|
|
Mortgage Investment Opportunities for Private Investors Since 1980
|
|
|
|
PRIVATE CLIENT NEWSLETTER
|
Volume 3: Issue 10 | Date: October 17, 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 discuss why interest rates keep falling. It’s NOT because of the Fed. We also have lots of cute, clean jokes, some funny pics, and a cute video of a dog being a drama queen. Make sure you catch my Final Funny at the very bottom.
|
Joke Du Jour
The psychiatrist was interviewing a first-time patient. "You say you're here," he inquired, "because your family is worried about your taste in socks?” "That's correct," muttered the patient. "I like wool socks.” "But that's perfectly normal," replied the doctor. "Many people prefer wool socks to those made from cotton or acrylic. In fact, I myself like wool socks.” "You DO?" exclaimed the man. "With oil and vinegar or just a squeeze of lemon?”
|
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-occupied home loan:
Click HERE to apply for a loan
|
|
|
|
Community Joke
Q: Why do communists only write in lower-case letters?
A: Because they hate capitalism.
|
Earn Up to 12% Interest in Your IRA or Your Kid’s College Fund
It is important that you please grasp the concept that you could be borrowing from Blackburne & Sons against some rental or commercial property at the very same time that you are using your IRA to invest $30,000 in one of our first trust deed investments. Many of our biggest trust deed investors first came to us twenty years ago as commercial property borrowers.
|
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.
|
Pronunciation Joke
Two tourists were driving through Louisiana. As they were approaching Natchitoches, they started arguing about the pronunciation of the town. They argued back and forth until they stopped for lunch. As they stood at the counter, one tourist asked the "blonde" employee: "Before we order, could you please settle an argument for us? Would you please pronounce where we are at... VERY SLOWLY?" The blonde girl leaned over the counter and said... "Burrrrrrrr, Gerrrrrrr, Kiiiiing"
|
Very Reasonable Investment Scheduled to Yield 26% Annually
As you consider this investment scheduled to yield 26%, please keep in mind that Blackburne & Sons has been in business for almost forty years, and that I am an attorney licensed in both California and Indiana. This is a real life deal, and I personally believe that this is the best investment we have ever offered in our 39 years in business (established 1980). Why? Because this developer has built sixty hotels. Sixty! Is this a risk-free investment? Of course not, but he probably got pretty good at building hotels after his third completed hotel.
Property Investment Bulletin
|
|
|
|
Chameleon Joke
Did you hear about the older chameleon who could no longer change color? The poor guy developed reptile dysfunction.
|
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 click on your favorite loan officer below to send them an email:
|
Math Exam Joke
If I got 50 cents for every failed math exam, I'd have $6.30 now.
|
- Today's Observations -
Why Interest Rates Keep Falling -
It's NOT the Fed
There are more than $16 trillion in Japanese and European bonds now selling at a negative yield. Can you imagine loaning $1,000,000 to the German Federal government, receiving no interest payments for ten years, and then only getting $970,000 back at the end? It seems unimaginable.
|
|
|
Interest rates in the United States resumed their downward march this week, and I predict that Treasury bond yields will eventually go negative.
You might think that the reason why interest rates are falling is because of the Fed. You're on the right track, but the central bank that is really stirring the pot is the European Central Bank ("ECB"). The population of Europe is old, and it is shrinking. Most countries in Europe are desperate for workers, and Sweden, Germany, and Norway are actively recruiting them.
Because the counties of Europe are withering, at least in terms of reproduction, the ECB must constantly inject fresh Euros into the EU economy; otherwise, the European money supply would contract like a black hole. Without Central Bank intervention, the money supply in Europe could easily shrink by 40% in less than six months. We saw this happen in 2008, at the beginning of the Great Recession.
In order to prevent the entire money supply of Europe from contracting into a black hole (the multiplier effect working in reverse), the ECB has been forced to constantly inject new Euros into the European economy. Many of these Euros end up in the hands of old gomers like me, and we hoard our savings because we are close to retirement.
Now old gomers are not going to keep one million Euros stuffed under their mattresses, so they take their cash down down to the bank and try to deposit it. "No, thank you," says the bank. "We have more than enough deposits right now. We don't have any place to invest them."
