Commercial Loans Blog

Commercial Loans and the Age of Proscriptions

Posted by George Blackburne on Sun, Mar 17, 2019

ProscriptionImagine the following fanciful scenario. Beto O’Rourke wins the Democratic nomination, and the presidential campaign for President in 2020 is hard fought and bitter. O’Rourke loses in a close race, and then Trump sets out to ruin O’Rourke’s most important supporters and donors.

Eighty-one subpoenas go out to O’Rourke’s key supporters seeking evidence of bribery by Mexican drug lords of top Democratic Senators and Congressmen to prevent the construction of the Wall. “They must have been bribed,” Trump declares, “otherwise, why would the Democratic leadership allow 137 Americans per day to die from drug overdoses from drugs smuggled across the border from Mexico?” Remember, folks, this is just a fanciful scenario I have created to make a point. The facts are nonsense, of course, but please stay with me.

 

Free List of 200   Commercial Lenders

 

Stabbing-1

 

Free Commercial Loan Placement Kit

 

By the end, a dozen top O’Rourke supporters and donors are arrested for either perjury, obstruction of justice, or totally unrelated crimes uncovered by this giant fishing expedition. Trump declares, “The Rule of Law must be followed.” The surviving O’Rourke supporters are cowed and pledge to themselves to stay forever out of politics. Never again will they contribute.

These attacks were like a proscription on key Democratic supporters and donors.  Proscription?  What on earth is a proscription?

In the generation right before Julius Caesar, the Italians cities under Roman rule rebelled against Rome. They paid taxes to Rome, and they provided soldiers for the Roman army; but they were treated like second class citizens. They wanted Roman citizenship.

During the Social War that followed, two different Roman generals rose to prominence, Gaius Marius, the old veteran, and Lucius Cornelius Sulla, the younger, quite brilliant general. Marius and Sulla absolutely hated each other. They competed to be the leader of Rome.

 

New call-to-action

 

Cat Cookie

 

Please Click After Viewing   Earn Up to 12% Interest Video

 

As the Social War was winding down, Marius returned to Rome and was declared First Consul. He managed to convince the Senate at sword point to declare Sulla an outlaw. Then Marius systematically rounded up all of Sulla’s supporters and murdered them. He killed thousands. In the meantime, Sulla took his six legions and conquered a neighboring empire, Pontes.

Marius was old during the Social War, and he soon died of natural causes. Sulla then marched back to Rome with the vast treasures of the Pontes Empire, thousands of prisoners to be sold as slaves, and his six loyal legions. The Senate had no choice but to declare Sulla First Consul.

"A proscription is a posted notice listing Roman citizens who had been declared outlaws and whose goods are to be confiscated. Rewards were offered to anyone killing or betraying the proscribed, and severe penalties were inflicted on anyone harboring them. Their properties were confiscated, and their sons and grandsons were forever barred from public office and from the Senate.”

 

Nine-Hour Video Training Course  How to Broker Commercial Loans

 

Snow Prayer

 

Earn 25.4% Annual Yield - Attorney Sponsor in Business For 39 years

 

“Proscription was first used by the dictator Sulla in 82 or 81 BC to avenge the massacres by Gaius Marius and his son. Accounts differ, but between 520 to 4,700 wealthy opponents of Sulla were proscribed and their property given to Sulla’s veterans. Julius Caesar in 49 BC emphasized his own clemency after his victory in the Roman civil wars by avoiding proscriptions and restoring the sons and grandsons of those proscribed by Sulla to full citizen rights.”

“After Caesar’s assassination, his clemency was used as an excuse for the proscriptions of the triumvirs, Mark Antony, Octavian, and Lepidus (43–42 BC). They used proscriptions to rid themselves of their enemies and to acquire land for their legions and funds for themselves. (One unfortunate Senator was proscribed because the people in power wanted the natural hot springs on his land. When the Senator saw his name posted on the proscription list, he moaned, “My hot springs have killed me.” About 300 senators and knights were proscribed, including Cicero. Many of the proscribed escaped, and more than a few were later restored to their privileges.”

 

How To Market For Commercial Loans  Video Course - Freshly Updated in 2019.

 

Withdrawal

 

Fee Agreement and Fee Collection Course. Just $199.

 

Money Tight?  200-Page Income Property Underwriting Manual - $199

 

You can now see what happened in ancient Rome. As soon as one side (Marius) came to power, they murdered the supporters of their opponents. Then the other side (Sulla) would do the same when they returned to power.

