Commercial Loans Blog

Commercial Loans and Effective Gross Income

Posted by George Blackburne on Fri, Apr 13, 2018

AccountingYou will spot the line item, Effective Gross Income, in the top third of any Pro Forma Operating Statement.  By the way, a line item is a separate line in a financial statement or budget.  For example, "Real Estate Taxes", "Utilities Expense", and "Fire Insurance" are all examples of line items in a Pro Forma Operating Statement.

A Pro Forma Operating Statement is essentially a budget for a commercial property for the next twelve months, with provisions made for likely losses due to vacancy and collection issues and with a little money set aside annually to replace the roof and HVAC units and to resurface the parking lot.  Basically its the budget that a commercial loan officer, working for a bank, will prepare in order to determine how large of a commercial loan that he will make you.


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Gross Scheduled Rents
Less 5% Reserve for Vacancy and Collection Loss

Effective Gross Income:

As you can see, the Effective Gross Income is simply the Gross Scheduled Rents or the Gross Potential Rents, less some reserve for vacancy and collection loss.

When preparing a Pro Forma Operating Statement, I recommend that you always use exactly 5% for Vacancy and Collection Loss, even if the vacancy rate in the area is a whopping 15%.  I will try to blog later in the week on this exact topic.


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Now the Effective Gross Income is a fairly important number because you will use it to make a number of different calculations further down in your Pro Forma Operating Statement.

For example, your commercial lender will require that you include in your Pro Forma Operating Statement some Reserve for Replacements.  If you fail to include a reasonable Reserve for Replacement in your Pro Forma, the lender will insert one himself - and he will punish you by making it much larger than necessary.


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So what is the smallest Reserve for Replacement that you can get away with?  Generally it is either 3% or 4% of Effective Gross Income.  Please notice that we are using that Effective Gross Income figure that is the subject of today's training article.

As your Reserve for Replacement, you should use 4% of Effective Gross Income, unless the property is brand new, in which instance you can probably get away with 3% of Effective Gross Income.  If the property is a brand new industrial building - which is often just an empty concrete box - you can sometimes get away with just 2% of Effective Gross Income.


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Even though your borrower intends to manage the property, he cannot get away with leaving out a professional Property Management Fee.  Passive investors - filthy rich guys who just want a return on their money and zero hassle - will certainly not try to manage the property themselves.

The bank is also using the Pro Forma to determine the likely value of the property.  He will apply some capitalization rate to the Net Operating Income, and that NOI must be net of a professional Property Management Fee.  For example, if the Net Operating Income is $500,000 - the banker will divide this NOI by 0.065 (a 6.5% cap rate) to roughly value the property at $7.7 million.


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Okay, we're stuck.  We have to use a Property Management Fee line item, and we dare not let the banker compute the Property Management Fee himself.  He will use some wildly large management number and knock down our loan amount by $100,000.  What is the smallest professional Property Management Fee that we can get away with?

The smallest Property Management Fee that you can probably get away with is 4% to 6% of Effective Gross Income.  If the property is apartments, you're stuck with 6%, and the lender may even require an Onsite Property Management Fee (a free apartment plus a few hundred dollars per month as well) as well.  And don't forget about payroll taxes as well.  Does the madness ever end?  Ha-ha!


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If the property is commercial or industrial with just a few units, you can probably get away with 4% of Effective Gross Income.  If the property is a shopping center with six or more units, a lender may force you to use 5% or 6% of Effective Gross Income.

You may use the line item, Effective Gross Income, on other occasions as well. For example, if your borrower has built a new apartment building or if he bought a vacant apartment building and fixed it up, you will not have a historical figure to use for Repairs and Maintenance Expense.  A good figure to use here is 5.6% of Effective Gross Income.  Where did this number come from?  There is a National Apartment Owners Association that gathers up historical data from its members and publishes the results annually.  This number for Repairs and Maintenance Expense - 5.6% of Effective Gross Income - is for suburban apartment buildings and is a very fair and reliable number.


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Topics: Effective Gross Income

Commercial Loans and Effective Rents

Posted by George Blackburne on Wed, Apr 11, 2018

Sports ClipsYou own a four-unit strip commercial center that was 100% vacant just three years ago.  You hired a superb leasing agent, who convinced you to offer one year's free rent upon the execution of a five-year lease.  Your strip center quickly leased up, and it is now 100% leased to a liquor store, a karate studio, a nail salon, and a Sports Clips (barber shop for men).  Each unit now pays you $3,000 per month.  Life is grand.

Driving around town, you see another strip center in a decent area that is also 100% vacant.  You huddle with your superstar leasing agent.  Could we recreate the miracle?  Could we buy this vacant strip center on the cheap and lease it up?  Your leasing agent says yes.


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Because the new strip center is 100% vacant, you know that the bank will require a whopping 50% downpayment.  You propose to the bank to use your existing strip center as collateral for a $1.34 million new loan.

At first the bank commercial real estate loan officer is all positive about the deal.  Your center is 100% leased at $12,000 per month triple-net.  After a 5% Reserve for Vacancy and Collection Loss, and after a 3% Reserve for Replacements and a 6% Property Management Fee, the property's Net Operating Income (NOI) is a handsome $124,488.  Capped at 6.5%, the property should appraise $1,915,000.  Therefore your $1.34 million loan request would be 70% loan-to-value, which should be acceptable to the bank.


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But the commercial loan officer at the bank has found a problem.  Yeah, the Actual Rent on your existing strip center is currently $12,000 per month, but you had to give away a whole year's rent to convince your tenants to move into your center!  The Effective Rent for your strip center is materially less than $12,000 per month.

The Effective Rent of a commercial property is the remaining rent, after deducting any rental concessions, such as free rent periods or larger than usual tenant improvement allowances.


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So let's compute the Effective Rent for our existing strip center.  We do this by averaging the annual rent over the five year term.  In year one, the landlord received zero dollars.  In years two through five, the landlord earns $144,000 per year.  ($3,000 per month per unit times four units times twelve months in a year.)  Zero plus $144,000 plus $144,000 plus $1444,000 plus $144,000 equals $576,000.  That is the total rent over the five-year term of the lease.  Dividing $576,000 by five gives us an Effective Rent of only $1,152,000 per year!


