Our Offerings
Commercial: Bridge Lending

Anderson, SC

A 2-story, retail building with 13,312 square feet of gross building. It is occupied by a single tenant doing business as a brewery. The site improvements include off-street parking for 20 cars, and curb cuts at each frontage. The building features a roll up door, exposed beam ceilings, and outdoor seating. The building interior offers seating area, retail space, bar counter, a full commercial kitchen as well as warehouse space used for the distillation process, employee offices, and a balcony.

Term Remaining 11 Months
Payment Monthly
Offering Size $600,000

Structure

Tax Document
1099-INT
Offering Structure
BPDN
x

SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENT

THIS 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

Investment Amount:

Annual ROI:

$0

Why We Like This Opportunity

Property Highlights

A 2-story, retail building with 13,312 square feet of gross building. It is occupied by a single tenant doing business as a brewery. The site improvements include off-street parking for 20 cars, and curb cuts at each frontage. The building features a roll up door, exposed beam ceilings, and outdoor seating. The building interior offers seating area, retail space, bar counter, a full commercial kitchen as well as warehouse space used for the distillation process, employee offices, and a balcony.

Palmetto Distillery is the name of the long standing brewery that has become a staple in the town. They have been in business since 2011 and recently did an extensive renovation with the majority of their own funds. They just has a few items left to be done which will be covered by the construction reserve holdback.

About the Neighborhood

The City of Anderson is located in the northwest corner of the state of South Carolina on the Piedmont Plateau. It is the county seat located in the geographical center of the county and principal city in Anderson County. The City is ideally located on the busy Interstate 85 corridor, to which much of its economic growth can be attributed. The City lies on the southern border of Interstate 85 and is approximately 127 miles north of Atlanta, Georgia and 132 miles south of Charlotte, North Carolina. The City encompasses approximately 14 square miles and is located in the geographical center of the county. The I-85 corridor from Atlanta to Charlotte is now known as one of the nation’s hottest growth areas. Anderson County, South Carolina lies midway between Atlanta, Georgia and Charlotte, North Carolina. This stretch of highway is one of the heaviest traveled highways in the southeast. Business leaders and development officials in Anderson have taken advantage of this asset, and visible progress is the result. Anderson County was ranked 14th out of 50 as on of the “Hottest American cities for business location,” (based on a survey of leading site consultants) according to the January 2001 issue of Expansion Management.

Anderson is a major contributor to the success of the upstate. Anderson offers all of the basics upon which to build a thriving economy, including affordable land, a good transportation system, infrastructure, and a large number of recreational amenities. In June 2000, Anderson County was one of only ten communities to be designated an All-America City by the National Civic League. The Anderson community offers the feel of small-town living with the attractions and business opportunities of larger cities only a short drive away.

Why We Like This Opportunity

This is a first position mortgage with an excellent loan to value ratio of 60% with a property value of $1,200,000.00 and a total loan amount of $600,000.00.  The two brothers/borrowers are from Upstate SC and are dedicated businessmen with a taste for whiskey. Southern to the bone, the brothers have a strong dedication to their craft and a passion for keeping their heritage alive through the spirits they create.  The brothers’ journey began back in 2011, when they opened the doors to South Carolina’s first legal moonshine distillery. Their new business venture was a lifelong dream for the boys, who reveled in southern heritage and family tradition. Largely inspired by their infamous relative, Dock Boggs, the brothers continued their family’s bootlegging legacy with the origination of their signature White Lightning Moonshine.

 

First Priority Mortgage Lien Position

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.

Personal Guarantee

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

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?

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.

Vacancy Risk

The Tenant may vacate the leased properties.

Risk Mitigation

  • The Tenant is an investment grade rated company with sizable financial resources.
  • Under the triple-net leases, the Tenant is under multi-year contract to pay rent with no option to terminate.
  • If the Tenant decides not to renew any of the leases or to vacate the leased premises, the Borrower will pay for an appraisal of the property “as vacant” and the borrower will have to provide the additional cash collateral and/or pay down the loan (or any combination in between) within ten days of receipt of the appraisal in order to bring the property back to an LTV.

Investment Summary

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 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 April 15, 2024 there are 12 Months remaining. Investors will immediately receive monthly interest payments at an annualized rate of 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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