Shortly after the opening this morning, the Dow plummeted by 1,089 points - following the prior week’s decline of over 1,000 points.  As I write this at 10:30 ET on Monday, the Dow has recovered somewhat, but it is still off by 476 points.  Is this the much-feared second leg of the Second Great Depression?  Naw.

After watching the U.S. stock market lose over 1,000 points last week, I remember asking myself, “If Donald Trump died and made me king, what would I do to fix the U.S. economy?  What major economic problems would I make magically disappear?”  Then it dawned on me.  America has darned few economic problems that need fixing.

  1. During the Great Depression, 9,000 banks failed, which sent the money supply into a devastating contraction.  Today our banks are making money hand-over-fist, and U.S. banks have over $2.5 trillion in excess reserves at the Fed.

  2. Our Fortune 500 companies are almost universally profitable, and they have over $1 trillion in liquid assets.

  3. The U.S. unemployment rate has fallen to just 5.5%.  I can’t help but think that the unemployment rate would be even lower if so many American workers were not so content to live off the dole.

  4. Most American homeowners have cut hundreds of dollars from their monthly payments by refinancing their homes at much-lower interest rates.

  5. Americans are much less leveraged than in 2007, and they seem to have learned the lesson of thrift.  This is a lesson that will not soon be forgotten.  Think of our parents and grandparents who lived through the Great Depression.  They were very careful with money for the rest of their lives.  Thrift is a fine trait for a people.

  6. Yes, it's true that our Federal government owes almost $18 trillion, but that debt is denominated in dollars.  We could pay off the national debt tomorrow merely by adding some zeroes to the Treasury’s account at the Federal Reserve.  “Hey, Joe, please add $18 trillion to the treasury’s account.”  Sure, inflation would soar for a year, but the weaker dollar would make our manufacturers far more competitive overseas.

  7. In the meantime, the Federal government is borrowing money at just 1.99% for ten years.

So, as the Donald’s royal successor (just musing and having a little fun here, folks), what big economic problems would I fix?  Maybe I'd just leave everything alone and trust capitalism to restore a heathy equilibrium and to properly price commodities.  Clearly China doesn’t need as many imports today.  As I wrote two months ago, China is toast.  At the margins, American companies will lose some sales because of China, but total exports to all countries only account for 13.5% of GDP.  We’ll survive a slowing China.

Want something to worry about?  Don’t worry about the economy.  Instead, worry about the big California earthquake that is 30 years past due.  Suggestion:  Spread your mortgage investments out into at least ten different loans and consider investing in our commercial first mortgages that are outside the state of California.

Warm Regards,

George Blackburne III

Copyright © Blackburne & Sons Realty Capital Corporation. All rights reserved.
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 | telephone: (916) 338-3232 | fax: (916) 338-2328
Real Estate Broker - California Bureau of Real Estate | License Number 829677
NMLS #103430




This offering is NOT a first mortgage investment offering. It is an offer to invest in an all-cash syndication of a multi-tenant industrial building in the greater Sacramento area.1

Verified Accredited Investors ONLY
Exhibit A to Private Placement Memorandum

Class Number: 2015-02
Initial Capital: $1,535,000
Purchase Price: $1,400,000
Minimum Participation :
Call For Availability Of Smaller Participation

Type of Investment : Cash Flow Property
Anticipated Holding Period: 5 years

Important Links:

Private Placement Memorandum
Suitability Requirements
Subscription Agreement
Audited Financial Statement for B & S
Inventory of Available Loans
To Be Added to Our Investor Email List


Property Address:
4604 Roseville Road, North Highlands, CA
The subject property consists of a three-unit, 19,636 SF flex-space industrial building.

For an aerial view of this property...Click Here!
or a street view of this property...
Click Here!

For additional pictures of the property...Click Here!

For a video of driving up to the property...Click Here!


Term of Investment
60 Months
Anticipated Cap Rate (approx.)
Acquisition Fee*
Class Management Fee (annualized)**
*Paid at time of acquisition
**% of capital outstanding


Initial Capital
Purchase Price
Reserve for Repairs
Acquisition Fee


Rental Income
CAM Reimbursement
Total Income/Reimbursements
Less 5% Vacancy Allowance
Effective Gross Income:
Property/Liability Insurance
Class Management Fee
Real Estate Taxes (est.)
Association Assessment/Dues
Leasing Commissions
Reserves for Repairs/Maintenance
Total Expenses

To invest, please call Angela Vannucci
at 1-800-606-3232 or CLICK HERE.


