Jacksonville 55-Pad MHP Purchase

George Says: "Here we have borrowers who have a net worth that is several times the amount of our loan. They also have experience in both construction and running these older mobile home parks. Lastly, we have a number of small rental units, which is usually much safer than just one or two big tenants."

Blackburne & Sons is pleased to present this purchase money First Mortgage secured by a 55-pad Mobile Home park on a 6.38-acre parcel, located in Jacksonville, Duval County, FL.

The purpose of this loan is to purchase the subject property for $900,000. The buyer will be putting down $130,000 cash, plus approximately $68,000 in closing costs. The seller will be holding back a seller 2nd in the amount of $225,000. The terms of the seller financing is three (3) years at seven percent (7%) per annum, interest-only, with a monthly payment of $1,312. Our loan will also include a construction holdback of $170,000. This will be held by a third party company to insure that the improvements are done in a workman like manner.

COUNTY INFORMATION

Duval County, officially the City of Jacksonville and Duval County, is a county in the northeastern part of the U.S. state of Florida. As of the 2020 census, its population was 995,567, making it the sixth-most populous county in Florida. Its county seat is Jacksonville, with which the Duval County government has been consolidated since 1968. Duval County was established in 1822 and is named for William Pope Duval, Governor of Florida Territory from 1822 to 1834. Duval County is the central county of the Jacksonville, Florida Metropolitan Statistical Area.

According to the United States Census Bureau, the county has a total area of 918.464 square miles, of which 762.623 square miles is land and 155.841 square miles (17.0%) is water. The topography is coastal plain; however, there are some rolling hills. The county is home to Fort Caroline National Memorial Timucuan Ecological and Historic Preserve. Major highways in the area include I-10 / SR 8, I-95 / SR 9 and I-295 / SR 9A.

CITY INFORMATION

Jacksonville is the most populous city proper in the U.S. state of Florida, located on the Atlantic coast of northeastern Florida. It is the county seat of Duval County. It is the tenth-most populous U.S. city and the largest city in the Southeast, with a population of 949,611 at the official 2020 U.S. census. The Jacksonville metropolitan area, at over 1.76 million residents, is the fourth-largest metropolitan area in Florida and 38th-largest in the United States. City-county consolidation greatly increased Jacksonville's official population and extended its boundaries, placing most of Duval County's population within the new municipal limits; Jacksonville grew to 900 square miles. It is the largest city by total area, land and water, in the contiguous United States.

In 2023, the median property value in Jacksonville, FL was $266,100, with a home ownership rate of 57.4%, and the median household income was $66,981. The economy of Jacksonville, FL employs 463k people. In 2023, the largest industries in Jacksonville, FL were Health Care & Social Assistance (63,569 people), Retail Trade (57,757 people), and Finance & Insurance (42,677 people), and the highest paying industries were Mining, Quarrying, & Oil & Gas Extraction ($102,614), Management of Companies & Enterprises ($80,724), and Utilities ($72,359). The largest universities in Jacksonville, FL are Florida State College at Jacksonville (5,952 degrees awarded in 2023), University of North Florida (4,428 degrees), and Jacksonville University (1,209 degrees).

The subject property consists of a 6.38-acre site that is made up of three parcels and has only two APNs. It is located in the southwestern portion of Jacksonville in Duval County. The neighborhood boundaries are delineated as the area bounded by Interstate 10 to the south, Interstate 95 to the east, Interstate 295 to the west and north. The subject is located on New Kings Road. This roadway connects with Interstate 95 to the east of the subject and Interstate 295 to the north. Access is convenient through the neighborhood with New Kings Road being identified as an arterial road. The neighborhood is improved with a mixture of residential and commercial uses including grocery stores, neighborhood strip centers, and automobile repair facilities.

The site is irregular in shape and generally level in topography. The present use of the property is as a mobile home park, established in 1960. There is a total of 55 developed mobile home lots and the subject property is improved with 35 single wide mobile homes that are park owned. Out of these 35, a total of 30 mobile homes are rentable and the remaining 5 are being repaired and currently are not rentable. The homes range in year built from 1965 to 1998 and, according to the site manager, the park is currently on a septic plant that was installed when the park was originally built.

For the majority of the units, the siding and roof are corrugated metal and heating and air conditioning is provided by window units. The road system through the park is paved and gravel. The property has 43% of the rentable pads / homes currently leased for $800 per month. There are 35 park owned homes which will come with the sale of the property. Blackburne & Sons will also be recording UCC statements for all park-owned homes via detailed descriptions of each home, provided by the seller and the appraiser. VIN numbers cannot be obtained due to the age/condition of the homes.

The seller provided a 2025 profit and loss statement for the property that reports net income of $23,450.64. He has not provided any other financials on the park for previous years.

Our loan will include a $170,000 construction holdback for the borrower to hook up the property to the city sewer and water, as presently the usage is limited due to the current septic. His budget for this is $191,523.75.

It should be noted that there is an additional 2.4-acre parcel that was not included in the appraisal, due to a lack of detail in the original purchase contract. The purchase contract has been amended to include this parcel, and it will be part of our collateral for this loan.

Our guarantors are a married couple who will hold to title to the subject via a Limited Liability Company (LLC). This entity is a real estate holding entity that is owned 100% by the husband. This entity was just formed in September of 2025, so it has not filed any tax returns yet.

The guarantors both work as business owners of a paving company. They self-reported a net worth of $5,998,000 and have mid-credit scores of 681 and 719. They show an adjusted gross income of $542,962 in 2024 and $473,077 in 2023.

This loan will also include a corporate guarantee by the paving company. This entity was formed in June of 2023 and specializes in road paving. It reports a net business income of $808,004 in 2024 and $1,145,682 in 2023.

Per the borrower, this entity “is a family-owned business. I am a fourth-generation asphalt paver, being raised in the industry, I have a ton of knowledge in asphalt paving. I’m driven to complete a project from start to finish, with customer satisfactory results.

“We’ve been providing commercial and residential asphalt paving, maintenance, and repairs to clients throughout the Seattle-Tacoma WA area for over 25 years.

“We take pride in making sure each job is completed on time, within budget and with the professionalism you deserve and are looking for from a paving company.”

It should be noted that the guarantors also own and successfully run another similar park nearby the subject property.

We hired an MAI appraiser who valued this property at $1,058,000 (AS-IS) and $1,288,000 (ARV) . It should be noted that the appraiser did not include the 2.42-acre land parcel (which is included in the purchase) in his valuation. This is because the purchase contract did not list out the parcel numbers and only noted that there were multiple parcels. As a result, the appraiser did not consider the parcel as part of the scope for his report.

We also hired a local broker to perform a Broker’s Price Opinion (BPO) who valued the property at $1,750,000 (AS-IS). This value DOES include the additional 2.42-acre land parcel located next door.

At an 11.0% yield to investors and a 67.6% LTV (AS-IS VALUE), 55.5% LTV (ARV VALUE) and 79.4% 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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