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Residential Hard Money Loan

Spring, TX Residential Hard Money Loan

Spring, TX Residential Hard Money Loan Main Image
Spring, TX Residential Hard Money Loan image 1 Spring, TX Residential Hard Money Loan image 2 Spring, TX Residential Hard Money Loan image 3 Spring, TX Residential Hard Money Loan image 4 Spring, TX Residential Hard Money Loan image 5

The loan covers an exceptional 10,000 sqft luxury residence situated in the sought-after community of Spring, TX. This impressive property not only features a spacious main home but also includes high-end amenities that cater to an opulent lifestyle. With a strong appraisal backed by consistent market comparables, the investment is solid and promising. Yieldi is holding a comfortable 60% loan-to-value (LTV) on this deal, reflecting a prudent yet confident investment in the property’s substantial value.

Annual Interest Login for details
Term Remaining 12 Months
Payment Monthly
Offering Size $2,700,000

Spring, TX Residential Hard Money Loan 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

Spring, TX Residential Hard Money Loan Highlights

The loan covers an exceptional 10,000 sqft luxury residence situated in the sought-after community of Spring, TX. This impressive property not only features a spacious main home but also includes high-end amenities that cater to an opulent lifestyle. With a strong appraisal backed by consistent market comparables, the investment is solid and promising. Yieldi is holding a comfortable 60% loan-to-value (LTV) on this deal, reflecting a prudent yet confident investment in the property’s substantial value.

About the Neighborhood

Spring, TX, is a premier neighborhood that consistently attracts interest due to its luxurious homes and strategic location. As one of the most desirable places to live, Spring offers a harmonious blend of suburban tranquility and accessible urban amenities. The area is known for its beautiful landscapes and spacious properties, making it a top choice for discerning homeowners. The demand for homes in Spring is robust, driven by its reputation for safety, community-oriented lifestyle, and proximity to major city centers. This neighborhood not only promises a high quality of life but also holds strong investment potential due to its ongoing popularity and development.

Why We Like This Opportunity

The borrower currently has bank debt and great equity built into the property. They were already approved for a loan from another bank to provide cash out, however the bank could not close in time for the borrower’s needs. The borrower is the proprietor of a well-established oil import and export business, boasting strong financials and a credible business history. This loan was facilitated through a referral from a trusted lender, with whom Yieldi has successfully conducted multiple transactions. The borrower’s intent is to leverage this financing to inject working capital into their business, thereby fostering further growth and stability. 

Experienced Borrower

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.

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.

Upfront Reserve

Upfront Reserve

The Loan is structured with interest reserve for further protection.  12 months of debt service payments will be collected at closing.

Investment Summary Of Spring, TX Residential Hard Money 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 July 5, 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.

Additional Resources

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How Brokers Can Build a Strong Connection with Their Hard Money Lenders

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How High Interest Rates Impact Hard Money Lending and the Potential Effects of Rate Drops

Introduction The real estate market and lending environment are significantly influenced by fluctuating interest rates. Hard money lending, a crucial segment of real estate financing, is not immune to these changes. This article explores how high interest rates affect hard money lending and the potential consequences if interest rates decline. We will examine the impact…

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