Since the start of Mueller’s investigation, government forces have gone after about a dozen of Trump’s supporters, including Paul Manafort, Michael Cohen, Michael Flynn, Rick Gates, George Papadopoulos, Roger Stone, and, to a lesser degree or with lesser success, Jared Kushner, Ivanka Trump, Donald Trump Jr., and Eric Trump. This month eighty-one additional subpoenas have been served on other Trump supporters and organizations.

 

Become a Hard Money Lender.  Approve Your Own Deals!

 

Spider-2

 

Get Both Video Training   Programs For Just $849.

 

Need a NMLS License  Or Your Renewal Hours?

 

                         “Elections have consequences.” – Barack Obama

Do you doubt that the Republicans will someday return the favor? Welcome to the Age of Proscriptions. I wonder how soon it will be before some billionaire refuses to go to jail just because he supported the wrong candidate.

 

Franchise financing

 

Crack

 

Commercial Mortgage Brokers Tired of Being Poor?

 

Subscribe to the Commercial  Loans Blog  Today!

 

 

Topics: Proscriptions

Commercial Loans and the Flood of New Hard Money Lenders

Posted by George Blackburne on Wed, Mar 13, 2019

Great DepressionBefore the Great Recession, there were about 300 hard money mortgage companies making commercial loans across the country.  By the end of the Great Recession, fewer than 20 of them survived.

I can only imagine how badly their private investors must have fared when their hard money broker failed.  No one was left to make collection calls to the borrowers.  No one was left to keep fire insurance in force.  No one was left to make sure the real estate taxes got paid.  No one was left to hire an attorney to foreclose on the property.  No one was left to rekey the property after the foreclosure and to install an alarm system and a security fence.  No one was left to winterize the property.  Think broken pipes and tens of thousands of dollars in water damage and mold.  No one was left to start the renovation.  Every foreclosed commercial property needs to be renovated before it is offered for sale.

 

Earn 25.4% Annual Yield - Attorney Sponsor in Business For 39 years

 

Moo

 

Free Commercial Loan Placement Kit

 

The only party left to do all this was a sleepy bankruptcy trustee, appointed by the court.  As a general rule, bankruptcy trustees are either overworked or they are indifferent.  They seldom, if ever, return phone calls.

I have often said that the single most important decision that a trust deed investor can make is to choose a hard money broker who is likely to survive the next bad recession.  About every fifteen years commercial real estate values seems to fall by exactly 45% before recovering to new highs.

If you get nothing else out of today's training article, you would be wise to remember that magic number - 45%.  During the S&L Crisis, the Dot-Com Meltdown, and the Great Recession, commercial real estate fell by almost exactly 45%.  Therefore, during the next real estate depression, you should start buying real estate like crazy when the collapse has reached about 40%.

 

Buy a List of 2,500 Commercial Lenders Freshly Updated in 2019

 

Stonehenge

 

Money Tight?  200-Page Income Property Underwriting Manual - $199

 

But after the Great Recession, interest rates on bank C.D.'s fell to less than 1%.  Private investors were desperate for yield.  A blind, cripple could hang out his shingle as a hard money broker, advertise that his trust deeds were yielding 10% interest, and hungry trust deed investors would flock to his banner.  As a result, thousands of new commercial hard money lenders have sprung up in the past four years.

One of the good effects of this flood of new commercial hard money brokers is that the interest rates charged by hard money brokers have plummeted.  There is so much competition among hard money brokers, on behalf of their ravenous private investors, for good loans that they have all been forced to lower their interest rates significantly.  The vast majority of hard money loans are written today at single-digit interest rates.  Before the Great Recession, commercial hard money shops used to charge 12% to 13%.

Blackburne & Sons recently did a small apartment loan in California at just 7.9%.  We sold it off to our private investors at a net yield of just 6%.  Wow!  Just 6% net.  And our investors clamored for even more of these 6% deals.  "Now this is one I have been waiting for.  Send me more," wrote one of our 6% investors.  

 

How To Market For Commercial Loans  Video Course - Freshly Updated in 2019.

 

Murder Button-1

 

New call-to-action

 

Please Click After Viewing   Earn Up to 12% Interest Video

 

If you have not started your own hard money shop, a good argument can be made that you are a dummy.  The average hard money broker makes TEN TIMES more than the average desk-and-a-phone mortgage broker.  Why?  Hellooo? Because you get to approve your own loans!!!!   Click here to learn How to Find Your Own Private Mortgage Investors.

