Exhibit B -- Specifics of the Loan

Non-California Residents
Must Purchase the Entire Loan

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Loan Number: N2466
Loan Amount: $255,000
Minimum Investment: $10,000
Call for availability of smaller participations
Type: First Mortgage
Yield: 10.0%*

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

Project: BARK PARK COMMERCIAL BUILDING
Property Address: 512 SW Indianola Street, Stuart, Florida 34994
Description:
The subject property is a one story commercial building consisting of 2,439SF on a 0.2411 acre parcel located in Stuart, Florida.

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

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TERMS

Term of Investment
36 months
Current Interest Rate
10.0%*
Repayment Schedule
30 Year Amortization
Monthly Payment
$2,199.60*
Purchase Price of the Note
$255,000
Current Balance on the Note
$255,000
Maturity Date
36 months
Balloon Pymt. after 60 months app.
$254,394.74
Late Charge Amount
$260.34.**
Prepayment Penalty
None

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


EQUITY ANALYSIS

Appraised Value - June 29, 2018
$400,000
Protective Equity
$145,000
Loan-to-value - Appraisal
63.7%


OPERATING STATEMENT

INCOME
Rental Income
$41,429
Total Income:
$41,429
Less 3.0% Vacancy Allowance
$1,243
Effective Gross Income:
$40,186
   
EXPENSES
Insurance
$5,580
Mgmt. onsite
$1,206
Taxes
$3,445
Reserves for Replacements
$1,970
Total Expenses
$12,201
 
NET OPERATING INCOME
$27,985
Note: Pro forma based on appraiser's estimates


BORROWERS

Name(s)
LLC
Occupation
Real Estate Holding Entity
Net Worth
$201,491
Percent of Ownership
100%

Name(s)
INDIVIDUAL
Occupation
Business Owner
2017 Income
$47,193
2016 Income
$69,532
Net Worth
$101,500

Name(s)
CORPORATION
Occupation
Dog Day Care & Grooming Business
2017 Income
$53,353
2016 Income
$63,447
Net Worth
$201,491


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


BARK PARK COMMERCIAL BUILDING

George says, "Here is another small permanent loan in a good location. We now label every loan with a double-digit net yield as a speculation because of our concerns with the higher payments.”

Angela says, "I normally do not provide input on offerings to investors (unless asked), but felt compelled to provide a little insight on this deal. First, before I proceed, please note that there is never a guarantee of repayment of any offering, so if you proceed, please do so based on your own personal risk tolerance and full review of the due diligence. When I originally considered this loan, I was skeptical as to how this loan will improve this borrower’s financial well-being, and how she may repay this debt. As notated below, the consolidation of the current financial obligations appears to save this borrower approximately $700/month. In addition, this business is her livelihood and one could make an argument that she will fight tooth and nail to keep it going. Again, please be sure to proceed based on your personal preference and risk tolerance, as each deal involves substantial risk."

Blackburne & Sons is pleased to present this new first mortgage secured by a 2,439SF commercial building on a 0.2411 acre parcel located in Stuart, Florida.

Stuart is located in Martin County just south of Port St. Lucie county. Based on the 2010 Census, population was 15,593 and as of 2017 the population is 16,543. Stuart is a small town along the St. Lucie River with great beaches and wonderful fishing. The weather is tropical and good for boating with the Bahamas just 90 miles away. Per the appraisal, this small town has low crime, good schools and a robust town center with significant improvement in healthcare and revitalization of the downtown area.

The subject neighborhood is located in the downtown city of Stuart, between Roosevelt Bridge and Kenner Highway which is developed with commercial uses. The immediate area consists of a mixture of small retail, professional offices and 2-8 unit apartment buildings. Most major commercial activity is a few blocks north along US 1 Federal Highway.  There are 9 colleges within 50 miles of Stuart, including Indian River State College in Fort Pierce Florida which is about 17 miles from Stuart Center.

Built in 1988, the subject property consists of a 2,439SF, one story commercial building and currently occupied and used as a dog kennel, doggy daycare, and dog grooming business. The subject building layout consists of a small reception room, grooming room, one half bathroom, two kennel rooms for small dogs, two large rooms, one storage room and two large compartment rooms. The reception room has laminated wood floors, ceramic in the ½ bathroom and grooming room and cement floors in the rest. The walls consist of plaster and dry wall with a metal roof and a central A/C unit. The exterior doors are French style aluminum, the windows are single hung aluminum and the exterior is CB-frame -stucco. The property is rectangular in shape, has a concrete driveway and is enclosed with a CBS and a chain linked fence. The rear yard had been prepared with artificial grass and sprinklers mist throughout the yard.

Title will be held through a Limited Liability Company, in which the sole member, a single woman, will personally guarantee. The property was purchased in 2015 for $395,000 and she currently owes $164,000 to TD Bank. The reason for our loan is to pay off the loan that matured in June 2018, and to pay off back payroll and personal taxes of which she owes approximately $64,000. She has been on a payment plan for the past 3 years and has been paying approximately $1,500 per month towards those taxes. A letter of explanation is provided in the due diligence package. With our new loan, it appears that she will be reducing her overhead by approximately $700 per month.

The guarantor is also in the process of a refinance on her primary residence. With the proceeds of that loan, she will replace two AC units in the subject property (estimated cost of $15,000) and pay off a business line of credit.

Our guarantor has a mid-credit score of 651 and a stated personal net worth $101,500. Her personal tax returns report income of $47,193 in 2017 and $69,532 in 2016. Part of that income is W2 income and the remainder is rental income from her business, which is the tenant of the subject property.  In 2017, her corporation paid $29,625 in rents and in 2016 it paid $46,037. The corporation has a stated net worth of $201,491, and reported net income of $53,353 in 2017 and $63,447 in 2016, after paying rent.

We engaged a local appraiser who valued this property at $400,000.  We also engaged a local broker who performed an opinion of value who values this property at $360,000.

At a 63.7% LTV, based off of the appraised value and a 10.0% yield to the investors, this appears to be a reasonable speculation. Investing in any first mortgage 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.

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