Commercial Loans and Fun Blog

Yesterday I wrote a blog article explaining that if you buy a commercial property with your IRA, and you get a commercial mortgage loan from the bank to help you finance the purchase, you need to get the bank to make you a non-recourse loan (good luck with that).  If you don't, your IRA investment constitutes a prohibited transaction.

A non-recourse loan is one where the bank cannot come back after you personally for a deficiency judgment if they foreclose and take a loss.

I pointed out in my article yesterday that few banks will make non-recourse loans these days.  Fortunately Blackburne & Sons would be happy to make a non-recourse commercial real estate loan to your IRA.

Okay, but then a question came up.  What about a carve-out clause?  A carve-out clause is a provision in a non-recourse loan that says if a borrower commits certain Bad Boy Acts that the commercial loan suddenly becomes a full-recourse loan.

So what is a Bad Boy Act?  Bad Boy Acts include the following "bad-boy" behaviors:

(i) fraud or intentional misrepresentation by the borrower (you lie to the lender to get the loan in the first place); (ii) waste occurring to or on the mortgaged property (you take a sledgehammer to the property right before you lose it in foreclosure); (iii) gross negligence or criminal acts of the borrower that result in the forfeiture, seizure or loss of any portion of the mortgaged property (you set up a meth lab in the property and the government seizes the property); (iv) misapplication or misappropriation of rents, insurance proceeds or condemnation awards received by the borrower after the occurrence and during the continuance of an event of default (you steal the insurance proceeds check); and (v) any sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment or transfer of the mortgaged property, or any part thereof, without the prior written consent of the lender (you put a second mortgage on the property even though the loan documents specifically forbid it).

So here's the question?  Can a non-recourse loan to an IRA have a carve-out provision?  The answer is that no one knows for sure.  The IRS has yet to litigate it.  My personal opinion is that the IRS would probably NOT declare a non-recourse mortgage loan to be a prohibited transaction simply because it contains a few standard carve-outs.

Let's suppose you have a self-directed Individual Retirement Account, and you are very bullish on commercial real estate (see my previous blog article).  Let's further suppose that you find an attractive $200,000 industrial condominium in a primary market (say San Jose, California or Austin, Texas).  You decide to buy the industrial condo with your IRA and lease it out to some independent third party.

So you go down to the bank and apply for a $130,000 new conventional commercial first mortgage loan.  You plan on putting down $70,000 (35%) from your IRA.  The bank comes back with an approval on your loan, subject to, of course, your personal guaranty.  All is good and right in the world.

Oops.  Did you know that if you personal guaranty your IRA's loan, it constitutes a prohibited transaction?  Yup.  You can't do it.

Okay, so what do you do?  Simply ask your bank to waive the personal guaranty requirement.  Uh-oh.  Your commercial bank will probably say no.  Banks have always been reluctant to make non-recourse loans - meaning they cannot go back after you for a deficiency judgment.  And since the Great Recession, they are even more reluctant.

Here's one solution.  Apply to Blackburne & Sons's Realty Capital Corporation.  As a private money lender, we will gladly make you a non-recourse loan.

Banks are slowly returning to commercial real estate finance - but the operative word is slowly.  They are acting as if commercial real estate lending is as risky as playing Russian Roulette.  I submit that is is safer to make commercial real estate loans today than at any other time in the past decade.

Blackburne & Sons (est. 1980) was in business during the Savings and Loan Crisis back in the late 1980’s and early 1990’s.  Just like during the Great Recession, commercial real estate values plunged by around 45%.  Then the Resolution Trust Corporation (RTC) stepped in and quickly started selling off the resulting commercial foreclosures at just 50 cents on the dollar.

The buyers of those foreclosures made a fortune.  Blackburne & Sons financed a lot of these purchases.  Our new loans were paid off in around nine months, as the buyers of these foreclosures sold them off for an average profit of 80%.

My instincts tell me that we are in a similar commercial real estate recovery.  The Fed has printed $5 trillion to $10 trillion in new money.  Our banks are healthy and super-flush with reserves.  The auto industry has already rebounded.  Housing is recovering.

Jobs are returning to the U.S.  We have by far the lowest natural gas prices in the world, giving the U.S. a huge cost advantage in heavy manufacturing.  The U.S. already produces 84% of its own energy needs, and by the end of the decade, we are projected to be energy-independent.

