Our Offerings
Boynton Beach, FL real estate investments
Residential: Buy & Hold

Boynton Beach, FL Residential Property

Boynton Beach, Florida

Amazing property in spectacular Boynton, Beach Florida. In the last 7 years, this home has increased its value by 244%! The home is completely tiled. Recreation lease is prepaid. Rear patio with landscape privacy. Great curb appeal.

Annual Interest 9.5%
Term Remaining 12 Mo.
Payment Monthly
Offering Size $100,000.00

Structure

Tax Document
1099-INT
Offering Structure
BPDN

Calculator

Annual ROI:

$0.00

Why We Like This Opportunity

Property attributes

3 bedroom house in Boynton Beach.  Close to everything!

Upfront Reserve

The Loan is structured with interest reserve for further protection. 12 months of debt service payments will be collected at closing.

Experienced Originator

The Originator and its predecessor entities have originated over 150 loans totaling over $460M, of which 10 remain active. As of 6/30/19, there has been no principal loss.

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 Guaranty

The Loans are personally guaranteed by the borrow, 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.

 

Collateral Coverage

The Loans represents 40% of the appraised value of the Properties. The value of the Collateral securing the Loans would have to decrease by over 60% from its appraised value before the amount of the Loans would exceed the value of the collateral securing them.

Structure

Tax Document
1099-INT   
Offering Structure
BPDN

Sample Annual Return

Investment Amount
$100,000
Annual Return
$9,500

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.

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 9.5% 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

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