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Therefore our strip center really isn't worth $1,915,000.  If we take off 5% for Vacancy and Collection Loss, and if we take off 3% of Effective Gross Income for Reserves for Replacement and 6% of Effective Gross Income for Property Management, we get a Net Operating Income (NOI) of just $995,904.  Capped at 6.5%, our strip center is only worth $1,532,000 - not the $1,915,000 computed above.


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Now here is an interesting question.  You're a commercial loan broker, commercial broker, or property owner preparing a Pro Forma Operating Statement for submission to the bank.  Do you use Actual Rents or Effective Rents?  A good argument can be made that you should use the Actual Rents (which are higher than the Effective Rents).  The bank and the appraiser will eventually be given copies of the leases.  Let the bank or the appraiser catch and compute the Effective Rent.  Your position could be that rents have increased since you first negotiated the leases with the free rent period and that the Actual Rents now reflect the current market.


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Topics: Effective Rents

Commercial Loan Brokers: You Should Be Desperate To Buy Our Leads

Posted by George Blackburne on Mon, Mar 12, 2018

If you are not a commercial loan broker, you can ignore today's training article.  Simply enjoy the funny pics and think one more time about investing the bond portion of your diversified retirement portfolio into our first trust deeds yielding 7% to 12%.  With rates going up, your bond portfolio is probably getting killed.


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If you are a commercial loan broker, today's article shows you a new way to buy commercial leads from C-Loans, even if your credit score is less than 700 and/or your net worth is less than $700,000.  Here is a way for you to buy dirt-cheap commercial loan leads - even if we have turned you down in the past!


The Reward:

If you are a commercial loan broker, you should indeed be desperate to buy our commercial mortgage leads.  Why?  We just sent out a tombstone this week celebrating the 40th commercial loan closing for C-Loans by Glenn Gioseffi of Asset Backed Capital.  Forty commercial loan closings!  That's a ton of deals for the commercial loan business.


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Glenn's story shows you the path to great wealth.  Glenn started out as a lead buyer.  He bought our leads for the token fee of $1 to $9 up-front, plus 37.5 bps. to C-Loans upon closing one of our leads. 

After Glenn had closed five deals, he was added to C-Loans as a Proven Broker.  Remember the number five.  Five is the magic number.  If you buy our leads and close five deals, C-Loans will list your little commercial mortgage company on our Suggested Lender List, alongside some of the biggest banks in the country.


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But wait!  Its gets even better.  Because Glenn had already closed five loans for us, his lender score was augmented by 50 lifetime lender bonus points - 10 points for every closing.  In other words, as long as Glenn responded to every one of his leads and maintained a base lender score of 100%, he would enjoy a total lender score of 150%.  Such a score would often place him in one of the top six slots on our Suggested Lender List.  

From then on, Glenn received numerous custom-selected commercial loan leads in his email box every single day, and he didn't have to pay a dime for them up-front.  Of course, he still owed a software licensing fee of 37.5 bps. when he closed a deal.  


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Not being an idiot, Glenn dove in our leads with a passion and closed more deals.  Every time he closed an additional deal, he earned 10 more lifetime lender bonus points.  This moved him up the Suggested Lender List, so he saw even more leads.  And so on.  It was a true case of the rich getting richer.

But Glenn is a rare exception, right?  No.  Glenn merely joined this week the Over 40 Closings Club, along side Paul Elis and Jason Bengert.   Still leading the pack is Les Agisim, who last month founded the Over 50 Closings Club for C-Loans.  I'll bet Les has made over $500,000 in loan fees using our leads.  Over $1 million?  Could be.


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The Problem:

But there’s a problem.  We here at C-Loans will only allow mortgage brokers with a credit score of at least 700 and a net worth of over $700,000 to buy our leads.

Why are we such meanies?  We have been cheated sooooo often by starving mortgage brokers that we had to cut them off.  These guys don’t start out with the intention to cheat C-Loans.  You’ll recall that Lead Buyers owe us 37.5 bps. when they close one of our leads.  Sadly, when a starving mortgage broker closes a C-Loans deal, the temptation to put off paying us "until the next deal closes" is often irresistible.  And, of course, they never come back and pay us.  So we cut them off.  “No soup for you!”


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The Earth-Shattering Announcement:

Is your credit only so-so?  Is your net worth less than $700,000?  Both?  Have you applied to C-Loans to buy leads, only to be turned down?  There is, effective today, a new way to be granted the privilege of buying dirt-cheat commercial leads from

If you enter commercial loans that you find outside of the C-Loans System into, and you close two loans with C-Loans lenders, we will let you start buying our dirt cheap ($1 to $9) commercial leads.  You now have a path to the Over 100 Closings Club.



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One of your favorite real estate agents sends you a commercial loan request.  You immediately enter the commercial loan into  You immediately earn a free commercial mortgage underwriting manual.

Huh?  Free what?  A free commercial mortgage underwriting manual?  You mean I am finally going to learn all of those mysterious underwriting ratios that commercial loan underwriters use, like the debt service coverage ratio, the operating expense ratio, management factors, reserves for replacement, loan constants, and cap rates?  For free - just for entering my first commercial loan into C-Loans?  Yup.


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Hey Brain Surgeons:

You have to actually enter a real-life commercial loan into  This does NOT mean that you went onto our home page, clicked on a gray button, and filled out a little lead form, in order to get some goodie, like a Free Commercial Loan Placement Kit.  No-no-no!

This means that you have to start with Step 1 of 6 and actually submit a real deal to six C-Loans lenders.  What we're trying to do here is to show you how the submission process works.  Once you have registered on, and you have submitted your first deal, the next deal should only take you only four or five minutes to submit.

Watch, despite my admonitions, five or six brain surgeons will call or email my son, Tom, the General Manager off C-Loans, Inc., and say, "Where's my free $199 Commercial Mortgage Underwriting Manual?  I clicked on the button that said, Free List of 200 Commercial Lenders, and filled out the form."  Bona fide brain surgeons.  Ha-ha!


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Back to Our Example:

Bill Ambitious is a young residential mortgage broker.  He wants to move up the food chain to commercial real estate finance.  He lacks a four-year degree in finance or accounting, but he has completed a couple of years of junior college, his English skills are superb, he is quite presentable, if not handsome, and he is likable.

He accidentally came across the web site and discovered that it is a veritable encyclopedia of commercial real estate finance.  Not only did he read every page on C-Loans, but he also went back and read every blog article ever written by Old Man Blackburne.  (If you go to my blog, in the right-hand column, you will see a list of months and years.)  He now had almost complete command of the ratios and the lingo of commercial real estate finance, but he just lacked leads.

