San Andreas Farm Land

George Says: "This is a purchase money deal where the buyer is putting 50% down. In addition, the property enjoys a monthly income of $19,500 on a lease that has eight (8) more years remaining."

Blackburne & Sons is pleased to present this purchase money First Trust Deed secured by 40.05-acres of income producing land located in San Andreas, Calaveras County, California.

The purpose of this loan is to purchase the subject property in the amount of $1,600,000. The buyer is putting down $800,000 including closing costs. This land is leased to a tenant for $19,500 per month as of September 2023 and goes through September 2033. This tenant uses the land for an outdoor cannabis grow operation.

The subject property is located within Unincorporated San Andreas Town, California. San Andreas is an unincorporated census designated place and county seat of Calaveras County. The estimated 2025 population of Calaveras County is 46,430 persons.

The subject property is located at 1906 Toll Bridge Road, San Andreas Town, California. Highway 12 is 0.33 mile northwest. Downtown San Andreas is 1.46 miles southeast. Mark Twain St. Joseph Hospital is 2.17 miles southeast. New Hogan Reservoir is 5.26 miles southwest. Interstate 5 at the Highway 12 interchange is 38 miles west. Sacramento Mather Airport is 40 miles northwest. Downtown Sacramento is 50 miles northwest.

The neighborhood boundaries are considered to be Highway 12 to the north, the east and south Compass points of San Andreas Town, and Highway 12 to the west. The immediate subject neighborhood is agricultural and mountainous in nature with residential and commercial development primarily occurring further to the east in the unincorporated town of San Andreas.

San Andreas (California Spanish for "St. Andrew") is an unincorporated census-designated place in and the county seat of Calaveras County, California. The population was 2,994 at the 2020 census, up from 2,783 at the 2010 census. Like most towns in the region, it was founded during the California Gold Rush. The town is located on State Route 49 and is registered as California Historical Landmark #252.

Settled by Mexican gold miners in 1848 and named after the Catholic parish St. Andrew, the town has been a noted mining camp since early days. It existed as a tent city for the first few years, and even included a tent church. A few miles outside of town is the Pioneer Cemetery, established in 1851. In August 1852, a nugget of gold was found here and was sold to Wells Fargo & Company for $12,000.

The gold from the initially discovered placers gave out after a few years, but the discovery of gold in an underground river channel in 1853 revitalized the camp and it soon became a town. Mining of the channels was lucrative enough for the town to completely rebuild after fires in 1858 and 1863. The gold discovered here contributed greatly to the success of the Union during the Civil War.

The subject is 40.5 acres of land that are currently being used for cannabis cultivation. It is on a sloped terrain and is at the top of a steep incline. The subject has some gates and is on a septic system with a well for water.

The subject is zoned A-1 General Agriculture. It appears that the subject’s current use is a legal permitted use under the county cannabis control laws. The subject is accessed via the south side of Toll Bridge Road via an easement extension across the adjacent parcel to the north. A dirt road provides access. Interstate 5 at the Highway 12 interchange is 38 miles west. Access is average.

All utilities are available in the general neighborhood including water, sewer, electrical power, natural gas, and telephone. The subject parcel is located in mountainous area in the unincorporated town of San Andreas. The subject is rectangular in shape with undulating slope. Access is provided via a dirt road easement.

The subject property is leased to a cannabis tenant for $19,500 per month for cannabis cultivation. The lease started in 2023 and goes through 2033. The cannabis tenant already renewed their licensing for 2026, and it is good through August. This tenant is currently making GREAT money. The profit & loss statements for 2024 and 2025 are linked HERE.

The appraiser gave two values on the appraisal report. The first is a hypothetical value based on the property being just raw land. That value is $880,000. He then provided a leased fee value based on the income approach of $1,705,000. The purchase price of the subject property is $1,600,000.

The borrower is a single man and will hold title through a newly formed Pennsylvania LLC, of which he has 100% ownership. The borrower will be providing a personal guarantee. There will also be a Corporate Guarantee from his Texas Corporation that owns and operates a Mediterranean & Indian fusion restaurant located in Humble, Texas. This corporation reported a net business income of $231,083 in 2024, and $154,338 in 2023.

Our borrower is a single man, resides in Texas, self-reports a net worth of $3,780,146 and has a mid-credit score of 684. In 2024, his personal tax return reported $231,083 in adjusted gross income and in 2023 reported $154,338 in adjusted gross income. This income is pass-through (net income) from his business returns.

It is important to note that the seller and buyer know each other and this is NOT an arm’s length transaction. Our buyer just recently purchased a retail property in Texas from the same seller.

We hired a General Certified Appraisal who valued this property at $1,705,000 (LEASED FEE). We also hired a local broker to perform a Broker’s Price Opinion (BPO) who valued the property at $1,600,000.

At an 12.0% yield to investors and a 46.90% LTV (APPRAISED VALUE) and 50.0% 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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