Raleigh, NC Residential Hard Money Loan
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An all brick custom built home located on the lake with 4 bedrooms and 2.5 bathrooms, a 3 car garage, and a finished bonus room. Kitchen includes corian countertops and stainless steel appliances. There is a separate dining room and a family room with fireplace. A large brick patio overlooks beautiful landscaping with a view of the lake.
Raleigh, NC Residential Hard Money Loan Details
Structure
- Tax Document
- 1099-INT
- Offering 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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Investment Amount:
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Annual ROI:
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$0
Why We Like This Opportunity
Raleigh, NC Residential Hard Money Loan Highlights
This borrower is purchasing an all brick custom built home located in a desired neighborhood on the lake with 4 bedrooms and 2.5 bathrooms, a 3 car garage, and a finished bonus room. Kitchen includes corian countertops and stainless steel appliances. There is a separate dining room and a family room with fireplace. A large brick patio overlooks beautiful landscaping with a view of the lake. The borrower is bringing an additional $400,000 in collateral between a single family lot and a single family home owned free and clear.
About the Neighborhood
Benson is located in southwest Johnston County, one of the fastest growing counties in North Carolina, Residents of Benson embrace a unique way of life and a strong sense of community. As a thriving town, Benson is home to a diverse business community ranging from modern agriculture, textile manufacturing, and gift/specialty shops. Benson provides easy access to the education necessary to innovate and thrive in our ever-changing economy.
Johnston County Schools provide excellent public education opportunities for kindergarten through high school. Johnston Community College offers continuing education courses at the Benson satellite location. Benson is also within a one-hour radius from 12 public and private universities and colleges, which range from large research universities to small liberal arts colleges. Benson is ideally situated at the intersection of I-40 and I-95 providing easy access to the Research Triangle Metro Area and Fayetteville.
Additionally, Benson is close to numerous natural and recreational attractions like the beautiful North Carolina coast, the Neuse River, Howell Woods Environmental Learning Center, the Cape Fear River, Raven Rock State Park, Jones Lake State Park, and White Lake.
Why We Like This Opportunity
This is a first position mortgage on three properties cross-collateralized. Both Borrowers are personally guaranteeing this loan and have solid credit scores, 750 and 780 respectively. In addition, the borrowers have strong personal financial statements and run a successful business. We have an excellent loan to value ratio at 59% with total property values at $985,000 and a loan amount of $585,000.
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.What Should I Consider When Investing in Raleigh, NC 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 Raleigh, NC 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 10 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 10 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 10 Months with an option at Yieldi's discretion to extend. As of December 13, 2023 there are 10 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.
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