George says, “I believe that a very sudden and sharp rise in inflation is probably not in our immediate future, BUT the probability is far, far from zero.  The U.S. economy is extremely healthy (ignore that former "CIA expert" trying to sell you newsletters) because our companies and our consumers have greatly reduced their debt.  American banks also have an enormous horde of cash to lend.  The Fed is itching to raise interest rates.  Imagine a scenario where commercial real estate investors suddenly want to borrow as much money as they can in order to lock in today’s low interest rates; i.e., they want to leverage themselves up to their eyeballs.  We could see well-located commercial property suddenly shooting up in value.  This investment is a hedge, and it is a much-lower-risk real estate investment than you probably have ever made because this is an all-cash purchase."

Blackburne & Sons is pleased to present this new all-cash syndication to purchase a three-unit, 19,636 SF flex-industrial building located in North Highlands, CA. Although this is not a Trust Deed investment, you will still enjoy many of the same benefits. As an investor, you will receive:

  • Distributions of net rental income
  • Property management reports

The return on this investment will be generated in two ways:

  • Net rental income
  • Appreciation during the holding period, i.e. three to five years

The subject property is occupied by two nationwide near-credit tenants, and has one vacant suite. The initial income figures provided from sellers report an annual net operating income of $77,098. The vacant suite (5,593 SF) is being marketed for lease at a NNN rate of $0.40/SF.  There was an interested party in leasing this space at the time of negotiating the purchase agreement; but, as of this writing, no lease terms have been agreed upon. Prospective investors should assume that these lease negotiations will prove unsuccessful. Assuming this suite is leased at the asking rental rate, the annual net operating income will increase to apprxoimately $108,00.

This flex-industrial property is currently configured for three (3) tenants. The largest tenant, Otis Elevator, is a national near-credit tenant occupying 7,828 SF at $0.63/SF NNN, with 3% annual rent increases. Otis Elevator’s lease was recently renewed, and is not set to expire until November 2020. The second tenant is also a national near-credit tenant, VeriHealth, Inc. Terms of this lease are now month-to-month, as the lease expired February 2015. The sellers have not inked any formal lease terms with this tenant, given the property being listed for sale. Currently, this tenant is paying $0.48/SF NNN for 6,215 SF. As for the vacant suite, Colliers leasing agents walked the space, reviewed the site plan, and believe that the vacant suite could be split into smaller office space(s) with minimal interior improvements. Each suite has access/use of multiple roll-up doors at the rear of the property and ample parking.

Rental rates ($/SF) for flex space are typically higher than for a standard industrial property. Colliers reports the average lease rate for the McClellan/North Highlands area is $0.51/SF NNN, providing potential to increase the net operating income of the subject property not only by leasing out the vacant suite, but to enter into slightly higher lease terms with VeriHealth, than the present month-to-month agreement. Blackburne & Sons views these current and potential vacancies as a slight positive because we are quite bullish on Sacramento area industrial rental rates.

As for the subject property’s potential for appreciation, the subject property is being purchased for $1,400,000 ($71/SF). This particular subject property has been on the market for four (4) months, listed at $1,500,000. The sellers are bay-area investors anxious to sell and move on to new ventures, allowing us to negotiate a purchase price less than the asking price. A full summary appraisal is being ordered and will be completed as part of the due diligence. However, it is anticipated the subject property will appraise for at least, if not more than the purchase price, as a property of similar size in this complex is listed for $78/SF. In addition, according to the Q2, 2015 industrial report from Colliers International, while ”dollar volume and the number of transactions are down year-over-year, the average price per SF increased by 5%”.

Located in Sacramento County, North Highlands has a population of 42,694 and is most known for the presence of McClellan Air Force Base. This base was officially closed in 2001, after being in existence since 1935, by the Base Realignment and Closure mandate from 1995. Today, portions of the base have been converted into a business park and is home to the Aerospace Museum of California.

This flex-industrial building was built in 1989 and constructed as a concrete tilt-up. Each tenant has access to roll-up doors at the rear of the property and ample parking for employees/customers. The property has convenient access to I-80 and Watt Avenue, and borders McClellan Air Force Base. The main entrance to the subject property is on Winona Way, which connects Roseville Road and Watt Avenue. Located within a flex-industrial park (Highlands 80 Commerce Center), the property is subject to CC&Rs that will run with the building; a copy will be provided and reviewed as part of the due diligence. Nearby buildings across the street from the subject property are all commercial, ranging from flex-space to industrial/office. Neighboring businesses include McClellan Air Force Base, Twin Cities School District Maintenance Facility, a local lumber yard and a recycling center.

