At Yieldstreet, when a loan defaults, we take every step possible to implement an effective work-out strategy that will serve the best interest of our investors. A default doesn’t necessarily mean loss. With the right steps, it’s possible to recover the full investment at the targeted return. Let’s take a look at a case study for a recently resolved default.
What happens in a default?
At the highest level, defaults happen when borrowers do not comply with material terms of a loan agreement. In January 2020 we launched Irwindale Industrial Financing on the Yieldstreet platform. Investors had the opportunity to invest in a junior position of a first mortgage loan secured by an industrial property in Irwindale, California. The offering had an expected duration of 24 months, with a target annual interest rate of 7.75% expected to be paid to investors.
Below is a visual representation of the work-out strategy that was implemented to achieve full recovery on the investment.
As always, for any additional questions you may have regarding Yieldstreet offerings and our workout process, please reach out to us at [email protected].
What's Yieldstreet?
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]