Yieldi | Why We Started a Private Real Estate Lending Business
Investor Resources
Investors

Why We Started a Private Real Estate Lending Business

Eric Rhodes

October 8, 2026 · 8 min read

Yieldi did not start because its founders were looking for a new financial product to sell.

It grew out of a problem they were experiencing as real estate developers.

As construction costs increased and the real estate market became more competitive, the economics of developing new projects started becoming harder to justify. Deals that once produced attractive returns required more capital, carried more execution risk, and offered less margin for error.

Rather than forcing development deals to work, Yieldi’s founders began looking at the other side of the transaction: lending.

In the accompanying video, co-founder Joe Ashkouti explains how that shift started with the founders putting their own money into real estate loans on projects close to home. What began as a way to test the model eventually grew through family, friends, word of mouth, and outside investors into the lending platform Yieldi operates today.

When Development Economics Stop Making Sense

Real estate developers are constantly balancing cost against expected value.

A project can look attractive on paper, but the economics change quickly when land prices, labor, materials, financing costs, and other expenses increase.

At some point, a developer has to decide whether the projected return still compensates for the amount of capital and risk involved.

That was the issue Yieldi’s founders were facing.

Construction costs were increasing, the market had become increasingly competitive, and it was getting harder to make development projects pencil the way they had before.

The answer was not to lower underwriting standards just to keep building.

It was to look for another way to participate in real estate.

Moving From the Equity Side to the Debt Side

Real estate development is an equity investment.

The developer puts capital into the project, executes the business plan, and participates in the upside if the property is ultimately worth more than the total cost of creating it.

That upside can be significant, but so can the execution risk.

Real estate debt changes the position.

Instead of being responsible for creating all of the value, the lender provides capital to another experienced real estate operator and earns interest on the loan.

The developer is responsible for executing the project.

The lender focuses on the borrower, collateral, leverage, loan structure, and path to repayment.

Real Estate Debt vs. Owning a Rental Property

For Yieldi’s founders, lending provided a way to remain involved in real estate while taking a different position in the capital stack.

We Tested the Model With Our Own Money First

The lending business did not begin by immediately raising outside capital.

The founders started with their own money.

They identified real estate projects in markets they knew well and began making loans as a way to determine whether the business model worked in practice.

That initial period functioned as a real-world test.

Could they find enough quality borrowers?

Could the loans be underwritten conservatively?

Would borrowers perform?

Could the business generate attractive economics without taking the same development risk they had experienced as property owners?

Joe describes that period as lasting roughly two years before the model began expanding beyond the founders’ own capital.

That sequence matters because the investment platform came after the lending strategy had already been tested with the founders’ money.

Local Knowledge Was an Advantage

The first loans were made on projects that were effectively in Yieldi’s backyard.

That gave the founders an advantage that is easy to underestimate.

They understood the neighborhoods.

They knew the local real estate market.

They had experience evaluating construction and development.

They could look at a project and form an informed opinion about whether the borrower’s assumptions made sense.

That background helped shape the asset-based underwriting approach Yieldi still uses today.

How Yieldi Underwrites Real Estate Loans

The company has since expanded well beyond its original markets, but the basic question remains the same: does the real estate support the loan?

From Personal Capital to Friends and Family

Once the founders had enough experience with the model, the next stage came naturally.

Family and friends became interested.

They saw the founders making real estate-backed loans and wanted access to the same type of investments.

That created a new opportunity.

Instead of lending only the founders’ capital, Yieldi could originate loans and allow other investors to participate alongside them.

The business began to grow largely through relationships and word of mouth.

That progression ultimately led to the investment platform Yieldi operates today, where accredited investors can evaluate individual real estate-backed opportunities rather than having to originate and service private loans themselves.

How Investing With Yieldi Works

Why Private Lending Became Attractive

The appeal of lending was not simply that it was easier than development.

It offered a different risk-and-return profile.

Consider a development project.

The equity investor may need to acquire the land, complete design and permitting, manage construction, absorb cost overruns, lease or sell the property, and wait years before knowing the ultimate return.

The lender evaluates the same real estate from a different perspective.

How much is being lent?

How much borrower equity is in the transaction?

What is the property worth?

Who is responsible for executing the project?

How does the borrower plan to repay?

What happens if the project does not go exactly as planned?

Why Loan-to-Value Matters in Real Estate Debt

The lender does not capture all of the upside if the project dramatically exceeds expectations.

In exchange, the investment can be structured around a defined interest rate and a more senior position relative to the borrower’s equity.

Experience as Developers Influences How We Lend

One advantage of coming from the development side is understanding what actually happens after a loan closes.

