Our Offerings
Residential Hard Money Loan: Buy & Hold

Atlanta Residential Hard Money Loan



This Atlanta residential hard money loan opportunity presents a recently remodeled property showcases extensive upgrades completed in 2018, boasting new drywall, HVAC, flooring, doors, windows, and more. With over 3700 square feet of living space, including 4 bedrooms and 3.5 bathrooms, the property stands out. Yield, the lender, finds this deal attractive due to its fully subscribed loan status, indicating robust investor interest, and its prime location near esteemed schools and amenities in an affluent area.

Annual Interest Login for details
Term Remaining 72 Months
Payment Monthly
Offering Size $2,200,000

Atlanta Residential Hard Money Loan Details

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

investment-property-highlights

Property Highlights

Freshly remodeled in 2018, this home now boasts a plethora of improvements including new drywall, HVAC, white oak floors, doors, windows, wiring, plumbing, and a circular driveway. This build hosts over 3700 square feet of living space with 4 bedrooms, 3.5 bathrooms. The renovated windows allow for an abundance of natural light to light up the interiors and create an inviting ambiance. The primary suite of this residence showcases 2 large closets with custom cabinetry, a bath with marble countertops, and a fireplace. This home also comes with a finished basement that has its own bedroom, bathroom, and secondary living space. This hard money loan is secured by our confidence in the real estate asset itself.

Location

About the Neighborhood

The asset for this hard money loan is located in Pleasant Hill, an affluent neighborhood of Atlanta, Georgia, one of the nation’s largest cities and known for its diverse culture. In this neighborhood, catching a baseball game is like running to the grocery store as Truist Park, the home of the Atlanta Braves, is only minutes away. Pleasant Hill is surrounded by some of Georgia’s best schools such as The Westminster Schools, Pace Academy, The Lovett School, and The Galloway School. This city is also only a 15 minute drive from Atlanta, allowing residents to fully take advantage of what the major hub has to offer in its hot entertainment scene. Nearby neighborhoods such as Buckhead offer a plethora of experiences with its upscale shopping districts, and trendy restaurants. 

Experienced Borrower

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.

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 When Investing in Atlanta Residential Hard Money 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.

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 Of Atlanta Residential Hard Money 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 200 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 200 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 200 Months with an option at Yieldi's discretion to extend. As of July 1, 2022 there are 200 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

How Brokers Can Present Their Loans for Best Chances at Approval

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Using Hard Money Lending for Construction: Unlocking Opportunities for Builders

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