Exhibit B -- Specifics of the Loan |
California Residents Only |
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Loan Number: R0371
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PROPERTY Project: County Road Residential III |
TERMS
*Net of servicing |
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EQUITY ANALYSIS
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INCOME ANALYSIS - Hermitage, TN
Note: Pro forma based on appraiser's estimates. |
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BORROWERS
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COUNTY ROAD RESIDENTIAL III Blackburne & Sons is pleased to present this first deed of trust secured by a 3,910SF single family residence with a 1,652SF finished basement, on three parcels totaling 59 acres of land, located in Atlanta, Texas. This purpose of this loan is to refinance a matured loan currently serviced by Blackburne & Sons. The outstanding balance on the current loan is $640,000, so the borrower will be coming to closing with roughly $84,000, including closing costs. Including closing costs, the borrower will be coming to closing with approximately $96,961. During the past 36-month term of the loan that is being paid in full, the borrower has remitted all monthly payments timely, except for one late payment. Atlanta is located in Cass County, which is northeastern Texas. As of the 2010 Census, Atlanta had a population of 5,675, which decreased to 5,433 in 2020 and is noted as the largest city in Cass County. The City of Atlanta is in close proximity to three major interstate highways; Interstate 20 to the south, Interstate 30 to the north, and Interstate 49 to the east. It is also home to U.S. Highway 59, the highest trafficked, non-interstate highway in the nation which is a future Interstate 369 corridor. Located about 20 minutes from the growing twin-city of Texarkana, Atlanta is an ideal hub for transportation and distribution centers due to its close proximity to interstate highways and safe distance from coastal areas prone to hurricanes. Atlanta is also served by Texarkana College and Texas A&M- Texarkana. Just an hour drive from Atlanta is Shreveport and Bossier City, Louisiana and about five hours from Oklahoma City, Oklahoma, Memphis, Tennessee, and Houston, Texas. PROPERTY INFORMATION The subject neighborhood includes the cities of Atlanta and Queen, Texas. Atlanta is the commercial center for the east section of Cass County. The main employer is the International Paper Mill located 7 miles northeast, with this area inclusive of small residential subdivisions and individual home sites of 1-20 acres. Per the appraiser, there is average access to shopping, schools, and other facilities. Employment stability, property compatibility, and police and fire protection are considered average. Built in 1987, this two-story contemporary-style house has a total of 3,910SF and 10 rooms; consisting of 5 bedrooms and 4 bathrooms. It also has a 1,652 SF basement that is finished out with a living room, laundry room, kitchenette, wet bar, bedroom and bathroom. The subject is constructed of stone and wood siding exterior, metal roof and double-pane windows. The house is situated on a 1.00-acre parcel, with two adjoining parcels of 57.00 acres and 1.00 acre, making this a total of 59.00 acres to be secured by this loan. The land includes some timber and a pond. Houses similar to this size are not common for the area. The interior of the subject has an open ceiling in the living area, with crown molding and built-ins throughout. The kitchen has solid surface countertops. The master bathroom has his and her area, with a separate jetted tub and a tile shower. There is a dumb waiter in the side entry hall. The flooring consists of tile and carpet throughout. There is also a five, detached double-car garages (24x30 each) in the rear yard, one single car detached garage in the side yard, and one detached double-garage with carport and storage (31x49), connected by an awning to the main house. There is a workshop (60x50) with overhead door in the front side yard. The subject is connected to a private septic system, which is typical for the area. This does not have a negative impact on marketability, per 2020 appraisal, and there is no zoning designation for this property given the fact that the property resides outside of the city limits. Currently the property is not leased. The borrower’s mother and sister live in the home, rent free. BORROWER INFORMATION Our borrower is a single man and holds title to this property personally. The borrower is a professional football player, and is currently a free agent. However, as of September 12, 2023, he was picked up by the Seattle Seahawks and added to their practice squad. Peters, a nine-time Pro Bowl selection and two-time first team All-Pro, is in his 20th season. This past year (2022) he was the offensive tackle for the Dallas Cowboys of the National Football League (NFL). During the 2021 NFL season, he was with the Chicago Bears. Prior to that, he was with the Philadelphia Eagles, and had been with that team since 2009. The Philadelphia Eagles won the Super Bowl in February 2018. Prior to that he was signed by the Buffalo Bills as an undrafted free agent from 2004-2008, as a tight end. His college career was at the University of Arkansas. He reports a net worth of $3,346,767 and has a mid-credit score of 627. Per the borrower’s personal tax returns, in 2021 his adjusted gross income was $777,944, and in 2020 his adjusted gross income was $4,077,104. He has filed an extension for 2022 but did provide his W2 for that year which shows $1,701,722 in wages. As mentioned previously, this loan is to pay off a current loan serviced by Blackburne & Sons that matured on March 1, 2023. This will be the third refinance with Blackburne & Sons on this property, due to the previous loans maturing. The borrower has had a consistent payment history with Blackburne & Sons thus far, aside from one late payment. He has also been paying extra towards principal and has paid down by $14,000 in the past few months. Future performance is never guaranteed but past performance can be a positive indicator. We engaged a local appraiser who valued this property at $882,000. At a 10.0% yield to investors and a 65.0% 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. George’s Advice For Successful First Mortgage Investing
Blackburne & Sons Realty Capital Corporation--For more information, contact Tom Blackburne
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