A construction budget is not just a spreadsheet.

Draws have to be funded.

Contractors have to perform.

Projects encounter delays.

Costs change.

Properties have to be leased, refinanced, or sold.

A lender that has operated real estate can evaluate a borrower’s business plan with that practical experience in mind.

That does not mean every project gets approved because it sounds familiar.

It often means the opposite.

Knowing how difficult real estate execution can be makes disciplined underwriting more important.

The Investment Platform Came After the Lending Business

It is easy to look at Yieldi today and think of it primarily as an investment platform.

But the sequence is important.

The lending business came first.

The founders began by making real estate loans with their own capital.

Then family and friends participated.

As demand grew, the company built the infrastructure necessary to allow a broader group of accredited investors to review and participate in individual opportunities.

Today, Yieldi handles the operating side of the lending process: sourcing borrowers, underwriting transactions, documenting and closing loans, servicing them, processing payments, and managing the relationship through payoff or recovery.

Investors can concentrate on deciding which opportunities fit their portfolios.

Growth Has Not Changed the Basic Thesis

Yieldi now evaluates a much broader range of transactions than the local projects that initially served as a test of the model.

The property types are broader.

The geography is broader.

The loan sizes are larger.

The investor base has expanded.

But the original idea has remained relatively simple.

Real estate operators need capital.

A well-structured loan can provide that capital while creating an income opportunity for the lender.

The key is finding transactions where the borrower, collateral, leverage, and repayment strategy justify the risk.

That principle existed when the founders were lending their own money, and it remains the basis for the business today.

Final Thoughts

Yieldi grew out of firsthand experience on the ownership and development side of real estate.

When increasing construction costs and a more competitive market made development economics less attractive, the founders began lending their own capital to other real estate operators.

They tested the strategy locally.

It worked.

Family and friends became interested.

Word spread.

Eventually, what began as an alternative way to deploy the founders’ own capital became a broader private real estate lending and investment platform.

That origin still influences how Yieldi approaches the business today.

The company was built by real estate operators who moved to the lending side because they saw an opportunity to participate in real estate through a different part of the capital structure.

All investments involve risk, including possible loss of principal. Prior loan performance and the founders’ historical experience do not guarantee future investment results. Real estate collateral, underwriting, and borrower equity do not guarantee full or timely repayment.

Investors
How Yieldi’s Real Estate Debt Investment Platform Works

Private real estate investing often comes with a tradeoff. Investors may like the income potential and tangible nature of real...

Read More
Investors
Why Real Estate Debt Can Be Simpler Than Owning Real Estate

Real estate can be an excellent long-term asset, but anyone who has owned enough of it knows that the income...

Read More

Ready to start investing?

Schedule a Call
Investors
Why Real Estate Debt Can Be Simpler Than Owning Real Estate

Real estate can be an excellent long-term asset, but anyone who has owned enough of it knows that the income...

Read More
Borrowers, Investors
Why Experience and Relationships Matter in Private Real Estate Lending

Private lending is ultimately a relationship business. The numbers matter. Property value, leverage, borrower liquidity, lien position, and exit strategy...

Read More
Investors
Why Some Investors Add Real Estate Debt Alongside Stocks

Stocks and real estate debt can both have a place in an investment portfolio, but they behave very differently. In...

