Exhibit A -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

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Loan Number: N2648
Loan Amount: $900,000
Minimum Investment: $20,000
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: Mound Road Industrial
Property Address
: 20829 Mound Road, 20840 Albany Avenue & 20946 Albany Avenue, Warren, MI 48091
Description:
The subject property consists of a 7,560SF industrial building on a 0.382-acre parcel, located in Warren, MI.

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TERMS

Term of Investment
60 months
Current Interest Rate
10.0%
Repayment Schedule
Interest Only
Monthly Payment
$7,500
Purchase Price of the Note
$900,000
Current Balance on the Note
$900,000
Maturity Date
60 months
Balloon Pmt. after 60 months app.
$908,925
Late Charge Amount
$982.50
Prepayment Penalty
None

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


EQUITY ANALYSIS

Appraisal - AS-IS as of September 17, 2021
$500,000
Appraisal - Liquidation Value
$840,000
Appraisal - ARV as of March 17, 2022
$1,400,000
Construction Holdback
$815,000
Loan to Value - AS-IS
180.0%
Loan to Value - Liquidation
93.0%
Loan to Value - ARV
64.0%
Payment Reserve
$53,550


OPERATING STATEMENT

INCOME
Rental Income
$151,200
Expense Recoveries
$19,587
Collection Allowance
$1,708
Effective Gross Income
$169,079
   
EXPENSES
.
Insurance
$1,512
Management Offsite
$3,382
Real Estate Taxes
$6,375
Common Area Maintenance
$11,340
Total Expenses
$22,968
 
NET OPERATING INCOME
$146,111
Note: Pro forma based on appraiser's estimates

BORROWERS


Name(s)
Newly Formed LLC
Percent Ownership
100%

Name(s)
Individual(s)
Net Worth
$6,989,313
His Occupation
Medical Director
Her Occupation
Homemaker
2020 Income
$954,420
2019 Income
$874,008



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.


MOUND ROAD INDUSTRIAL

THE LOAN OFFERED HEREBY IS A CANNABIS LOAN THAT WILL BE SECURED BY A PROPERTY UTILIZED TO GROW, MANUFACTURE, PROCESS, DISTRIBUTE OR DISPENSE CANNABIS OR CANNABIS RELATED PRODUCTS. THIS LOAN INVOLVES SIGNIFICANT ADDITIONAL RISKS NOT ATTRIBUTABLE TO LOANS UNRELATED TO THE CANNABIS INDUSTRY AND SUCH LOANS ARE NOT SUITABLE FOR ALL INVESTORS. POTENTIAL PURCHASERS OF FRACTIONAL INTERESTS IN THIS LOAN MUST REVIEW AND UNDERSTAND THE INFORMATION SET FORTH IN THE OFFERING CIRCULAR ENTITLED "ADDITIONAL RISKS AND CONSIDERATIONS OF CANNABIS RELATED LOANS" PRIOR TO INVESTING. PURCHASERS OF INTERESTS IN THIS LOAN SHOULD ALSO CONSULT THEIR OWN LEGAL COUNSEL AND INVESTMENT ADVISORS WITH RESPECT TO THESE RISKS TO DETERMINE IF AN INVESTMENT IN THIS LOAN IS APPROPRIATE FOR THEIR PARTICULAR RISK TOLERANCE PROFILE AND FINANCIAL SITUATION.

Blackburne & Sons is pleased to present this first mortgage secured by a 7,560SF industrial property and two parcels of land totaling 0.382 acres, located in Warren, Macomb County, Michigan.

The borrower purchased the property for $490,000, all cash, in July 2021. The property is currently free and clear of any liens. The purpose of our loan will be to renovate the property into a safety compliance cannabis testing lab. This loan will include a $815,000 construction holdback to ensure the funds are used to renovate the property, and a 6-month payment reserve in the amount $53,550.