He applied to buy commercial leads from C-Loans, but because he was rather new to the business, his credit score was only 670 (student loans), and his net worth was negligible, the big 'ole meanies at C-Loans turned him down to buy leads.  How maddening!  Where else could he find commercial loan leads for only $1 to $9 apiece.  Unfortunately the answer was nowhere.  Hmmm.


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Then Bill Ambitious read Big George's latest blog post, and he realized that there was finally a way for him to buy leads and work his way onto C-Loans.  If only he could close two deals on and win the right to start buying dirt-cheap commercial leads!

Now Bill Ambitious was still doing a little marketing on his own.  He had the words, "Commercial Loans", prominently displayed on his business cards, his rate sheets, and his fliers.  He had also built himself a small mailing list of bankers located near his office who were making commercial loans.  He traded a list of ten of his bankers to George for George's famous, nine-hour video training course, "How To Broker Commercial Loans" ($549 retail).


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Every week Bill Ambitious printed up a cute, clean joke (he stole the jokes from George) on plain, 'ole copy machine paper.  He snail-mailed the joke to all 67 of his bankers, along with three of his business cards.  The technique worked well, and he was soon receiving four or five bank commercial turndowns every week.

But it was a lead from one of his realtors that provided his first opportunity to post a loan on  The loan was just a $100,000 loan request on a little house being used as a real estate office.  Now normally Bill Ambitious would not have bothered with a commercial loan this small; but he was electrified by the possibility of closing two loans for C-Loans.


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He entered the deal into, using the six-step process, and within minutes he got an offer from a Wall Street nonprime lender listed on C-Loans.  The deal closed.  Hooray!  He promptly notified Tom Blackburne, the old man's son who runs C-Loans, so there would be a record of the closing.  "Hmmm," said Tom.  "This lender never paid us on this closing.  Here's $50, Bill, for keeping them honest."

Four months later, Bill Ambitious, closed his second loan for C-Loans - a $1.6 million multifamily loan that he closed with a hungry Agency lender found on C-Loans.  Eureka!  Within two days of notifying Tom Blackburne of his second closing, Bill Ambitious was finally granted access to the Lender Vault on

Like a starving man finally let loose on a cruise ship buffet (my seventh grade English teacher would have loved that metaphor), Bill Ambitious pounced on the leads.  Within seven more months, Bill had his five closings (commercial loans take some time to close).  Tom Blackburne was thrilled for him, and he had Ambitious Commercial Mortgage, LLC added as a Proven Broker to the list of lenders on within an hour.  Bill received two commercial loan applications before he even went home that first night.


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Bloody Circus:

Now Les Agisim and Glenn Gioseffi are competitive men by nature.  Whenever a tombstone, announcing another closings for Ambitious Commercial Mortgage, appeared in their email box, they were happy for Bill.  At first.  But after Bill had closed 37 commercial loans for C-Loans in less than two years, they started to look back over their shoulders.  Like the chariot drivers of old, racing in the Circus in Rome, they urged their horses onward.  Who would be the first Proven Broker to found the Over 100 Closings Club?  Snap!  Crack!  Race on, my lovelies!

Did you know that a Circus was a chariot racing arena?  "Give them bread and circuses."  The classic Biblical movie, Ben Hur, was deadly accurate when it depicted bloody violence in these chariot races.  The teams were represented by colors - the Blues, the Greens, etc. - and bloody riots between the fans of the different colors were not uncommon.  In the famous Nika Riot, tens of thousands of people were killed!  The Crips and the Bloods have nothing on the ancient Romans.  "What has been will be again, what has been done will be done again; there is nothing new under the sun." -- Ecclesiastes 1:9.


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Bottom Line:

Great wealth potentially awaits you - if you can get approved to buy commercial loan leads from C-Loans.  Look for any excuse to enter a commercial loan request into  If you can close just two of them, the future is so bright that you gotta wear shades.


A Final Word on Proven Brokers:

In my training classes, I teach my students to never take their commercial loans to another broker.  Broker-broker deals almost never close.

I hereby make one exception to that general rule.  Your chances of closing a deal with one of our Proven Brokers are about ten times higher than with one of our garden-variety, sleepy, indifferent banks.

These Proven Brokers have a special relationship with a handful of hungry banks that allows them to get deals "on the bubble" approved.


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Whatever Happened To Our Friend, Bill Ambitious?

Old Les Agisim beat him to the finish line, but Bill Ambitious ended up making FAR more money.  You see, Bill Ambitious bought my four-hour course, How To Find Your Own Private Mortgage Investors.  In that course, Bill had noted that I taught him to collect the contact information of every wealthy borrower he met.  Bill did that religiously, whether or not the loan closed.  After four years, Bill sent an individually word-processed letter to each of the accredited investors that he had met as a borrower.

Dear Dr. Allen:

Back in May of 2019, we had the pleasure of working on a $2.3 million first mortgage for you on your shopping center in Columbus, Ohio.  Today I am writing to you about investing in our 10% first mortgage investments.

The response was overwhelming, and Bill now services $126 million in hard money loans for his 1,983 private investors.  His loan servicing income is currently $255,000 per month, whether he closes a new loan or not.  He is able to take his lovely bride of 16 years, along with their four beautiful children, on cruises and incredible vacations at least four times per year.

This is all because he closed two loans using  And folks, we have been in business since 1980.  My two sons, George IV (33) and Tom (32), will help Angela Vannucci - our heir apparent - to continue the legacy.

You really-really-REALLY want to be special friends with Blackburne & Sons / C-Loans, Inc.  Blackburne & Sons was one of the few lenders that was in the market, making new commercial loans, every day of the Great Recession.


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Commercial Loans and Franchise Financing

Posted by George Blackburne on Tue, Mar 6, 2018

Franchises.jpgOne expert recently described buying a franchise as getting a 30-yard head start in a 100-yard dash.

Investopedia defines a franchise as follows:  A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser's) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name.


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Few buyers of franchises are multi-millionaires.  They don't have hundreds of thousands of dollars to simply plop down in cash.  Therefore they need franchise financing to acquire the franchise.  Do you happen to need a franchise loan?  Are you a mortgage broker?  Does one of your clients need a loan to buy a franchise?


