Investors

Yieldi, LLC is an SEC registered investment adviser (RIA) that manages funds issuing securities under Rule 506(c) of Regulation D under the Securities Act of 1933. As a result, under current SEC regulation we are required by law to verify that all of our investors are accredited.  You can submit our subscription agreement to a third party such as your CPA or lawyer who will validate your status on your behalf. If you qualify based on income (the requirement is $200K/yr for the past two years as an individual, or $300K/yr if joint, and reasonably expect the same for current year), you can upload your W2 documents for the two most recent tax years. If you qualify based on net worth either alone or with a spouse (you’re required to have a net worth that exceeds $1M, excluding the value of your primary residence), you can upload bank/brokerage statements that show assets, as well as a report to show liabilities.

First, you’ll need to set up your account. To begin, click the “Sign Up” button on the homepage. After completing your investor profile, you’ll be able to participate in an investment offering. To make your first investment, simply login to the Yieldi platform, visit the offering page and then click on the individual offering. Next, enter your desired investment amount, noting the investment minimum, and then click “Invest Now.” You’ll then arrive at a page finalizing how you would like to fund your investment.

Once you submit an investment allocation, an ACH draft from your external bank account will be initiated. This ACH transfer will be initiated at the time of your investment request.

Investments on Yieldi are structured using a borrower payment dependent notes (BPDN). Borrower payment dependent notes (BPDN) are debt obligations of Yieldi that are tied to the performance of a loan made by Yieldi. BPDN helps Yieldi structure debt transactions more efficiently by allowing for a greater number of investors in a given transaction, and lower investment minimums. 

Like any investment, investment offerings on Yieldi carry investment risk, which should be evaluated on a case-by-case basis. Prospective investors are urged to read the risk factors for each applicable offering. We strive to list investments on Yieldi that are backed by strong collateral, provide attractive returns, and have low correlation to the overall stock market. Yieldi works to assess investment risk by maintaining a stringent process for vetting our borrowers and originators, while making each deal transparent to our investors. Our diligence process is all done internally where we underwrite the borrowers and the asset based on a very conservative model.  Other risk factors that investors need to be aware of are:
  • Default risk: The risk that the borrower will not be able to repay the associated interest and principal on a particular loan.
  • Principal risk: The possibility that a lender won’t get back some or all of the principal balance (the amount that they had originally invested).
  • Duration risk: The borrower could pay back the loan amount earlier or later than the expected offering length. All durations associated with Yieldi investment offerings are “target durations.” While we do everything we can to hit these targets, in certain situations an offering can end or extend before or after that target duration.
  • Inconvenience risk: Investors will not have access to their invested funds until the investment fully matures, thus reducing liquidity.

Because of our extensive real estate background and experience, we are able to underwrite borrowers and assets with a very thorough process. We require background checks, soft credit pulls, personal financial statements and business statements on the borrowers.  In regards to the real estate, we run internal appraisals and opinions of value, external appraisals, inspection reports etc.

The displayed and advertised target return for all offerings on the Yieldi platform are net of our management and listing fees. Yieldi collects an on average 2.5% management fee on all offerings from investors annually. These fees are disclosed on the individual offering pages for each investment opportunity. In certain circumstances, Yieldi may also collect an origination fee from the borrower at loan closing.   There are also flat annual fund expenses investors are responsible for per investment.

Borrowers

People use private money because many real estate investors need quick responses and funding to secure a deal. Banks and other institutional lenders generally are not very good at this and can take a lot of your time and effort. Investors normally use Yieldi in cases when they either do not have the time, credit, or patience to deal with a traditional bank. Real estate investors can also leverage their money to complete multiple projects by closing quickly. This is also typically much cheaper than teaming up with an equity partner as our costs are fixed throughout the life of the project.

Some of the advantages of borrowing from Yieldi are:
  • A much less complicated application process is required for the lender to make a final loan decision.
  • Fast approval and funding. Yieldi will review your application and provide you with a loan quote within 24 hours!
  • With our real estate development background, we have the ability to fund just about any type of project.
  • Our online portals keep transparency with you through the entire process.

Yes, Yieldi has an extensive network of brokers.  Please check out our brokers page to learn more

Yieldi targets loans between $350,000 and $25,000,000.  We do have the ability to go above and below these thresholds on a case by case basis.  Typically, Yieldi loans can close in as little as one week and are between 6 months and 24 months with a renewal option.

No, Yieldi lends money based on the value of the underlying property. Typically we do not run credit checks or require personal financial statements.

Yieldi bases our Loan To Value (LTV) calculations on our in-house valuation of the property. The maximum LTV in most cases is 70%.

