Exhibit A -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

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Loan Number: 2643
Loan Amount: $291,850
Minimum Investment: $20,000
Call for availability of smaller participations
Type: First Trust Deed
Yield: 8.0%*

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


Project: Liberty Road Industrial
Property Address
: 22024 E. Liberty Road, Clements, CA 95227
The subject property consists of a 2,000SF industrial building on a 2.53-acre parcel, located in Clements, California.

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Term of Investment
60 months
Current Interest Rate
Repayment Schedule
30 Year Amortization
Monthly Payment
Purchase Price of the Note
Current Balance on the Note
Maturity Date
60 months
Balloon Pymt. after 60 months app.
Late Charge Amount
Prepayment Penalty

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


Appraised Value - as of August 10, 2021
Purchase Price
Protective Equity - Appraisal
Protective Equity - Purchase Price
Loan to Value - Appraisal
Loan to Value - Purchase Price


Rental Income
Vacancy 5.0%
Effective Gross Income
Management Offsite
Reserves for Replacement
Total Expenses
Note: Pro forma based on appraiser's estimates


Net Worth
His occupation
Agricultural Consultant
Her Occupation
2020 Income
2019 Income
Percent Ownership

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

To invest, please call George IV
at 1-916-338-3232 or CLICK HERE.


Blackburne & Sons is pleased to present this purchase money First Trust Deed secured by a 2,000SF industrial building on a 2.53 acre parcel, located in Clements, San Joaquin County, California.  

The borrower is purchasing the subject property for $449,000, and will be putting down approximately $157,150 plus closing costs. After the close of escrow, the borrower will open a Metal Fabrication shop.


San Joaquin County comprises the Stockton, CA Metropolitan Statistical Area, which, according to the 2020 census, had a population of 770,631. San Joaquin County is bordered by the Sierra Nevada Mountains to the east and the Pacific Coast Range and San Francisco Bay to the west. It is also bordered by Sacramento and Stanislaus counties to the north and south, respectively. There are seven cities in the county, including Stockton, Lathrop, Lodi, Manteca and Tracy. The area’s main thoroughfare is Interstate 5. San Joaquin County, and the city of Tracy in particular, is becoming a popular locale for industrial and commercial clients. Fueling this growth are low property prices, expansion out of the Bay Area, freeway access, and residential growth.

Diversification of the economic base has historically brought in jobs and money to San Joaquin County. While agriculture and government remain important base components, new businesses are coming to this region made desirable by a complete transportation network and affordable housing. However with the last downturn in the economy, unemployment rates increased in the area and property values declined. Population and development figures indicate that San Joaquin County is continuing to grow at a limited rate. Continued employment diversification and economic growth is anticipated to slowly improve based on the overall improvement of the economy. The top four leading employers in this county are Blue Sheild of California, A Sambado & Sons, Inc., Amazon Fullfilment Center and Dameron Hospital.


The subject is located in Clements, California, within the San Joaquin County. The immediate area features a mix of light industrial, agricultural land, supporting retail, and limited residential development. The major arterials are defined as commercial with a concentration of small retail plazas, fast food vendors, restaurants, and service-related uses. Clements was laid out in about 1872. The founder, Thomas Clements, gave the community his name and a post office has been in operation at Clements since 1882.

The city lies just 30 minutes NE of Stockton, 20 minutes NE of Lodi and 30 SE of Elk Grove. It has a popolation of 857 people and is an unincorporated community in San Joaquin County.


Built in 2006, the subject is an industrial warehouse property located on a 2.53-acre site. Approximately 10,750SF of the subject site is paved asphalt and the remaining site area is paved gravel. The subject is a single tenant industrial property that will be owner-occupied at the close of escrow. It is improved with a single -story industrial warehouse, totaling 2,000SF of Net Rentable Area (NRA). The improvement is an industrial Class S warehouse that includes metal exterior walls, metal interior walls, exposed insulated ceilings, fluorescent lighting, skylights, sealed concrete floors, a 14’ clear height, and two grade level doors. It is noted that the subject does not have any office build out, but features a bathroom.

