--- title: "Video Lesson:  Conduit Loans and Capital Improvements" description: Listen in horror to this video training lesson about what happens if you materially improve a property burdened with a conduit commercial loan. image: https://info.c-loans.com/hubfs/Mixed%20Commercial.png --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Video Lesson:  Conduit Loans and Capital Improvements](https://info.c-loans.com/video-lesson-conduit-loans-and-capital-improvements) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Tue, Jun 22, 2021 - [Tweet](https://twitter.com/share) ![Mixed Commercial](https://info.c-loans.com/hs-fs/hubfs/Mixed%20Commercial.png?width=344&name=Mixed%20Commercial.png)So you own an office building, with a $6 million commercial loan from a conduit.  All is going well, until you add on in the back of your office building a $4 million self storage project. But it's all good, right?  That vacant space was being wasted. The self storage addition is a huge success.  You quickly begin to fill it, and the value of your commercial lender's collateral soars from $11 million to a whopping $16 million.  Your lender's commercial loan is now just 37.5% loan-to-value.   [![Apply For a Commercial Loan to Blackburne & Sons](https://no-cache.hubspot.com/cta/default/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc)   [Click here to view video](https://youtu.be/B9S0Ixman3E). [![Nine-Hour Video Training Course How to Broker Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f)   You paid cash to construct the self storage addition, and the net cash flow on the property has increased by $14,000 per month.  How could any commercial lender not be thrilled? But then the loan servicing agent for your conduit commercial lender gets the annual tax bill, and the tax bill is materially higher.  They write to you for an explanation.   [![Free Commercial Loan Software](https://no-cache.hubspot.com/cta/default/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8)   ![these-almonds-are-aggressive](https://info.c-loans.com/hs-fs/hubfs/these-almonds-are-aggressive.jpg?width=446&name=these-almonds-are-aggressive.jpg)   [![Free Commercial Loan Placement Kit](https://no-cache.hubspot.com/cta/default/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a)   "No problem, guys.  At my own cost, I just added 122 self storage units  on the unused land in the rear of our office building.  The value of your collateral has just increased by $5 million.  You're welcome." And then the poop storm begins...  [Click here to view the video](https://youtu.be/B9S0Ixman3E) and to watch in horror as the downpour from hell drenches this unfortunate commercial property owner.   [![Banks and Credit Unions: Get 200 Free SBA Loan Leads](https://no-cache.hubspot.com/cta/default/37671/eb103ba9-3328-470e-bdda-e29c55be2881.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/eb103ba9-3328-470e-bdda-e29c55be2881)   ![please-do-not-panic](https://info.c-loans.com/hs-fs/hubfs/please-do-not-panic.jpg?width=393&name=please-do-not-panic.jpg)   [![Get Four Free Commercial  Training Courses](https://no-cache.hubspot.com/cta/default/37671/0823a684-b4a7-44a5-bdd5-22f0164bab11.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/0823a684-b4a7-44a5-bdd5-22f0164bab11)   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/7bcb7dc6-4127-4491-982a-16e57ca54d60.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/7bcb7dc6-4127-4491-982a-16e57ca54d60)     Topics: [conduit loans and capital improvements](https://info.c-loans.com/topic/conduit-loans-and-capital-improvements) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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