Do you already own your own commercial hard money shop?  Do you need more commercial loan applications?  Blackburne & Sons is not crazy about commercial loans larger than $1 million.  We greatly prefer junky little commercial permanent loans in the heartland of America.  Click here to submit a smallish deal to Blackburne & Sons.

At the same time, Blackburne & Sons and C-Loans, Inc. do a massive amount of marketing for commercial loans, and a great many of the leads generated are for commercial bridge loan requests of larger than $1 million. 

If you own a hard money shop, and you regularly close bridge loan requests larger than $1 million, you should join C-Loans.com as a lender.  The only requirement is that you must service at least $20 million in commercial loans.  It costs nothing to join.  There is no monthly fee.  You only pay a software licensing fee of 50 bps. when you close a deal.

 

Become a Hard Money Lender.  Approve Your Own Deals!

 

human-beef

 

Nine-Hour Video Training Course  How to Broker Commercial Loans

 

Get Both Video Training   Programs For Just $849.

 

Another way to get more more commercial loan applications is to buy leads from CommercialMortgage.com.  The cost is just $1,000 per year per Loan Type.

I'm sorry, but the type of commercial leads called, "First Mortgage Requests Larger Than $1 Million", is fully-subscribed.  We are now creating a waiting list.  You would be VERY wise to get on the waiting list.  Email or call Tom Blackburne at 574-210-6686.

But you can still buy for just $1,000 per year commercial leads in the following loan type categories:  "Bridge Loan Requests Larger Than $1 Million", "SBA Loan Requests (any size)", USDA Loan Requests (any size)", "Construction Loan Requests (any size)", and "Second Mortgage Requests (any size)."  We do NOT sell first mortgage and bridge loan requests smaller than $1 million.  We save these for ourselves.  For more information.

 

Banks and Credit Unions:  Get 200 Free SBA Loan Leads

 

Putin-1

 

Commercial Mortgage Brokers Tired of Being Poor?

 

Important:

The most important lesson that I teach in any of my training courses is that commercial lenders approve loans for their friends.  Every commercial loan ever made had black hairs, but if the lender is your friend, he will ignore a bunch of them.  Therefore, the key to making BIG money in commercial mortgage brokerage is to make a bunch of commercial lenders your friend.

Now every commercial lender in the country has six to eight "Best Brokers" - guys for whom he has closed a number of deals.  When a Best Broker calls or brings in a new commercial loan to a lender, you can bet that this Best Broker gets the lender's most diligent service.  This what you want to become, the Best Broker for about eight commercial lenders - maybe four banks, two conduits, and a couple of hard money lenders.

For example, in our office we call Alicia Gandy our "Loan Goddess" because she originates well over 60% of our loans.  Alicia has about eight Best Brokers who, in turn, bring her about 60% of all of her business.

 

Apply For a Commercial Loan to Blackburne & Sons

 

Cinco de Mayo

 

Get Four Free Commercial    Training Courses

 

You really-really want to become a Best Broker for either Alicia or George Blackburne IV (my oldest son, age 34) because my loan officers will crank out a Term Sheet in just hours for their Best Brokers, allowing them to quickly get the borrower off the street (to stop their further loan shopping). 

But here's the thing.  There are now sooo many competing commercial hard money lenders that you may be tempted to submit the deal to one of these relatively new competitors.  Don't.

Why?  Most (90%+) of these new hard money funds will be out of business during the next real estate depression.  How can be I be so cocksure?  During bad recessions, everyone withdraws from hard money mortgage money funds, so the hard money shop has no money with which to lend.  If the fund isn't making new loans, the fund manager isn't earning the fee income he needs to keep his doors open.  That friendship you developed with that newbie-hard money lender?  In the coming crunch, it will be worthless because he will be out of business.

 

Fee Agreement and Fee Collection Course. Just $199.

 

Status-1

 

Are You a Developer?  Is Your   Construction Lender Requiring More Equity?

 

That no-brainer hard money deal on your desk?  Don't waste it on a hard money company that has not budgeted for the next real estate depression.  Use it to build a friendship with Alicia or George.  Become one of their Best Brokers.

Blackburne & Sons was in the market, making new commercial loans, every single day of the S&L Crisis (45% decline in real estate ), the Dot-Com Meltdown (45% decline) and the Great Recession (45% decline).  I do not know of a single competitor who can make that claim.  If you have a special relationship with a perennial lender during the next real estate depression, you will make a fortune.

