Our Offerings

Residential Hard Money Loan: Buy & Hold

Zephyrhills, FL

Annual Interest Login for details

Term Remaining 10 Months

Payment Monthly

Offering Size $200,000

Zephyrhills, FL 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

Zephyrhills, FL Highlights

A two-story single-family residence located on 0.11 acres built in 2022 in the Zephyr Lakes Subdivision. Approximately 2,300 square feet of space includes a kitchen overlooking the living and dining area, a powder bath, storage closet and an outdoor patio on the first floor. Upstairs, the owner’s suite includes a big walk-in closet and ensuite bathroom with linen closet. Two additional bedrooms share a second full bathroom, and there is a loft area at the top of the stairs providing extra space for work and play.

About the Neighborhood

Located 30 miles northeast of Tampa, Zephyrhills is a small city of about 17,000 in Pasco County, FL and recognized for its pure spring water (good enough to bottle). Its lush countryside also makes it a major skydiving destination. Living here offers its residents a sparse suburban feel with most residents owning their home. Zephyrhills is ranked as the #35 suburb with the lowest cost of living in Florida by Niche in 2023. It is a very safe place to live with a violent crime rate significantly lower than the rate in other similarly sized cities and 2% less than the national average. The city is bisected by U.S. 301, which travels north to south throughout the state and located within 15 minutes of multiple major roads and interstate allowing easy access to major points of interest in the state.

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 Zephyrhills, 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 Zephyrhills, 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 May 2, 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 1^st of each month and investors all paid by the 10^th of the month.

Additional Resources

What is an Accredited Investor?

What is an accredited investor and how are the rules and regulations evolving to allow more investment opportunities to a new category of investors.

How to Secure Quick Financing for Real Estate Flips: The Power of Bridge Loans

Real estate flipping is an exciting and potentially lucrative investment strategy. It involves purchasing properties at a low price, making necessary renovations, and then selling them at a higher price to generate a profit. However, one of the most significant challenges that real estate investors face is securing quick financing. This is where the power…

Using Hard Money Loans to Purchase a Property on a 1031 Exchange

Introduction Real estate investment can be a lucrative venture if approached with the right strategies. One such strategy is using a 1031 exchange to defer capital gains taxes, which can be further optimized by employing hard money loans. This article will explore the concept of a 1031 exchange, delve into the specifics of hard money…