Wagoner OK SFR

Blackburne & Sons is pleased to present this first mortgage secured by a 2,880SF 4-bedroom, 3-bathroom single family residence investment property on a 0.61-acre parcel, located in Wagoner, Wagoner County, Oklahoma.

The purpose of this loan is to finish the rehab on this property in the amount of $50,000. The remaining funds will be used as either working capital or to pay down the credit cards that were used to pay for the rehab thus far. We will not be holding back any funds for the rehab.

Wagoner County is a county located in the U.S. state of Oklahoma. As of the 2020 census, the population was 80,981. Its county seat is Wagoner. Wagoner County is included in the Tulsa metropolitan area. According to archaeological studies, this area was inhabited by Caddoan Mound Builders during 300 to 1200 AD. The western area of Wagoner County was settled by the Creek after their forced removal in Alabama in the 1820s. The eastern portion of the county was settled by the Cherokee.

According to the U.S. Census Bureau, the county has a total area of 591 sq mi, of which 29 sq mi (4.9%) are covered by water. It is part of the Ozark Highlands. The Verdigris River divides the east and west parts of the county. The Arkansas River forms part of the western and southern boundaries. Grand River also flows south through the county. It was dammed in 1942 to create Fort Gibson Lake.

Wagoner is a city in Wagoner County, Oklahoma, United States. The population was 8,323 at the 2010 census, compared to the figure of 7,669 recorded in 2000. It is the county seat of Wagoner County. Wagoner became the first city incorporated in Indian Territory on January 4, 1896. Wagoner is located 18 miles north of Muskogee and 40 miles east of Tulsa. According to the United States Census Bureau, the city has a total area of 7.0 square miles, all land.

In 2023, the median property value in Wagoner, OK was $138,800, with a home ownership rate of 58.6%, and the median household income was $58,206. The economy of Wagoner, OK employs 3.63k people. In 2023, the largest industries in Wagoner, OK were Health Care & Social Assistance (662 people), Retail Trade (626 people), and Manufacturing (338 people), and the highest paying industries were Agriculture, Forestry, Fishing & Hunting, & Mining ($98,309), Utilities ($64,271), and Transportation & Warehousing, & Utilities ($58,919).

The subject site consists of a 0.61-acre parcel that is mostly rectangular in shape, zoned residential and located in the south-east part of Wagoner. The subject neighborhood is a mix of older historic homes and newer (60-80's built) homes similar to the subject. The neighborhood is located near main roads and highways and has access to all of Wagoner. Most amenities are within 5 minutes of the subject. Other uses in the area include vacant/undeveloped land. Per the appraiser, “Aerospace, education, petroleum, telecommunication, manufacturing and agribusiness are the main drivers of employment in area.”

The site is improved with a two-story, detached single-family house with 2,880 above-grade finished square feet. In addition, the property includes a 593SF two-car garage and a 247SF livable/heat-cooled area located above the garage and only accessible through garage. The appraiser notes that the kitchen has been remodeled less than one year ago and the bathrooms were also remodeled less than one year ago.

The property was purchased in August of 2024 for $110,000. The property is currently free and clear. This property was bought as an REO/Sheriffs Sale. This is why it was only $110k purchase price in 2024, and why it is free & clear of mortgages.

Since purchasing the subject property, our borrower has put roughly $450,000 into property renovations (it should be noted, this has NOT been independently verified by Blackburne & Sons). These renovations include, but are not limited to, removal and upgrading of electrical wiring and tubing, full replacement of the plumbing system, new HVAC, basement flooring, rebuilt fireplace, all new flooring throughout the main interior, rebuilt wrap around porch, new garage door and privacy fencing installed. It should be noted that a proforma operating statement and income approach were not provided due to lack of comps, per the appraiser.

The property was a historical bed and breakfast called “The Gibbons House”. Our borrower plans to restore the property and then sell it. Below is a link to the listing, with assumed income projections included:

Our guarantor holds title to the subject property through a Limited Liability Company (LLC), of which he is 100% owner. This LLC specializes in real estate and was established in 2021. It reported a net business income of $132,203 in 2024 and ($31,702) in 2023. The reason for the negative income in 2023 is that the borrower had attempted to retire that year, but per the borrower "I didn't like it" and he resumed working in 2024.

The guarantor is a married man who has worked as a real estate broker for 18 years. He will be providing a personal guarantee on this loan. The borrower's wife works as a doctor, but she will not be on the loan nor providing a personal guarantee. He self-reported a net worth of $529,500 and has a mid-credit score of 678. He shows an adjusted gross income of $437,247 in 2024 and $289,386 in 2023.

We hired a local general certified appraiser who valued this property at $293,000 (AS-IS).

At an 10.0% yield to investors and a 51.2% 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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