In fact, there are so many banks bidding to own German, Danish, Dutch, and Swedish treasury bonds, they have bid up the prices of the bonds so high that the yields are negative - say, a negative yield of 0.15% annually.
Now back to our desperate old gomers. "You simply must take my cash, Mr. Banker. If bad guys learn that I am keeping one million Euros under my mattress, they will break in and kill me!" So the banker says to the depositor, "Okay, we'll accept your deposits; but we are going to charge you a negative yield of 0.5% per year." In other words, the old gomer is paying the bank one-half percent per year to hold his cash.
Then the banker invests in bonds with a negative yield of just 0.15%, and the bank profits off the 35 basis-point difference. A basis point is 1/100th of one percent.
European investors are going to keep buying U.S. Treasuries because our yields are positive. This will keep driving down U.S. interest rates for the foreseeable future. Sure, we'll have some periods when interest rates will spike back upwards; but the long-term trend for interest rates is still downward.
|
|
|
|
Fire Hydrant Joke
A fire hydrant has H-2-O on the inside and K-9-P on the outside.
|
|
|
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.
Apply Now!
|
|
|
|
Thesaurus Joke
I own the world's worst thesaurus. Not only is it awful, it's awful.
|
|
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
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.
|
Semi-Colon Joke
Did you hear about the semi-colon that broke the law? He was given two consecutive sentences.
|
|
Quickly Find 30 Commercial Lenders For Your Deal
|
Stolen Office Joke
To whoever stole my copy of Microsoft Office, I will find you. You have my Word!
|
Apply to Blackburne & Sons For a (Very Soft) Hard Money Loan
Here is a scenario that might tickle you. You could have $100,000 from your self-directed IRA spread out among four or five first trust deeds from Blackburne & Sons, and at the very same time you could be borrowing $250,000 from Blackburne & Sons on an apartment building that you are fixing up in Boston. Not every hard money lender is the same. Our loans have a 30-year amortization (almost interest-only), a 15-year term, and no prepayment penalty. You never want to have a hard money loan ballooning during a recession.
Apply for a commercial loan or business-purpose home loan from Blackburne & Sons.
|
Man Cave Joke
Definition of a Man Cave: A room you're renting in your wife's house.
|
|
|
FREE Commercial Real Estate Finance Training
From an Industry Veteran And Attorney
The C-Loans Blog: info.c-loans.com
Every week we publish one or two new blog articles that train commercial brokers in commercial real estate finance. We try to have fun with it, including lots of funny pics. If you want access to this FREE training, subscribe to George's blog by clicking the button below.
|
|
|
|
|
Video - A Drama Queen (Make sure your volume is on)
|
Final Funny (PG-13)
Two guys grow up together, but after college, one moves to Michigan and the other to Florida. They agree to meet every ten years in Vero Beach to play golf. At age 30, they finish their round of golf and go to lunch. "Where you wanna go?” "Hooters.” "Why?” "Well, you know, they got the broads, with the big racks, and the tight shorts, and the legs …" "OK."
Ten years later, at age 40, they meet and play again. "Where you wanna go?” “Hooters.” "Why?” "Well, you know, they got cold beer and the big screen TVs and everybody has a little action on the games.” "OK."
Ten years later, at age 50, they meet and play again. "Where you wanna go?” "Hooters.” "Why?” "The food is pretty good, and there is plenty of parking.” "OK."
At age 60, they meet and play again. "Where you wanna go?” "Hooters.” "Why?” "Wings are half price.” "OK"
At age 70, they meet and play again. "Where you wanna go?” "Hooters.” "Why?” "They have six handicapped spaces right by the door.” "OK."
At age 80, they meet and play again. "Where you wanna go?” "Hooters.” "Why?” "We've never been there before."
|
|
|
ANGELA VANNUCCI
Executive Vice President
CA DRE #1425852 / NMLS #389465
BLACKBURNE & SONS
Realty Capital Corporation
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
P: (916) 338-3232
F: (916) 338-2328
CA DRE #00829677 / NMLS #103430
|
|
|
|
|
|
|
|
|
|
A member of the Blackburne Family of Companies
|
|
|
|
|
|