So don't waste your good hard money loans on hard money brokers who will not be able to help you in return when you need them the most!  Just sayin'.

 

pray-for-britney-2

 

Need a NMLS License  Or Your Renewal Hours?

 

Grmpy Wolf-1

 

Franchise financing

 

Apply For Preferred Equity or  a Commercial Scond Mortgage

 

Subscribe to the Commercial  Loans Blog  Today!

 

 

Topics: Flood of hard money lenders

Large Commercial Construction Loans Are Often Syndicated

Posted by George Blackburne on Wed, Mar 6, 2019

SkierBefore we get into the subject of syndicated commercial construction loans and where to get your large commercial construction project funded, we have an important announcement.

Important Announcement:

We here at C-Loans, Inc. just discovered a HUGE bug in our newest commercial mortgage portal, CommercialMortgage.com.  Arghhh!  Queue the "Agony of Defeat" scene where that downhill skier takes a horrible biff.

Our computer programmers made one single digit error.  As a result, none of the 500 new banks we have added in the past six months have been appearing on the Lender List!  Picture old man Blackburne careening and tumbling down a steep slope in a giant ball of snow, broken skis, broken bones, and blood.

Therefore, if you have recently tried CommercialMortgage.com, viewed the Lender List for your particular deal, and went, "Meh", I don't blame you.  But this wonderful commercial loan portal is fixed now.  I urge you (heck, I beg you) to come back and try it again.  Because our 500 latest banks will now show up, you will love-love-love the repaired version of CommercialMortgage.com.  

 

Free List of 3,159 Commercial Lenders  Sort By Your Own Criteria

 

Moth

 

Submit Your Loan to 750 Commercial   Lenders Using C-Loans.com.  It's Free!

 

Back to the Syndication of Large Commercial Construction Loans:

Commercial construction loans over $10 million are often made by a syndicate of community banks and mid-sized commercial banks.  A community bank is one with less than $2 billion in assets (cash, bonds, and loans outstanding).  A mid-sized bank is one with $2 billion to $20 billion in assets.

A regional bank is a depository institution, i.e. a bank, savings and loan, or credit union, which is larger than a community bank, which operates below the state level, but smaller than a money center bank, which operates either nationally or internationally.  The asset size of a regional bank is normally $20 billion to, say, $75 billion.  

Even larger than regional banks are money center banks.  Did you know that there are approximately 5,000 commercial banks in the US?  The word "commercial" simply means "business", as opposed to investment banks and merchant banks.  When you and I think of a bank, you are thinking of a commercial bank.

 

Nine-Hour Video Training Course  How to Broker Commercial Loans

 

Mouse Gift

 

Money Tight?  200-Page Income Property Underwriting Manual - $199

 

Therefore, when I train you to submit your "A" quality commercial loan to at least 15 different commercial banks, you will only be scratching the surface of available banks.  There are also approximately 6,000 credit unions in the U.S.

You may recall that I sent you an announcement about a syndicate I was putting together to build a Marriott Fairfield Inn in Oregon.  Well, you may be shocked to hear that the lender making the $15 million construction loan is a credit union!  By the way, that $2 million syndicate is fully-subscribed; but if you are a very wealthy, accredited investor interested in earning a yield of over 25%, you should call Angela Vannucci at 916-338-3232 and get on the backup list, just in case anyone cancels.

 

Buy a List of 2,500 Commercial Lenders Freshly Updated in 2019

 

New call-to-action

 

Please Click After Viewing   Earn Up to 12% Interest Video

 

Now Back to Our Syndication Discussion:

Typically these commercial construction loan syndicates will consist of three or four community banks located reasonably close to the subject property, and often the bank presidents are golfing buddies.

Here is how these syndicated commercial construction loans get originated.  Suppose a commercial bank gets a $15 million commercial construction loan request from a commercial property developer who is important to the bank.  Fifteen million dollars, however, is a pretty large commercial construction loan for a community bank with just $2 billion in assets, but let's say the commercial construction loan request is a good one.

What might happen is that our first community bank might lead a small syndicate of friendly competitors to make the $15 million commercial construction loan.  Most commercial construction loans are priced at WSJ Prime plus 1%, and the bank would charge a one-point loan origination fee.  The Wall Street Journal Prime Rate today is 5.5%, so if a larger bank were to make the entire $15 million loan itself, the interest rate to the developer would be 6.5%.

 

Free Commercial Loan Placement Kit

 

Dawn-1

 

How To Market For Commercial Loans  Video Course - Freshly Updated in 2019.

