Real EstateTBG Funding

Residential Real Estate Property I

Annual interest3

Final term

58 months

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Status

Fully repaid

Recently funded

Accepting $30,000 - $400,000 investments

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Accepting $30,000 - $400,000 investments

Overview

• Learn more about Real Estate Investments

TBG Funding (“Originator”) closed on a $5.0M real estate backed bridge loan (“Loan”) with an experienced New York based real estate developer (“Borrower”). The YieldStreet investor community can participate in $3.75M, or 75.0%, of the Loan. The remaining $1.25M, or 25.0%, of the Loan will be held by the Originator and its investor syndicate. The proceeds of the Loan were used by the Borrower to execute on an unrelated time sensitive investment. The Borrower had lined up the sale of an owned property to fund the investment, but the closing process was delayed. Instead of passing on the investment, the Borrower turned to the Originator for the capital needed. The residential property (“Property”) securing the investment is a 75-acre parcel of land located in Albany, NY that is improved by 214,659 square feet of existing structures. The Borrower purchased the Property in 2017 for $18 million with plans to develop the existing structures into condominium units as well as develop the remaining vacant land into a cultural arts center. It is important to note that the Property’s development will not take place until after the Loan has been refinanced and fully repaid. The Property will not be altered from its appraised “as is” state over the Loan’s full term. The Originator closed and funded the Loan on December 21, 2017 with an initial term of 12 months and a potential extended term of an additional six months. The extension of the Loan is at the sole discretion of the Originator. YieldStreet’s estimated term of the Loan is inclusive of the extension option, which results in an estimated full term of 18 months.

Highlights

Asset Backed
Debt Service Coverage
Downside Protection
Highly Structured
Experienced Originator
What Secures This Invesment?
  • The Loan is secured by third-party appraised real estate.

  • The Loan has a debt service coverage of 1.0x.

  • The Loan amount is 21.7% of the Property’s diligenced value.

  • Additional security provisions include the assignment of rents and a personal guarantee by the Borrower.

  • Since inception, TBG Funding has originated over $425.0M of real estate bridge loans with no principal lost.

  • This offering is primarily secured by a first lien on the Property. The Property’s value was determined to be $23.0M after both a third-party appraisal and Originator review. The Loan amount is 21.7% of the Property’s value, which means the net foreclosure proceeds would have to be less than 21.7% of the Property’s value for principal to be at risk. The Portfolio is secondarily secured by the Borrower. The Borrower funded, up front at the time of close, 100.0% of the interest owed over the loan’s initial term in the form of an interest reserve. As a result, the Loan’s debt service coverage is 1.0x. The Borrower has also agreed to a full recourse personal guarantee which allows the Originator to collect on the Borrower’s personal assets if the Property alone is not enough to fully repay the Loan.

Essentials

Please refer the Series Note Supplement in the Resources section for more details about this offering.

Default Risk

The Borrower may default on its Loan payments.

  • The Borrower funded interest reserve accounts for 100.0% of the interest payments owed over the Loan’s initial term.
  • The Borrower is a high net worth individual with significant personal income.

Foreclosure Risk

The Property may need to be liquidated to recover on defaulted loans.

  • The Portfolio’s loan-to-value ratio is 21.7%, which means the net recovery on the liquidated Property would have to be, on average, less than 21.7% of the Property value for principal to be at risk.
  • The Originator considers the lower of the third-party appraisal valuation and its own valuation when deciding to lend and when calculating the Loan metrics such as loan-to-value.

Borrower Risk

The Borrower may not have represented itself accurately.

  • A third-party service collected and reported the credit history of each Borrower for the Originator’s review.
  • The Borrower’s tax returns were reviewed to validate personal financial information submitted.
  • The Borrower is personally liable for the loan, so any misrepresentations that harm the Originator will still be the responsibility of the borrower to remedy.
  • The Originator considers the Collateral to be the primary source of security. The Originator only proceeds with a loan if it can be secured by collateral solely and adequately regardless of the Borrower.

Returns & Management fees

Gross yield

10.0%

Yieldstreet fee

1.0%

Target yield

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Schedule

Payment schedule

Monthly

Prefunded

Yes

Maturity

July 10, 2019

Structure

Tax document

K-1

Offering structure

SPV

Expenses

First year expense

$150

Annual flat expense

$70

Slide 1 of 3
  • Returns & Management fees

    Gross yield

    10.0%

    Yieldstreet fee

    1.0%

    Target yield

    Login to view
  • Schedule

    Payment schedule

    Monthly

    Prefunded

    Yes

    Maturity

    July 10, 2019

  • Structure

    Tax document

    K-1

    Offering structure

    SPV

    Expenses

    First year expense

    $150

    Annual flat expense

    $70

Docs

Content

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS TBG ResiProp I LLC ("Issuer"). The Offering is made only by means of the Investment Memorandum relating to the Offering (the "Offering Document"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Document, or as incorporated in the Offering Document by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Document or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Document, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Document in its entirety prior to investing in the securities.

Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.