Loan Number: R0248
Loan Amount: $1,617,600.00
Minimum Investment: $10,000
Call for availability of smaller participations
Type: First Trust Deed
Yield: 8.0%*

Important Links:
How to Invest in This Loan
Suitability Requirements
Offering Circular
Loan Servicing Agreement
Audited Financial Statement for B & S
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PROPERTY

Project: GREEN SPRINGS RESIDENTIAL I
Property address: 2040 W. Green Springs Rd., El Dorado Hills, CA 95762.
Description: The subject property consists of a 4.43 acre parcel being developed into an 8,849SF single family residence with 5 bedrooms, 5 bathrooms, and an infinity pool with 2 outdoor kitchens. The property will also include a 4 car garage, a 1,341SF in-law unit, a 125 foot driving range and tennis court located in El Dorado Hills, CA.

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GREEN SPRINGS RESIDENTIAL I

Angelica says "I really like this deal. It carries more risk, in that it is a construction loan, but this is a high net worth borrower developing properties in a highly desirable area. In order to compete for this deal we have significantly lowered our points and fees. I personally visited the property and walked the project with the owner. The views from this property cover all of Folsom Lake and the Sierra Mountains. In addition, this property is going to be the first of its kind in the area, a home that generates 80% to 90% of all power through a solar system custom designed by the borrower's solar energy company."

Blackburne & Sons is pleased to present this new First Trust Deed secured by 4.43 acre parcel of land being developed into an 8,849SF single family residence with 5 bedrooms, 5 bathrooms, an infinity pool with 2 outdoor kitchens, a 4 car garage, 1,349SF in-law unit, a 125 foot driving range and tennis court located in El Dorado Hills, CA.

El Dorado Hills is located in El Dorado County, CA. Located in the historic Gold Country in the Sierra Nevada, El Dorado is part of the Sacramento-Roseville-Arden-Arcade, CA Metropolitan Statistical Area.  El Dorado County's population has grown as Greater Sacramento has expanded into the region. In the county's unique Lake Tahoe area, environmental awareness and environmental protection initiatives have grown along with the population. El Dorado county is a fairly affluent “bedroom county” to the Sacramento metro area, and has been among the fastest growing in the state.

El Dorado Hills is known for its semi-rural settings. The area is highly desired and is undergoing widespread development.  The subject neighborhood is a typical suburban area with good quality single family homes. All neighborhood amenities like schools, shopping, parks and houses of worship are located nearby. This property is located on a hill top with a magnificent view of Folsom Lake on one side and the Sierra Mountains on the other.

This is a renovation/construction loan. At this time, only the 4 car garage has been constructed, though it is not complete. The house on the property has not been included in the value, as it will be removed. In its place will be an 8,849SF 5 bedroom, 5 bathroom single family home. The home will feature natural stone slab countertops, hardwood cabinets, wine cabinet, infinity pool with 3 pool areas and water feature, courtyard water walls, stamped concrete driveway and patio, gazebo, 2 outdoor kitchens, a tennis court, a 125 foot driving range, top shelf Brazilian teak flooring, imported granite and stone work, a detached 4 car garage with oversize RV doors and full bathroom. The property will also include a climate controlled wine cellar, wolf appliances in the kitchen and outdoor areas and a 1,349SF in-law unit all on 4.43 acres of landscaped area. The appraiser estimated market rents to be $9,000 per month once completed. The borrower purchased this property for $450,000 in December of 2015. The current “as is” value is $725,000.

The home will be unique in that a full solar system has been designed to generate 80% to 90% of needed power. The borrower’s solar company JLM Energy is providing a custom designed solar and energy system that is sized to the house. In addition, this project will be one of a kind. Our borrower has acquired four properties on this street with an additional six currently under contract. This West Green Subdivison will become a private gated community named Phoenix Hill. He expects to complete three properties over the next year and list them for sale at the same time.

Our borrower is an LLC, with the managing member personally guaranteeing the loan.  He has a mid-credit score of 654 and a reported net worth of $59,769,899. Blackburne & Sons has a history with this borrower in that his Environmental Company, EScreen Logic, is the company we use to provide our environmental reports for commercial properties nationwide. The borrower owns 5 companies, including the Environmental company, JLM Energy Solar Company, a Real Estate Investment Company (the LLC), as well as a non-profit and a small lending company. Despite his large net worth, his tax returns show losses due to the amount of write-offs he has been using to build his companies. He reported personal income of $80,141 in 2015 and -$6,293,527 in 2014. The LLC reported net operating income of $415,439 in 2015 after adding back depreciation, and -$188,163 in 2014.

The borrower will be using our loan to refinance the current first mortgage of $330,000 and to complete construction. We will be holding back $500,000 with a third party fund control company to be released only when the majority of work has been completed.

We engaged a local appraiser who valued this property “After Repair” at $4,000,000.

At an 8.0% yield, a 40.4% “After Repair” loan-to-value, this appears to be a very reasonable investment. 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 property almost always needs to be renovated before it can be leased or sold, so be sure to maintain some liquidity. 

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 Department of Real Estate -- License Number 829677
Publicly advertised to California residents only under California Department of Corporations business plan permit.
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