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There is a special Federal government program to help you purchase the franchise business of your deams.  Below are just a few of the many popular franchises that would qualify for this special Franchise Financing Program:

  • Firehouse Subs
  • Burgerim
  • Jimmy John's
  • Papa John's Pizza
  • Subways
  • Ace Hardware
  • Jiffy Lube
  • Minute Maid
  • The UPS Store
  • Sonic Drive-In Restaurants
  • Great Clips
  • Sport Clips
  • Servpro
  • Culver's
  • Supercuts
  • Anytime Fitness
  • Budget Blinds
  • Snap-On Tools
  • Valvoline Instant Oil Change
  • Smoothie King
  • and hundred and hundreds more


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These special Franchise Financing Program loans are insured by the Federal government, in a manner very similar to the Department of Agriculture's Business and Industry Loans.  These franchise loans are fully-amortized over 7 or 25 years, depending on whether or not there is real estate involved.

The interest rate on these Franchise Financing Program loans is VERY favorable, largely due to the fact that a large portion of the loan is guaranteed by the Federal government.  When you consider the fact that a franchisee buying his first business, and hence the loan is a start-up loan, the interest rate is amazing.


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The thing about this Franchise Financing Program is that the lender making the loan - usually a bank - still has to retain the uninsured portion of the loan.  In other words, the bank has to keep a significant amount of skin in the game.  Approval is not automatically guaranteed.

But if one bank turns you down for a Franchise Financing Program loan, don't give up.  The next bank might very well approve your deal.  Some banks are all about the franchise.  They like certain franchises but not other ones.


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Some banks are all about the borrower's good credit, while other banks will accept credit scores in the low 600's.  Other banks focus on the collateral, while some non-bank lenders do not even require any collateral.  So don't take a single turn-down as proof that your Franchise Financing Program deal cannot be financed.

The borrower will always need at least 20% down to buy his first franchise.  That is chiseled in stone.  But some Franchise Financing Program lenders will let a franchisee open a second store with as little as 10% down.  Others will allow a franchisee to open its second store in less than twelve months!


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If you need a loan to buy a franchise, we encourage you to click on one of the red buttons scattered throughout this article.


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Commercial Loans and the Old Syndication Industry

Posted by George Blackburne on Fri, Mar 2, 2018

alligator-2.jpgThis article should be particularly interesting to accredited investors, commercial brokers (realtors), and commercial mortgage brokers because it describes a way for you to find the Holy Grail of real estate - equity money.

It is sometimes hard to fathom a world where such financial industry giants, as Lehman Brothers, Home Savings of America (once the largest S&L in the country), EF Hutton, Paine Webber, and Countrywide Financial, have now all either gone bankrupt or have been absorbed by a larger company into non-relevance.


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When I was new to the mortgage business, Home Savings was like the Roman Empire.  Their enormous branch offices - each an architectural landmark like the Parthenon - were everywhere.  They're gone now?

Billions were spent just marketing the names of these companies.  "When EF Hutton speaks, people listen."  Every day for for decades, and during every pro football game, you would hear their commercials.  Now the name, EF Hutton, is just a distant memory.


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There was another financial empire, a veritable colossus, that you may never have heard about - the syndication industry.  Was it a big industry?  Did they make a lot of money?  Think hundreds of billions of dollars worth of investments.  Think of an that was ten times larger than the entire hard money business.  Think big mansions, fast cars, and expensive parties.  Syndicators were at the top of the financial food chain.

But what is a syndicator?  A syndicator is a broker-dealer who puts together groups of wealthy private investors, known as accredited investors, to buy and hold commercial real estate.  But what is a broker-dealer?


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A broker-dealer (think: stock broker) is a person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction. The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages, because most of them act as both agents and principals (investing with their own dough).  A brokerage acts as a broker (or agent) when it executes orders on behalf of clients, whereas it acts as a dealer, or principal, when it trades for its own account.

Broker-dealers are heavily regulated by the NASD, the National Association of Securities Dealers.  Hence their downfall.  By the time the Syndication Crisis was over, on the order of 70% (90%?) of all broker-dealers were out of business (and some were facing jail time).


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It all started in the late 1970's, before the Reagan Administration.  Back in the day, the top tax rate was 90%!  But this tax rate was deceiving.  There were all sorts of tax shelters, where a taxpayer could lower his tax rate by investing his dough where the government wanted.  One of these tax shelters was multifamily and commercial construction.

Under the tax code prior to 1986, a doctor would invest several hundred thousand dollars into a limited partnership, put together by a syndicator, which would buy an apartment building using leverage; i.e., some bank would finance 70% of the purchase.


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This leveraged investment would intentionally produce a paper loss every year, largely due to depreciation.  The early limited partnerships were properly structured.  The early syndicators used just the right amount of equity (dough from the doctors).  While there was a paper loss, there was no actual out-of-pocket loss, called an alligator, for the investors.

A typical doctor would then take his $50,000 paper loss and use it to reduce his taxable income from $400,000 per year to just $350,000 per year.  Since the top tax rate was 90%, the doctor saved 90% of that $50,000 reduction in taxable income.  All was good in the world because the Federal government was trying to encourage the construction of new apartment buildings.

And the syndicators got rich, rich, rich.


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But like most manias, things got out of hand.  Eventually so many apartment buildings were constructed that they became over-built in some areas.  To make matter worse, syndicators began to structure deals with super-sized losses.  Syndicators would assemble syndicates with so little equity (doctor money) and with so much debt that the deals intentionally had a negative cash flow.  Yikes. 

These 1984 and 1985-era syndicates had large negative cash flows that had to be fed by assessing the doctors every month to feed the alligator.  When the general partner of a limited partnership - or modernly the Managing Member of a limited liability company - has to ask the investors for more cash, it is called a cash call.  Back in 1984 and 1985, the doctors didn't mind monthly cash calls because the negative cash flows produced super-sized tax shelter losses.  

"Would you like me to super-size your alligator?"  Ha-ha!


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When President Reagan was elected, he led a charge to change the U.S. tax code.  Tax shelter investments were no longer going to where they would produce the best benefit for the economy, but rather they were going into real estate deals where the real estate was hardly needed.

The Tax Reform Act of 1986 radically changed the commercial property market.  No longer could wealthy investors shelter their active income from employment with passive losses from real estate.  Suddenly one of the legs propping up commercial real estate values was kicked out from the under the industry.  "If I can't use the building as a tax shelter, then dump the dang thing!  I want out."


