Walnut Street Retail Building

George says: "In a perfect world, your trust deed portfolio would be full of tiny, well-secured loans like this one."

Blackburne & Sons is pleased to present this first trust deed secured by a 4,310SF retail building on a 0.35-acre lot, located in Cameron, Clinton County, Missouri.

The purpose of this loan is to pay off the existing mortgage on the property in the amount of $83,000, and to remove the wife from title so that their debt to income ratio is better in order to purchase a new home with an FHA loan in the state of Oregon. The wife is a traveling nurse, and will not be a part of our loan nor on title at the close of escrow.

COUNTY INFORMATION

Clinton County is county located in the U.S. state of Missouri and is part of the Kansas City metropolitan area. As of the 2020 U.S. Census, the county had a population of 21,184. Its county seat is Plattsburg. The county was organized January 2, 1833, and named for Governor DeWitt Clinton of New York. The county seat of Plattsburg derives its name from a town of a similar name that is the county seat of Clinton County, New York, which was also named for the Governor.

According to the U.S. Census Bureau, the county has a total area of 423 square miles, of which 419 square miles is land and 4.5 square miles (1.1%) is water. Major highways include I-35 / Route 110 (CKC), US 69, US 169 and Route 33.

Cameron is a city in Clinton, DeKalb and Caldwell counties in the U.S. state of Missouri. The population was 8,513 at the 2020 census. The Clinton and Caldwell counties portion of Cameron are part of the Kansas City Metropolitan Area, while the DeKalb County portion is part of the St. Joseph, Missouri Metropolitan Area. The city as a whole is a part of the Kansas City-Overland Park-Kansas City Combined Statistical Area.

According to the United States Census Bureau, the city has a total area of 6.30 square miles, of which 6.04 square miles is land and 0.26 square miles is water. More than two thirds of the community is in Clinton County, south of NE Platte/8th Street/County Road 56. This area includes the original old town center, Cameron High School and Veterans Home. Cameron experiences a humid continental climate, with cold and snowy winters and hot and humid summers. Extreme weather, such as thunderstorms and tornadoes, can and have occurred in Cameron. Snow falls during the winter months, while late spring and early summer are the wettest time of the year.

In 2023, the median property value in Cameron, MO was $178,300, with a home ownership rate of 54.9%, and the median household income was $56,090. The economy of Cameron, MO employs 2.89k people. In 2023, the largest industries in Cameron, MO were Health Care & Social Assistance (772 people), Retail Trade (427 people), and Manufacturing (353 people), and the highest paying industries were Professional, Scientific, & Technical Services ($160,192), Professional, Scientific, & Management, & Administrative & Waste Management Services ($70,384), and Administrative & Support & Waste Management Services ($70,327).

The subject property consists of a 0.35-acre parcel that is rectangular in shape and gently sloping in topography. The site is equipped with water, sewer, electric and gas, as well as 14 parking spaces. Its primary frontage consists of 110 feet along N. Walnut Street. It should be noted that this property has been labeled legal non-conforming due to not meeting the minimum number of parking spaces, which is 22.

The subject site is improved with is a single-story retail building consisting of 4,310SF of gross leaseable area. The improvements were constructed in 1967 and were renovated in 2023. The construction consists of a concrete slab foundation, masonry framing, brick exterior walls and a metal roof.

The subject has historically operated as a two-tenant building, with the former uses consisting of a restaurant and workshop. Currently, the subject is fully occupied by a single tenant with two separate leases in place.

Unit A is fully finished for retail use and is fully heated and cooled, and consists of 1,520SF.

Unit B consists of a mix of retail space and shop space, and is heated and cooled in the retail space. The shop space does not have any heat or air, and consists of 2,790SF. Unit B includes 1,048SF of general retail space and 1,742SF of shop space, which includes a walk-in freezer and access to the overhead door in the rear of the subject. It also includes an overhang over the overhead door with dimensions of 12’ x 30’.

The building is currently leased to one tenant who is a tattoo artist. He rents the commercial space (Tattoo Shop) for $3,000 per month and resides in the other space for $2,750 per month. Total gross rents on the subject property are $5,750 per month. These leases started in April of 2025 and includes a lease option to purchase the subject property and business at a price of $280,000.

Our borrower is a married man who will be holding title to the property individually. His wife will not be on our loan and will be removed from title at the close of escrow. He self-reports a net worth of $448,853 and has a mid-credit score of 686. His tax returns show an adjusted gross income of $107,319 in 2024 and $94,375 in 2023. It should be noted that wife's nursing income is included in these figures.

The borrower purchased this property in 2023 for $115,000. The property was vacant at the time of purchase. After purchase, the borrower put roughly $70,000 into upgrades and secured a 10-year lease with a tenant.

Our borrower owns the tattoo business that is running out of the subject property. He used to have the 2nd space occupied by another business that he owns and operates, but is moving this business to Oregon. It is a metal and woodworking business and will be operating out of the shop in the back of the home that they are purchasing.

We hired an MAI appraiser who valued this property at $340,000 (AS-IS FEE SIMPLE) and $280,000 (AS-IS LEASED FEE). Per the appraiser in regards to the Lease Fee valuation: This purchase option is below the fee simple estate conclusion for the subject property and results in a negative leased fee interest and a positive leasehold interest.

We also hired a local broker who performed a drive-by opinion of value (BPO) and valued this property at $399,700.

At a 10.0% yield to investors and a 30.3% LTV (FEE SIMPLE) Appraised Value and 36.8% LTV (LEASED FEE) Appraised Value, 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.

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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