COUNTY INFORMATION

Macomb County is located in the eastern portion of the U.S. state of Michigan, bordering Lake St. Clair, and is part of northern Metro Detroit. As of the 2020 Census, the population was 881,217, making it the third-most populous county in the state. Macomb County is part of the Detroit-Warren-Dearborn, MI Metropolitan Statistical Area, with the city of Detroit located south of the county's southern border. Macomb County contains 27 cities, townships and villages, including three of the top ten most-populous municipalities in Michigan as of the 2010 census: Warren (#3), Sterling Heights (#4) and Clinton Township (#10). It should be noted that the City of Detroit is not part of Macomb County, however they are less than 40 miles apart.

CITY INFORMATION

Warren is the largest city in Macomb County, and the 2020 Census places the city's population at 139,387, making it the third largest city in Michigan, and Metro Detroit's largest suburb. The median property value in Warren MI is $122,300 (a 9.49% 1-year growth), and the median household income is $49,619 (a 4.64% 1-year growth) and the home ownership rate is 69.1%.

The economy of Warren, MI employs 61,900 people. The largest industries in Warren, MI are Manufacturing (13,681 people), Health Care & Social Assistance (9,208 people), and Retail Trade (6,927 people), and the highest paying industries are Utilities ($81,534), Mining, Quarrying, & Oil & Gas Extraction ($73,750), and Management of Companies & Enterprises ($67,500). The city is home to a wide variety of businesses, including General Motors Technical Center, the United States Army Detroit Arsenal, home of the United States Army TACOM Life Cycle Management Command and the Tank Automotive Research, Development and Engineering Center(TARDEC), the headquarters of Big Boy Restaurants International, and Asset Acceptance.

SUBJECT PROPERTY DETAILS

The subject property is a 7,560SF industrial property located on the west side of Mound Road, south of Hayden Street in Warren, Michigan. The property, zoned M-2 Industrial, was originally constructed in 1960 on a 0.382 acre site, and has since been renovated several times. It is in an area of Warren where the zoning allows for cannabis uses, including cultivation, processing, and safety compliance testing. Per the appraiser, this is the only “Green” area in Warren that allows this zoning and it is highly sought after. The area is 95% commercial use with a mix of small factory’s, warehouses and other commercial structures, including the Chrysler Assembly Plant just across the street.

*It is important to note - the valuation of the subject property is highly dependant on the "green" zoning. Should the zoning change, a significant decline in real estate value is possible.

The borrower has reportedly applied for a compliance testing license to the township. Per the broker, the process for licenses are set up in two phases. The Phase I license in Michigan is already approved and in place, not contingent upon their real estate. The Phase II license has been submitted, but the state grants final approval after the completion of the property inspection, post build out. The borrower had an Environmental Phase I done in June 2021 and an Environmental Phase II done in July 2021 before purchasing the property. The results warranted no further investigation needed. Blackburne & Sons sent both reports to CREtelligent to review in which they ultimately agreed with the findings of those reports. We received a reliance letter from the company that performed the Phase I and Phase II which allows Blackburne & Sons to use and rely on those reports. Copies of all reports will be sent in the due diligence package for review.

We were given a rehab budget from a contractor that estimates approximately $815,000 in work that will be done to the subject property. A copy of the rehab budget will be included in the due diligence package.

BORROWER SUMMARY

The guarantors are husband and wife and will hold title through a newly formed LLC, of which the husband is the sole member. He has been a licensed medical physician since 2005 and currently works as a medical director for four nursing home facilities. His wife
is a homemaker. Per the borrower, they have spent the past two years securing the license and finding the optimal location for the facility.

The guarantors report a net worth of $6,989,313 and have mid-credit scores of 668 and 642. They reported $954,420 in adjusted gross income in 2020 and $874,008 in adjusted gross income for 2019.

VALUATION SUMMARY

We hired a local MAI appraiser who valued this property with an AS-IS appraised value of $500,000, a Liquidation Value of $840,000 and an Upon Completion Value / ARV of $1,400,000.

We hired two local brokers who each performed a drive-by opinion of value (BPO). BPO #1 came in at $567,832 with improvements, $1,135,664 as a dispensary or safety compliance center, and $2,271,328 if used as a cannabis grow operation. BPO #2 came in at $491,000 AS-IS and $1,500,000+ ARV.

At a 10.0% yield to the investors and a 180% LTV (AS-IS Appraised Value), 93.0% LTV (Liquidation Value), and 64.0% (ARV) 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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