Cash Out Refinance of Equestrian Estate in Newnan, GA
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This transaction is a cash-out refinance for a 365-acre property featuring an 8,224 sq ft home and equestrian estate. The borrowers seek to consolidate existing debts and obtain additional funds for property improvements, aiming to increase the estate’s market value. They have already received offers on the property, demonstrating strong market interest. Yieldi’s proposed loan structure maintains an extremely low loan-to-value (LTV) of 33%, reflecting the strength and security of this investment.
Cash Out Refinance of Equestrian Estate in Newnan, GA 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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Why We Like This Opportunity
Cash Out Refinance of Equestrian Estate in Newnan, GA Highlights
This transaction is a cash-out refinance for a 365-acre property featuring an 8,224 sq ft home and equestrian estate. The borrowers seek to consolidate existing debts and obtain additional funds for property improvements, aiming to increase the estate’s market value. They have already received offers on the property, demonstrating strong market interest. Yieldi’s proposed loan structure maintains an extremely low loan-to-value (LTV) of 33%, reflecting the strength and security of this investment.
About the Neighborhood
Georgia continues to see robust population growth and strong economic activity, supported by pro-business policies, major corporate expansions, and quality-of-life advantages. Demand for upscale properties, including sprawling estates, reflects a broader trend of buyers moving into the state. This favorable market environment makes it an ideal time for real estate investments, enhancing the potential success of the borrowers’ plan to improve and sell the property.
Why We Like this Opportunity
The borrowers have strong credit histories and a proven track record of responsible financial management. Their commitment to improving the property, combined with existing buyer interest, underscores a clear plan to capitalize on the estate’s potential value.
After completing the planned improvements, the borrowers intend to sell the property to one of the interested parties, using the proceeds to repay the loan in full. This clear exit strategy, supported by current offers, provides a low-risk path for settling the loan.
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 When Investing in Cash Out Refinance of Equestrian Estate in Newnan, GA?
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 Of Cash Out Refinance of Equestrian Estate in Newnan, GA
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 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 23, 2025 there are 12 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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