Marysville WA Dental Office

George Says: "I love this hard money loan. The building is handsome and modern. Marysville is one of the fastest growing cities in Washington. The loan has a very logical and understandable purpose (the guy had a heart attack and fell behind). Keeping in mind that every first trust deed investment still involves substantial risk, I love this deal!"

Blackburne & Sons is pleased to present this First Deed of Trust secured by a owner-user dental office building totaling 3,395 SF on 0.41 acre lot, located in Marysville, Snohomish County, Washington.

The purpose of this loan is to pay off a defaulted bank loan in the amount of $799,000 and to pay receivers fees and closing costs. The borrower will come to closing with approximately $125,000 cash. The bank loan and receiver have to be paid in full by October 24, 2026, so time is of the essence.

Snohomish County is located in the State of Washington. With a population of 827,957 as of the 2020 census, it is the third-most populous county in Washington, after nearby King and Pierce counties, and the 72nd-most populous in the US. The county seat and largest city is Everett. The county forms part of the Seattle metropolitan area, which also includes King and Pierce counties to the south.

Marysville is a city in Snohomish County. The city is located 35 miles north of Seattle, adjacent to Everett on the north side of the Snohomish River delta. It is the second-largest city in Snohomish County after Everett, with a population of 70,714 at the time of the 2020 U.S. census.
As of 2015, Marysville was also the fastest-growing city in Washington state, growing at an annual rate of 2.5 percent.

The subject parcel is a generally rectangular-shaped, corner parcel that contains 17,860± square feet of MMF-Midrise Multifamily zoned land (0.41±acre) and is improved with a one story on slab dental/oral surgery office building containing 3,395± square feet of gross building area. The improvements were originally constructed circa 1992 and reportedly renovated circa 2015.

The property has wood frame construction with stucco siding and a mix of flat, built up composition and gabled metal roofing. Interior finishes include painted sheetrock walls, acoustical tile ceilings, and commercial grade carpet, hardwood, tile and linoleum flooring.

The space is demised into reception area, multiple offices and exam rooms, operatories, nurses’ station and lab, breakroom and restrooms. Ground mounted HVAC provides cooling and heating. There are 22 onsite parking spaces. The subject appears to be a legal, pre-existing conforming use with regards to current zoning requirements.

Title to the property is held in a Washington LLC, of which our guarantor is the sole member.

The guarantor is a single man and an oral and maxillofacial surgeon, and uses the subject property for his dental practice. He currently rents the property to another entity for $9,500 per month and is the sole member of that entity. He will provide a personal guarantee.

The guarantor has a 645 mid credit score and a self-reported net worth of $3,573,209. His 2024 and 2025 tax returns are currently in process with his accountant and are reportedly supposed to be finished by October 7th. We will send a copy of these tax returns to investors once received.

In 2023, his personal tax return reported $1,097,434 in adjusted gross income. In 2022 his returns reported $455,226 in adjusted gross income. We were provided a 2025 P&L showing $329,724 in net income, and a partial 2026 P&L (January-September) reporting $17,569.94 in net income. Currently we only have P&Ls, but hopefully we will be able to get tax returns for the entity soon.

In March of 2024, the guarantor suffered a heart attack during a weekly soccer game which required surgical intervention. Due to this event, the borrower was out of work for most of 2024.

Also during this same time, two of his associates moved away and left the practice. He was able to replace one of them, but due to being a recent graduate, production was limited.

All of this resulted in falling behind on the bank loan on the subject property. The bank threatened foreclosure, so the borrower entered into receivership to save the practice. Our loan will get the bank and receiver paid off and give the borrower a fresh start.

Per the borrower, his health has improved dramatically with no current restrictions, and he was given a clean bill of health from his cardiologist and internist. He says his practice has done well and profitable in 2025 and 2026, and almost back to pre-pandemic levels.

VALUATION SUMMARY

We did not order a BPO on this property due to the fact that the borrower ordered his own appraisal in July 2026 reporting a value of $1,275,000. We did not use this appraisal and hired our own.

At a 12.0% yield to investors and a 64.3% 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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