motorcycle clothes and because she is so much older than I am. But it's not only the passion, Dad. She's pregnant.
Stacy said that we will be very happy. She owns a trailer in the woods and has a stack of firewood for the whole winter. We share a dream of having many more children.
Stacy has opened my eyes to the fact that marijuana doesn't really hurt anyone. We'll be growing it for ourselves and trading it with the other people in the commune for all the cocaine and ecstasy we want. In the meantime, we'll pray that science will find a cure for AIDS so that Stacy can get better. She sure deserves it!
Don't worry dad, I'm fifteen-years-old, and I know how to take care of myself. Someday, I'm sure we'll be back to visit so you can get to know your many grandchildren.
Love, Your Son,
Joshua.
P.S. Dad, none of the above is true. I'm over at Jason's house. I just wanted to remind you that there are worse things in life than the report card that's on the kitchen table. Call when it is safe for me to come home!
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Read the C-Loans Blog
Pick up lots of great commercial brokerage practice tips for free.
Click here and bookmark it.
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C-Loans.com® is sponsored by C-Loans, Inc. For more information, contact Tom Blackburne
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841
Telephone: (574) 210-6686 | Fax: (916) 338-2328
Real Estate Broker -- California Bureau of Real Estate -- License Number 829677 NMLS #103430
Loans made under the California Finance Lenders Law.
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