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Commercial real estate values then plunged by 45%.  Remember that number - 45%.  When commercial real estate crashes, it falls exactly 45% and not a penny more.  I have seen commercial real estate crash exactly 45% three times in my career - the S&L Crisis (includes this tax change), the Dot Com Crisis, and the Great Recession.  Remember this during the next crisis, when the Chicken Little's of this world are shouting that the sky is falling.  The time to buy is when blood is running in the streets, when commercial real estate has fallen 45%.

But the General Partner of the limited partnerships, the broker-dealer that syndicated the deal, couldn't sell the property.  After a 45% decline in commercial real estate values, the partnership owed far more on the property than it was worth.


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And thing got worse.  Under the old limited partnerships, the general partner was personally liable for the debt.  Holy crapola!  Guess who was the general partner?  The syndicator, the broker-dealer who assembled the syndicate.  

"But wait, weren't the doctors still liable for their cash calls?"  Maybe in theory, but in real life they all told the syndicators to go pound sand.  The banks foreclosed and obtained huge deficiency judgments against the general partners.  Facing countless collection actions from banks, the broker-dealers then filed for bankruptcy, one after the other.


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When Europeans landed in the New World, they brought the small box virus.  There were 25 million Native-Americans in North America.  About 21 million of them died of smallpox or other European diseases, for which they had no immunity.  Bankruptcies swept through the broker-deal industry in the late 1980's and early 1990's, just like a smallpox epidemic.  Virtually every small broker-dealer in the country was wiped out.

The syndication industry was suddenly gone - poof!  An industry involving hundreds of billions of dollars simply disappeared.  And it never came back.

Blackburne & Sons Realty Capital Corporation is returning to the syndication business. We have already closed a dozen small deals, and we made an offer on another Sacramento purchase this week.  Unfortunately we are focusing strictly on the Sacramento area right now, so we are not quite ready to ask for deals.

The deals we are doing are 100% all-cash deals.  Our deals are capital preservation deals, where there is zero debt.  The idea is to create a "partnership" (more precisely a new LLC) that can withstand just about any financial crisis.

Participation right now is being limited to our trust deed investors and those accredited investors who have signed up for our trust deed distribution list.  The best way to start seeing these deals - assuming you are an accredited investor - is to sign up for on trust deed distribution list.


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Topics: Syndication

Commercial Loans - Conditional Use Permits and Variances

Posted by George Blackburne on Wed, Feb 28, 2018

This week I received a great blog article by a veritable icon in the commercial hard money lending industry, consultant Dan Harkey.  The article was entitled, Conforming vs. Nonconforming - Making Your Property Lending Decisions.  I learned soooo much.  With Dan's permission, I am republishing the second half of this great article.  Don't worry.  This second half, which concerns conditional use permits, variances, and state licensing, stands on its own.  Read on and learn:


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Conforming vs. Nonconforming -
Making Your Property Lending Decisions (Part 2)


Conditional Use Permits

The issuance of a conditional use permit must be in adherence to, and consistent with, the hierarchy of land use laws. The use permit is a result of zoning laws which must comply with an adopted general plan which in turn must comply with state laws.

A Conditional Use Permit (CUP) allows a city or county to consider special uses which may be essential or desirable to a particular community, but which are not allowed as a matter of right within a zoning district, through a public hearing process. A conditional use permit can provide flexibility within a zoning ordinance.  Another traditional purpose of the conditional use permit is to enable a municipality to control certain uses which could have detrimental effects on the community.  (George: Nudie bars?  X-rated book stores?  We lend on them!)


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A CUP is generally required for certain land uses which are an exception to a community’s general plan.  Land suitability, environmental impacts, project design, traffic and noise impact, and availability of public services are some of the conditions which may call for a CUP.

Mobile home parks, “granny” units, and second dwellings on single family lots are typical cases where a CUP might be required.  Conditional use permits run with the land, not the applicant, and may be passed on to future owners of the property; however, conditional use permits may also be revoked for a number of reasons.  (George: Yikes!)  Relying on a CUP as the major factor in a credit decision could result in reduction of value should the permit be revoked.


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The intent of zoning variances is to provide a form of equitable relief when the owner or representative of a property can demonstrate that the variance would not conflict with the public interest and that undue hardship or loss of financial return would occur should the variance not be granted.  Building code variances may include exceptions to height restrictions, setbacks, or moving demising walls, etc. As with the conditional use permit, an applicant for a variance must submit a set of plans and a statement of purpose to the proper municipal authorities.  Once granted, the variance runs with the land, may be transferred, and it is not subject to revocation.  (George:  From a lender's or buyer's point of view, variances are much safer than conditional use permits.)


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George:  Ahhhh.  How sweet is that? 

State Licensing

Some properties, such as a senior care facility in an R1 single family, zoned neighborhood, may require both a state license for the operator and a use permit by the municipality in order to run the facility.  The state licensing of the operator may be required for special training and competency. If the property is sold or a lender is underwriting the property in order to make a loan there will be four concerns of, property conformity; permitting; licensing of the operator; and the impact on a going concern.  It may be problematic when doing a cap rate analysis if there is a deviation that makes a property significantly different from other comparable properties.  The assumption of an increased value may be fraudulent or false at best.


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As a lender, or agent of the lender, it is absolutely necessary to determine which of these classifications the subject property falls under.  Each lender will have a different standard of tolerance and/or requirements for legal nonconforming properties, but would most likely not want to be in a position of loaning on a bootlegged property.

While an appraisal might pick up this fact, it should not be depended upon nor should the representations of the realtor who might be involved in the transaction be depended upon.  Lenders can be sued by a multitude of parties for failing to identify the true legal conformity of the property.


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Calling or visiting the city planning departments to verify zoning, and conforming vs. nonconforming status is highly recommended. Verifying the terms and conditions of a conditional use permit and under what circumstances it may be revoked is also recommended.  If possible, get a copy of the approved permits or variances from the city or answers from the governing authority in writing.  If a loan has been secured by an illegal nonconforming property or on a property with a revoked permit, getting paid back may be at risk.


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Dan Harkey.jpgDan Harkey has worked for over 45 years in the hard money lending business.  (To old veterans like myself, Dan is respected as an icon.). He currently consults with borrowers in need of hard money loans.  Dan can be reached at 949-533-8315 or at


Attention Accredited Investors:

A large percentage of our trust deed investors started out as borrowers.  I met these guys when they applied for a $1 million loan on their strip center... and within three years I had convinced them to invest $30,000 in a first trust deed.

