Peoria, AZ Single Family Mid Construction Loan
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The borrower is seeking a loan of $525,000, representing a 25% loan-to-value, secured by a nearly completed single-family home in a highly desirable neighborhood of Peoria, Arizona. With only final touches remaining, the property is poised to be market-ready upon completion. This suburban area of the Phoenix metropolitan region is known for its strong economy, top-rated schools, and excellent outdoor amenities. Steady home value appreciation, low inventory, and high demand make it a prime location, ensuring strong buyer interest and rapid absorption once the home is finished.
Peoria, AZ Single Family Mid Construction Loan 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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Why We Like This Opportunity
Peoria, AZ Single Family Mid Construction Loan Highlights
A borrower is seeking a loan of $525,000, representing a 25% loan-to-value, secured by a nearly completed single-family home in a highly desirable neighborhood of Peoria, Arizona. With only final touches remaining, the property is poised to be market-ready upon completion. This suburban area of the Phoenix metropolitan region is known for its strong economy, top-rated schools, and excellent outdoor amenities. Steady home value appreciation, low inventory, and high demand make it a prime location, ensuring strong buyer interest and rapid absorption once the home is finished.
About the Neighborhood
Peoria, Arizona, is one of the fastest-growing suburbs in the region, offering a high quality of life bolstered by excellent schools, low crime rates, and proximity to major employment centers in Phoenix. Steady population growth, ongoing commercial development, and recreational amenities like hiking, golf courses, and nearby Lake Pleasant all contribute to robust housing demand. Given the area’s low inventory and rising property values, newly completed homes tend to command premium prices and sell quickly.
Why We Like this Opportunity
The borrower is an experienced real estate developer and entrepreneur with a diversified portfolio, including commercial property and other residential real estate. They have demonstrated financial strength through self-funding the majority of construction, maintaining a strong credit profile, and operating a successful local business. Bank statements corroborate their liquidity, indicating a sound capacity to complete the project and manage ongoing expenses.
Upon completion of construction, the borrower plans to pursue long-term financing to replace the current loan, leveraging the property’s increased value and strong marketability in the area. This clear path to repayment minimizes risk and maximizes the investment potential of the home.
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 Peoria, AZ Single Family Mid Construction Loan?
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 Peoria, AZ Single Family Mid Construction Loan
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 31, 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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