Veterinary Hospitals Purchase Hard Money Loan
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This investment opportunity involves the acquisition of two veterinary hospitals that will be cross collateralized. The first property, based in New Jersey, features a stable property with a long term operator and lease in place. The tenant is a prominent national veterinary operator. The second property, located in Louisiana, is also under the management of a leading veterinary healthcare provider who has operated at this location for over 4 years.
Veterinary Hospitals Purchase Hard Money Loan Details
Structure
- Tax Document
- 1099-INT
- Offering Structure
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BPDNx
SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENTTHIS PROMISSORY NOTE IS SECURED BY THE ISSUER'S PLEDGE OF THE RELEVANT UNDERLYING COLLATERAL LOAN (AS DEFINED BELOW) TO THE LENDER (AS DEFINED BELOW) UNDER THE COLLATERAL SECURITY AGREEMENT AND PROMISSORY NOTE. HOWEVER, EXCEPT TO THE LIMITED EXTENT PROVIDED IN THE PROMISSORY NOTE WITH RESPECT TO THE UNDERLYING COLLATERAL LOAN, THIS NOTE IS NON-RECOURSE TO THE ASSETS, FUNDS AND ACCOUNTS OF YIELDI, LLC (THE "BORROWER", "COMPANY" OR "ISSUER") OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, STOCKHOLDERS, PARENTS, OR SUBSIDIARIES EXCEPT TO THE EXTENT OF THE VALUE OF COLLATERAL LOAN NET PAYMENTS ACTUALLY RECEIVED IN RESPECT OF THE UNDERLYING BORROWER LOAN.
Example Return on Investment
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Investment Amount:
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Annual ROI:
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Why We Like This Opportunity
Veterinary Hospitals Purchase Hard Money Loan Highlights
This investment opportunity involves the acquisition of two veterinary hospitals that will be cross collateralized. The first property, based in New Jersey, features a stable property with a long term operator and lease in place. The tenant is a prominent national veterinary operator. The second property, located in Louisiana, is also under the management of a leading veterinary healthcare provider who has operated at this location for over 4 years.
Both properties are being purchased due to a strategic shift by a previous lender which has scaled back on leverage for medical office assets. This situation presents a unique opportunity for a quick bridge loan to meet purchase deadlines, followed by a planned refinancing with a more permanent bank takeout.
About the Neighborhood
Both properties are situated in areas with strong commercial appeal and community infrastructure which supports specialty medical services. The New Jersey location benefits from its proximity to major urban centers, while the Louisiana site is part of a community with growing demand for veterinary services. Each location supports robust local economies, contributing to the stability and growth potential of these investments.
The approach leverages the current market dynamics where traditional lenders have pulled back, allowing for attractive entry points and solid long-term returns on stable, high-demand real estate assets in the healthcare sector.
Why We Like This Opportunity
The borrowers are experienced owner/operators in veterinary real estate with a substantial net worth and a significant track record of successful property management across the country. They have built an impressive portfolio of veterinary hospitals, with a majority of that portfolio having bank financing. They bring not only financial strength but also deep industry expertise to the table, significantly de-risking the investment.
Experienced Borrower
The borrower is a successful real estate investor in high-end real estate industry in Florida. He’s sold multiple Florida homes for over $2M+ and has a high net worth and strong liquidity.
Seniority
The first-priority mortgage lien position is the most senior and highest priority within the capital structure. In the event that a borrower defaults, the lien priority determines the order in which lenders are repaid. Senior lenders are always repaid first. All subordinated positions, including the amount held by the Originator and its investor syndicate, act as a buffer in the event of a deterioration in the Properties’ value.
Upfront Reserve
The Loan is structured with interest reserve for further protection. 12 months of debt service payments will be collected at closing.What Should I Consider When Investing in Veterinary Hospitals Purchase Hard Money Loan?
Borrower Risk
The Borrower may not have represented itself accurately. Risk Mitigation- The Originator checks the Borrower's credit history via a third-party credit reporting company. The Borrower has a 700 credit score.
- The Originator considers the underlying asset to be the primary source of security.
- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Borrower has provided a personal guaranty to fulfill any deficiency.
Investment Summary Of Veterinary Hospitals Purchase Hard Money Loan
Investors have an opportunity to invest in borrower payment dependent notes, the cash flow of which is dependent on the payment of interest and principal repayment on the Loans. Investors are scheduled to receive an annualized monthly interest payment of Login for details over the Loans' estimated remaining term of 12 Months. Principal is expected to be returned on or before maturity through a refinancing with a traditional bank loan. It is important to note that the Loans are eligible for prepayment, and principal may be repaid prior to the 12 Months estimated remaining term. If the Loans are paid off before maturity, investors are expected to receive at least three months of interest payments in addition to return of principal.
How Do I Get Paid?
This loan had an initial term of 12 Months with an option at Yieldi's discretion to extend. As of June 28, 2024 there are 12 Months remaining. Investors will immediately receive monthly interest payments at an annualized rate of Login for details on the principal balance over the life of the loan. If you invest in this loan in the middle of a month, you will receive a prorated interest payment for your investment for your first investment month and then full monthly payments thereafter. All payments are made automatically via ACH on the 1st of each month and investors all paid by the 10th of the month.
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