Alpharetta, Georgia Luxury Home Construction Loan
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Nestled in the heart of Alpharetta, Georgia, this luxury home recently secured a 12-month bridge loan, offering exceptional flexibility for prospective buyers. With its modern amenities and prime location, the property epitomizes upscale living, while the bridge loan facilitates a seamless transition for those looking to make this elegant residence their new home.
Alpharetta, Georgia Luxury Home Construction Loan Details
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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Why We Like This Opportunity
Alpharetta, Georgia Luxury Home Construction Loan Highlights
Nestled in the heart of Alpharetta, Georgia, this luxury home has recently secured a 12-month bridge loan, offering exceptional flexibility for prospective buyers. With its modern amenities and prime location, the property epitomizes upscale living, featuring spacious interior design, premium finishes, and convenient access to the area’s top-rated schools and vibrant shopping and dining scenes.
About the Neighborhood
Alpharetta’s robust job market and proximity to major highways make it a premier destination for those seeking both luxury and convenience. The short-term bridge loan provides a streamlined financing option, enabling buyers to transition into this elegant residence without unnecessary delays or complications. Whether intended as a forever home or an investment, this Alpharetta gem stands ready to meet a discerning buyer’s needs, all while offering the security and adaptability of a specialized 12-month loan structure.
Why We Like this Opportunity
The borrowers are experienced in real estate investments and property management, with a substantial net worth and a significant track record. They have successfully managed and developed various properties across the country. These are repeat borrowers with whom we closed another deal earlier this month, further demonstrating their reliability and expertise.
The exit strategy involves short-term bridge financing to expedite the purchase and construction completion. The plan is to refinance the bridge loan with a permanent solution once construction is finished and the property is fully operational, which is anticipated within 6 months. The borrowers are already working with a bank for the takeout.
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 Alpharetta, Georgia Luxury Home Construction 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.
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 Alpharetta, Georgia Luxury Home Construction 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 October 25, 2023 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.
Additional Resources
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