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Mortgage Investment Opportunities for Private Investors Since 1980


Volume 3: Issue 12 | Date: December 3, 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 a long economic bust will probably not follow this long, wonderful expansion. We also have lots of cute, clean jokes, some funny pics, and a great video of some hilarious sea creatures. You will be belly-laughing.


Joke Du Jour

Texas makes me think of the old slogan, "Remember the Alamo.” It seems that during that battle, the guy in charge of the whole thing put his wife, of all people, on the battle line. She was shot by the enemy, suffered a shattered patella, and had to be removed from the front line. After the fighting was over, she divorced her husband and sued for Alamo-knee.


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.


Food Name Joke

My wife and I run a small restaurant where we often name our specials after our employees, dishes like “Sally's Chicken” after our maitre’ d who gave us the recipe, and “Rod’s Ribs” after a waiter who had his personal style of barbecue. One evening after re-reading the menu, I broke with this tradition and changed the description of the special we had named after our chef. Despite her skills and excellent reputation, somehow I didn’t think an entrée named “Salmon Ella” would go over big with our customers. 


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.


Past and Present Joke

Forget about the past, you can’t change it. 

Forget about the future, you can’t predict it. 

Forget about the present, I didn’t get you one.


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.


Apple Pin Joke

While visiting a friend who was in the hospital, I noticed several of the attractive nurses wore apple-shaped pins. I asked one of the nurses the significance of the pins. She said, "Oh, these are to keep the doctors away…"


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:


War Story Joke

Some men were swapping stories about their war experiences. One fellow, who had been in the Foreign Legion, was saying, "There we were. It was night. The odds were 1,000 to 3. We didn't know what to do.”  “Oh, my goodness! What did you do?" another asked. "When morning came, we charged and got all three of them!”


- Today's Observations -

Why the Coming Recession Probably Won't Be Horrible

According to an important Bloomberg article published this month, the economic boom currently being enjoyed in America will probably not result in an extra big bust, according to the work done by the Nobel-prize-winning economist, Milton Friedman.

You may recall that Milton Friedman was a famous economics professor at the University of Chicago from 1947 to 1977. Friedman was the foremost proponent of the Monetarist School of Economics, and once famously said, "Inflation is always and everywhere a monetary phenomenon…" 

In 1964, Milton Friedman developed an economic hypothesis called The Plucking Model. The Plucking Model holds that the economy is like a string on a guitar - recessions are negative events that pull the string down. Afterwards, the economy bounces back. But here's the thing: When you pluck down on a guitar string, it only snaps back to its original position. It doesn't go careening to the other side of the neck.

Just as a string snaps back faster if you pull it harder, the Plucking Model holds that the deeper the recession, the faster the recovery that follows; but you can only pluck the economy in one direction. Bigger expansions don’t lead to bigger recessions!

Okay, but is The Plucking Model true? "Friedman proposed the idea in 1964 and argued that if he was right, future recessions would show a correlation between the depth of the bust and the speed of the recovery that followed. He then waited 20 years to see if his predictions were borne out. In 1993, he looked at the business cycles that had happened in the intervening years, and he concluded that he'd been right."

"Since then, others have found more evidence to support the plucking idea. A 2005 paper by economist Tara Sinclair used advanced statistical techniques to confirm that, in the United States, bigger recessions are followed by faster recoveries — but not the other way around.” If you pull that guitar string really far - bam - it snaps back blazingly fast; but bigger recoveries don't produce faster recessions. In other words, when a big expansion starts to end, an economy doesn't instantly plunge in a deep, dark recession.

After the Great Recession of 2007-2009, researchers looked at European countries and concluded that those that had it worse in the downturn ended up bouncing back faster. In other words, those European countries which saw their GDP's fall the furthest were among the first to recover. 

But there was no correlation between how well a country did before 2007 and how much it suffered afterward. In other words, those countries which enjoyed the biggest increases in GDP did NOT suffer worse than the countries which fared only so-so in the preceding expansion. All this evidence implies that recessions cause recoveries, but that booms don't cause busts.

But why does this happen? The answer is that it's easy to give people raises, but it's hard to make them swallow pay cuts. In good times, growth simply feeds into higher wages (as well as higher profits). But when a recession or some other negative shock comes along that hurts corporate earnings, employers might like to cut wages, but they can’t. Instead, they lay off workers. The more workers who get laid off, the bigger a pool of unused labor there is, so the faster the economy can grow once the recovery takes hold.


Locket Joke

I turned 18-years-old today, so I bought a locket and put my own picture in it. I am now truly independent.


Need a Commercial Real Estate Loan?

Apply Now!

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.


Chicken and Egg Joke

I ordered a chicken and an egg on Amazon. I’ll let you know.


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:

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.


Epidural Joke

My niece, pregnant with her second child, was certain she wanted an epidural for pain management during childbirth. Her doctor asked her at which stage of labor she wanted the epidural administered. Her response? "Just meet me in the parking lot!"


Quickly Find 30 Commercial Lenders For Your Deal

CommercialMortgage.com has thousands and thousands of commercial real estate lenders. Ever wonder where we get them? 

We have a standing trade offer where we will trade a copy of my famous 9-hour video training course, Learn to Broker Commercial Loans ($549), for a list of 20 commercial real estate loan officers working for banks and credit unions. As a result, the list of commercial lenders on CommercialMortgage.com is constantly growing.

If you find a lender who has left the bank, please find out his replacement (we’ll need his address, phone, and email), please write to Tom Blackburne at tommy@blackburne.com, and he’ll send you a choice of TWO of the following: (1) Income Property Underwriting Manual; (2) Commercial Mortgage Marketing Course; (3) Loan Broker Fee Agreement; and (4) Regional copy of The Blackburne List of commercial lenders.


Pregnant Wife Joke

Wife: "I'm pregnant...."

Husband: “Hi, Pregnant. I’m Dad!"

Wife: "No, no you’re not."


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. 


Marital Fight Joke

"Man, me and my wife had a fight yesterday."

"Oh yea, about what?"

"You see, I wanted to watch the game, but she wanted to watch a movie."

"So, how was the movie?"


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 - Prepare to Belly Laugh


Final Funny

A boy named Carol had a particularly rough childhood because of his uncommon name. He always got a lot of teasing and abuse at school. Eventually he overcame his hang-up and married his high-school sweetheart. 

When their first child was born, he let his wife name her. She named the baby girl “Love”,  inspired in the same spirit as Carol’s unique name. Unfortunately, Love grew up and endured much of the same teasing because of her strange name. 

The daughter came home from school one day and screamed at her dad, asking why he gave her such a stupid name. Carol took the blame to protect his wife and apologized. In a fit of rage, Love shot him with her dart gun and ran away.

Minutes later, Carol’s wife came home and saw him lying on the ground. “What happened?!” she asked, running to him. 

He waved her closer and whispered, “Shot through the heart, and you’re to blame. Darling, you gave Love a bad name!” Hahahaha!



Executive Vice President

CA DRE #1425852 / NMLS #389465


Realty Capital Corporation

4811 Chippendale Drive, Suite 101

Sacramento, CA 95841

P: (916) 338-3232

F: (916) 338-2328

CA DRE #00829677 / NMLS #103430

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A member of the Blackburne Family of Companies