Capital is pouring back into commercial real estate.  The commercial mortgage-backed securities (CMBS) market is hotter than a pistol, as yield-hungry investors are snapping up these bonds.  Even lower-quality asset-backed securities (ABS), backed by hard-money-quality commercial real estate loans, are flying off the shelf.

I don’t expect commercial real estate values to double any time soon, but it is my opinion that the commercial real estate market is once again in a bull market.  This is why it may be safer to make commercial real estate loans today than at any time in the past decade.

If your bank is considering a return to commercial real estate lending, you would be crazy not to join C-Loans.com as a commercial lender.

This article is designed to help commercial lenders and commercial mortgage brokers close more commercial real estate loans.

First let's define a term:  Lead nurturing is the process of repeatedly touching a sales prospect and gently encouraging him to buy.  Commercial real estate loan officers are salesmen, and financially-strong commercial property owners are our sales prospects.

To understand the concept of lead nuturing, let's consider an example.  Suppose you're a commercial mortgage broker, and you receive a lead call from a good, potential, commercial mortgage borrower, who is kicking around the idea of borrowing against his free-and-clear office building.  It's a really good deal, and you are sure you can provide him with an excellent commercial loan.  You make your sales pitch over the phone, and your potential borrower tells you that he'll think about your offer.  Now what?

The wise commercial mortgage broker will then nurture this lead.  He will touch the borrower at least six times over the next six weeks or so.  A touch can be a personal visit, a phone call, a letter, or an email.  The Notches on the Belt Theory of Marketing suggests that people seldom buy until they have thought about buying on at least six, separate, independent occasions.  Hence our strategy is to touch this borrower at least six times.

Your lead nurturing campaign might start with a follow-up email.  "Dear Mr. Swartz:  Thanks for chatting with me today about your commercial loan.  I am sure that we can accomodate your needs.  Below is my contact information for future reference."

Then, because snail mail takes a day or two to arrive, you might print out a copy of this email and throw it in an envelope hand-addressed to the borrower.  You should also probably throw in two business cards.  This will be your second touch.

Three days later you might telephone the borrower and see how he's coming with his loan package.  That's touch number three.

You could send him a second email thanking him for chatting with you again, which would be touch number four.

For several decades I kept an envelope box, filled with envelopes addressed to potential borrowers.  In the upper-right-hand corner, right where the stamp goes, I wrote in pencil the date that the envelope was scheduled to go out.  None of the envelopes were sealed, but each contained a follow-up letter and two busines cards.

Every morning, right after I made my coffee, I would sit down and go through these pre-addressed envelopes that were scheduled to go out that day by snail mail.  If I had already received a package from the borrower, I did not send out a follow-up letter.  Instead, I opened the envelope and saved the two business cards.  Later I would re-use the envelope by covering the address with a label.

If I had NOT yet received a package from the borrower, I would glue a stamp over the date and send it out.

Now let's go back to our lead nurturing example.  So far we have touched the borrower four times.  Using a "Timed Mail Piece" follow-up system (the envelope box), I might send him two more snail mail follow-up letters.

Modernly I no longer use snail mail at all.  Instead I use this wonderful software designed by Hubspot.com.  I have already written six follow-up emails, and to nuture a good lead, all I have to do is enter the borrower's or broker's email address into Hubspot.  It's pretty cool.

You now know one of my greatest marketing secrets.  Once I find a good lead, I nurture that lead religiously at least six times.

The second half of 2013 should be an extremely busy time for the commercial mortgage industry.  In fact, the commercial loan business may be poised to enjoy one of its busiest spurts in history.

1. U.S. commercial banks are sitting on over $2 trillion in excess reserves.  In plain English, they have lots of money to lend.
2. Part of my job as the owner of C-Loans.com, the largest of the commercial mortgage portals, is to call bankers on a daily basis and solicit them to join C-Loans.  Every bank with whom I have spoken for the past three weeks had an appetite to make more commercial real estate loans.
3. It takes two to tango.  Even if our commercial banks are in fact hungry to make more commercial mortgages, they cannot force business owners and investors to borrow.  The limiting factor today is a lack of demand for new commercial mortgages by borrowers.  Few borrowers are applying for commercial loans.
4. By mid-2013 it should become clear that the U.S. economy is roaring back, and business owners and commercial real estate investors should start dusting off their borrowing plans.
5. Why has the automotive manufacturing business been so robust for the past two years?  The answer is that the auto industry produced relatively few new cars between 2007 and 2011.  Demand for replacement automobiles built up.  I believe that the same thing is happening is commercial real estate finance.  Commercial real estate investors have almost fully-depreciated many of their commercial properties.  If they don't trade-up soon, they will face painful taxes.  Business owners have put off expansion plans for six years.  If they don't expand and innovate pretty soon, many of them no doubt sense that they will fall fatally behind their competition.  It's innovate-or-die time.  To do this they will need cash.

