Harrison MI RV Park

George says: "This is a small, well-secured loan. I always love deals with lots of small tenants because the loss of one or two of them will not break the borrower. If this property was prettier, we would be offering it at 9% or 10%. Your checkbook doesn’t care how pretty the property is, as long as those payments keep coming in."

Blackburne & Sons is pleased to present this First Mortgage secured by two separate properties: (1) a 104 site RV park with 6 additional park-owned trailers on 12.98-acres, and (2) 70-acres of hunting/ farm land, located in Clare County, and Branch County, Michigan - respectively.

The purpose of this refinance is to pull cash out of his two free and clear properties in order to buy another RV Park. Because our loan is to be used as a down payment for this purchase, time is of the essence and a quick closing is necessary.

Harrison is a city in and county seat of Clare County in the U.S. state of Michigan. The population was 2,150 at the 2020 census. The community was settled as early as 1877 and was named after William Henry Harrison. Harrison is near the junction of US 127 and M-61. US 127 bypasses the city to the east, while Bus. US 127 runs through the center of the city. Wilson State Park and Budd Lake are located within the city.

According to the U.S. Census Bureau, the city has a total area of 4.03 square miles, of which 3.71 square miles is land and 0.31 square miles is water. The city's motto is "20 Lakes in 20 Minutes" due its proximity to numerous lakes. Budd Lake is mostly located within the city limits, while the northern coastline extends into Hayes Township. The only other lake within the city limits is Little Long Lake, which also extends into Hayes Township

In 2023, the median property value in Harrison, MI was $115,100, with a home ownership rate of 60.4%, and the median household income was $40,888. The economy of Harrison, MI employs 659 people. The largest industries in Harrison, MI are Accommodation & Food Services (180 people), Educational Services (109 people), and Retail Trade (106 people), and the highest paying industries are Transportation & Warehousing, & Utilities ($77,143), Transportation & Warehousing ($77,143), and Construction ($55,250).

CITY INFORMATION – Quincy, Michigan

Quincy is a village in Branch County in the U.S. state of Michigan. The area was first settled by Horace Wilson, who first purchased land in 1830. He purchased 360 acres (150 ha) of land from the government. The population was 1,554 at the 2020 census. The village is centered along U.S. Route 12 within Quincy Township. According to the U.S. Census Bureau, the village has a total area of 1.56 square miles, all land. US 12 (Chicago Road) is the main thoroughfare through the village.

SUBJECT PROPERTY DETAILS

RV Park

The subject property is a single parcel located in the southeast corner of Hampton Road and Woods Road, with frontage along the south side of Hampton Road. It is generally rectangular in shape and gently rolling in topography. Surrounding land uses are comprised of residential and some commercial uses.

The subject is improved with a 110-lot campground. It should be noted that the borrower is currently licensed for 88 RV sites, but is in the process of getting licensed for 104 total RV sites.The site is equipped with a 234SF office and store building, recreation building, two 1,080SF storage buildings, an 835SF washroom, and a 1,160SF garage with 835SF apartment. Per the appraiser, all buildings have adequate electrical service for their current use. The recreational facilities include: a basketball hoop with a back rim and playground equipment. There are six single-wide park owned mobile homes on the property, a two car garage and a studio apartment, but they are personal property and not part of the appraised value nor are they secured by our loan.

The subject property is zoned R-1 Single-Family Residential District. The intent of this district is to provide for low density, single-family residential development and related public and semipublic buildings, facilities, and accessory structures, consistent with the essentially rural Character of the Township. The subject’s use as a campground is considered to be a Conforming use via special use permit.

The borrower purchased this property at a fire sale for $375,000 in 2020. The owner of the property died and the property was left to the children who had no interest in owning it and just wanted to sell it quickly.

The borrower says he has increased the property income significantly since the purchase. Per the borrower “I went from a Seasonal fee of $1,050 to a Seasonal fee of $1,870, or almost double. In addition, I had the seasonal campers pay for their electricity. So the electrical expense bill went from the campers not paying any electricity, and thereby saving around $100 per month or $600 for the season, to the campers paying around $600-$900 for the season."

The campground is owned through an LLC that was purchased through a tax exempt Roth IRA, while the mobile homes are personal property and owned through a different LLC that is not part of this loan. Therefore, you will see part of the property is reported on tax returns (73%) while the other part 27%) is not. We do have P&L’s for the portion of the property that does not file tax returns.

