Mableton GA 2-Unit Retail Refinance

George says: "I prefer tiny first mortgages like this to just about all other investments. If you have never invested with us before, you might considering taking a small portion of this deal."

Blackburne & Sons is pleased to present this first trust deed secured by a 3,854SF, 2-unit retail building on 0.52-acres, located in Mableton, Cobb County, Georgia.

The purpose of this loan is to pay off a matured note on the property in the amount $122,000. The remaining funds will go towards closing costs.

COUNTY INFORMATION

Cobb County is a county in the U.S. state of Georgia, located in the Atlanta metropolitan area in the north central portion of the state. As of 2020 Census, the population was 766,149. It is the state's third most populous county, after Fulton and Gwinnett counties. Its county seat is Marietta and its largest city is Mableton. In 2003, the U.S. Census Bureau ranked Cobb County as the most educated in the state of Georgia and 12th-most in the United States. It has ranked among the top 100 highest-income counties in the United States.

According to the U.S. Census Bureau, the county has a total area of 345 square miles, of which 340 square miles is land and 4.0 square miles (1.4%) is water. The county is located in the upper Piedmont region of the state, with a few mountains located within the county, considered to be part of the southernmost extensions of the Appalachian Mountains.

CITY INFORMATION

Mableton is a city in Cobb County, Georgia, United States and is located approximately 14.3 miles from the city of Atlanta, GA. Voters of the unincorporated area of Mableton approved a referendum to incorporate on November 8, 2022. According to the 2020 census, the census-designated area Mableton had a population of 37,115; the city has more. Upon Brookhaven's cityhood in December 2012, Mableton was previously the largest unincorporated CDP in Metro Atlanta. With boundaries described in Appendix A of House Bill 839, Mableton is the largest city in Cobb County in terms of population and includes historical Mableton, along with the Six Flags area, areas of unincorporated Smyrna, and parts of unincorporated South Cobb.

In 2022, the median property value in Mableton, GA was $278,300, with a home ownership rate of 74.5%, and the median household income was $79,069. The economy of Mableton, GA employs 21.9k people. The largest industries in Mableton, GA are Professional, Scientific, & Technical Services (2,411 people), Manufacturing (2,359 people), and Construction (2,267 people), and the highest paying industries are Real Estate & Rental & Leasing ($101,429), Finance & Insurance, & Real Estate & Rental & Leasing ($100,082), and Finance & Insurance ($100,042).

SUBJECT PROPERTY DETAILS

The subject property is a single parcel, identified as Cobb County Tax Map Number 19129700250. The subject is located within the City Limits of Mableton, GA. The neighborhood is located along both sides of Veterans Memorial Highway SW, which is the main road running through the town. The general neighborhood consists of commercial properties and is zoned for General Commercial (GC). The subject property itself is generally level topography and is at road grade along Veterans Memorial Hwy SW. Per the appraiser, drainage appears to be adequate.

The subject is improved with a mixed-use building that contains a gross building area of 3,854SF divided between two units. These improvements are situated upon a 0.52- acre, or 22,782 square foot site along the southern side of Veterans Memorial Hwy SW. The structure includes a combination of brick, painted block and stucco along the exterior of the structure.

Suite 100 (2,635SF) is currently occupied and leased by a local tire shop / auto repair shop for $1,250 per month. The layout of this unit includes a customer waiting area with a service counter and private offices, restroom and storage areas. The flooring is mostly Luxury Vinyl Tile (LVT) with 2x4 acoustical tile with recessed fluorescent lighting along the ceilings with wood paneled walls. It has a large storage structure that is attached to the rear of the subject which measures approximately 1,288SF and is not included in the overall finished square footage. The subject also has a large metal canopy structure and perimeter fencing with a large gate.

Suite 102 (1,219SF) is leased and occupied by a local church for $1,400 per month. The layout of the subject includes open church space, bedroom, dining area with a kitchenette and single restroom. The flooring is commercial grade carpet with strip fluorescent lighting and painted wainscoting walls with 2x4 acoustical tile ceiling and painted sheet rock over painted wood beams along the ceiling.

BORROWER SUMMARY

Title to the property is held by the borrower personally. The borrower is a married woman who works in the health care industry as a Registered Nurse. Her and her husband are currently separated, so he will not be on title nor on our loan. Our borrower self-reported a net worth of $787,701 and has a mid-credit score of 694. Her personal tax returns show adjusted gross income of $243,030 in 2023, $211,631 in 2022 and $186,820 in 2021.

The borrower purchased the property with another individual in October 2023 for $220,000 and put $122,678 cash down. This other individual has since been removed from title and only manages the property and works as the pastor for the church. The borrower provided a 2023 P&L for the subject property showing $25,899 in net income.

VALUATION SUMMARY

We hired an MAI appraiser who valued this property with an AS-IS value of $270,000.

A local broker was also engaged who performed a drive-by opinion of value (BPO) and valued this property at $240,875.

At a 10.0% yield to the investors and a 52.6% LTV (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.

ACCREDITATION STANDARDS

Please note this offering is a SEC Regulation D filing and will be done through a Private Placement Memorandum. In order to invest, you must be an accredited investor. Generally speaking, an accredited investor is an individual:

(a) whose individual income exceeds $200,000 in each of the past two years, with reasonable expectation of reaching the same going forward OR
(b) whose joint income with spouse exceeds $300,000 in each of the past two years OR
(c) your NET WORTH exceeds $1,000,000 (exclusive of your primary residence) OR

If you plan on investing through an entity, the entity can qualify if ANY of the following are met:

(a) all equity owners must be accredited OR
(b) any trust with more than $5,000,000 in assets OR
(c) ERISA with either $5,000,000 in assets OR a bank, insurance company, or registered investment advisor as it's trustee OR
(d) any self directed ERISA with an accredited investor(s) making the business decisions OR
(e) an IRA owned by an accredited investor

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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