I know, I know, your main concern right now is getting a commercial real estate loan; but do you want to retire with $4 million or $5.5 million?

You need to put some of your retirement savings into first trust deeds.  For example, are your IRA funds earning 7% to 12% interest right now?  Betcha they aren't.  I strongly urge you to take a quick look at our first trust deeds.



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Topics: Conditional Use Permits

Commercial Loans - Conforming Property and Non-Conforming Property

Posted by George Blackburne on Mon, Feb 26, 2018

Nonconforming property.jpgAll of my work life I have heard smart real estate people use fancy terms like conforming, legal nonconforming, illegal nonconforming, conditional use permits, and variances.  I would always nod my head and try to look intelligent, but the truth is that I never knew what the heck they were talking about.

Then I read the following blog article by Dan Harkey, one of the smartest minds (the smartest?) in the hard money business.  With Dan's generous permission, I am republishing his recent blog article, Conforming vs. Nonconforming - Making Your Property Lending DecisionsDan writes:


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Conforming vs. Nonconforming -
Making Your Property Lending Decisions


When underwriting commercial real estate loans, or even residential loans, as a lender, it is absolutely necessary (George: Note the emphasis) to determine the property's conforming status.  Is the subject property conforming, legal nonconforming, or illegal nonconforming?

Conforming Use

A conforming use is one where the subject property is in compliance with local zoning laws and the use of the property is legally permitted. Conformity is a byproduct of zoning laws and municipal ordinances which may change over a period of time.


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Legal Nonconforming

A legal nonconforming use is a use of lands or structure which was legally established according to the applicable zoning and municipal building laws at the time, but which does not meet current zoning and building regulations. A use or structure can become legal nonconforming due to rezoning, annexation, or revisions to the Zoning Code.  (George:  The government changed the rules.).

As long as a nonconforming property’s use status does not change, its legal nonconforming designation may be protected by municipality or regulatory agency. A legal nonconforming designation usually requires the property to be in continuous use. If it is vacant for a period of time, its legal nonconforming status may be lost. In some communities special or conditional use permits, variances, or site development permits may be obtained to extend or even modify legal nonconforming use.


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Communities vary in the way they treat legal nonconforming properties which are destroyed. Most will allow the rebuilding of the property to its prior condition only if 50% or less of the structure is destroyed. If, however, the entire structure is destroyed, most often the owner would be required to rebuild to current zoning standards.  (Helloooo?  Are you lenders pay attention?  You could easily lose your butt if you could only rebuild two units rather than four!)  

A lender in such a case may experience a serious loss in collateral value but may be able to mitigate such a risk by obtaining the correct property and casualty insurance coverage.  Endorsements to hazard policies may be available that would allow insurance proceeds to be used to build a different structure as a result of changes to building laws and ordinances. (Pay attention here!  Lenders should can get a special endorsement to the fire insurance policy.)


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For example, a retail strip center situated on a small lot may not have enough parking spaces to comply with current zoning requirements. If zoning changes regarding parking requirements have increased from requiring 3 spaces per thousand square feet of building to 4 spaces per thousand, the owner may be required to reconfigure the retail center’s footprint. The owner should seek knowledgeable insurance counsel to obtain this special protection. The lender should verify the type of coverage and require that they be named as mortgagee and loss payee as well as an additional insured.


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Illegal Nonconforming

Lenders are most at risk with a property which is nonconforming and has been illegally modified or is operating without proper conditional use permits. For economic reasons, owners may elect to illegally modify a property to a use that falls outside current zoning standards or the use permit framework. For example, a 4-unit building of 2 bedroom/2 baths units is converted into an 8 unit building of 1 bedroom/1 bath units.  If done covertly, without approvals or permits, it becomes illegal nonconforming.  This process is sometimes called bootlegging.

This example of bootlegging may be perceived as subjecting the surrounding community to unnecessary burdens.  Negative impacts could include traffic, ingress and egress, inadequate parking, more transient occupancy, and a lack of approved (and possibly dangerous) electrical, plumbing and general construction.


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Dan Harbkey.jpgDan Harkey has worked for over 45 years in the hard money lending business.  (To old veterans like myself, Dan is respected as an icon.). He currently consults with borrowers in need of hard money loans.  Dan can be reached at 949-533-8315 or at


Attention Accredited Investors:

A large percentage of our trust deed investors started out as borrowers.  I met these guys when they applied for a $1 million loan on their strip center... and within three years I had convinced them to invest $30,000 in a first trust deed.

I know, I know, your main concern right now is getting a commercial real estate loan; but do you want to retire with $4 million or $5.5 million?

You need to put some of your retirement savings into first trust deeds.  For example, are your IRA funds earning 7% to 12% interest right now?  Betcha they aren't.  I strongly urge you to take a quick look at our first trust deeds.



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Topics: non-conforming buildings

Commercial Loans and TIC Roll-Ups

Posted by George Blackburne on Thu, Feb 22, 2018

Tick.jpgWhat on earth is a TIC roll-up?  Do they bite when you try to roll them up?

In order to understand a TIC roll-up, you first have to understand a TIC.  A tenancy-in-common investment ("TIC" or "TIC Investment") is an investment by a taxpayer in real estate which is co-owned with other investors.

Since the taxpayer holds title to the real estate as a tenant-in-common, TIC investments qualify under the like-kind rules of §1031.  In other words, if the 67-year-old owner of a big apartment building, in which he has lots of equity, gets tired of the hassles of management, he can do a delayed exchange into a TIC.


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TIC investments are typically made in projects such as apartment houses, shopping centers, office buildings, etc.  Management responsibilities are provided by management professionals.  Cash returns on these types of investments are typically in the 6% to 7% range.  Syndicators of TICs are called "sponsors."

TIC investments are commonly structured in one of the following ways -

  • A single-tenant property with an established credit rating; or

  • Multiple tenants subject to a single master lease with the TIC sponsor who subleases to the tenants; or

  • Multiple tenants each with separate leases managed by professional management.


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TIC's do have a few drawbacks.  These investments have extended terms, so the investor is pretty much stuck in the deal for a long period.  To make matters worse, there is no liquidity.  A TIC investor can't easily sell his tenancy-in-common interest.

Okay, now that we know what a TIC is, we are once again ready to ask, "What on earth is a TIC roll-up?"


