Volume 4: Issue 5 | Date: May 19, 2020
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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.
Today we’ll discuss the types of commercial loans preferred by lenders during the Coronavirus Crisis. We also have lots of cute, clean jokes, some funny pics, and a hilarious classic video of Archie Bunker about to get “shaved” by a black, woman doctor before an operation. You will split a gut. Hahahaha!
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Joke Du Jour
Heavy snow had buried my van in our driveway. My husband, Scott, dug around the wheels, rocked the van back and forth and finally pushed me free. I was on the road when I heard an odd noise. I got on my cell and called home. "Thank God you answered," I said when Scott picked up. "There's this alarming sound coming under the van. For a minute, I thought I was dragging you down the highway.” There was a pause before Scott replied, "And you didn't stop???”
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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. Our commercial mortgage office number is 916-338-3232.
Alternatively, you can apply for a business-purpose loan secured by a commercial or non-owner occupied property.
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Club Soda Joke
I was waiting tables at a country club when an elegantly dressed woman spilled Manhattan clam chowder all over her white linen skirt. She began furiously dabbing at it with a napkin. Having plenty of experience with getting out food stains, I asked, "Can I bring you some club soda?” "Young lady," she barked, "I'll be the judge of when I've had enough to drink. Bring me another martini!”
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Earn Up to 12% Interest in Your IRA or 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.
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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.
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Takeout Order Joke
Starving after hours of driving nonstop, my husband and I pulled over at a truck stop. While he gassed up the car, I went into the restaurant and placed our large order to go. After writing it all down, the girl behind the register asked, “Will that be all for you?” “No,” I replied a bit defensively. “Some of it’s for my husband.”
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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 $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:
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Peace and Quiet Joke
My wife asked if she could have a little peace and quiet while she cooked dinner, so I took the battery out of the smoke detector.
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- Today's Opportunity -
Commercial Lenders Want
These Types of Loans
Right now 4,000 commercial banks and 6,000 credit unions are out of the commercial real estate loan market.
Banks were very slow to return to commercial real estate lending after the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. During each of these crises, commercial real estate fell by almost exactly 45%. After taking huge losses in their commercial loan portfolios, most banks did not return to the market for three years.
Will commercial real estate fall by 45% again? I suspect it might. Since banks make 95% of all commercial construction loans, real estate developers are toast. Many may have to wait several years before their projects get funded.
Loans on hospitality properties are obviously off limits. The retail sector is also strongly out of favor.
A mixed use property is one that has apartments over ground floor retail space. Normally Fannie Mae and Freddie Mac, when making their Agency apartment loans, will allow up to 20% of the income to come from the retail space. The disdain for loans on retail properties is so strong today that Fannie Mae and Freddie Mac will not include in their pro forma operating statements one penny of projected retail income.
Are any commercial real estate loans at all being written today? Yes. Although most SBA lenders are swamped with Paycheck Protection Program (PPP) loans, these loans are not terribly profitable. More and more SBA lenders are returning to classic, garden-variety SBA 7a and 504 loans.
But the truly hot market right now is the Small Balance Loan (SBL) Program from Agency Lenders (Fannie and Freddie) on apartments. Interest rates are fixed and in the low-3’s for ten-year, 15-year, and 30-year loans. If you own an existing apartment building, now is the time to consider refinancing it. If you are commercial loan broker, focus your attention on multifamily loans. Theres are the deals that are closing. You will find a dozen Agency lenders, originating for Fannie and Freddie, by using C-Loans.com here.
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Rock Star Joke
A farmer friend of mine used his stimulus check to buy baby chickens. He got his money for nothing and his chicks for free!
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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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Composition Joke
Teacher: Clyde, your composition about, “My Dog," is exactly like your brother's. Did you copy this?
Clyde: No sir. It’s the same dog
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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 40 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.
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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TP Joke
My house got TP'd last night. It’s appraised value has now doubled.
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Quickly Find 30 Commercial Lenders For Your Deal
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Bored Joke
Quarantine has me as bored as an Amish electrician.
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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.
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Fridge Joke
I swear my fridge just said what the hell do you want now?
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Video - All in the Family is a Classic TV Series
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Final Funny
A wise old gentleman retired and purchased a modest home near a junior high school. He spent the first few weeks of his retirement in peace and contentment. Then a new school year began. The very next afternoon three young boys, full of youthful, after-school enthusiasm, came down his street, beating merrily on every trash can they encountered. The crashing percussion continued day after day, until finally the wise old man decided it was time to take some action.
The next afternoon, he walked out to meet the young percussionists as they banged their way down the street. Stopping them, he said, "You kids are a lot of fun. I like to see you express your exuberance like that. In fact, I used to do the same thing when I was your age. Will you do me a favor? I'll give you each a dollar if you'll promise to come around every day and do your thing." The kids were elated and continued to do a bang-up job on the trash cans.
After a few days, the old-timer greeted the kids again, but this time he had a sad smile on his face. "This recession's really putting a big dent in my income," he told them. "From now on, I'll only be able to pay you 50 cents to beat on the cans." The noisemakers were obviously displeased, but they did accept his offer and continued their afternoon ruckus. A few days later, the wily retiree approached them again as they drummed their way down the street. "Look," he said, "I haven't received my Social Security check yet, so I'm not going to be able to give you more than 25 cents. Will that be okay?"
"A lousy quarter?" the drum leader exclaimed. "If you think we're going to waste our time, beating these cans around for a quarter, you're nuts! No way, mister. We quit!"
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ANGELA VANNUCCI
President
CA DRE #1425852 / NMLS #389465
BLACKBURNE & SONS
Realty Capital Corporation
CA DRE #00829677 / NMLS #103430
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
P: (916) 338-3232
F: (916) 338-2328
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A member of the Blackburne Family of Companies
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