Exhibit B -- Specifics of the Loan |
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Loan Number: N2552
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PROPERTY Project: Ohio Mobile Home Blanket
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*Net of servicing
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EQUITY ANALYSIS
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OPERATING STATEMENT - COMBINED
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BORROWERS
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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 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. 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
Blackburne & Sons Realty Capital Corporation--For more information, contact George Blackburne, IV
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