As the coronavirus upends financial markets, family offices with money to spend are boosting private debt and credit holdings to take advantage of cheaper valuations and avoid the volatility of stock markets. Meanwhile, central banks are keeping economies afloat with cheap-money policies and negative yields, making assets that used to preserve and grow family fortunes less effective.
Those lending privately often focus on real estate, with property developers turning to family offices for extra flexibility and faster access to cash than with most banks. In return, family offices typically get the security of an asset-backed loan that provides consistent cash flow from interest payments.
Yieldi brings these same offerings to its investors
The Yieldi approach for its investors is to bring carefully underwritten properties using its conservative investment approach to bring safe and at the same time high interest returns. The difference between Yieldi and a more traditional REIT is the transparency about exactly where the investor’s money is being invested, never being bogged down with under performing collateral.
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 8.0% or more over the duration of each individual loan. Check out this great article from Bloomberg talking about how the super wealthy are turning to private debt as a stable investment tool in these unstable times.