Exhibit A -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

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Loan Number: N2687
Loan Amount: $625,000
Minimum Investment: $20,000
Call for availability of smaller participations
Type: First Security Deed
Yield: 9.0%*

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: Blue Mountain Creek Subdivision
Property Address
: Appalachian Hwy Morganton, GA 30560
The subject property consists of a 64.34 acres of land, located in Morganton, Georgia

For the aerial view of this property...Click Here!
For the street view of this property...Click Here!

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

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


Appraisal - as of May 21, 2022
Protective Equity - Appraisal
Loan to Value - Appraisal


Limited Liability Company
Real Estate Holding Co.
Percent Ownership

Net Worth
His Occupation
Owner-Nail Salon
2021 Net Income
Her Occupation
Khang & Khanh Corp
2020 Net Income
Net Worth
His Occupation
Account Manager
Leto Rv Rentals, LLC
2021 Personal Income
Her Occupation
Phantole, LLC
2020 Personal Income

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.




George says: “Now I am going to tell you about a lot of scary things regarding this loan, but first let me tell you some good things about it:  No one can steal the copper and plumbing out of land.  Compared to a vacant office building, the holding costs of land are almost trivial.  There are no pipes to burst over the winter, so there is no need to heat the property.  You don’t have to renovate the property, you don’t have to install an expensive alarm system, and you don’t have to pay to monitor it.  No vandals can trash land, like they can trash a vacant retail building.  Lastly, the finished product of this land development loan is residential lots.  America is desperately short of homes.  A residential lot is a much more attractive property type than vacant retail space.


Nevertheless, you must NOT invest in this deal if you need your interest income to survive.  This deal is much too risky.  (1) It is a land loan; (2) the next bad (great) recession is almost upon us; and (3) we are having a lot of trouble getting a handle on the value of this land 'as is.'  


The default rate on land loans is much higher than that on improved property loans.  Land does not sell at all during bad recessions, and it you ever could miraculously find a buyer, you would likely only get pennies on the dollar.  If you choose to invest in this loan, you must be prepared to hold it - without complaining - for at least 3.5 years after foreclosure.  During that time you, you must be prepared to paying the holding costs - real estate taxes, insurance, and our property management fee, which will really irritate you to no end.  


The last issue is that the two appraisals and the Broker’s Professional Opinion are all over the place as to its value in its present condition.  Once these 58 lots are completed, the estimates of value by these three professionals start to converge; but how much is it really going to take to finish these lots?  Aye, there’s the rub.  There will surely be cost overruns.  We may have to assess the investors for much more money to finish the development.  (Please read that again.)  If you invest in this particular loan, you will even be asked to sign a waiver of certain rights to come after little Blackburne & Sons if the deal goes bad.  Sorry.  It’s a State of Georgia thing.


Why then are we even making this stinky loan?  Our common sense tells us that a loan of only $625,000 on potentially 58 residential lots is reasonable.  And a lot of you wealthy guys have a lot of money to park for the next four years, as America grinds its way through this next bad recession.  It seems to me that free-and-clear residential lots (if and when completed) may not be a bad place to weather an economic hailstorm.

Blackburne & Sons is pleased to present this first security deed secured by 64.34 acres of land, located in Morganton, Fannin County, Georgia.

The borrower is refinancing this free and clear 64.34 acres of land in order to subdivide into 58 individual residential land lots. Once the improvements are complete, the borrower will be selling off each individual land lot. Our loan will include a partial release clause, which will facilitate the release of the lots as they are sold. The partial release will include prinicipal paydown.

This loan also includes a $525,000 construction holdback, to be sure the funds are used to improve the property. We will be using a third party to manage the draw requests and inspections.


Fannin County is a county located in the north central portion of the U.S. state of Georgia. As of the 2010 census, the population was 23,682. It is one of the most rural counties in Georgia due its location in the Appalachian Mountain Range, with about 90% of the population of Fannin County living in unincorporated lands. The county seat is Blue Ridge. The county was created on January 21, 1854 and is named after James Fannin, a veteran who fought in the Texas Revolution.

According to the U.S. Census Bureau, the county has a total area of 392 square miles, of which 387 square miles is land and 5.2 square miles (1.3%) is water. The county is located in the Blue Ridge Mountains.

The Toccoa River, which rises in adjacent Union County, flows northward across Fannin County into Tennessee, where it becomes the Ocoee River. Blue Ridge Lake, created in the 1930s by the completion of Blue Ridge Dam (now operated by the Tennessee Valley Authority), spans a substantial stretch of the river in the northern part of the county.

The vast majority of Fannin County is located in the Ocoee River sub-basin of the Middle Tennessee-Hiwassee basin. A very small northeastern portion of Fannin County is located in the Hiwassee River sub-basin of the same Middle Tennessee-Hiwassee basin. Illustrating that watershed boundaries and county boundaries have little in common, Fannin County's southernmost corner is located in the Etowah River sub-basin in the ACT River Basin (Coosa-Tallapoosa River Basin), while two slivers of the county's southwestern area are located in the Coosawattee River sub-basin of the same larger ACT River Basin. Finally, a western portion of the county is located in the Conasauga River sub-basin of the ACT River Basin.