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That's the question I asked my buddy, Yoni Miller, of  Yoni had just sent out another tombstone announcing the closing of a $6.8 million subordinated loan secured by a portfolio of industrial buildings along the Eastern seaboard.  The senior debt was a CMBS loan.  The proceeds of Yoni's loan were used to effect this strange transaction known as TIC roll-up.  


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In response to my question, Yoni wrote:  

"Well, a TIC roll-up is when all of those TIC owners are rolled up into one single new entity, often an LLC with a managing member.  For example, imagine a property that has 20 different TIC owners.  Usually they need a majority or complete consent to sell or refinance, which means most lenders won't lend to TICs because there is no sole decision maker."
"Therefore the 20 TIC owners “roll up” into one new LLC, where they all own the same ownership percentage, but one person is the manager, instead of everyone needing to consent to a refi/sale.  Lenders will then normally lend against the property."
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Topics: TIC

Preferred Equity and Commercial Second Mortgage Lenders Do Exist

Posted by George Blackburne on Mon, Feb 12, 2018

Preferred Equity.pngI have a real treat for you today.  A buddy of mine, Yoni Miller of, makes preferred equity investments and second mortgage loans on commercial property.  He has generously agreed to write today's fascinating blog article about all of the unique types of preferred equity investments and commercial second mortgages that junior commercial lenders can make.


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Before we get into Yoni's wonderful article, I first just want to give you a quick refresher course on preferred equity investments.  Preferred equity is similar to a second mortgage on a commercial property.  You own a $6 million shopping center, and you owe just $2.5 million against it.  You need $1 million to convert a former K-Mart space into self-storage space.

You just can't go out and refinance the building because you have a defeasance prepayment penalty.  You would have to pay a prepayment penalty of $850,000 just to borrow $1 million.  The first mortgage loan documents prohibits second mortgages.  You can't even put a mezzanine loan on the property because the first mortgage loan documents prohibit mezzanine loans too.  The trust that bought the first mortgage does not want the owner to take on any additional loan payments.


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A preferred equity investment is NOT a loan.  Therefore it does NOT have any loan payments.  A preferred equity investment is a purchase of some of the membership interests (think of shares of stock) in the limited liability company (think of a corporation) that owns the commercial property.

The preferred equity investor only gets paid if the property is generating enough cash flow.  Because the investment is preferred, the preferred equity investor gets a paid its return first, right after the first mortgage payment, but before any of the other owners of the property can pull out a dime.

Now on to Yoni's insightful article.  Who knew such unique financing and liquidity strategies actually existed?


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Commercial real estate owners strive to create additional equity in their investment properties.  (George: By renovating the property, leasing out vacant units, replacing existing tenants with higher paying tenants, and paying down on the first mortgage.)  Once they have created a significant amount of equity, they unfortunately have few ways to monetize it.  (George:  Pay attention here folks.  Lots of investors have tons of equity, but they don't know how to monetize it!)

The most common way to monetize equity in a commercial real estate investment is a cash-out refinance, but some borrowers' existing first mortgages have hefty prepayment penalties, meaning if they were to refinance and payoff their existing mortgage, they have to pay extra fees, which can vary greatly.  In many cases these prepayment penalties make it costly to do a cash-out refinance with a new lender, making them look for alternative options for them to monetize their equity.


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Two of the most popular options are second mortgages and equity recapitalizations, which may allow them to monetize their equity without disturbing their existing first mortgage. Let’s discuss what each of those are and then provide a few real life examples.

What is a “Second Mortgage”?

Investopedia answers the questions for us.  “A second mortgage is a type of subordinate mortgage, made while an original mortgage is still in effect. In the event of default, the original mortgage would receive all proceeds from the liquidation of the property until it is all paid off.  Since the second mortgage would receive repayments only when the first mortgage has been paid off, the interest rate charged for the second mortgage tends to be higher and the amount borrowed will be lower than that of the first mortgage.”


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What is a “Equity Recapitalization”?

An equity recapitalization in commercial real estate is changing the mix of the capital that creates the real estate capital stack (George: On $100 million office building purchases in New York City, the capital stack often gets very, very layered.  For example, there's the first mortgage, then mezzanine loan #1, then mezzanine loan #2, then the senior preferred equity, then the junior preferred equity, then the venture equity, and finally the developer's or borrower's cash contribution.)

An equity recapitalization is often done to buy out existing partners, create liquidity for new investment opportunities, or for capital needed for tenant improvements. A common way to achieve this is by bringing in a new capital partner or preferred equity investor. This helps an owner create the liquidity they need without giving up management control or majority ownership of the property.


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Here are four examples of how QuickLiquidity, a direct lender and preferred equity investor recently helped commercial real estate owners and limited partners monetize their existing equity.

1)    QuickLiquidity funded a $1.4 million second mortgage on a $50 million shopping center located in a suburb of Kansas City, MO. The borrower, who is an experienced developer, needed to monetize his equity in a 235,000-square-foot shopping center without refinancing their existing first mortgage. The borrower had recently created significant equity in the shopping center by redeveloping it and securing new long-term leases with national tenants. The borrower's existing first mortgage lender would not increase their loan for the purposes of a cash-out, leaving the borrower with a limited amount of financially feasible options to quickly monetize their equity. If the borrower were to refinance their first mortgage with a new lender, the closing costs and fees to replace the large first mortgage would be significant compared to the relatively small $1.4 million cash-out amount. QuickLiquidity offered a solution by providing the borrower with a second mortgage on the property. This saved the borrower a ton of money in fees and provided them with the capital they needed in the time frame they needed.


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2)    QuickLiquidity purchased a 2.53% partial interest for $460,000 in a real estate partnership that owns a 199-unit apartment community in Fairfax, VA. (George: Pay attention here.  QuickLiquidity actually purchased a tiny interest in the LLC that owned the property.  This was NOT a preferred equity investment.  After the purchase, the interest that QuickLiquidty purchased was pari passou with that of the other investors in the project.  In the words of the Church Lady, QuickLiquidity was NOT special.)  The seller inherited the partial interest over 30 years ago and was seeking an immediate exit strategy from their illiquid and non-controlling interest. By QuickLiquidity coming in as a new passive investor, the seller was able to receive immediate liquidity without having to wait until the partnership decides to sell the property, which might not occur for many years.

