Brookhaven, Georgia
New construction home nestled comfortably in the peaceful neighborhood of Brookhaven. Brookhaven is one of the most highly sought-after markets in Atlanta for home buyers today. The home will be brand new construction on .3 acres of flat land with a walk out backyard. The two-story home with a basement features 6 bedrooms, 6.5 bathrooms, an open floor plan and walk out backyard with a pool and spa.
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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
Property Highlights
With 5,700 square feet of living space, this new construction home is nestled comfortably in the peaceful neighborhood of Brookhaven. Brookhaven is one of the most highly sought-after markets in Atlanta for home buyers today. The home will be brand new construction on .3 acres of flat land with a walk out backyard. The two-story home with a basement features 6 bedrooms, 6.5 bathrooms, an open floor plan and walk out backyard with a pool and spa. It also includes a 2 car garage, finishes basement with exercise room, sauna and basement bar. The lack of inventory in the market is continuing to drive prices higher every month and interest rates remain at an all-time low which makes this deal very attractive.
About the neighborhood
In 2020, Niche ranked Brookhaven the third Best Suburb for Young Professionals in Georgia (out of 165) and the 29th Best Place for Young Professionals in Georgia (out of 397). Additionally, the city was ranked 21st in the list of Best Suburbs to Live in Georgia (out of 165).
It’s no wonder homeowners and families are finding DeKalb County’s Brookhaven the perfect place to call home. Not only is it filled with one-of-a-kind local shopping, dining and cultural opportunities of its own, but it’s location just north of Buckhead and inside the Perimeter is also convenient to metro-Atlanta’s many employment centers, best health care, and myriad of entertainment venues. To learn more about the fun and opportunities in Brookhaven
About the developer
Paramount Homes has a solid track record with over 20 years of home building experience in Atlanta. The developer has built homes in Brookhaven, Smyrna, Roswell, Milton and Gwinnett County. The builder specializes in high end custom and spec homes, as well as neighborhoods of 10+ homes. The builder has purchased the land outright and is funding almost 40% of the development costs themselves making this a very good loan.
Why we like this loan
Brookhaven is right in Yieldi’s backyard and the team at Yieldi understands the market very well. The low leverage and developer’s track record makes this loan a great opportunity. The builder has a contract in place and the end user already has their financing secured as the exit from the loan.
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.
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.
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?
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.
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 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 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 12 Months with an option at Yieldi's discretion to extend. As of January 4, 2022 there are 12 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.
Additional Resources
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