How does an investment opportunity get listed on youland.us?
Real estate companies or individuals list their investment opportunities in the youland.us marketplace only after joining youland.us, submitting an application, and going through an underwriting and due diligence process.
For equity investments, the youland.us underwriting team to review their materials and determines whether the company and the investment is a good fit for our members. We go to great lengths to fully understand the variables of each transaction including return structure, market statistics, quality of the property and the track record, reputation and quality of the real estate investment company we are working with. This process also includes background, criminal, and credit checks to mitigate the risk of fraud. Finally, we always tour the property as a final step before it is listed. We reject many equity transactions that are proposed to us, keeping in mind one of our core values - Investor Protection.
At youland.us, we look for transactions that provide cash flow to investors as quickly as possible. Some properties may have some level of vacancy or have the ability for our operating partner to add value and increase cash flow over the life of the investment. We do not currently fund ground-up development, as we believe one of the benefits of real estate investing is passive income and development projects typically take 18-36 months to generate income.
For debt investments, youland.us provides loans for commercial properties including apartment buildings, self-storage facilities, mobile home parks, office and multi-tenant industrial buildings, and retail shopping centers. We examine many variables when evaluating debt investment opportunities. For loans on commercial properties, we evaluate metrics including debt service coverage ratios, loan-to-value ratios, and debt yields. Regardless of loan type, we look for borrowers with a successful track record and make sure they undergo background and credit checks so we can ensure financial competence and responsibility.
The liens associated with our debt are frequently “senior” or in “first position,” so in the event of a borrower default, our investors have first claim to the proceeds in the event of a foreclosure. Most of these loans are short-term, ranging from 6-36 months before principal is repaid. We may from time to time offer debt in the second position (mezzanine debt), which is subordinate to our more frequent offering of senior debt. Investors are always made aware of the debt position prior to making an investment decision.