Marietta, Georgia130 Woodlawn Dr NE Marietta, GA 30067
A Tuscan-style mansion located in Marietta, Georgia with 9,214 square feet of living space. Located at the heart of Cobb County in Sanders Field Estate neighborhood.
- Tax Document
- Offering Structure
Why We Like This Opportunity
You may have seen this massive 9,241 square foot home in Netflix’s hit series Cobra Kai. This extravagant property is located in the heart of Cobb County in the peaceful neighborhood of Sanders Field Estate neighborhood minutes from shopping centers and schools. This magnificent home features 6 bedrooms, 6.5 baths, an open floor plan, and a nice outdoor entertainment area for a home near the city. Outside there is a large patio, inground pool, lush gardens, and architectural detail.
The Sanders Field Estate neighborhood is a short drive to downtown Atlanta, shopping, restaurants, highways, and recreational activities. Sanders Field Estate is an established community featuring expansive homes that are competitively priced. This luxurious neighborhood continues to attract interest from buyers looking for real estate in the Cobb County. As expected the neighborhood boasts well-maintained properties appreciating in value.
The borrower is a successful investor in the high-end real estate industry in Atlanta. He has sold multiple homes over $2M+ in the area. He has a high net worth and strong liquidity.
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.
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.
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?
The Borrower may default on his financial obligations.
- 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.
The Borrower may not have represented itself accurately.
- 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.
The Tenant may vacate the leased properties.
- 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.
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 8% 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-month 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 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 8% 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.