For the reasons outlined above, I predict they the second half of 2013 will be just about the best time in history to be in the commercial mortgage business.

Are you a commercial mortgage broker?  Are you struggling financially?  Please join me in Denver as I teach one single live class, The Practice of Commercial Mortgage Brokerage - How To Fix Your Commercial Mortgage Business If You're Not Making Any Money.

This wonderful new commercial loan brokerage training course took me 14 months to write; but it is my best work ever.  If you enjoyed my earlier training courses, you will simply love this course.

This Practice Course consists of 63 separate lessons on how to actually succeed as a commercial mortgage broker.  For years I have watched innumerable commercial mortgage brokers working on absolutely goofy loans in a wasteful, foolish manner.  This was a commercial mortgage brokerage training course that desperately needed to be taught.

This is NOT a training course about how to underwrite commercial real estate loans.  This is NOT a course about debt yield ratios and debt service coverage ratio formulas.  No.

This is a course about how to spot goofy and hopeless commercial loan requests.  It's a course that will help you spot the one deal in twenty that will actually close.  This is a training course that will teach you how to market for do-able commercial loans.  This is a training course that will teach you how to make the sale and how to keep the fish on the hook. 

This commercial loan brokerage training course - the actual practice of commercial loan brokerage - will teach you all of the fatal mistakes that most commercial mortgage brokers make that end up scaring off the borrower.  In fact, after taking this course, you will wonder how you ever closed a commercial loan.

Packaging a commercial loan is super-easy.  You just need to understand how to present it, how to deliver it, and how to get your lender to actually read it.

Finding the right lender for your commercial mortgage loan is easy - if you know these six techniques and tricks.  This commercial loan brokerage training is immensely practical.  Insert part A into hole B.  I take you through the steps in a simple, easy-to-remember manner.

How do you get a squirrelly borrower to sign your fee agreement?  We'll cover this.

Perhaps most important of all, I will get you 500% more efficient.  You will field five-times more lead calls.  You'll find five-times more do-able deals.  You'll close twenty-times more commercial loans.  How is this even possible?  You will no longer waste time on goofy commercial loans that have a zero chance of closing.

But I am teaching this course live (where you can ask me question after question) ONLY ONE TIME.  Please therefore join me in Denver on Tuesday, December 11th, at 10:00 a.m. at the Crowne Plaza (Downtown), 1450 Glenarm Place, Denver, CO 80202l, (303) 573-1450.  Rooms are around $120 per night and a shuttle from the airport is available.

The tuition for the course is $399 if you pre-register (sorry, no refunds), and $499 at the door.  To pre-register, please call Tom Blackburne at (916) 338-3232 or email him at tommy@blackburne.com.

Here is my personal promise to you:  If you are struggling as a commercial mortgage broker, I will fix your commercial loan brokerage business.

Those of you who are regular readers of this commercial loans blog know that I have been pounding on you to use every available free minute to expand your snail mail list and email list of referral sources.  Every day you should be adding bankers, commercial real estate brokers, property managers, residential mortgage brokers, residential real estate agents, other lenders, accountants, attorneys, and financial planners to your lists.  You want referrals, not shoppers.

But that general rule being said, there is a time to put down your mailing lists and simply do deals.  You should drop everything when the fish are schooling. 

Commercial mortgage borrowers apply for commercial loans in spurts, much like having a school of fish wander underneath your fishing boat.  Your phone will be dead for three to five weeks, and then suddenly everybody and their brother will want a commercial real estate loan.  Your phones will light up like a Christmas tree.  Your email box will be flooded with leads.

When commercial mortgage borrowers are schooling, drop everything, and devote 100% of your time to fielding lead calls.  Forget about processing the new deals that you land.  Forget about trying to place some of the older loan applications in your pipeline.  I want you to do nothing but field lead calls.  Sell-sell-sell.  Get those new commercial loan packages headed your way.