Read More
Read Full Disclosure
THIS PRESENTATION FOR YIELDI, LLC (THE “FUND”) AND ANY APPENDICES OR EXHIBITS IS PROVIDED TO YOU ON A CONFIDENTIAL BASIS AT YOUR REQUEST FOR INFORMATIONAL PURPOSES ONLY AND IS NOT, AND MAY NOT BE RELIED ON IN ANY MANNER AS, LEGAL, TAX OR INVESTMENT ADVICE OR AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY AN INTEREST IN THE FUND. THIS PRESENTATION IS CONFIDENTIAL AND IS ONLY BEING PROVIDED TO “ACCREDITED INVESTORS” WITHIN THE MEANING OF THE SECURITIES ACT OF 1933, AS AMENDED. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, IN WRITING OR ORALLY OR IN ANY OTHER WAY OR FORM, THIS PRESENTATION OR ANY OF THE INFORMATION SET OUT HEREIN. A
private offering of Borrower Payment Dependent Notes (“Notes” or “Note”) will only be made pursuant to a confidential private placement memorandum (the “Offering Memorandum”), each specific Note, and the Fund’s subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. This document does not purport to contain all the information that may be required to evaluate an investment in a Note and is subject to completion and amendment. Any prospective investor is advised to carefully review all of the Offering Memorandum, the Note, and the Fund’s subscription documents. Certain factual information has been obtained from third-party sources believed to be reliable but has not been independently verified. The Fund may change some terms of the Offering prior to finalization of the Memorandum. The information contained herein will be superseded by, and is qualified in its entirety by reference to, the Offering Memorandum, which contains additional information about the investment objective, terms and conditions of an investment in a Note or Notes and also contains tax information, information regarding conflicts of interest and risk disclosures that are important to any investment decision regarding a Note or Notes. No person has been authorized to make any statement concerning the Fund other than as set forth in the Offering Memorandum and a Note, and any such statements, if made, may not be relied upon. The information contained herein must be kept strictly confidential and may not be reproduced, redistributed or otherwise used without Yieldi, LLC’s express written approval. Each recipient, by accepting these materials, is deemed to agree to the foregoing, and to agree to return these materials promptly upon request. An investment in a Note or Notes of the Fund is highly speculative and involves significant risks, including potential loss of the entire investment. Before deciding to invest in a Note or Notes, prospective investors should pay particular attention to the risk factors contained in the Offering Memorandum. Investors should also have the financial ability and willingness to accept the risk characteristics of a Fund Note or Notes according to their terms.  An investment in a Note or Notes is not suitable or desirable for all investors and only qualified eligible investors may invest in the Fund. Past performance is not indicative of future returns or Fund results. The views expressed herein represent the opinions of the Fund and are not intended as a forecast or guarantee of future results. Individual investment performance, examples provided and/or case studies are not indicative of overall returns of a Fund Note. In addition, there can be no guarantee of deal flow in the future. Images displayed on this website and in related marketing materials are for illustrative purposes only and may not represent the actual property, project, or investment opportunity. Any depictions are provided solely to convey the general character of Yieldi’s offerings and should not be relied upon as an exact representation of any specific asset. Some of the statements in this Presentation, including those using words such as “targets,” “believes,” “expects,” “intends,” “estimates,” “projects,” “predicts,” “anticipates,” “plans,” “pro forma,” and “seeks” and other comparable or similar terms are forward-looking statements. Forward looking statements are not statements of historical fact and reflect Fund’s views and assumptions as of the date of the Presentation regarding future events and performance. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are important factors that could cause a Note or Notes actual results to differ materially from those indicated in these statements. The Fund believes that these factors include, but are not limited to, those described in the “Risk Factors” section of Fund’s Memorandum. The performance figures set forth in this document are provided to you with the understanding that, as a sophisticated investor, you understand the inherent limitation of such illustrations, will not rely on them in making any investment decision, and will use them only for the purpose of evaluating your preliminary interest in investing in a Note or Notes of the Fund. Any performance data represents past performance. Any performance information included in this document is for information purposes only. The Fund makes no guarantee that it will be able to achieve similar results. Targets are objectives and should not be construed as providing any assurance as to the results that may be realized in the future from investments in a Note or Notes of the Fund. HISTORICAL PERFORMANCE IS NOT AN INDICATOR OR GUARANTEE OF FUTURE RESULTS. No representation or guarantee is made that the Fund will or is likely to achieve its investment objectives or be able to avoid losses This document contains selected information regarding transactions entered into by the Fund on behalf of other accounts and clients. The purpose of any historical information is to provide prospective investors with examples of investments the Fund has made in the market in which the Fund expects to invest and illustrate the types of investments that may be targeted by the Fund. Prospective investors should not rely on this information in making an investment decision, as the investments of the Fund in the past and the investments made in the future may be materially different from any historical investments. In view of the foregoing,  there can be no assurance the Fund will make investments similar to those that may be described herein or be able to achieve comparable results or avoid losses. The Fund has not filed, nor does it currently intend to file, a prospectus or similar document with any securities regulatory authority. No securities regulatory authority has passed upon the value of an investment in a Note or Notes of the Fund, made any recommendations as to a purchase of any securities of the Fund, approved or disapproved of the offering of any securities of the Fund, or passed upon the adequacy or accuracy of this document. Any representation to the contrary is unlawful. This document does not constitute an offer or a solicitation in any jurisdiction to any person or entity to which it is unlawful to make such offer or solicitation in such jurisdiction. Prospective investors should make their own investigations and evaluations of the information contained herein. Prior to the closing of a private offering of a Note or Notes of the Fund, the Manager of the Fund will give investors the opportunity to ask questions and receive additional information concerning the terms and conditions of such offering and other relevant matters. Each prospective investor should consult its own attorney, business adviser, and tax adviser as to legal, business, tax and related matters concerning the information contained herein and such offering. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. AN INVESTMENT IN THE FUND INVOLVES RISK, AND NUMEROUS FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF FUND TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION.