Granite Creek Mobile Home Park

George Says: "This is a deal for our wisest investors, the ones willing to give up a little yield for a much-less-risky deal. First of all, this is residential income property. People always need a place to live. The property is also attractive. Lastly, there are 12 different tenants, so the loss of one or two tenants probably won’t bankrupt our borrower. Yum."

Blackburne & Sons is pleased to present this First Mortgage secured by a 12 pad mobile home park on a 12.20 acre parcel located in Kerhonkson, Ulster County, New York.

The purpose of this loan is to pay off a credit union loan of approximately $304,000 on this property and pull out cash to purchase another mobile home park. The credit union also has a $50,000 second mortgage on this property and have agreed to stay in second position behind our new first. The credit union will execute a subordination agreement at closing.

The subject property is located in Ulster County in the Hudson Valley Region of New York State. The county is bordered on the north by Greene County, on the south by Rockland County, on the east by the Hudson River and on the west by Delaware County. The county seat is Kingston. Ulster County comprises the Kingston, NY Metropolitan Statistical Area, which is also included in the New York-Newark, NY-NJ-CT-PA Combined Statistical Area.

It is located in the state's Mid-Hudson Region of the Hudson Valley, which is comprised of Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester Counties. Much of the county is within the Catskill Mountains and the Shawangunk Ridge. Ulster County has Minnewaska State Park, Mohonk Preserve, Sundown State Park, VerNooykill State Forest, Witches Hole State Forest, and Shawangunk Ridge State Forest and Sam's Point Preserve, which includes rare dwarf pine trees and VerKeerderkill falls. The region is suburban to rural with Kingston representing the only municipality with more than 20,000 residents.

The City of Kerhonkson is a hamlet and census-designated place in Ulster County, New York, with a population of 1,722 as of the 2020 census. It straddles Rochester and Wawarsing, with US 209 serving as its main road. The area includes Soyuzivka, a Ukrainian cultural center, and is situated in the valley of Rondout Creek near the Shawangunk Mountains. The CDP occupies a total area of 5.3 square miles, all land. As of 2010, the population density was approximately 317.7 inhabitants per square mile. The demographics show a diverse racial makeup, predominantly White, with a significant Hispanic population. The median household income in 2016 was $41,541, while poverty rates were noted at 10.2%.

The subject property is comprised of a 12-unit mobile home community, 11 of which are owned by the tenants and one unit is park owned. We will be listing the 1 park owned home on the security agreement and filing a UCC. The homes/sites are 100% occupied. Each is direct metered for electric usage and has electric or propane heating, all tenant-borne costs. There are indicated to be two wells, with associated pump house, and seven septic systems. The current monthly gross income for the park is $8,080. Each lot rent is between $565- $695 and the park owned home rents for $1,350 per month.

The improvements are situated on an approximately 12.20 acre lot which is very irregular in shape and has a moderately variable terrain. There are no water courses contained within the boundaries of or crossing the subject. The immediate area is characterized as rural residential, with mostly residential, recreational and agricultural uses; there are some non-residential uses. Access is via a winding narrow local road, but US Route 44/County Route 55 are accessed via Granite Road, less than ¼-mile from the subject, with this highway connecting with US Route 209, which provides access to I-87 and the bridge crossing to Dutchess County, about 15 miles to the northeast.

The borrower holds title through a New York LLC, of which he is sole member. He reports the income from the subject property on a Schedule E of his personal tax returns. A 2026 P&L for the subject property (through July 2026) reports $36,021 in net income, and in 2025 the subject property reports net income of $31,204.

The borrower is a single man who owns and operates a construction company, of which is held through an LLC. He will provide a personal guarantee on this loan. He self-reports a net worth of $3,275,943 and has a mid-credit score of 700.

In 2025, the construction business reported $47,743 in net income, and in 2024, the business reported $46,292 in net income. We were provided a 2026 P&L that reports $237,642 in net income.

In 2025 his personal tax returns report adjusted gross income of $8,488. The borrower says this is because he took section 179, which is a bonus depreciation on equipment purchases. In 2024, his personal returns reported an adjusted gross income of $38,879.

We hired a local General Certified appraiser who valued this property at $1,000,000 (AS-IS). We also hired a local broker to perform a Broker’s Price Opinion (BPO) who valued the property at $1,140,000.

At a 10.0% yield to investors and a 57.5% LTV (AS-IS), 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 Justine Smith
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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