Vacation Home and Neighboring Lot in Elk Creek Ranch, Meeker, CO
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This transaction involves providing additional financing secured by an 11,500 sq ft single-family home and a neighboring lot in Meeker, Colorado. The borrower is seeking to secure extra funds to serve as working capital for their private equity ventures. Yieldi currently holds a first position mortgage on the neighboring lot, initiated in March, and the borrower has made all of their interest payments on that loan. To secure the new loan, the borrower has offered the home as additional collateral by placing a second position lien behind the existing bank loan.
Vacation Home and Neighboring Lot in Elk Creek Ranch, Meeker, CO 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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Why We Like This Opportunity
Vacation Home and Neighboring Lot in Elk Creek Ranch, Meeker, CO Highlights
This transaction involves providing additional financing secured by an 11,500 sq ft single-family home and a neighboring lot in Meeker, Colorado. The borrower is seeking to secure extra funds to serve as working capital for their private equity ventures. Yieldi currently holds a first position mortgage on the neighboring lot, initiated in March, and the borrower has made all of their interest payments on that loan. To secure the new loan, the borrower has offered the home as additional collateral by placing a second position lien behind the existing bank loan.
About the Neighborhood
Elk Creek Ranch in Meeker, Colorado, is a highly sought-after private community renowned for its exclusive access to world-class outdoor recreational activities. Nestled amid stunning natural landscapes, the ranch offers residents premier fly fishing, hunting, and other outdoor pursuits in a serene and secluded environment. The community is designed to preserve the area’s natural beauty while providing luxury amenities and services to its members. Properties within Elk Creek Ranch are considered premium real estate investments due to their unique offerings and limited availability.
Why We Like this Opportunity
The borrower is a repeat client of Yieldi. They have consistently met their financial obligations, including timely interest payments on the existing loan for the neighboring lot. The borrower has shown strong financials and credit history.
The exit strategy for this loan is the sale of the neighboring lot, which is currently listed. Proceeds from the sale will be used to pay off the loan in full.
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.What Should I Consider When Investing in Vacation Home and Neighboring Lot in Elk Creek Ranch, Meeker, CO?
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 Vacation Home and Neighboring Lot in Elk Creek Ranch, Meeker, CO
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 November 8, 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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