3)    QuickLiquidity provided $1 million of post-petition debtor-in-possession (DIP) financing to a commercial real estate investment fund in Chapter 11 bankruptcy. The DIP financing is secured by a priority lien against the funds ownership interests in 5 properties totaling almost 500,000-square-feet, between three office buildings and two retail shopping centers. This loan provided the necessary capital to allow the fund to operate while pursuing a confirmable plan of reorganization.


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4)    QuickLiquidity made a $500,000 loan secured by a 9.39% illiquid and non-controlling ownership interest in a $30 million shopping center located near Cincinnati, OH. The property is 320,000-square-feet.  The shopping center is 100 percent occupied, with its anchor tenants being The Home Depot, Kroger, and Kohl’s, who have leases that continue until 2024 and 2025. The borrower looked to monetize its illiquid and non-controlling ownership interest to access capital in order to invest in a time sensitive real estate development deal. By bringing in QuickLiquidity as the lender, the borrower was able to receive the capital he needed, while maintaining complete ownership of his interest. (George:  Note, unlike example 2 above, QuickLiquidity did NOT buy the borrower's membership interest in the LLC that owned the shopping center.  Instead, they made a loan against it.  This is incredibly rare and invaluable to know.)  This allows the borrower to receive the property’s future appreciation and upside, while leveraging his existing investment.

Yoni Miller.jpgQuickLiquidity is a direct lender and preferred equity investor providing equity recapitalizations, subordinated debt and partner buyouts on commercial real estate nationwide. QuickLiquidity allows real estate owners to monetize their existing equity while maintaining majority ownership and control of their property without disturbing their existing first mortgage or triggering any prepayment penalties. For more information you can visit or call Yoni Miller 561-221-0881.


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Topics: preferred equity

Commercial Second Mortgages and the New-Money-to-Old-Money Ratio

Posted by George Blackburne on Thu, Feb 8, 2018

Second mortgage-1.jpgYou don't see many new second mortgages on commercial properties these days.  The reason why is because most modern first mortgage loan documents contain an outright prohibition against any sort of junior financing.  It's not just conduits that prohibit junior financing.  Commercial banks now also prohibit junior financing.

The section of a first mortgage that prohibits junior financing is called the alienation clause.  An alienation clause is one that says that the alienation (transfer) of any interest in the property, without the permission of the lender, is grounds to accelerate the loan and to demand that the loan be immediately paid in full.  The really sucky part of such an acceleration is that the payoff demand will contain the full prepayment penalty!  Ouch.


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"But George, what if there is tons of equity in the property?"

One way a big-time investor can pull equity out of an underleveraged commercial property is to obtain a mezzanine loan.  Unfortunately mezzanine loans and preferred equity investments are also considered junior financing and are usually prohibited.  In some cases, however, an intercreditor agreement can be negotiated.


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An intercreditor agreement is an agreement between a first mortgage holder and the provider of junior financing, which could be a second mortgage lender, a mezzanine lender, or a preferred equity investor.  The first mortgage lender looks at the junior lender for experience in actually operating the type of property involved and for his financial strength.  If the junior lender is a newbie with no financial strength, the first mortgage lender will say no.  If the junior lender is an old pro with deep pockets, the first mortgage lender will sometimes agree in writing to permit the junior financing.  There is often a provision that says that the first mortgage lender will notify the junior lender immediately in the event of a default.  The intercreditor agreement will also often allow the junior creditor to buy the first mortgage in the event of a default.


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Okay, with this long-winded background in mind, we finally get to the point of today's training lesson.  This week a buddy of mine who makes preferred equity investments (like a second mortgage but with no required monthly payments) sent out a tombstone.  He proudly announced that his company had just made a second mortgage of $1.4 million behind a $32 million first mortgage on a $50 million shopping center in Kansas City.

Holy crap!  A second mortgage of only $1.4 million behind a $32 million first mortgage???  So I wrote to him, "My friend, this loan grossly violates the New-Money-to-Old-Money Ratio."


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Back in the old days of hard money, second mortgage lenders learned the hard way never to make a small second mortgage behind a huge first mortgage.


Newbie Mortgage makes a $20,000 second mortgage behind a $500,000 first mortgage on a house worth $1 million.  There is tons of equity.  Then the borrower becomes a crack addict and stops making all payments.  By the time the second mortgage finds out, the first mortgage is behind 7 payments of $4,000.  Just to cure the loan, Newbie Mortgage has to come up with $28,000.

Then Newbie Mortgage is facing another nine-month ordeal to march to a trust deed sale and to obtain relief from the automatic stay of bankruptcy.  That’s another $36,000.  And then there are attorneys fees and foreclosure costs.  That’s an advance of over $54,000 - just to protect an original investment of $20,000.

Ninety percent of similar investors, in real life, end up just walking away from their $20,000 loan.


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The Irony: 

The first mortgage lender goes to a foreclosure sale.  No one bids, so the first mortgage investor ends up owning the property.  After a $15,000 clean-up and facelift, the lender ends up later selling the property for $1.3 million.  Arghh.

New-Money-To-Old-Money Ratio

New Money / Old Money > 33%

In plain English, the wise second mortgage investor will avoid making any second mortgage where this ratio is less than 33%.  In other words, the second mortgage should be at least one-third the size of the first mortgage for the reasons explain above.


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Now back to my buddy's deal:  Let's compute his New-Money-to-Old-Money Ratio.

($1.4 million / $32 million) x 100% = 4.3%

Holy crap!  This ratio is never supposed to be less than 33%.

Now my buddy is pretty sophisticated and he pointed out that his Fund had negotiated a very good Intercreditor Agreement.  The underlying first mortgage holder had agreed to notify them immediately in the event of a default.


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In addition, his Fund had the option to purchase the underlying first mortgage in the event of a default.  His Fund would love to own this $32 million first mortgage because it had an attractive default interest rate.  It would also love-love-love to own this gorgeous shopping center for a mere $32 million.

He had also gotten personal guarantees from the high net worth borrower and other high-equity LLC's.  Lastly, the shopping center had a number of long-term leases from credit tenants and near-credit tenants.

By the end, I agreed that his was a reasonably prudent investment, but only because his Fund had deep-deep pockets.


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Folks, I have done a pretty smart thing.  I have started to trade my wonderful video training courses  to mortgage brokers all across the country for a list of ten bankers making commercial loans.  We are adding these banks to ("CMDC") in huge handfuls.  Man, CMDC is getting soooo useful.  And its free!


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Topics: New Money to Old Money Ratio