Five Rental Property Portfolio Loan in Booming Nashville, TN
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This transaction is a cash-out refinance on five rental properties located in Nashville, Tennessee. Each property carries a relatively low loan-to-value ratio, allowing the borrower to pull out equity to use as a down payment for an upcoming apartment building acquisition. The borrower, an experienced real estate developer, is aiming to finalize this financing within one week to meet their purchase timeline.
Five Rental Property Portfolio Loan in Booming Nashville, TN 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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$0
Why We Like This Opportunity
Five Rental Property Portfolio Loan in Booming Nashville, TN Highlights
This transaction is a cash-out refinance on five rental properties located in Nashville, Tennessee. Each property carries a relatively low loan-to-value ratio, allowing the borrower to pull out equity to use as a down payment for an upcoming apartment building acquisition. The borrower, an experienced real estate developer, is aiming to finalize this financing within one week to meet their purchase timeline.
About the Neighborhood
Nashville, Tennessee, has experienced significant economic and population growth in recent years, making it an increasingly attractive market for real estate investors. Known for its vibrant culture and strong job market, the city’s rental properties maintain high demand. These factors contribute to the security of this transaction and the potential for continued appreciation and positive cash flow.
Why We Like this Opportunity
The borrower has a strong background in real estate development and investment, with a track record of successful projects and timely loan repayments. Their familiarity with both residential and commercial real estate demonstrates their capacity to effectively manage these properties and utilize the cash-out proceeds for future growth opportunities.
The borrower will retain and continue to manage the five rental properties, benefiting from stable rental income to service the refinance. Once the apartment building acquisition is secured and stabilized, the borrower may opt for longer-term financing or additional real estate ventures, supported by a proven ability to manage property portfolios and enhance asset value.
Experienced Borrower
The borrower is a successful real estate investor in high-end real estate industry in Florida. He’s sold multiple Florida homes for over $2M+ and has a high net worth and strong liquidity.
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 Five Rental Property Portfolio Loan in Booming Nashville, TN?
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.
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 Five Rental Property Portfolio Loan in Booming Nashville, TN
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 December 30, 2024 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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