Decatur GA Daycare Purchase

George says: "You will note from the low yield on this deal that we think the loan quality is better than most. Here we have a purchase money deal, we have a borrower with pretty good credit, and we have a tenant paying $10,000 per month in rent. The loan amount is also small, which we greatly prefer."

Blackburne & Sons is pleased to present this purchase money First Security Deed secured by a 5,532SF Daycare building on a 1.56-acre lot, located in Decatur, DeKalb County, Georgia.

The purpose of this loan is to purchase the subject property in the amount of $680,000. The buyer will be putting down $68,000 cash plus approximately $38,000 in closing costs. The seller will be holding back a 2nd Security Deed in the amount of $200,000. It will be a two year loan at 9% interest.

DeKalb County is located in the north central portion of the U.S. state of Georgia. As of the 2020 census, the population was 764,382, making it Georgia's fourth-most populous county. It is included in the Atlanta metropolitan area and contains roughly 10% of the city of Atlanta (the other 90% lies in Fulton County). Stonecrest is the largest city that is entirely within the county. DeKalb is primarily a suburban county.

In recent years, some communities in North DeKalb have incorporated, following a trend in other suburban areas around Metro Atlanta. Stonecrest, Dunwoody and Brookhaven are now the largest cities that are entirely contained within the county.

According to the U.S. Census Bureau, the county has a total area of 271 square miles, of which 268 square miles is land and 3.6 square miles (1.3%) is water. The county is located within the upper Piedmont region of the state. The county is crossed by the South River and numerous creeks, including Nancy Creek, Snapfinger Creek and two forks of Peachtree Creek. Peachtree Creek and Nancy Creek drain into the Chattahoochee River and eventually to the Gulf of Mexico. South River drains into the Ocmulgee River and ultimately into the Atlantic Ocean.

CITY INFORMATION

Decatur is a city in and the county seat of DeKalb County, Georgia, United States, part of the Atlanta metropolitan area. With a population of 24,928 in the 2020 census, the municipality is sometimes assumed to be larger since multiple ZIP Codes in unincorporated DeKalb County bear Decatur as the address.

The city is served by three MARTA rail stations (Decatur, East Lake, and Avondale). It is located approximately five miles northeast of Downtown Atlanta and shares its western border with both the city of Atlanta (the Kirkwood and Lake Claire neighborhoods) and unincorporated DeKalb County. The Druid Hills neighborhood is to the northwest of Decatur.

In 2023, the median property value in Decatur, GA was $655,900, with a home ownership rate of 66.1%, and the median household income was $140,480. The economy of Decatur, GA employs 11,400 people. In 2023, the largest industries in Decatur, GA were Professional, Scientific, & Technical Services (2,165 people), Educational Services (1,979 people), and Health Care & Social Assistance (1,088 people), and the highest paying industries were Professional, Scientific, & Technical Services ($143,542), Manufacturing ($135,410), and Professional, Scientific, & Management, & Administrative & Waste Management Services ($131,845). The largest universities in Decatur, GA are Agnes Scott College (250 degrees awarded in 2023), DeVry University-Georgia (238 degrees), and Columbia Theological Seminary (64 degrees).

SUBJECT PROPERTY DETAILS

The property is improved with a 5,532SF building that is currently used as a daycare facility. It is a single-story building that was originally built in 1956. It is equipped with a concrete slab foundation, brick and block exterior, metal framed doors and a flat rubberized roof.

The property is equipped with three classrooms, three bathrooms, office space, a kitchen, a storage room and a staff area. The exterior includes a large backyard, a loop driveway and a play structure in the front yard.

The subject consists of a 1.56-acre property that is irregular in shape and generally level in topography. The site offers convenient ingress and egress from a public roadway, ensuring accessibility. All essential utilities, including gas, water, and electricity, are readily available on-site. The subject property is currently zoned R-75, Single-Family Residential, under the DeKalb County Zoning Ordinance. The existing use operates as a legal, nonconforming use, having been lawfully established prior to the current zoning regulations.

The property already has a signed lease and deposit for a tenant to move in upon the purchase of the property. The tenant will pay $10,000 per month in rent. The lease will begin in April of 2026 and will terminate on March 31, 2031.

Our guarantor is a single woman who will be holding title to the property through a Limited Liability Company (LLC), of which she is the sole member. This LLC was formed in September of 2025. It is a real estate holding entity.

The guarantor works as a daycare administrator. In 2024, she reported adjusted gross income of $152,113 and in 2023 reports adjusted gross income of $136,840. She self-reported a net worth of $2,171,500 and has a mid-credit score of 695. It should be noted that this borrower filed for bancrupcy in 2021 due to a divorce. The BK was discharged the same year.

This loan will also include the corporate guarantee of another LLC owned 100% by the guarantor. This entity was formed in April of 2022 and specializes another daycare business of the buyers. The tax returns for this business report an Ordinary Business Income of $181,103 in 2024 and $193,053 in 2023. We were also provided a profit and loss statement for this entity showing a net income of $204,342 in 2025.

The borrower originally planned to occupy the subject property with her current daycare business; however, she now has a tenant to lease.

We also hired a local broker to perform a Broker’s Price Opinion (BPO) who valued the property at $812,982.

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
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