SoCal Land Blanket Refinance

George says: “This is a nice (low loan-to-value ratio), small deal in California."

Blackburne & Sons is pleased to present this First Mortgage secured by 15 vacant residential land parcels, ranging from 0.058-acres to10.06-acres, located in various cities throughout Los Angeles County, California.

The purpose of this $173,925 loan is to pull cashout out of these properties for new projects. This loan will include a partial release clause.

COUNTY INFORMATION

Los Angeles County, officially the County of Los Angeles (Spanish: Condado de Los Ángeles), and sometimes abbreviated as L.A. County, is the most populous county in the United States, with 9,861,224 residents estimated in 2022. Its population is greater than that of 40 individual U.S. states. Comprising 88 incorporated cities and many unincorporated areas within a total area of 4,083 square miles, it is home to more than a quarter of Californians and is one of the most ethnically diverse U.S. counties. The county's seat, Los Angeles, is the second most populous city in the United States and the most populous city in California, with 3,822,238 residents estimated in 2022. It is also known for being the home of the American film and television industry, a distinction it has held since the early 20th century which has given the county global prominence.

According to the U.S. Census Bureau, the county has an area of 4,751 square miles, of which 4,058 square miles (85%) is land and 693 square miles (15%) is water. Los Angeles County borders 70 miles of coast on the Pacific Ocean and encompasses mountain ranges, valleys, forests, islands, lakes, rivers, and desert. The Los Angeles River, Rio Hondo, Ballona Creek, the San Gabriel River and the Santa Clara River flow in Los Angeles County, while the primary mountain ranges are the Santa Monica Mountains and the San Gabriel Mountains. The western extent of the Mojave Desert begins in the Antelope Valley, in the northeastern part of the county.

SUBJECT PROPERTY DETAILS

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, values reached new highs. During the Dot-Com Meltdown, commercial real estate fell by 45%. Within three years, values reached new highs. During the Great Recession, commercial real estate fell by 45%. Within three years, 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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