Risk Management

Like any investment, investment offerings on Yieldi carry investment risk, which should be evaluated on a case-by-case basis. Prospective investors are urged to read the risk factors for each applicable offering. We strive to list investments on Yieldi that are backed by strong collateral, provide attractive returns, and have low correlation to the overall stock market. Yieldi attempts to mitigate risk by maintaining a stringent process for vetting our own deals.  This includes background checks on the borrowers, valuation on the underlying asset and running them through a full underwriting process, while making each deal transparent to our investors.  Some risk factors that investors need to be aware when investing in real estate loans:
  • Default risk: The risk that the borrower will not be able to repay the associated interest and principal on their loan.
  • Principal risk: The possibility that a lender won’t get back some or all of the principal balance (the amount that they had originally invested).
  • Duration risk: The borrower could pay back the loan amount earlier or later than the expected offering length. All durations associated with Yieldi investment offerings are contractual, and the loan will go into default if the loan is not paid back at the end of the term.
  • Inconvenience risk: Investors will not have access to their invested funds until the investment fully matures, thus reducing liquidity.

Investment offerings listed on Yieldi carry a certain amount of risk, which should be carefully considered on a case-by-case basis, and prospective investors are urged to read the risk factors for each offering. All opportunities on Yieldi are real-estate based, which means they are backed by the underlying asset In the event that a default does occur, Yieldi immediately begins working both with the borrower as well as with our legal team to begin the default and sometimes foreclosure process.  If there is a lease in place, Yieldi will also work directly with the tenant during this process to take over the collection of the lease payments. We structure our investment offerings in a manner designed to maximize principal protection through proper underwriting as well as through personal guarantees of the principals of the property and often times of their spouses. However, it is important to note that in any default situation, there is always an associated risk that you may not be able to fully recover your principal commitment.

All of the real estate investments listed on Yieldi have been carefully vetted by our team which has over 50 years of real estate development experience.  This gives us a unique perspective whether it is a residential or commercial loan, and regardless of whether it is new construction or an older property being refinanced. We are highly selective when choosing what properties we will provide funding for and in all cases we loan on the current value of the property, and not the subjective value of what it might be worth in the future (even for fix-and-flip loans).  All properties are signed for personally by all principals of the LLC and all lease agreements are transferable to Yieldi in the event of a default. Yieldi lends between 50-70% of current value on all properties making a downturn in the market less of an issue in the event of a defaulted borrower.

It’s important to consider what types of risk you are prepared to accept as an investor. Different types of risk will lead to different return profiles for different investment offerings. For more information on the risks of alternative investments, see here.  It’s also important to read the Yieldi private placement memorandum to get a sense of the specific risks involved with each offering and what mitigations Yieldi has in place to help reduce these risks. If you have further questions about a particular investment’s risks, don’t hesitate to reach out.

While your investment in a loan on Yieldi is short term (12 months on average) we do understand that there can be extenuating circumstances leading you to need to free up your investment early. The Yieldi private placement memorandum does allow for this to be done for a fee.  These investments are meant to not be liquid during the time the money is in use, but should you decide to modify or cancel your investment before it is considered complete, please reach out to us to start the process.

Fees

Yieldi makes its money in 3 different ways.
  1. The displayed and advertised return for all offerings on the Yieldi platform are net of our fees. Yieldi typically collects an on average 2 to 2.5% management fee on all offerings from investors annually. These fees are disclosed on the individual offering pages for each investment opportunity. 
  2. Because Yieldi originates all of its own loans, we make on average of 2% origination fees on all loans that are closed.  These are paid at closing by the borrower. On occasion, there is also an exit fee associated with the loan from the borrower, particularly in the case of fix and flip loans, which averages 1%
  3. All late fees, bank fees and other processing fees are also kept by Yieldi while servicing loans.

Manage & Secure My Account

Yieldi spends a great deal of time working on information security. We encrypt all personal information on our website and our technology team endeavors to utilize best practices for security sitewide. The identity information you provide on Yieldi is stored by our third-party provider, Mortgage Automator. All other information entered on our site is encrypted, and our team ensures that sufficient cyber security measures are in place. Additionally, Yieldi does not store or see banking information or bank login information when you provide these details during the sign-up process.

Yieldi is required to complete identity verification procedures. As such, we require you to verify personal information such as your address, date of birth, and SSN#. This information is also needed to produce a K1/1099 for each investment at year end. For more information on the Yieldi privacy policy, please see Our Privacy Policy Page.

Here are just a few steps that we recommend taking to ensure you protect yourself and secure your personal data with Yieldi and elsewhere:
  1. Keep passwords long and random: Using a password management tool like 1Password makes this process easier because then you only need to remember the password to your password management tool.
  2. Use an ad-blocker: Ad-blocker extensions like uBlock , AdBlock Plus or AdGuard maintain lists that block ads that are known to be malicious.
  3. Do not write passwords down in text files or notepads and keep rotating them every 3-6 months. Most importantly, never reuse passwords across sites as this is one of the most common causes of account takeovers. When one site is compromised, every other site for which you have used the same password becomes automatically vulnerable, no matter how secure it is. 
  4. Secure your connection
    When logging into a sensitive account, the best place to do it is at home. I’m assuming here that you’ve followed my other security tips about securing your network and making sure your computer doesn’t have a data-stealing virus.
  5. Be vigilant
    The best way to make sure your online banking account, or any other account, stays safe is to pay attention. Catching small problems early can prevent hackers from making bigger ones later.

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