Spring, TX Residential Hard Money Loan

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

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.

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

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.