Just as suddenly, the school of fish will soon (about six days later) wander away.  Your phones will stop ringing.  New referrals will stop coming in by email.  That is the time to go back to processing all of your loans.

Remember, commercial mortgage borrowers tend to move about the same time, much like the movement of a school of fish.  These investors all tend to apply at the same time.  When that happens, drop everything, and work your lead calls.  Sell-sell-sell!

The other day I received a marketing email from a commercial mortgage broker trying to drum up business.  The email was a PERFECT example of what NOT to do.  As one of my trainees put it, "This guy is doing everything back-ass-wards!"

1. A commercial loan broker must only work on do-able commercial loans.  What is a do-able commercial loan today?  A do-able deal is a small commercial loan (less than $5MM) secured by a standing commercial property.
   
   
2. Goofy loans are the opposite of do-able loans.  Goofy loans include international loans, construction loans, loans on mines, large loans (loans over $5MM), acquistion and development loans (A&D loans), land loans, joint ventures, daisy chains, and any other commercial loans that are not your standard, garden variety, bread-and-butter fare.
   
   
3. If a commercial mortgage broker is not working on a do-able loan, he simply must be working on his marketing.  Commercial mortgage brokers should devote 60% or more of their time to marketing.
   
   
4. The successful commercial mortgage broker knows how to say, "No."  The most valuable asset possessed by a commercial mortgage broker is his time.  He doesn't waste it by working on goofy loans.  Instead, he uses that precious time to call on bankers, commercial realtors, and property managers - either in person, over the phone, by snail mail, or by email - and adds them religiously to his growing email/snail mail list of referral contacts.

Okay, so now let me tell you about this advertising email I received from this commercial mortgage broker.  This guy was actually soliciting for the very same goofy loans that I have trained you to avoid like the plague!  He advertised for -

1. International loans
   
   
2. Construction loans
   
   
3. Land loans
   
   
4. Acquistion and development loans
   
   
5. Venture capital
   
   
6. Loan on mines!
   
   
7. Loans on special use property, like energy projects.
   
   
8. And his advertisement was directed at other mortgage brokers asking them to bring their commercial loans to him to place.  In other words, this foolish broker was intentionally setting himself up to be a commercial mortgage wholesaler. You never-ever-ever want to work as a commercial mortgage wholesaler.
   
   
9. By tailoring his advertisements to mortgage brokers, he is intentionally creating a daisy chain.  Daisy chains don't close!

Oh, my goodness!  Talk about being on a path to disappointment and poverty.  Folks, you could work on 10,000 commercial loans from the above list and never close a single one.  This broker was the perfect example of what NOT to do as a commercial mortgage broker.

You should only be working on permanent loans and bridge loans on standing commercial properties in this market.  If you waste your precious time working on any other kind of commercial loan, mark my words.  You.  Will.  Starve.

If this broker's advertisement was not funny enough, the headline of his advertisement was the pièce de résistance.  The headline read, WE ARE IN BUSINESS!  COMCAST MISTAKENLY TURNED OFF OUR PHONE.  I am shocked - shocked I tell you - that this commercial mortgage broker may be having trouble paying his bills.

C'mon, guys.  Don't work on goofy loans.  If you're not working on a loan on a standing commercial property, be working on your marketing.

If your commercial mortgage borrower owns a successful business, you can often use his normal business bank deposits as a lever to obtain for him a new commercial loan.  Let me explain how and why this works.

Good borrowers mean very little to most bankers.  Borrowers are like trolley cars.  There is always another trolley car coming down the track.

Large depositors, on the other hand, are very important to bankers.  Keep in mind that most commercial banks rarely sell off their loans.  They are portfolio lenders.  In other words, banks keep (almost) all of the loans that they make.

As a result, banks can only make so many loans.  The limiting factor is the size of their deposit base.  The more deposits that a bank enjoys, the more loans it can make, the more loan fees it can earn, and the more interest income it can earn.  When the banks has loaned out all of its deposits, however, the bank has to stop making new loans.  It cannot earn more loan fees and more interest.   

The name of the game in banking is therefore to provide excellent banking service to high-net-worth individuals so they will move their deposits to your bank.  Banking is all about growing the bank's deposit base.  The deal is that the bank trades a short-term commercial real estate loan in return for a long-term deposit relationship.

