Our Offerings
Commercial: Bridge Lending

Madison, AL

This income-producing real estate portfolio consists of five commercial buildings, similar in design and construction, but demonstrate different sizes and number of suites that are present in each. There are a total of 27 suites with 7 suites in Building 6995 totaling 6,856 sf, 3 suites in Building 7001 totaling 3,303 sf, 2 suites in Building 7009 totaling 1,257 sf, 6 suites in Building 7017 totaling 4,537 sf, and 9 suites in Building 6983 totaling 5,771 sf..

Annual Interest Login for details
Term Remaining 3 Months
Payment Monthly
Offering Size $1,137,000

Madison, AL Details

Structure

Tax Document
1099-INT
Offering Structure
BPDN
x

SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENT

THIS 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

Investment Amount:

Annual ROI:

$0

Why We Like This Opportunity

Madison, AL Highlights

This income-producing real estate portfolio consists of five commercial buildings located on approximately 3.1 acres, similar in design and construction, but demonstrate different sizes and number of suites that are present in each. There are a total of 27 suites with 7 suites in Building 6995 totaling 6,856 sf, 3 suites in Building 7001 totaling 3,303 sf, 2 suites in Building 7009 totaling 1,257 sf, 6 suites in Building 7017 totaling 4,537 sf, and 9 suites in Building 6983 totaling 5,771 sf.  All five buildings have been renovated and upgraded periodically, and the current occupancy rate is 100%.

About the Neighborhood

The communities of Monrovia-Harvest-Capshaw merge into a group just north of Madison and northwest of the western areas of Huntsville. They are an integral part of the Huntsville metro area which is comprised of Madison County and Limestone County. Both counties are located along the Tennessee state boundary line at the very northern portion of the state of Alabama. The Huntsville metro area is the second largest in the state and includes the cities of Huntsville, Madison and Athens. Huntsville is the largest city in N. Alabama in both population and is the county seat of Madison County. It is located in the northern part of the State of Alabama, approximately 100 miles north of Birmingham, and 100 miles south of Nashville, Tennessee.  It is noteworthy that Madison, Huntsville’s largest satellite city, has been completely encircled by the larger city, but holds the title of the 10th largest city in the state in its own right. While deemed a “bedroom” community, Madison has grown rapidly in recent years and is still growing. It has moved close to Decatur in population ranking, and over the next 5 years or so, will likely surpass it.

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.

What Should I Consider When Investing in Madison, AL?

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.

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 Of Madison, AL

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 September 29, 2023 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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