Cash Out Refinance on Luxury Home in Paradise Valley, Arizona
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This transaction involves refinancing a high-end residential home located in Paradise Valley, Arizona. The borrower previously allowed a partner to cross-collateralize this residence for a ground-up development project. Having serviced the associated loan with the current lender and secured a recent extension, the borrower now seeks a bridge loan to unwind the partner relationship, consolidate existing debt, and remove the property from the partner’s collateral structure.
Cash Out Refinance on Luxury Home in Paradise Valley, Arizona 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
Cash Out Refinance on Luxury Home in Paradise Valley, Arizona Highlights
This transaction involves refinancing a high-end residential home located in Paradise Valley, Arizona. The borrower previously allowed a partner to cross-collateralize this residence for a ground-up development project. Having serviced the associated loan with the current lender and secured a recent extension, the borrower now seeks a bridge loan to unwind the partner relationship, consolidate existing debt, and remove the property from the partner’s collateral structure.
About the Neighborhood
Paradise Valley and neighboring Scottsdale are premier residential areas in Arizona known for their luxury homes, scenic desert landscapes, and proximity to upscale shopping, dining, and recreation. These communities offer a high quality of life, strong demand for real estate, and sustained property value appreciation. This favorable market backdrop enhances the security and appeal of the underlying collateral.
Why We Like this Opportunity
The borrower is an experienced entrepreneur with a strong track record in manufacturing, technology, and materials-related industries. Their longstanding leadership and financial management experience are reflected in a solid credit profile and healthy financials, underscoring their capacity to manage complex investments and sustain long-term growth.
The borrower will refinance into a conventional mortgage.
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.
Personal Guarantee
The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.
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 Cash Out Refinance on Luxury Home in Paradise Valley, Arizona?
Default Risk
The Borrower may default on his financial obligations. Risk Mitigation- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Sponsor has provided a personal guaranty to fulfill any deficiency.
- In the event of a default, a direction letter signed at closing by the Borrower will be sent redirecting the Tenant to make rent payments into an account controlled by the Originator.
Investment Summary Of Cash Out Refinance on Luxury Home in Paradise Valley, Arizona
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 December 30, 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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