The Roth IRA is not subject to any taxes either federal or state by law. All of its assets and revenue derived from these assets are tax free. Hence, there is no requirement to file any tax returns for assets held in a Roth IRA. The tax returns located in the due diligence files are for the Mobile Home park portion of the campground, which is required to file tax returns. Because of this law/rule, the borrower is not able to sign any personal guarantees or take out a recourse loan, therefore this is a non-recourse loan.

The campground / RV lots vary. Some of the sites have gravel covered parking areas and some are entirely grass covered. 92 of the lots have individual water service and electrical service. Most of the lots also have sanitary septic hook-up. See below map of the entire site:

The subject is a 70-acre parcel of land that is located on the west side of Pierce Road. The surrounding neighborhood consists of rural residential use. The site consists of a mix of woods and tillable land. The topography is mostly level in sections and rolling hills in other sections.

Per the mortgage broker, there are three fields totaling 19.41 acres that are tillable and are currently leased to a farmer. The remaining acreage is wooded and leased to a hunter. There are no buildings on the property. There is also a gravel pit on the property that has significant value.

The portion of the land that is currently being used as a hunting ground is leased for $5,145 per year, and the portion of the property that is leased to the farmer is leased for $815 per year.

This property is owned through a Trust and is currently free and clear. Our borrower is the sole owner and Trustee of the Trust. We only ordered a BPO on this property and the value came in at $418,740. The borrower offered this free and clear property as additional collateral for this loan. Tax returns were provided for the Trust which shows ($13,628) in 2024 and ($8,333) in 2023.

The borrower holds title to the subject RV Park through an LLC that is tax exempt and does not file tax returns. P&L’s were provided by the borrower for this portion of the property that report $83,692 in NET income for 2024, $79,554 in NET income for 2023 and 2025 YTD (April 2025) reports NET income of $25,880.

The borrower holds title to the mobile home park through a different LLC that was not purchased with this Roth IRA and therefore does file its own tax return. We were provided with a 2024 tax return that reports a loss of $25,838, and in 2023 reports a loss of $30,896. A 2025 P&L was provided as of April 2025 for this portion of the property and is reporting $25,880 in net income. The entity that holds title to the mobile homes is not part of this loan. The 6 mobile homes are personal property and not part of the appraised value.

The borrower is a married man and self-reports a net worth of $4,245,614. He has a mid-credit score of 702. The wife will not be on this loan, no personal guaranty will be provided and this is a non-recourse loan. The borrower has filed an extension for his 2024 personal tax returns. His 2023 personal tax returns show adjusted gross income to be ($47,807), however he also collected $68,284 in IRA distributions and $48,583 in Social Security Benefits. His 2022 personal taxes show adjusted gross income to be ($126,179), however he also collected $29,890 in IRA distributions and $43,442 in Social Security Benefits.

We hired a local MAI appraiser who valued the RV park at $1,050,000 (AS-IS). We also hired two different local brokers who performed a drive-by opinion of value (BPO) on each property. The hunting land was valued at $418,740 and the RV Park was valued at $918,000.

At an 11.0% yield to investors and a 37.45% LTV (AS-IS) TOTAL Value (both properties), 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.

ACCREDITATION STANDARDS

Please note this offering is a SEC Regulation D filing and will be done through a Private Placement Memorandum. In order to invest, you must be an accredited investor. Generally speaking, an accredited investor is an individual:

(a) whose individual income exceeds $200,000 in each of the past two years, with reasonable expectation of reaching the same going forward OR
(b) whose joint income with spouse exceeds $300,000 in each of the past two years OR
(c) your NET WORTH exceeds $1,000,000 (exclusive of your primary residence) OR

If you plan on investing through an entity, the entity can qualify if ANY of the following are met:

(a) all equity owners must be accredited OR
(b) any trust with more than $5,000,000 in assets OR
(c) ERISA with either $5,000,000 in assets OR a bank, insurance company, or registered investment advisor as it's trustee OR
(d) any self directed ERISA with an accredited investor(s) making the business decisions OR
(e) an IRA owned by an accredited investor

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

Blackburne & Sons Realty Capital Corporation--For more information, contact Tom Blackburne
555 University Ave., Suite 150, Sacramento, CA 95825
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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