Construction for industrial buildings in America has been almost nonexistent since the start of the Great Recession in 2008. New construction has been relatively stagnant in the flex space sub-market, but new construction is very active in industrial sub-markets, mainly in West Sacramento (east of North Highlands). This increase in construction is poised to have a positive impact on overall rental rates, as Colliers anticipates the demand for the newer space will demand higher rates, which will in turn drive up the market average.

There are material risks involved in purchasing this small industrial building, such as: taxes, vacancies, earthquakes, and environmental/economic factors, but these are risk factors that should always be considered during a real estate investment. By purchasing this property with all cash, investors do not have to worry about a mortgage payment. Without a mortgage, the risk of losing the property in foreclosure, assuming we keep the real estate taxes current, becomes almost nonexistent. This is the real value that Blackburne & Sons is adding here - to allow nervous investors to protect themselves against a sudden and a large increase in inflation. All sharp inflation would take would be for banks to get confident enough to start lending aggressively again. American banks certainly have the cash, with over $2.5 trillion in excess reserves sitting at the Federal Reserve.

Blackburne & Sons has been waiting for four years before offering a new syndicated investment. We truly believe this is the right type of property to purchase at this time. The market conditions are in our favor, and if you have confidence in us, we encourage you to invest in this property. 


1. The property information contained in this Property Investment Bulletin is being provided in connection with an offering of membership interest units ("Units") by Equity Preservation Fund, LLC (the "Company") in the membership class designated above (the "Company Class").  Potential investors will purchase membership interests in the Company Class which will, in turn, hold title to the Investment Property.  Units are offered only to verified accredited investors pursuant to the Company's Private Placement Memorandum dated May 7, 2015 ("Memorandum").  Potential investors should read the Memorandum and all of the exhibits thereto in their entirety prior to investing.

2. Pro-forma financial information and other information provided in this Property Investment Bulletin contains forward-looking statements within the meaning of federal securities law.  Words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” “continue,” “predict,” or other similar words, identify forward-looking statements. Forward-looking statements include statements regarding the Manager’s intent, belief or current expectation about, among other things, trends affecting the economy and the market in which the property is located.  Although the Manager believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those predicted in the forward-looking statements as a result of various factors, including those set forth in the “Risk Factors” section of this Memorandum. If any of the events described in “Risk Factors” occur, they could have an adverse effect on the Fund’s business, financial condition and results of operations. When considering forward-looking statements, prospective investors should keep these Risk Factors in mind as well as the other cautionary statements in this Memorandum.  Prospective investors should not place undue reliance on any forward-looking statement. 

To invest, please call Angela Vannucci
at 1-800-606-3232 or CLICK HERE.

Blackburne & Sons Realty Capital Corporation--For more information, contact Angela Vannucci
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841
Telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Bureau of Real Estate -- License Number 829677
Offering issued with reliance upon exemption provided under section 4(a)(2) of the Securities Act of 1933
and Rule 506(c) of Regulation D.
Return to C-Loans Home Page | Return to Blackburne & Sons Home Page
Copyright © 2015 Blackburne & Sons Realty Capital Corporation. All rights reserved. (800) 606-3232

12.0% YIELD

Exhibit B -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

Loan Number: N2245
Loan Amount: $1,690,000
Minimum Investment: $15,000
Call for availability of smaller participations
Type: First Mortgage
Yield: 12.0%*

Important Links:
How to Invest in This Loan
Suitability Requirements
Offering Circular
Loan Servicing Agreement
Audited Financial Statement for B & S
Inventory of Available Loans
To Be Added to Our Investor Email List


Property Address:
12499 Delta Dr. and 25620 Northline Rd., Taylor, MI 48180
The subject property consists of a 12,000SF industrial building on a 1.02 acre parcel, and an 86,700SF, 5-unit industrial building on 7.32 acres located in Taylor, MI.

For a street view of 12499 Delta Drive...Click Here!
For an aerial view of 12499 Delta Drive..
.Click Here!

For a street view of 25620 Northline Drive...Click Here!
For an aerial view of 25620 Northline Drive...Click Here!


