Aspen, CO
Revel in breathtaking views of the Aspen mountains from the extra large deck of this 6,672 square foot, single-family home located in Aspen, Colorado.
Log In
Structure
- Tax Document
- 1099-INT
- Offering Structure
-
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
-
Investment Amount:
-
Annual ROI:
-
$0
Why We Like This Opportunity
Property Highlights
Revel in breathtaking views of the Aspen mountains from the extra large deck of this 6,672 square foot, single-family home located in Aspen, Colorado. The residence is situated on 0.40 acres of prime residential real estate in West Meadow Subdivision and minutes from downtown Aspen.
About the Neighborhood
Aspen, CO is surrounded by mountain and wilderness areas on three sides: Red Mountain to the north, Smuggler Mountain to the east, and Aspen Mountain to the south. Its single-family home prices are among the highest of any town in the country. Real estate supply is restricted because most of the land around Aspen is public land, conservation land, or part of large private ranches. Prime residential real estate in Aspen is the most expensive of any ski resort in the world on a per-square-foot basis. Aspen is the world’s second-highest-rated ski resort in terms of the quality and reliability of their conditions and their capacity to withstand climate change. The city has emerged into international fame as a glitzy playground of the wealthy and famous. Aspen has become a second and third home to many international jet-setters. Many people from the U.S. and abroad vacation in Aspen, especially during the winter. The downtown has been largely transformed into an upscale shopping district that includes high-end restaurants, salons, and boutiques. Stores such as Gucci, Prada and Fendi dot South Mill Street and act as a “Rodeo Drive” of Aspen.
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
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?
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 February 13, 2023 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.
Additional Resources
What is an Accredited Investor?
What is an accredited investor and how are the rules and regulations evolving to allow more investment opportunities to a new category of investors.
Private Lenders vs Traditional Banks: Which Is Best?
Private mortgage lenders vs. banks—what’s the difference? While it might seem like a trivial decision, who you choose to finance your real estate purchase can make a huge impact on your experience. Buying a home can be a complex process. It’s a huge financial decision purchase that you want to make with confidence. One of…
The Advantages of Private Money Loans
When in the process of acquiring real estate, you need to ensure that you will have the proper means to finance the purchase of the property. There are many ways to obtain proper financing. In the past, borrowers have relied on banks; however, sometimes, traditional banks are not the best route. Instead, private money lenders,…