Commercial Loans Blog

Meet George in Las Vegas - Become a Hard Money Lender

Posted by George Blackburne on Mon, May 23, 2011

Four months ago I accepted an invitation from Leonard Rosen to be a panelist at his hard money lender seminar in Las Vegas. Folks, I was immensely impressed. Leonard Rosen is a warm, generous man; and more importantly, his Become a Hard Money Lender training course is the real deal. If yleonardrosen 236x300ou have ever dreamed of becoming a hard money lender yourself, you simply must attend.

You should come and meet me personally on July 28th at the Monte Carlo Resort and Casino at Leonard Rosen's next 8-hour seminar. At this conference, you'll learn how to become a hard money lender and earn residual income, in addition to just loan orrigination fees. You'll learn how to become the banker and to finally have control over your deals. You'll learn the hidden secrets of the hard money industry.

For more information, please click here.

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Topics: Hard money training

Commercial Loans and the "Silent Second Mortgage"

Posted by George Blackburne on Wed, May 11, 2011

silent second mortgage is a second mortgage with no monthly Commercial second mortgage.payments.  The best way to understand how a silent second mortgage can be used is to see an example.

My hard money commercial mortgage company, Blackburne & Sons, was recently asked to refinance a balloon payment on a nice apartment building.  The problem was not the loan-to-value ratio.  That was fine. 

The problem was that the deal didn't cash flow.  The property was owned by a 401(k) plan, and the beneficiary of the 401(k) plan was not allowed to contribute money to the property to help cover the negative cash flow.  That would be an illegal 401(k) contribution.

We solved the problem using a silent second mortgage.  We convinced the private lender whose loan had ballooned to accept a partial payoff.  He was paid everything that he was owed, except for $75,000.

We had the original private lender then carry back his remaining $75,000 in the form of a second mortgage.  The loan carried an interest rate of ten percent, but there were no payments on this second mortgage!  The second mortgage had a term of three years, at which time the $75,000 in principal and the accrued interest would be due.

Volia!  Because our loan was $75,000 smaller, it now cash-flowed perfectly.  The private lender got most of his dough now, without the need to foreclose.  The 401(k) plan could now handle the monthly payments to Blackburne & Sons without the need of monthly, illegal contributions.  This was a nice win-win-win.

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Topics: Silent Second Mortgages