Veterinary Hospitals Hard Money Loan in Florida and Massachusetts
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Quick purchase financing is being arranged for two separate medical office assets leased to large veterinary operators. The assets are located in Pace, FL, and Sandwich, MA. The first property, located in Pace, FL, features a stable property with a 10-year lease in place with a long-term operator. The tenant is a prominent national veterinary operator. The second property, situated in Sandwich, MA, also has a 10-year lease under the management of a leading veterinary healthcare provider.
Veterinary Hospitals Hard Money Loan in Florida and Massachusetts 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
Property Highlights
Quick purchase financing is being arranged for two separate medical office assets leased to large veterinary operators. The assets are located in Pace, FL, and Sandwich, MA. The first property, located in Pace, FL, features a stable property with a 10-year lease in place with a long-term operator. The tenant is a prominent national veterinary operator. The second property, situated in Sandwich, MA, also has a 10-year lease under the management of a leading veterinary healthcare provider.
About the Neighborhood
Both properties are situated in areas with strong commercial appeal and community infrastructure which supports specialty medical services. The Pace, FL location benefits from its proximity to major urban centers and has a good population, making it a favorable business environment. Similarly, the Sandwich, MA site is part of a community with a growing demand for veterinary services and a solid population base. Each location supports robust local economies, contributing to the stability and growth potential of these investments.
Why We Like This Opportunity
These are repeat borrowers with whom we closed a separate successful deal with. The borrower’s plan is to purchase the assets, let them cashflow, and add them to their portfolio. They’re experienced investors/managers in veterinary real estate with a substantial net worth and a significant track record of successful veterinarian property management across the country. They have built an impressive portfolio of veterinary hospitals, with a majority of that portfolio having bank financing. They bring not only financial strength but also deep industry expertise to the table, significantly de-risking the investment.
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.What Should I Consider When Investing in Veterinary Hospitals Hard Money Loan in Florida and Massachusetts?
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 Veterinary Hospitals Hard Money Loan in Florida and Massachusetts
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 August 12, 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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