About Blackburne and Sons Realty Capital
Blackburne and Sons Realty Capital is a Sacramento, CA based private lender providing loans across the country. Their focus is mainly on commercial loans. They issue terms up to 15 years, loan amounts ranging from $100,000 to $3,500,000 with a maximum LTV of 75%, and rates ranging between 8.9% and 13.9%. They provide loans on numerous types of properties, including multi family residences, apartment buildings, office buildings, retail storefronts, hotels/motels, storage buildings, senior communities, and mixed use spaces.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use
Areas Served: National
Licenses: California Department of Real Estate License Number 829677, NMLS #103430
Lending Guidelines for Blackburne and Sons Realty Capital
Below are the general loan guidelines published on the Blackburne and Sons Realty Capital website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $100,000 - $3,500,000
Available Rates: 8.9% - 13.9%
Typical Terms: 180 months
Points Charged: 2.5% - 4%
Max Loan-to-Value (LTV): 75%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Blackburne and Sons Realty Capital.
Loan Example 1
In order to buy a new office building for his small business, Robert turns to Blackburne and Sons Realty Capital to fund his purchase with a commercial hard money loan because he cannot secure a conventional mortgage loan from a bank. The lender contracts to a 80% loan-to-value (LTV) on the transaction and the building costs $290,000, so they will contribute $232,000 and Robert will be responsible for the other $58,000. In addition, the lender will charge a 2 percent origination fee to go along with the 14%, 12 month term on the deal. They agree to not charge a pre-payment penalty in case Robert pays off the note before expiration. Robert will need to pay an origination fee of $4,640 and he will then begin to make the monthly payments in the amount of $2,707 ($232,000 principle x 14% interest rate / 12 months per year). He can re-pay the note early if he chooses because there is no pre-payment penalty but he will be responsible for paying off the full principle amount when he closes the loan.
Loan Example 2
Christa is a real estate investor in Boston, MA. She purchases an older townhouse for a renovation project and takes a hard money loan from Blackburne and Sons Realty Capital with the following paramters:
$270,000 sales price
60% loan-to-value (LTV)
12 month term
10% rate of interest
3% origination fee
If Christa succeeds in her goal of a $324,000 sales price, the final numbers of the deal will be as follows:
$324,000 sales price
- $162,000 principle (60% LTV)
- $108,000 down payment (40% on 60% LTV)
- $4,860 origination points (3% of the $162,000 principle amount)
- $16,200 interest payments (12 months x 10% interest)
= $32,940 gross profit (doesn't include taxes or rehab costs)
I dealt with Blackburne, the underwriting and legal work were very fair and results, spot on. Many borrowers will nay-say if they fail to qualify, too often...
Read more on Yelp!I dealt with Blackburne, the underwriting and legal work were very fair and results, spot on. Many borrowers will nay-say if they fail to qualify, too often...
Read more on Yelp!
These folks do not perform adequate due diligence, despite what you might assume, as I did. I lost a lot of money with them. Beware.
Read more on Yelp!These folks do not perform adequate due diligence, despite what you might assume, as I did. I lost a lot of money with them. Beware.
Read more on Yelp!