Property Highlight

The owner is planning to build a 2.5-floor single-family home with four bedrooms, three full bathrooms and one-half bathroom on a 4,178 square foot site. The site is located on the south side of Tropical Drive on the North Side of Heron Lake, in Indianapolis in Marion County Indiana.

 

 

About the Neighborhood

Subject property is located in Marion County and is situated in the central part of the state. Indianapolis is an urban area and serves as a major economic and cultural hub for the region. It is not far from other major cities like Chicago, Cincinnati, and Louisville. The economy of Indianapolis is diverse and robust, with a strong focus on sectors such as manufacturing, healthcare, education, and finance. The labor market is competitive, offering a range of job opportunities across various industries. The housing stock in Indianapolis consists of a mix of single-family homes, townhouses, apartments, and condominiums. There are options available for residents and visitors, with a range of prices to suit different budgets.

Why We Like this Loan

This is a great repeat borrower of Yieldi who successfully built a home and recently refinanced us after it sold. The borrower has built and sold multiple homes on the street and proved to be a great borrower on the first deal we did with him. His product is well known in the area and he builds a quality product at an affordable price point. The borrower also has a really good understanding of the area and takes advantage of the lakefront properties that he’s accumulated over the years.

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.