The economy of Fannin County, GA employs 10k people. The largest industries in Fannin County, GA are Construction (1,425 people), Retail Trade (1,402 people), and Manufacturing (1,246 people), and the highest paying industries are Information ($85,417), Utilities ($72,083), and Transportation & Warehousing, & Utilities ($49,459).


Morganton is a city in Fannin County, Georgia. Prior to European colonization, the area that is now Morganton was inhabited by the Cherokee people and other Indigenous peoples for thousands of years.

The Georgia General Assembly incorporated Morganton in 1856. The town's name is a transfer from Morganton, North Carolina. Morganton served as the seat of Fannin County from 1854 until 1895, when the seat was transferred to Blue Ridge.

Morganton is located in eastern Fannin County at, on the northeast side of Blue Ridge Reservoir. Georgia State Route 60 passes through the city, leading northwest 1.5 miles to U.S. Route 76 and southeast 26 miles to Suches. Via SR 60 and old US 76, it is 6 miles west to Blue Ridge, the county seat.

According to the United States Census Bureau, Morganton has a total area of 0.83 square miles, of which 0.004 square miles, or 0.66%, is water.

Morganton is also around 1 hour to Helen (GA), 1.5 hours to Atlanta, 2.5 hours to the Great Smoky Mountain National Park (North Carolina), 2.5 hours to Asheville (NC), and many surrounding attractions. The area also offers plenty of recreational activities: many hiking trails to beautiful waterfalls, boating, fishing, waterskiing at the lakes, hunting, etc.


The borrowers purchased this property in March 2021 for $409,783 from an estate sale. Per the appraiser, the deal was an arm’s length transaction, with the price likely being slightly below market due to the desire of the heirs to liquidate the property. The borrowers have spent approximately $486,000 on infrastructure since the purchase. The property is currently free and clear of any liens or mortgages.

Blue Mountain Creek Subdivision will be built in two phases. Per the borrower, the first phase will include grading & paving roads, water lines, deceleration lanes, power lines, and misc. soft costs including engineering reports, surveys and permits. The total cost of Phase 1 is estimated at $1,177,717.99. Our borrowers claim to have completed and paid for $446,717.99 worth of work. Our loan will cover most of the remaining $731,000 needed to complete Phase 1. The guarantors will fund the rest of the Phase 1 protion out of pocket or from the partial release of the lot. This is expected to be completed in July 2022.

The subject is a proposed residential subdivision in Morganton, GA, which is in the north Georgia Mountains approximately ten miles east of Blue Ridge and 15 miles west of Blairsville. The 64.34 acre project fronts on Appalachian Hwy (U.S. Hwy 78), which is one of the primary transportation arteries through the north Georgia region. It has been designed to support 58 residential lots. The development will go by the name of Blue Mountain Creek. Its topography is rolling and supports the development of residences with basements. There will be three types of lots - standard, creek side, and Mountain View. Creek side and Mountain View lots have price premiums since they are typically more desirable to buyers.

Per the appraiser, the developer can commence to selling lots to home builders. Remaining construction in Phase 2 will include cable installation, asphalt paving of roads, construction of the front entrance signage and landscaping, and installation of mailbox kiosks.

The subdivision site plan has 26 standard, 15 creek side, and 17 Mountain View lots. Lot sizes will range from 0.75 to 3.36 acres. There are no subdivision amenities; however, there will be covenants, conditions, and restrictions. The development is partially completed with clearing and grading, gravel roads, storm water detention, and basic utilities in place.


The borrower is an LLC of which there are four guarantors consisting of two married couples.

The first set of guarantors are husband and wife. They own and operate a nail salon, report a net worth of $1,180,039, and have mid-credit scores of 810/782. Their personal tax returns for 2021 reported $176,937 in adjusted gross income, and in 2020 they reported adjusted gross income of $85,709.

The second set of guarantors are husband and wife. He is an account manager for an RV Rental company and she is the Manager of the subject LLC. They report a net worth of $1,147,902 and have mid-credit scores of 616/740. In 2021 they reported $80,601 in adjusted gross income and $14,112 in adjusted gross income in 2020.


We accepted an apprasial ordered by the mortgage broker on the subject property, which was done in March 2022 through a local General Certified Appraiser. This appraisal came in with an (AS-IS) market value of $1,650,000 and an (AS-COMPLETE) value of $2,370,000. Please note, we are not considering the (As-Complete) value as our loan does not complete the project.

We hired a local MAI Appraiser who valued this property with an (AS-IS) market value of $1,850,000 (as of May 2022) and an (AS-COMPLETE) value of $3,270,000 (as of July 1, 2022). Please note, we are not considering the (As-Complete) value as our loan does not complete the project.

We hired a local realtor to perform a BPO (Broker Opinion of Value) who gave us an (AS-IS) value of $727,957 and an (ARV) of the completion of Phase I and Phase II of $4,350,000. Please note, we are not considering the (As-Complete) value as our loan does not complete the project.

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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