Rutherfordton NC Retail Refinance

THE LOAN OFFERED HEREBY IS A CANNABIS LOAN THAT WILL BE SECURED BY A PROPERTY UTILIZED TO GROW, MANUFACTURE, PROCESS, DISTRIBUTE OR DISPENSE CANNABIS OR CANNABIS RELATED PRODUCTS. THIS LOAN INVOLVES SIGNIFICANT ADDITIONAL RISKS NOT ATTRIBUTABLE TO LOANS UNRELATED TO THE CANNABIS INDUSTRY AND SUCH LOANS ARE NOT SUITABLE FOR ALL INVESTORS. POTENTIAL PURCHASERS OF FRACTIONAL INTERESTS IN THIS LOAN MUST REVIEW AND UNDERSTAND THE INFORMATION SET FORTH IN THE OFFERING CIRCULAR ENTITLED "ADDITIONAL RISKS AND CONSIDERATIONS OF CANNABIS RELATED LOANS" PRIOR TO INVESTING. PURCHASERS OF INTERESTS IN THIS LOAN SHOULD ALSO CONSULT THEIR OWN LEGAL COUNSEL AND INVESTMENT ADVISORS WITH RESPECT TO THESE RISKS TO DETERMINE IF AN INVESTMENT IN THIS LOAN IS APPROPRIATE FOR THEIR PARTICULAR RISK TOLERANCE PROFILE AND FINANCIAL SITUATION.

George Says: "Whenever you see a lower-yielding deal from Blackburne and Sons, it’s a signal that we think this is a less-risky deal. It’s not a guarantee. Every first trust deed involves substantial risk; but some first trust deeds are less-risky than others."

Blackburne & Sons is pleased to present this First Trust Deed secured by a 1,440SF retail building on 0.090-acres, located in Rutherfordton, Rutherford County, North Carolina.

The purpose of this loan is to provide cash out to purchase 3.4 acres of land with a 2 bedroom 1 bath single wide mobile home. The sales price is $70,000. They will be using the remainder of the loan proceeds for closing costs and improvements to the mobile home and land. The subject property is currently free and clear of any liens.

COUNTY INFORMATION

Rutherford County is a county in the southwestern area of North Carolina. As of the 2020 census, the population was 64,444. Rutherford County comprises the Forest City, NC Micropolitan Statistical Area. According to the U.S. Census Bureau, the county has a total area of 567.25 square miles, of which 565.44 square miles is land and 1.81 square miles (0.32%) is water.

In addition to gold and platinum, minerals like rock crystal, garnet, tourmaline, slate, wolframite, and the rare-earth element samarskite have been mined in Rutherford County. Diamonds have also been found there, including one mined at the JD Twitty Gold Placer Mine in 1845.

CITY INFORMATION

Rutherfordton is a town in and the county seat of Rutherford County, North Carolina, United States. The population was 3,640 at the 2020 census. In 2024, the median property value in Rutherfordton, NC was $288,400, with a home ownership rate of 64.3%, and the median household income was $59,375. The economy of Rutherfordton, NC employs 1.56k people. In 2024, the largest industries in Rutherfordton, NC were Health Care & Social Assistance (349 people), Manufacturing (234 people), and Accommodation & Food Services (201 people), and the highest paying industries were Professional, Scientific, & Technical Services ($77,841), Manufacturing ($72,857), and Public Administration ($63,971).

SUBJECT PROPERTY DETAILS

The subject property consists of a single 0.090-acre parcel that is rectangular in shape and generally level in topography. The subject neighborhood is that area along both sides of Central Street within the Central Business District of the Town of Rutherfordton. The primary thoroughfares in the immediate neighborhood are US Highways 74, 74A, 74B, 64, 221 and 221A. The developments in the neighborhood consist of a variety of uses, including commercial, service, and residential-related uses.

The site is improved with a single-story retail building that is 1,440SF and was originally built in 1946. It has a concrete slab foundation, brick exterior walls and a flat roof. The interior has luxury vinyl tile and concrete flooring, adequate HVAC and plumbing. It consists of mostly open retail space with a fully conditioned garage area attached at the rear. It is equipped with 2 single use restrooms, street parking and some public parking along its southern elevation.

The building is leased to a tenant for $1,600 per month who was previously using the building as a retail store for a cannabis operation however, this tenant has since moved the business out. The tenant currently uses the subject property for his personal office and podcast studio, plus storage. The tenant owns a larger storefront one street over from the subject location where he runs his cannabis business. This tenant has expressed interest in purchasing the subject property.

BORROWER SUMMARY

Our borrowers purchased the subject property in 2020 for $70,000 and hold title to the property personally. They are a married couple who work as the owner of a vacation rental cleaning service and a commercial artist. Together they self-reported a net worth of $703,657.76 and have mid-credit scores of 798 and 773. In 2024, they report an adjusted gross income of $1,109 and $24,016 in 2023. They have not yet filed their 2025 taxes.

GUARANTOR SUMMARY

This loan will include a Corporate Guarantee by the vacation rental cleaning business. This entity was formed in March of 2022 and reports its income through the borrowers’ personal tax returns.

VALUATION SUMMARY

We hired an MAI appraiser who gave this property an (AS-IS) Appraised Value of $200,000. We also hired a local broker to perform a Broker’s Opinion of Value (BPO) who valued the property at $130,000.

At a 10.0% yield to the investors and a 50.0% LTV (AS-IS 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 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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