Now let's suppose your borrower owns a successful widget company, and he needs a commercial real estate loan.  Let's further suppose that he banks with a large money center bank, like Bank of America, and Bank of America has turned him down.  Here is how you may still be able to get him a bank loan:

Go to http://www.maps.yahoo.com and type in the address of his his widget business.  The location of his widget factory will apear on the map.  Then ask Yahoo Maps to plot all of the nearby banks.

Select a nearby small bank.  Its VERY important that the bank be a small one.  The large, money center banks - like JP Morgan Chase, Citigroup, Bank of America, and Wells Fargo Bank - accept deposits from all over the country, and they don't appreciate new, local depositors nearly as much as small banks.

Call the small bank and ask to speak the branch manager.  Don't allow yourself to be redirected to some loan officer.  Insist on speaking directly with the branch manager.

When he comes on the line, explain to the branch manager that you represent the owner of a successful business nearby and that you would like to bring your owner down to the bank to talk about moving his deposits to a new bank in return for a short term commercial real estate loan.  Most branch managers of small banks will practically jump through the phone line in their enthusiasm.

This is how you will finance your successful restaurants and your successful bowling alleys.  The operative word here is successful.  Successful business owners maintain large average daily balances in their business accounts, and their personal savings accounts as often impressive as well.  Bankers want those deposits, so they will trade a short-term business loan for a long-term deposit relationship.

If you’re not making any money as a commercial mortgage broker, this lesson should tell you what you’re doing wrong.

First of all, you are probably working on goofy loans.  By “goofy loans” I mean international loans, loans larger than $10 million, land loans and land development loans, residential subdivision construction loans, commercial construction loans without an SBA takeout, loans on mines, joint ventures, loans involving certificates of deposit, credit-enhanced loans, and loans involved in a daisy chain.  Folks, you could have a pipeline of 10,000 such loans and never close a single one.

I urge you to take a look at your current pipeline of deals and mentally kick out any of the above types of loans.  The few (if any) remaining loans are your only commercial loans that have a snowball’s chance of closing.

In fact, each of the above loans is worse than having no commercial loans at all in your pipeline.  All they will do is waste time that should be spent finding permanent loans on standing commercial properties.

The most valuable asset you own as a commercial mortgage broker is your time.  You must learn how to say “no” twenty times per day.

What kinds of commercial loans should you be working on?  Small loans on standing commercial properties, ideally less than $2 million, multifamily loans, SBA loans, USDA Business and Industry loans, loans to refinance balloon payments, refinances of under-leveraged commercial buildings to cash-needy borrowers, discounted payoff’s (DPO’s), loans to purchase REO’s, and possibly commercial construction loans with an SBA or USDA takeout loan.

If you remember nothing else from this lesson, just remember that small commercial loans close.  I would rather have just one $600,000 commercial loan than ten commercial loans of over $6 million each.  It has been my experience that large commercial loans only close when you don’t need the commission.  Remember also that the larger the loan, the more bank executives who have to review it before it gets approved.  Any one of them could have a pet peeve.

The bank loan officers who handle the really large commercial loans are very cliquish.  They will usually just kiss off your first half-dozen deals because they want you to go away.   You’re not one of the good ‘ole boys.  Sometimes it feels like a new broker has to sacrifice five good loans on the altar of a new lender before the lender will even start to pay attention to him.

The most important lesson I have ever learned after 32 years in commercial real estate finance is this – commercial lenders close loans for their friends.  You need to become good friends with a bank loan officer before he will close a large commercial loan for you.

Instead of working on goofy loans, you should be spending 60% of your time on marketing for do-able commercial loans.

The way to market for commercial loans is build a huge snail-mail list and email list of wealthy real estate investors and referral sources.  The best referral sources are bankers, commercial real estate brokers, property managers, residential mortgage brokers, other commercial lenders (hard money brokers, credit unions, etc.), attorneys, CPA’s, and insurance agents.

You should focus your marketing on local referral sources, so you get local deals on local properties that you can personally inspect.  It’s easy to pinpoint nearby banks, realtors, property managers and such by plotting your office on Yahoo Maps and then asking the map program to plot the nearest banks, etc.  You should then solicit these same guys using funny and interesting newsletters.

