Exhibit B -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

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8000 Hamilton Ave., Cincinnati, OH 45231

Loan Number: N2552
Loan Amount: $666,250
Minimum Investment: $10,000
Call for availability of smaller participations
Type: First Mortgage
Yield: 10.0%*

Important Links:
How to Invest in This Loan
Suitability Requirements
Offering Circular
Loan Servicing Agreement
Audited Financial Statement for B & S
Inventory of Available Loans
To Be Added to Our Investor Email List


PROPERTY

Project: Ohio Mobile Home Blanket
Property Address
: 8000 Hamilton Ave., Cincinnati, OH 45231 &
2300 Keenan Ave., Dayton, OH 45414.
Description:
The subject properties consist of two mobile home parks, 52-pads and 23-pads, located in Cincinnati and Dayton, Ohio.

For an aerial view of 8000 Hamilton Ave....Click Here!

For an aerial view of 2300 Keenan....Click Here!

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2300 Keenan Ave., Dayton, OH 45414

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8000 Hamilton Ave., Cincinnati, OH 45231

TERMS

Term of Investment
60 months
Current Interest Rate
10.0%*
Repayment Schedule
Interest Only
Monthly Payment
$5,552.08*
Purchase Price of the Note
$666,250
Current Balance on the Note
$666,250
Maturity Date
60 months
Balloon Pymt. after 60 months app.
$672,856.98
Late Charge Amount
$660.70**
Prepayment Penalty
None

*Net of servicing
**To be shared equally with B&S


EQUITY ANALYSIS

Appraised Value (Combined) - October 18, 2019
$1,025,000
Purchase Price + Appraised Value
$1,185,000
Protective Equity Appraised Value (Combined)
$358,750
Protective Equity Purchase Price + Appraised Value
$518,750
Loan-to-Value Ratio Appraised Value (Combined)
65.0%
Loan-to-Value Ratio Purchase Price + Appraised Value
56.2%


OPERATING STATEMENT - COMBINED

INCOME
Rental Income
$291,132
Other Net Income
$82,800
Total Income
$374,112
Less 25% Vacancy Allowance
$120,367
Effective Gross Income
$253,745
 
EXPENSES
Utilities
$83,600
Insurance
$2,960
Admin & Payroll
$23,480
Management
$7,611
Repairs & Maintenance
$9,400
Real Estate Taxes
38,423
Reserves for Replacement
$4,000
Total Expenses
$169,474
 
NET OPERATING INCOME
$84,271
Note: Pro Forma based on the appraiser's estimates
 

BORROWERS

Name(s)
LLC
Occupation
Real Estate Holding
Percent Ownership
100%

Name(s)
INDIVIDUAL(S)
His Occupation
Manager
Her Occupation
Attorney
2018 Income
$238,456
2017 Income
$196,286
Net Worth
$3,715,000

Earn a $250 Referral Fee 
Refer accredited trust deed investors
for our mailing list.


To invest, please call
George Blackburne, IV
at 1-800-606-3232 or CLICK HERE.


OHIO MOBILE HOME BLANKET

George says, “This is a superb hard money loan (no guarantees). She is an attorney, and he manages their real estate portfolio. They both have very good credit. These are former borrowers, so we also have a great track record with them. When they had a loan with us, they had a perfect payment history. I really like the collateral as well. The two properties enjoy lots and lots of small tenants. The loss of two or three tenants is NOT going to sink this investment. Lastly, people always need an affordable place to live.”

Blackburne & Sons is pleased to present this new first mortgage, secured by two mobile home parks, located in Cincinnati, and Dayton, Ohio.

Property 1: 8000 Hamilton Ave., Cincinnati, OH 45231

The first subject property is located in Mt. Healthy, Hamilton County, Ohio. Mt. Healthy is approximately fifteen miles north of downtown Cincinnati. The estimated 2018 population was 6,057 and the median household income was estimated at $36,098.  The subject property is located on the east side of Hamilton Avenue, north of Adams Road. This is a mixed-use area with primarily commercial oriented uses along the frontage of Hamilton Avenue with a heavy concentration of residential uses in surrounding areas. Uses surrounding the subject property include The Home at Hearthstone to the north, single-family residential to the east, Volunteers of America to the south and an American Legion 513 as well as a mobile home park to the west. Other uses in the area include small strip centers, restaurants and service uses.

Hamilton County is located in the southwest corner of the U.S. state of Ohio. As of the 2010 census, the population was 802,374, making it the third-most populous county in Ohio. The median income for a household in the county was $48,234 and the median income for a family was $64,683. The county seat and largest city is Cincinnati, which has an estimated population of 302,605. The city is the economic and cultural hub of the Cincinnati metropolitan area and the fastest growing economic power in the Midwestern United States. Several Fortune 500 companies are headquartered in Cincinnati, such as Procter & Gamble, The Kroger Company, and Macy's, Inc.. General Electric has headquartered their Global Operations in Cincinnati

The subject site is improved with a 47-pad mobile home park and 5 apartment units on a 4.617 acre parcel. Buildings on-site include a three-unit apartment building, laundry/two-unit apartment building and a maintenance building. Interior streets are asphalt paved, and each lot includes 1 to 2 off-street parking spaces. The improvements were originally developed in 1900 and 1950 and are currently in fair to average overall condition. The five apartment units include (2) studio units, (2) one-bedroom/one-bath units and (1) two-bedroom unit. Typical finishes include painted drywall walls and ceilings, laminate or carpet flooring and incandescent lighting. The units include adequately equipped kitchens including wood cabinetry, formica countertops, stainless steel sink, electric range/oven and a refrigerator. Of the 52 pads, 29 are currently occupied. We engaged a local MAI appraiser who valued the property (AS-IS) at $620,000. A local broker was also engaged to do a drive-by the properties, take photos and provide an opinion of value. The broker valued the property at $850,000. The purchase price for this property was originally $820,000, however, it was negotiated down to $780,000.