Term of Investment
24 Months
Current Interest Rate
Repayment Schedule
20 Year Amortization
Monthly Payment
Purchase Price of the Note
Current Balance on the Note
Maturity Date
24 Months
Balloon Pymt. after 24 months app.
Late Charge Amount
Prepayment Penalty

*Net of servicing
**To be shared equally with B&S


Appraised Value - As of May 1, 2015
Protective Equity- Appraisal
Loan-to-Value Appraisal Value


Rental Income
Total Income
Less 10% Vacancy Allowance
Effective Gross Income



Mgmt. Offsite
Repairs & Maint.
Reserves for Replacements
Exterior CAM Utilities
Professional Services
Total Expenses

Note: Pro forma based on Appraiser's estimates.


Net Worth
His Occupation
Her Occupation
Employment Income 2014
Employment Income 2013

Net Worth
His Occupation
Her Occupation
Travel Agent
Employment Income 2014
Employment Income 2013

To invest, please call Angelica Gardner
at 1-800-606-3232 or CLICK HERE.


George says, “For the reasons I have outlined for months, I am extremely bullish on manufacturing in the U.S."

Blackburne & Sons is pleased to offer this first mortgage on two industrial buildings totaling 98,700SF on 8.34 acres located in Taylor, MI.

Taylor is a city in Wayne County, Michigan. Located in the Downriver area of Metropolitan Detroit, it is just east of the Detroit Metropolitan Airport. Wayne County is the most populous county in the state, with a population of 1.775 million. Taylor is home to the Detroit Waza, an American professional arena soccer team.

The subject properties are roughly one mile apart from each other and are slightly east of Telegraph Rd, which bisects the community and leads to I-94 and I-75. This location makes the subject property part of the Metro Telegraph Industrial Subdivision. Northline Road has mixed uses, including: industrial buildings, vacant land, and older single-family residences, a golf course, Taylor Department of Public Works, and the Taylor Animal Shelter.   

The first property was built in 1989, and contains 12,000SF. The building has Class C construction with a concrete slab floor, light steel-frame, masonry block walls, and has gutters to help roof drainage. The building contains a 1,815SF office and is divided between a reception area, open work area, private offices, conference room, and kitchenette with built-in millwork. The building is currently vacant, but the owners are actively trying to find a tenant to lease the property. This property has been vacant for less than one year.

The second property was built in 1984 with additions completed in 1997.  The gross building area is 86,700SF and stands on 7.32 acres. The property is Class C and contains the same type of construction as the first property. This property contains five separate units, all currently leased. There are three 20,000SF units, one 16,500SF unit, and one 10,200SF unit, which is occupied by our borrower’s cement contracting business. This property is currently generating monthly rental income of $23,550.

Our borrowers, two married couples, will hold title as individuals.  They built these two buildings and have continued to modify and make additions to the property to accommodate the needs of their tenants. The borrowers have a loan on the property from Bank of America that is currently in forbearance. The borrowers were unable to find financing for their current loan, and have an agreement with Bank of America to slowly make payments until a refinance is acquired. The purpose of this loan will be to payoff the current lien and delinquent taxes.

Our borrowers have mid-credit scores of 786, 735, 755, and 765. Two of our borrowers are contractors, one is a travel agent, and the other is a homemaker. The first couple has reported a net worth of $1,368,196, with 2014 and 2013 personal income of $156,527 and $105,757, respectively. The second couple has reported a net worth of $562,258, with 2014 and 2013 combined income of $134,688 and $105,018, respectively.

We engaged a local MAI appraiser to value these properties.  The combined values came in at $2,710,000.00.

We also engaged two local real estate brokers who provided Opinions of Value for the properties. One broker provided a value of $2,275,000 and the second broker provided a range between $2,775,000 and $3,000,000.

At 62.3% LTV and a 12.0% yield, this looks like a reasonable investment.  Every first mortgage investment involves substantial risk, so be sure to read the Risk Factors section of the Offering Circular before investing.  A substantial and prolonged decline in real estate values is possible.

Do you have any "Accredited Investor" friends who are interested in First Mortgage Investments? If so, you are welcome to forward this bulletin. Of course, they must be California residents and they may use this link to join our email list.

To invest, please call Angelica Gardner
at 1-800-606-3232 or CLICK HERE.

Blackburne & Sons Realty Capital Corporation--For more information, contact Angelica Gardner
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841
Telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Bureau of Real Estate -- License Number 829677
Publicly advertised to California residents only under California Department of Business Oversight business plan permit.
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Copyright © 2011 Blackburne & Sons Realty Capital Corporation. All rights reserved. (800) 606-3232