When quoting a commercial real estate loan, be sure to quote a very specific rate and term, even if you don’t know which bank will eventually fund your deal.  Borrowers want to hear specificity.  The good news is that most banks offer similar programs.  If you’re slightly off, simply correct yourself as soon as you discover it.

Try to never bring up the subject of appraisals and toxic reports.  You’ll lose the borrowers to sticker shock.

The wise commercial mortgage broker will personally inspect every property he tries to finance.  If the property is too far away to personally inspect, learn how to use demographic websites and neighborhood crime websites to identify low- income, high-drug-use, and high-crime neighborhoods.

Always include a picture with your commercial loan package.  Much depends on a handsome picture taken on sunny day.  You should also learn how to use Google Earth to take a bird’s eye picture of the neighborhood surrounding your property.

It’s no longer necessary to send loan packages by Fed Ex or snail mail.  Instead, learn how to turn a short Executive Loan Summary into a PDF that you can send by email.

Finding commercial lenders is easy and straight forward using C-Loans.com, Yahoo Maps, and the FDIC’s own website.  Just be sure to match the size of your loan to the size of the bank.  And don’t forget about credit unions.  They often have the lowest rates.

After submitting your commercial loan to a banker, be sure to call the banker to “confirm receipt of the loan package.”  The call will serve as a gentle kick in the tush to actually read the package.

When you approach a lender of the phone, the first words out of your mouth should be, “Hey Bill, I’d like to run a commercial loan by you.  Did I catch you at a good time?  If not, I’ll be happy to call back later.”

A lot depends on your loan officer.  Commercial real estate lending is an advocacy process, where your loan officer has to fight for your deal before Loan Committee.  If your loan officer is a wimp, find a different one.

How do you spot a hot commercial loan officer?  Often the receptionist or the loan department secretary will share with you the name of their hottest commercial loan officer.  Look for younger males on commission or at least one on a salary-plus-bonus compensation plan.  The older guys on straight commission often couldn’t give a flip.  If one commercial loan officer blows you off, try another one at the same bank the following day.

Be careful of advance fee scammers posing as commercial lenders.  Distrust immediately any “lender” who claims he makes international loans, that he represents hedge funds, or is a merchant banker.  I promise you that they are either rookies or frauds.

Learn to spot hot commercial loan leads – properties with balloon payments coming due, deals where the lender has offered a discounted pay off, low LTV deals to companies that are losing money and need to pull dough out of their properties, free-and-clear commercial properties that have just been inherited by the heirs, or purchase-money deals where the buyer is doing an exchange.

Never talk about a debt service coverage ratio with a lender without sharing what loan constant you used to compute the ratio.

Always get a signed fee agreement with your borrower, but don’t ask for it too soon.  Work him nearly to death fetching you documents first so that he has a stake in the process.

When requesting the documents for your loan package, never ask for a complete package.  No-no-no!  The magnitude of the work in front of him will send him running for the hills.  Instead, bleed the documents out of him slowly, giving him lots of positive encouragement after receiving each batch.

The wise commercial mortgage broker will work out of his house.  Your borrowers won’t mind.  And fire all of your staff.  You don’t need them.  Keep your day job as you build up your pipeline – be it originating home loans or driving cab.  This business takes a while to build.

Whatever you do, never try to be a commercial mortgage wholesaler.  Your brokers will only bring you their crumby deals that they couldn’t place elsewhere.  You’ll waste countless hours and never close a deal.

There are lots of ways to close commercial loans.  The seller could carry back a second mortgage on another property owned by your buyer.  Perhaps the holder of a ballooning loan could subordinate part of his loan for a partial pay-down.  Your lender could blanket other collateral.  You could bring in a strong personal guarantor.  Your borrower could sell off assets and bring cash to the closing.  You can also very often convince a bank to take a discounted pay-off.

Why even bother becoming a commercial mortgage broker?  Because commercial properties are owned by rich folks!  There is no better way to meet high-net-worth investors than to be a commercial mortgage broker.

Once you meet these rich folks, you can finance their other properties, sell them other properties, syndicate them into groups to buy larger properties, or even someday sell them first trust deeds.  For example, I own a $50 million hard money shop, and almost every one of my early investors was a former borrower.

Be smart.  Read this summary over and over again until these lessons truly sink in.  Good luck.  I hope this helps.

George Blackburne III
Plymouth, Indiana
October 12, 2012