Yieldi | The Benefits of Investing in First-Position Real Estate Debt
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Borrowers

The Benefits of Investing in First-Position Real Estate Debt

Eric Rhodes

April 17, 2025 · 3 min read

If you're looking for a way to earn consistent, secured returns without riding the ups and downs of the stock market, first-lien real estate debt deserves a spot on your radar. This strategy is proven—and it’s quietly become a favorite among investors who care more about downside protection than speculative upside.

So what exactly is first-position real estate debt? And why do experienced investors gravitate toward it? Let’s walk through the basics.

What Is First-position Real Estate Debt? In simple terms, it means you’re the first to get paid. A first-position lien gives you seniority over all other claims on a property. If the borrower defaults and the property is sold, you (the lender) get repaid before any secondary creditors or equity holders.

It’s the same structure that banks use when they issue a mortgage. With platforms like Yieldi, everyday investors can now step into that senior lender role—earning interest on short-term, real estate-backed loans with clearly defined terms and strong collateral.

Why Investors Prefer First-Position Deals

  1. Stronger Downside Protection When you’re in first position, you’ve got collateral protecting your capital. And with conservative loan-to-value (LTV) ratios—Yieldi averages around 65%—there’s a meaningful equity buffer if things don’t go as planned.
  2. Consistent Cash Flow These aren’t speculative plays. They’re structured lending opportunities where you earn a fixed interest rate, often paid monthly. Think of it as real estate passive income without the property management headaches.
  3. Clear Terms, Short Durations Yieldi's first-position loans are 12 month terms. That gives you flexibility to reinvest or shift strategies without locking up your money for years.
  4. No Market Correlation First-position real estate debt performs independently of the stock market. That makes it a powerful diversifier in portfolios that lean heavily into equities.
  5. Priority in Foreclosure In the unlikely event of a borrower default, your position gives you legal priority. You can move to foreclose, liquidate the asset, and recover your investment—before anyone else gets a penny.

Why Yieldi Focuses on First-Position Lending

We’re a nationwide hard money lender that underwrites every deal with investor protection in mind. We don’t chase high-risk, high-leverage projects. We stick to conservative LTVs, verified borrowers, well-positioned assets in markets we know, and put our own money in every deal.

Our platform gives investors access to handpicked bridge loans—all backed by real property and structured for passive, fixed-income returns.

Bottom Line

First-position real estate debt offers something rare in today’s market: yield with downside protection. You’re not speculating. You’re lending, secured by real assets, with priority payout rights.

If you’re looking to build steady income into your portfolio while keeping risk in check, it’s time to take a serious look at first-lien lending. At Yieldi, we make it easy.

Get started investing with Yieldi today!

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