 

The interest rate on a syndicated loan, however, may be priced at WSJ Prime plus 1.5% floating (one-half of a percent higher), with a 7.0% floor and a loan origination fee of 1.5 points (an extra half-point). The lead bank might then sell off participations to other banks at prime plus 1% floating with a 6.5% floor and a loan fee of 1 point.  

The lead bank might take a $3 million piece of the $15 million deal.  The lead bank would then earn prime plus 1% floating and 1 point on its $3 million portion, and it would also earn a lead lender's fee of 1/2% interest and 1/2 point on the entire $15 million.  The lead lender would then be responsible for making the progress inspections, disbursing the progress payments, and handling any foreclosure on the commercial construction loan.

 

Get Four Free Commercial    Training Courses

 

Cold Beer-1

 

Commercial Mortgage Brokers Tired of Being Poor?

 

Attention Developers.  Do You Need More Equity?

We have largely finished our money raise on the Oregon Marriott Fairfield Inn, so we are looking for the next deal.  Our sweet spot is raising between $750,000 to $2 million in equity for experienced developers of apartment buildings, retail properties, office buildings, industrial buildings, and hospitality properties nationwide.  We are not going to raise more than 40% of the total equity required by the bank because we want our developer to have tons of skin in the game.  

Need equity?  Please do NOT send me some huge package.  Please instead - to see if we have a fit - call me at 574-360-2486 (mobile) or just send me, George Blackburne III, a one-paragraph summary of what you are trying to do.  Please make the subject line exactly, "Equity Contribution Request."  Thanks!

 

Apply For Preferred Equity or  a Commercial Scond Mortgage

 

Condoms Cheaper-1

 

Need a NMLS License  Or Your Renewal Hours?

 

Training Tips:

  1. Whenever you are trying to place a commercial construction loan request, you should immediately think of either a commercial bank or a credit union.  Banks and credit unions make 99% of all commercial construction loans.
  2. You are NOT going to be able to get a New York bank to make a commercial construction loan in Virginia.  Commercial construction loans are almost always made by a local lender, a bank or credit union located within 15 or so miles from the property.  The reason why is that the construction lender has to make numerous progress inspections to check on the progress of the construction.

  3. Generally you should match the size of your commercial construction loan request to the size of the bank.  Need a loan of just $1.5 million?  You should take this small deal to the nearest community bank.  Need a $15 million loan?  Take it to a nearby regional bank.  Need a $50 million commercial construction loan?  Take your loan to a money center bank, a bank with more than $75 billion in assets - one of the "Big Boys."

  4. Notwithstanding the above, a community bank located close to the property may sometimes lead a syndicate of other nearby community banks to make the loan.

 

Become a Hard Money Lender.  Approve Your Own Deals!

 

Ambush-1

 

Get Both Video Training   Programs For Just $849.

 

Do you need a commercial construction loan?  My first recommendation is to enter your loan into C-Loans.com.  The advantage of C-Loans.com is that you create a simple mini-app, and then you can actually submit your deal to bank after bank, six at a time, until you find one in the mood to lend.  C-Loans.com is also free!

If you just don't find a ravenous lender on C-Loans.com, then you should move onto CommercialMortgage.com (CMDC").   Now CMDC is just a list of suitable potential lenders, along with their contact information.  You cannot actually submit an executive summary of your commercial loan to the lender.  You have to do that by hand. However, there are close to 4,000 commercial lenders on CommercialMortgage.com, far more than on C-Loans.com.  And like C-Loans, CMDC is also 100% free!  (Plus our 500 newest banks will finally now appear.  Arghhh.)

 

Apply For a Commercial Loan to Blackburne & Sons

 

Apply to 218 Different SBA Lenders  Few Borrowers Grasp That  SBA Lenders Are NOT the Same

 

Don't Ask-1

 

Franchise financing

 

The secret to success in commercial mortgage brokerage is to present your loan to bank after bank until you find a hungry one.  Fifteen banks is the magic number.  If all fifteen banks turn your deal down, your loan may not be do-able; but until you have submitted your commercial loan to fifteen banks, you are still in the early innings.

Using commercial mortgage portals like C-Loans.com and CommercialMortgage.com, finding 15 banks is easy-peasy.

 

Are You a Developer?  Is Your   Construction Lender Requiring More Equity?

 

Porcupine-ready-for-fight

 

Apply  For a Commercial Construction Loan

 

Subscribe To Blog

 

 

Topics: syndicated construction loans