Property 2: 2300 Keenan Ave., Dayton, OH 45414

The second subject property is located in Dayton, Montgomery County, Ohio. Montgomery County is a county located in the U.S. state of Ohio. As of the 2010 census, the population was 535,153, making it the fifth-most populous county in Ohio. The median income for a household in the county was $40,156, and the median income for a family was $50,071. Dayton is the county seat and has an estimated population of 140,640, making it the fourth largest metropolitan area in Ohio. The Dayton area is a logistical centroid for manufacturers, suppliers, and shippers. Dayton also hosts significant research and development in fields like industrial, aeronautical, and astronautical engineering that have led to many technological innovations. Much of this innovation is due in part to Wright-Patterson Air Force Base and its place in the community. With the decline of heavy manufacturing, Dayton's businesses have diversified into a service economy that includes insurance and legal sectors, as well as healthcare and government sectors.

The subject site is improved with a 23-pad mobile home park and 5 apartment units on a 4.775 acre parcel. The apartment units are situated in four buildings including a one-bedroom residence, a two-bedroom residence with lower level storage, a three-bedroom residence and a duplex. Interior streets are asphalt paved, and each lot includes 1 to 2 off-street parking spaces. The improvements were originally developed between 1940 and 1950 and are currently in average overall condition. The five residential/apartment units include (1) one-bedroom unit, (3) two-bedroom units and (1) three-bedroom unit. Typical finishes include painted drywall walls and ceilings, laminate or carpet flooring and incandescent lighting. The units include adequately equipped kitchens including wood cabinetry, formica countertops, stainless steel sink, electric range/oven and a refrigerator. Of the 29 pads, 21 are currently occupied. We engaged a local MAI appraiser who valued the property (AS-IS) at $405,000 A local broker was also engaged to do a drive-by the properties, take photos and provide an opinion of value. The broker valued the property $650,657.

Borrower:

The borrowers purchased the Montgomery County property earlier this year (2019) for $320,000 all cash. The property is being used as the down payment/additional collateral for the purchase of the Hamilton County property. Our borrowers are a married couple who will be holding title to the property via their recently formed business entity, i.e. LLC, with him and her personally guaranteeing this loan. The LLC was created when the Montgomery County property was purchased and will hold title to both properties. The husband runs the real estate business entity and the wife is an attorney. They reported a 2018 income of $238,456 and a 2017 income of $196,286. The borrowers have a reported net worth of $3,715,000; and a credit score of 797 and 763. The couple owns approximately $6 million in real estate. This is the second loan for our borrowers. The first loan originated in 2015, and had a perfect pay history.

We engaged a local MAI appraiser who valued the property in Hamilton County (AS-IS) at $620,000 and the property in Montgomery County (AS-IS) at $405,000, for combined total of $1,025,000. A local broker was also engaged to do a drive-by the properties, take photos and provide an opinion of value. The broker valued the properties at $850,000 and $650,657, respectively. 

At an 10.0% yield and 65.0% LTV (Appraised Value) and 56.2% LTV (Purchase Price + Appraisal), this appears to be a very reasonable investment. Investing in any first mortgage involves substantial risk. A large and prolonged decline in real estate values is possible. Be sure to read the Risk Factors section of the Offering Circular carefully before investing. Foreclosed property almost always needs to be renovated before it can be leased or sold, so be sure to maintain some liquidity.




George’s Advice For Successful First Mortgage Investing

  1. You should spread your mortgage investment portfolio out among lots of different deals. If you have $300,000 to invest, you should invest $10,000 to $20,000 in 15 to 20 different fractionalized first trust deeds. For example, if the deal is a $300,000 first trust deed on an office building in Boise, with a $15,000 investment you would own 5% of the loan. By spreading your money out into a bunch of different deals, you are achieving the diversity of a fund without the failed fund sponsor problem. If you are extremely wealthy, you could double (or even triple) my suggested investment amounts, but be careful about pouring too much money into a single deal. We once had a whole building fall into an old coal mine. Ouch.

  2. Be wise and resist investing in any first trust deed yielding more than 9%. I would personally never invest in a first trust deed with a double-digit yield. The payments slowly grind the borrowers into the dust.

  3. Blackburne’s Law theorizes that a portfolio of 8% and 9% first trust deeds will outperform a portfolio of 11% and 12% first trust deeds over a seven-year term. Only our wisest (and eventually the happiest) investors listen to me.

  4. You can also buy some of our smaller deals in their entirety, but I only recommend this if you are richer than Crassus.

  5. It is very easy to lose money in hard money first mortgages, so fight-fight-fight against the temptation to invest in high-yield deals. As Nancy Reagan used to say, “Just say no.” But if you choose 7% to 9% first mortgages, I predict that you will be very, very pleased. 

Earn a $250 Referral Fee 
Refer accredited trust deed investors
for our mailing list.


To invest, please call
George Blackburne, IV
at 1-800-606-3232 or CLICK HERE.


Blackburne & Sons Realty Capital Corporation--For more information, contact George Blackburne, IV
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841
Telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Department of Real Estate -- License Number 829677 -- NMLS Number 103430
Publicly advertised to California residents only under California Department of Business Oversight business plan permit.
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