Loan Number: N2444
Loan Amount: $700,000
Minimum Investment: $20,000
Call for availability of smaller participations
Type: First Security Deed
Yield: 10.0%*

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PROPERTY

Project: CRAWFORD COUNTY ESTATES MOBILE HOME PARK
Property Address: Marshall Mill Road at Sandy Point Road, Lizella, GA 31052
Description: The subject property consists of a 52-pad mobile home park, with 46 park owned homes, on 55 acres of land located in Lizella, Georgia.

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CRAWFORD COUNTY ESTATES MOBILE HOME PARK

George says, "One of the most important keys to making a reasonably worry-free first mortgage investment is to make sure that the real estate securing the loan is desirable and that it has lots of small rental units. Here we have 52 different tenants. Sweet. This is a superior hard money loan because we have, not only good rental units, but also good credit borrowers with good outside income. Lastly, purchase money deals are less risky because the value of the property has been established in the open market. Don’t worry about the LTV. Inflation is coming. Expect to see your personal residence increase by 10% before the end of summer."

Blackburne & Sons is pleased to present this new purchase money first security deed secured by a 52-pad mobile home park, with 46 park owned mobile homes on 55 acres of land located at Marshall Mill Road in Lizella, Georgia.

Lizella is an unincorporated town located 11 miles from Macon-Bibb, a county nicknamed “The Heart of Georgia” due to its location near the geographic center of the state. Macon-Bibb had a population of 91,351 in 2010 according to the U.S. Census, and recent estimates show a 2017 population of 152,555. Top employers include GEICO, which has its largest single location in Macon, and employs 5,690 people; Navicent Health Medical Center which employs 4,600, and Coliseum Health Systems which employs 1,400. In October 2017, Amazon announced that it will be building a new 1,000,000SF fulfillment center 5 miles from our subject property. The center will provide 500 jobs officially, which could expand to 1,000 jobs during peak season.

The subject neighborhood is rural with most developments being single-family homes and large lots. Primary access to the area is provided by Marshall Mill Road, with Interstate 485 less than 10 minutes away. The appraisal notes that there is a convenience store in the immediate vicinity of the subject property as well.

The subject property consists of 52 mobile home pads with 46 park-owned mobile homes on 55 acres of land zoned “residential – mobile homes”. The park is accessed through two entrances along secondary roadways and includes 2 small ponds which are stocked with fish for fishing. Site utilities include well water, septic, natural gas, electricity, and telephone. The condition of the park owned homes and site improvements are reported to be in average to good overall condition according to the appraisal.

Per the most recent rent roll from the seller of the mobile home park, the monthly rental income is $23,494. The net income for 2016 after adding back depreciation and interest on the seller’s tax returns was $167,269. In 2015 the seller’s tax returns show a net income of -$36,784 after adding back depreciation and interest, due in part to $78,366 spent in rehabbing the mobile homes. Most of these homes are nice, double wide manufactured homes.

The borrowers are a husband and wife, and a single man (brothers) who are purchasing the mobile home park as an investment. They will be holding title through a newly formed LLC.

The brothers are both airline pilots for Atlas Air with 28 and 22 years of experience. The husband and wife had a reported personal income of $279,606 in 2016, $231,231 in 2015 and a stated net worth of $1,320,410. Their mid credit scores are 656 and 701.

The other borrower reported an income of $87,882 in 2016, $62,359 in 2015, and a stated net worth of $647,250. His mid credit score is 736.

The real estate is valued by an appraiser at $925,000 and the mobile homes, which we will secure, are valued at $225,000 for a combined value of $1,150,000. Prior to closing this loan, we are transferring all mobile home titles with a DMV lien, with Blackburne & Sons being the lienholder. The buyer and seller will sign each of these at closing. After closing, we are making sure that the mobile home titles are being retired. This means they will no longer be considered personal property, and will now be considered real property and will run with the land. The borrowers are purchasing the mobile home park for a $1,000,000 and will be bringing approximately $258,000 to closing as a down payment. The seller will be holding back a $93,000 second mortgage at 6% interest for 48 months. We also engaged a local broker who performed an opinion of value and valued this property at $750,000, exclusive of the mobile homes.

At a 10.0% yield to the investors, a 60.9% LTV based on combined appraised value of land and mobile homes, and a 70.0% LTV based on purchase price, this appears to be a reasonable speculation. Investing in any first deed of trust involves substantial risk. A large and prolonged decline in real estate values is possible. Be sure to read the Risk Factors section of the Offering Circular carefully before investing. Foreclosed commercial properties almost always need to be renovated before they can be leased or sold, so be sure to maintain some liquidity.

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 -- NMLS Number 103430
Publicly advertised to California residents only under California Department of Business Oversight business plan permit.
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