Our Offerings
22771 El Dorado Dr. Boca Raton, FL 33433
Residential

Boca Raton, Florida

22771 El Dorado Dr, Boca Raton, FL

This luxurious 4,825 square foot Boca Raton home boasts one of the most luxurious courtyards in all of Boca Pointe featuring indoor and outdoor gardens. Located a few short miles off Florida’s eastern coast.

Annual Interest 8%
Term Remaining 12 Mo.
Payment Monthly
Offering Size $500,000

Structure

Tax Document
1099-INT
Offering Structure
BPDN

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Annual ROI:

$0.00

Why We Like This Opportunity

investment-property-highlights

Property Highlights

With 4,825 square feet of living space, this modern-style home is nestled comfortably in Boca Pointe neighborhood in Boca Raton, FL, near shopping centers and schools. The elegant two-story home features 5 bedrooms, 6.5 bathrooms, an open floor plan, and one of the most luxurious courtyards in Boca Point. Outside there is an inground pool, outdoor kitchen, 2 car garage, and a two-story guest house with its own one-car garage.

Location

Location

The Boca Pointe neighborhood is located in the suburbs of Boca Raton a short drive from downtown, golf courses, beaches, restaurants, and recreational parks. Boca Pointe features well-maintained property and peaceful living for those who want to be close to the beach but away from the crowds.

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.

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?

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.

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.

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 8% 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-month 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 for an additional 12% if needed. As of July 1, 2020 there are 12 months remaining. Investors will immediately receive monthly interest payments at an annualized rate of 8% 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.

Question?