Our Offerings
Commercial: Bridge Lending,Construction

Atlanta, GA

66% Loan to Value Commercial New Construction directly on the Beltline in Atlanta, Georgia. The borrower is expanding their current business model footprint and is looking to refinance their current traditional bank loan and add some construction dollars to finish the renovation.

Term Remaining 15 Months
Payment Monthly
Offering Size $2,180,000

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

66% Loan to Value Commercial New Construction directly on the Beltline in Atlanta, Georgia. The borrower is expanding their current business model footprint and is looking to refinance their current traditional bank loan and add some construction dollars to finish the renovation.  Ibiza Event Catering is seeking to add a full service catering/special events venue to its portfolio of services. This venue will host a variety of special events with the capacity of 200 guests. It will also service the adjacent area for take out catering orders. The subject property already offers off site catering services to many locations in the metro Atlanta area as well as out of state. By adding this new division it will generate new revenue to their current bottom line. The proposed location is 70% (6800sq feet) larger than the current business location. This increase in space will also provide capacity to take on more business and output more volume. It will also create more jobs and double our current team

About the Neighborhood

Atlanta Beltline, Atlanta’s spectacular outdoor space, comprises 22 miles of unused railroad tracks circling the core of the city’s in-town neighborhoods.  From trails and walkways to open green space and parks, the Atlanta Beltline connects people to neighborhoods, dining, and cool places throughout the city.

Why We Like This Opportunity

The borrowers have successfully run this business in Atlanta for the past 11 years.  Since 2022, the owner has put in over $350,000 into the property.  This loan is a straight refinance of their current debt as the current lender (First Horizon Bank) stopped releasing construction draws and wants this commercial property off of their books.  The owner is funding over $1MM in additional improvements/expansion to this Beltline commercial property to host events, catering, take out business and more.

The property is realistically worth $2.7MM today based on the improvements made to date and will be worth over $3MM with the latest improvements.  Yieldi is only refinancing the debt, putting us in a comfortable 66% loan to value on a local commercial property on the beltline. Yieldi is only funding 30% of the remaining work on the build out, and this will be paid in draws as the work is completed.

The sponsor is excellent with good credit as well as cash flow from their business.  The business’ financials show an EBIDTA of around $1.5MM annually.  This provides more than enough capital to cover the monthly interest payments.

The borrower’s exit strategy is to complete the work and then exit either to a conventional loan or to an SBA loan within the 15-month term of this bridge loan.

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.

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 15 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 15 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 15 Months with an option at Yieldi's discretion to extend. As of May 14, 2024 there are 15 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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