The property has access to water via a well on site, septic, electric and gas services via PG&E. At the southwestern corner of the site there is a landlocked, 10’ x 10’ square parcel. This parcel, 021-200-21, is a cell tower. The tower is on a ground lease which generates no income. There is an easement on the southwestern boundary of the subject site totaling 7,475SF granting access to the cell tower and is considered unusable land.

Additionally, our attorney reviewed said lease with the cell tower company and found the below to be noteworthy:
- All rent for the 99 year term has already been paid.
- The Lessee can purchase the entire 10,000SF portion of the easement / lease at the expiration of the lease term for $1,000.
- Lesee can sublease the 10,000SF or make use of the remaining unused portion at any time.
- In the event of condemnation of the property, the Lessee gets a share of the condemnation amounts, which for the Lessee includes the value of its communication facility, moving expenses, repaid rent and business dislocation expenses, which would eat into any condemnation proceeds received by the owner.

The subject has good access to both Highway 88 and 99 (approximately 12 miles west via Liberty Road). The nearest Greyhound bus station is located in downtown Lodi as is the Amtrak-Lodi station. Major airports within the proximity to the subject include Stockton Metropolitan Airport, located approximately 25 miles southwest of the subject.

It is noted that a portion of the subject site is zoned General Agriculture (AG-80), however the majority of the subject site is zoned Crossroads Commercial (C-X), which allows a very limited number of permitted commercial or industrial uses. The subject’s use is permitted via a conditional use permit specific to the subject development. Based on the appraiser’s interview with the San Joaquin County Planning & Zoning Department, the subject is permitted for its current use with site approval to have leisure equipment sales and repair. The subject could be rebuilt if destroyed, as long as the foundation is still intact and construction commences within 12 months. After that timeframe, all new construction would need to conform to the current zoning.


The borrower is a married couple who will hold title to the property individually. He is currently an Agricultural Consultant and she is a housewife. Our borrowers are purchasing this property in order to open up a Metal Fabrication shop. His father-in-law taught him and his sons the business and left him all of the equipment to do this type of work. The purchase price for this property is $449,000 and borrowers are bringing $157,150 plus closing costs to the closing table.

Our borrowers report a net worth of $804,015 and have mid-credit scores of 750 and 645. They reported $121,675 in personal income for 2020, and $100,000 in personal income in 2019.


We hired a local MAI appraiser who valued this property (AS-IS) Appraised Value of $450,000. A local broker was also engaged who performed a drive-by opinion of value (BPO) who suggested a list price of $400,000 with sales in the $325,000-$375,000 range

At an 8.0% yield to the investors and a 64.9% LTV (Appraised Value) and 65.0% LTV (Purchase Price) , this appears to be a reasonable investment. Investing in any first trust deed involves substantial risk, so be sure to read the Risk Factors section of the Offering Circular carefully before investing. A large and prolonged decline in real estate values is possible. Foreclosed commercial properties almost always need to be renovated before they 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. 

  6. During the S&L Crisis, commercial real estate fell by 45%. Within three years, values reached new highs. During the Dot-Com Meltdown, commercial real estate fell by 45%. Within three years, values reached new highs. During the Great Recession, commercial real estate fell by 45%. Within three years, values reached new highs. Some time in the next decade, we will have another opportunity to snatch up prime commercial real estate at a huge discount. You will be terrified, but when Blackburne and Sons invites you to join a syndicate to buy a nice commercial property at a 35% discount off its prior high, just remember that the best time to invest is when blood is running in the streets. Why not when real estate has fallen by 45%? You’ll never catch the very bottom because historically the bounces off the bottom happen much too fast. Bounce-soar. You will be terrified, but just remember that the best time to invest is when blood is running in the streets.

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

To invest, please call George IV
at 1-916-338-3232 or CLICK HERE.

Blackburne & Sons Realty Capital Corporation--For more information, contact George Blackburne, IV
555 University Ave., Suite 150, Sacramento, CA 95825
Telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Bureau 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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