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Mortgage Investment Opportunities Since 1980


November 5, 2020


Small First Trust Deeds

Carry Small Payments

By George Blackburne III

We here at Blackburne & Sons would very much be in your debt if you were to forward this short lesson in trust deed investing to your accredited investors friends. Thank you!


Joke Du Jour

A man answers the phone and has the following conversation: "Yes, mother, I've had a hard day. Colleen has been very difficult - I know I ought to be more firm, but it is hard. Well, you know how she is. Yes, I know you warned me. I remember you told me that she was evil and would make my life miserable and you begged me not to marry her. I should have listened to you. You want to speak with her? All right.” He looks up from the phone and calls to his wife in the next room, "Colleen, your mother wants to talk to you!”


We here at Blackburne & Sons have learned that the smaller the trust deed investment, the less likely the deal is to default. In other words, the larger the hard money first mortgage, the more risky is the investment. A two-million first trust deed is usually risker than a $750,000 one. A $500,000 first mortgage is usually riskier than a $100,000 one.

Now, folks, we are talking about in general. Every hard money first mortgage is different.  You can still lose money investing in small first trust deeds… but historically the chances are just much less.

Leaked photo taken seconds before

Hunter Biden's docs got lost in transit

Why are smaller first trust deeds less risky? The smaller the loan, the smaller the monthly payments. Marsha, Marsha, Marsha - who remembers that famous episode of The Brady Bunch? The monthly payments, the monthly payments, the monthly payments - it’s all about the affordability of the monthly payments. Remember this mantra: We want our borrowers to succeed.  

Have you noticed that I never use the word, “safe.” Ever. I always use words like, "less risky.” Any hard money broker who tells you that first trust deeds are safe in either a crook or a complete rookie. After forty years in the hard money business, we’ve learned that, as the T-shirts say, "Stuff Happens.” :-) We once even had a residential care home collapse into an old coal mine in Pennsylvania. This is why you want to invest a tiny amount in lost of different deals. 

“Gee, George, you’re scaring me out of investing in first trust deeds again.” Folks, I honesty believe that a diversified portfolio of small investments in lots and lots of different, small first trust deeds is one of the best investment strategies in the whole world for a retired investor who needs monthly income. Imagine earning 7% to 8% in annual interest income, paid monthly, at a time when inflation is very tame, without having to eat your seed corn. Where else can you earn that sort of interest income?


Investing in first trust deeds involves substantial risk. Be sure to read the “Risk Factors” section of the Offering Circular carefully before investing. Foreclosed property almost always requires renovation, so be sure to maintain some liquidity. A substantial and prolonged decline in real estate values is possible.


Schedule a Zoom Meeting With Angela Vannucci




P: (916) 338-3232

F: (916) 338-2328

CA DRE #1425852 / NMLS #389465


Realty Capital Corporation


4811 Chippendale Drive, Suite 101

Sacramento, CA 95841

CA DRE #00829677 / NMLS #103430

Won’t you kindly forward this email to a few of your accredited investor friends?