Wellington, FL and Pinecrest, FL
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We are excited to offer two estates in affluent areas of Florida that will be cross collateralized with a combined value of $13,500,000 and a loan amount of 7.45M total. The loan to value is a conservative 55% on these two properties. The Wellington, FL property includes a 5,574 sq. ft. single-family home boasting 5 bedrooms, 6 bathrooms, a large horse barn with an apartment and a 6-car garage situated on a 5 acre farm located in a gated community. The Pinecrest, FL property is a high end area of coral gables and includes a 10,323 sq. ft. single-family home boasting 7 bedrooms, 8 bathrooms, and 3-car garage situated on 1 acre.
Wellington, FL and Pinecrest, FL 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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Why We Like This Opportunity
Wellington, FL Property Highlights
The Wellington, FL property includes a 5,574 sq. ft. single-family home boasting 5 bedrooms, 6 bathrooms, a horse barn with two apartments and a 6-car garage situated on a 5 acre farm located in a gated community. This well-constructed home underwent an over the top renovation recently to include a designer kitchen with double ovens and double dishwashers, high ceilings, heavy moldings, new hardwood floors, and an amazing screened-in salt water pool. This 5-acre farm includes a 12-stall center aisle barn with 2 grooms quarters, a 120×220 ft riding arena with mirrors and 6 paddocks. There is also a separate carriage house for storage or additional stalls. The property value is 5.8M and is rented in high season for over 50k a month.
Pinecrest, FL Property Highlights
The Pinecrest, FL property includes a 10,323 sq. ft. single-family home boasting 7 bedrooms, 8 bathrooms, and 3-car garage situated on 0.99 acres. This home is equipped with every luxury including an 18-person theatre with soundproof walls, surround sound and multi-level lighting; maid’s quarters, and an elevator. The living room area opens into an extravagant patio area with an outdoor kitchen and pool perfect for entertaining in the South Florida weather. The property appraised for 7.7M and is one of the most desirable neighborhoods in South Florida, during the 2008 recession property values only lost 3% in this neighborhood. We are confident that this area will be resilient if home values drop nationwide.
Location Highlights of Wellington, FL
The Village of Wellington is located just west of West Palm Beach in Palm Beach County and approximately 66 miles north of Miami. The Village is known for its equestrian community and hosting equestrian events, notably show jumping, hunting, dressage and polo. It is the host to the Winter Equestrian Festival, the largest and longest running horse show in the world from January to April. Each year Wellington hosts several high-goal polo tournaments including the USPA Gold Cup and the U.S. Open Polo Championship. These premium events offers riders, spectators and sponsors unforgettable hospitality, unrivaled facilities, and world-class showgrounds.
Location Highlights of Pinecrest, FL
Pinecrest, FL is a suburban village in Miami-Dade County, with the neighborhoods of Coral Gables to the east, South Miami to the northeast, and Palmetto Bay on the south side. It encompasses approximately 8 square miles and is recognized as one of the most beautiful residential areas and one of the ten best places in Florida for quality of life. It is also the home to Pinecrest Gardens, South Florida’s Cultural Arts Park, featuring over 1,000 varieties of rare and exotic tropical plants and palm trees in a native tropical hardwood and cypress setting. The landscape enhanced with natural streams, caves and fissures provide the most dramatic stage for our historically designated structures and buildings.
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 Wellington, FL and Pinecrest, FL?
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 Wellington, FL and Pinecrest, FL
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 January 3, 2023 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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