Lakeview Lodge & RV Park

George Says: "I like this deal for a number of reasons. First of all, our borrower is putting down a very large cash down payment, 35% of the purchase price. Secondly, she has a pretty good income. Next, she has very good credit. Next, she has loads of experience managing RV parks. Lastly, and perhaps best of all, she is moving onto the property in order to watch it and improve it."

Blackburne & Sons is pleased to present this purchase money first deed of trust securing a 95-pad RV park, and 5 nightly rentals, located on a 33.82-acre, lakefront site in Emory, Rains County, Texas.

The purpose of this loan is to purchase the subject property for $1,475,000. The borrower will be bringing in roughly $585,000, inclusive of closing costs. The cash down payment is coming from a 1031 exchange which was from a sale of raw land in Sherman, Texas.

Emory is a city in Rains County, Texas, United States. The population was 1,239 at the 2010 census. It is the county seat of Rains County. According to the United States Census Bureau, the city has a total area of 1.98 sq miles, of which 1.96 sq miles is land and 0.02 sq mile is water. Emory is located between two of Texas' most popular lakes: Lake Tawakoni to its west and Lake Fork Reservoir to its east. The climate in this area is characterized by hot, humid summers and generally mild to cool winters. According to the Köppen Climate Classification system, Emory has a humid subtropical climate.

In 2023, the median property value in Emory, TX was $187,500, with a home ownership rate of 46.6%, and the median household income was $35,489. The economy of Emory, TX employs 508 people. In 2023, the largest industries in Emory, TX were Retail Trade (79 people), Health Care & Social Assistance (62 people), and Administrative & Support & Waste Management Services (53 people), and the highest paying industries were Construction ($77,750), Other Services Except Public Administration ($66,719), and Professional, Scientific, & Technical Services ($57,500).

The subject property is located fronting Lake Fork, a major fishing lake that is owned and maintained by the Sabine River Authority. The lake crosses into Wood, Hopkins and Rains Counties. The subject property is located in Wood County. There are several small and large fishing tournaments that take place on this lake 10 months out of the year. This is a huge income stream for the park.

The dam and reservoir with a maximum capacity of 675,819 acre-feet are owned and operated by the Sabine River Authority, a state agency. It officially serves as a reservoir for Dallas and its suburbs. However, it is best known for its fishing, as it holds 15 of the top 20 Texas State Record Largemouth Bass ever caught, making it one of the premier trophy bass fishing lakes in the world. Lake Fork Reservoir offers excellent fish habitat with 90% standing timber left intact, and hydrilla, milfoil, and duckweed being the predominant vegetation. Other species of fish include Catfish, Sand Bass, Yellow Bass, Black and White crappie, Sunfish, Bowfin, Gar, and Bluegill. The predominant food source for the larger fish is Shad, Minnows, and Crawfish.

To preserve the great Lake Fork Reservoir bass fisheries, the Texas Parks and Wildlife implemented a protected slot limit of no bass between 16 and 24 inches will be kept, and will be returned into the waters of Lake Fork immediately. There as several more organizations rating Lake Fork as #2-3 in the Nation and #1 in Texas.

The subject property has a total area of 33.82 acres. Of this, 18.48 acres is deeded and 15.34 acres is a leaseback permitted from the Sabine River Authority (ground lease). This type of agreement is common for the area. There are a total of 95 lots comprising of both RVs, Tiny Homes/Cabins, and Mobile Homes. Of the total lots, 70 are lakefront lots located within the portion of the subject leased from the SRA. There are no improvements other than lots located in this section. The remaining lots (25) are located within the deeded portion. All the improvements are located on the deeded lots, and are park owned.

All sites have access to full utilities; however, it should be noted that the lots located within the SRA leaseback portion are grandfathered in and changing or adding new lots with water and sewer would not be permitted in this area. There is room to add additional lots on the deeded portion, however. The site is serviced by public electricity. This area is serviced by publicly regulated community water and individual private septic systems. The subject is located in a rural area and is not subject to statutory municipal zoning regulations. The subject is a fully improved and well-established RV Park located directly on the water of Lake Fork.

Beyond the RV sites, the park offers nightly rentals of a three-bedroom mobile home, two efficiency log cabins, a slightly larger third cabin, and a 110-by-42-foot covered pavilion used for events that can hold up to 250 people. The pavilion includes a one-bedroom apartment that is also rented nightly. The buildings reserved for park use are a finished metal building used as office and recreation area for tenants, two metal buildings used for equipment storage, and a smaller covered pavilion area for tenant use. These improvements do have contributory value though they do not directly generate income.

The property operates under a commercial limited use permit with the Sabine River Authority of Texas, effective 2017–2037, authorizing use of 15.34 acres for RV park and marina operations. The current annual fee is $6,489, with scheduled increases in 2027 and 2032. A copy of the agreement will be in the due-diligence file. The permit will transfer to the buyer post-closing; the buyer intends to negotiate a new lease agreement.

According to the buyer, the seller has underutilized the property, treated it as a lifestyle operation, and kept poor records—providing only two leases and allowing others to lapse despite continued occupancy. Per the October rent roll, there are 68 yearly tenant sites paying a single annual fee, typically at the beginning of the year, ranging from $1,200–$3,600 per tenant. The buyer plans significant rent increases after purchase.

Per the seller’s tax returns, in 2024 the gross rental income was $175,055 and after expenses, the net income was ($7,901). In 2023, the gross income was $185,021 but after expenses was ($10,747). There are interest and depreciation add-backs. The seller provided a 2025 profit & loss statement on the park (January-September 2025) which is reporting $85,960 in net income.

Our borrower will hold title to the subject property through a Limited Liability Company (LLC) that was formed in 2016, and specializes in real estate. Our guarantor is the sole member of the LLC, but will be adding her daughter on as a 1% member. The LLC reported net business income of $36,255 in 2024 and $1,679 in 2023.

The borrower is a single woman who currently works as a manager and bookkeeper for a roofing company. In 2024, she reported adjusted gross income of $207,364. In 2023 her adjusted gross income was $527,603. She self-reports a net worth of $833,596 and has a mid-credit score of 719.

After purchasing the subject property, she plans to move on site to manage the property. She will increase the annual RV rents, substantially increase the property’s online presence and marketing, clean up some of the older structures for future rentals, etc. A detailed explanation is available in the due diligence package.

Per the borrower” I have 12+ years’ experience in purchasing, managing, maintaining, and improving both residential and commercial real estate property. My portfolio has included two single-family rental homes, a 37-lot mobile home park with added RV sites, and a 65-site RV park. These investments produced successful outcomes through renovation, occupancy growth, and improved cash flow. I maintained organized records of rent rolls, expenses, and projections, and have demonstrated the ability to manage properties efficiently while maintaining profitability along with high tenant satisfaction.”

VALUATION SUMMARY

We hired a local general certified appraiser who valued this property at $1,870,000 (AS-IS). We also engaged a local broker to perform a Broker’s Price Opinion (BPO). They valued the property at $1,700,000.

At an 11.0% yield to investors and a 50.3% LTV (AS-IS) 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.

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 of hitting bottom, values reached new highs. During the Dot-Com Meltdown, commercial real estate fell by 45%. Within three years of hitting bottom, values reached new highs. During the Great Recession, commercial real estate fell by 45%. Within three years of hitting bottom, 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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