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Cityfunds
Yield
  • Targeting 7% to 8% APY
  • Quarterly distributions
  • Backed by real estate assets
  • Redemption after 12-month lock-up
  • Five year term fund
Yield
provides investors with stable cash flow at a 7-8% APY, that is backed by real estate assets. Investors in Yield will receive quarterly distributions, which can be reinvested into Yield to compound returns or be paid out to their bank account.

Yield
invests in a diversified pool of collateralized real estate loans through two asset types, (1) home-equity agreement-backed Notes issued to Cityfunds I, LLC (Series funds), Cityfunds Portfolio Fund, LLC, and Nada Investments, LLC (collectively, “HEI Borrowers”) and (2) short-term mortgage notes originated and serviced by third parties.

Yield seeks to generate interest income from its investment strategy. This interest income will be distributed quarterly to investors at a targeted 8% APY. Yield will offer investors a manager-guaranteed base yield of 7% to 8% (see Classes).


Early Investor Incentive: Classes
Yield will offer different Classes of interests to Investors that meet the following criteria to determine each Investor’s respective Manager Guaranteed Minimum Yield Distribution Rate as defined below:
  • Class A1
    : 8.0% to Investors that invest $100,000 or more before Jan 31, 2024
  • Class A2
    : 7.25% to Investors that invest $25,000 up to $99,999 before Jan 31, 2024
    • Note: If free cash flow from operations is insufficient to timely make the Manager Guaranteed Minimum Yield Distributions, the Manager will contribute funds to ensure all Manager Guaranteed Minimum Yield Distribution obligations are met. See Offering Memorandum here, for full details.

    Fund Performance

    $/Share
    Info

    $100.00

    Target Return
    Info

    7.0% APY

    Projected Return

    $1,000

    Projected Return
    Info

    $25,000

    Investment
    Info

    $25K

    $500K

    7% APY

    Target Return
    Info

    5 Yrs

    Hold Period
    Info

    *The projections above are forward-looking statements that should not be relied upon as actual. Real estate investments come with risk as market conditions and business strategies may change, impacting financials considerably. Projections assume all dividends are reinvested.

    About HEAs Notes

    Investing in: Home Equity-Backed Notes

    Yield will invest in Home-Equity Backed Notes which will have 3-year terms, and earn an interest rate of 8% to 9%. Interest payments will be made by the HEI Borrower(s) to Yield in monthly installments with a balloon payment payable upon maturity of the term. The Home Equity-Backed Notes will have a target of 65% LTV with a maximum of 80% LTV. Home Equity-backed Notes will be secured by a UCC lien filed against the specific home equity investment agreement real estate assets held by the respective HEI borrower as collateral.

    HEI borrowers will utilize these Notes to increase their deployable capital available and grow their volume of home equity investment agreement assets owned.

    Investing in: Short-term Mortgage Notes

    Yield will acquire Short-Term Mortgage Notes which will typically have a 3 to 5-year term, and earn an interest rate of 9% to 12% fixed per annum. Each Mortgage will be originated by and serviced by third parties, some of which may also be owned by, managed by, and/or affiliated with Jeremy Males, a managing member of Cityfunds Yield Manager, LLC. The borrowers for each Mortgage will be the individual homeowners occupying the single-family home as their primary residence. These homeowners will pay Yield (through the third-party Servicer) interest-only payments in monthly installments with a balloon payment payable upon maturity of the term.

    The Mortgages will be secured by a deed of trust or mortgage type of lien, filed with the county clerk of the specific property’s county. Upon any event of default, the Company may foreclose on the Collateralized Mortgage Assets.

    Fixed Income Comparison

    *Souce: Bloomberg, as of August 31, 2023. "10 Year US Treasury" represents the 10 year US treasury note. "US Fixed Income" represents the Bloomberg US Aggregate Index. "US Investment Grade" represents the Bloomberg US Corporate Index.

    Fund Details

    Strategy
    Info

    Income

    Fund Status
    Info

    Performing

    Target Return
    Info

    7.0% APY

    Dividends
    Info

    Quarterly

    Term
    Info

    60 months

    Management Fee
    Info

    2% per year

    Acquisition Fee
    Info

    0%

    Tax Form
    Info

    K-1

    Info
    Liquidity
    The Manager intends to offer investors liquidity events, through a redemption program.

    Management Team

    Yield is managed by Cityfunds Yield Manager, LLC (the “Manager”), a joint venture between Cityfunds Manager, LLC, and JM Yield Management, LLC. Cityfunds Manager, LLC also serves as the manager for Cityfunds I, LLC, each Cityfunds Series LLC, and Cityfunds Portfolio Fund, LLC (the “Cityfunds family of funds”).

    The Manager and the Cityfunds family of funds are uniquely well suited to be Yield’s source of underlying residential real estate investments because of their unprecedented ability to provide access to the $20+ trillion home equity sector of the residential real estate market. Home equity investment agreement assets are sourced through a targeted strategy, rigorous diligence processes, an experienced team, and a commitment to transparency with all stakeholders.

    Historically, investors have not been able to access the home equity sector due to the lack of institutional-grade assets and the absence of a publicly available private real estate fund that has this type of deal flow. Nada, through its wholly-owned subsidiary Nada Loans, LLC, is capable of sourcing and originating home equity investment agreements (referred to as “Homeshares”) through its in-house licensed mortgage brokerage origination and underwriting team.

    Tore Steen

    CEO

    John Green

    Co-Founder & COO

    Sundance Brennan

    VP of Acquisitions
    1 / 2

    Risk Management

    Nada supports Cityfunds and its investors through a two-stage, bottoms-up approach to mitigating risks. First, is our asset selection framework for home equity investment agreements. Second, we build investor protections directly into the home equity investment contract. Nada’s secured equity position comes with certain rights and protections and allows them to intervene and protect the interests of all equity holders in the underlying property.

    Downside Protection    : Home equity investment agreements are made with an average 10-15% discount to the home’s appraised value, protecting investors from home value declines and prepayments.

    Secured Interests    : Home equity investment agreements are secured and recorded with a Deed of Trust /Mortgage, typically behind the primary mortgage and above the homeowner (like a HELOC).

    Structured Payouts    : Homeowner payouts triggers established within the contract, most commonly by liquidity-driven transactions, such as a home sale or cash-out refinance.

    Protective Covenants    : Homeowner retains ownership—and must maintain and keep the asset unencumbered.

    Right of First Refusal (ROFR)    : Contracts have a ROFR clause to protect against below-market transactions.

    Quality Credit & Collateral    : Most homeowners use their cash to reduce debts, improve their credit profile, and invest in their homes.

    Related Documents

    Offering Memorandum
    Document
    Subscription Agreement
    Document
    Executive Summary
    Document
    Additional Documents
    Document
    Terms of Investment
    Document
    Additional Information
    Document

    * Past performance is not indicative of future results. No assurance can be provided that the market or the value of our investments will appreciate or will not depreciate in value.

    Yield

    $100.00

    / share

    Appreciation

    7.0% APY

    Earn income backed by real estate.
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    © 2024 Nada Holdings, Inc. and/or its affiliates. All rights reserved. Nada is a registered service mark of Nada Holdings, Inc.


    Note: These graphics are purely hypothetical and for illustrative purposes only and are not intended to reflect future returns or portfolio performance in any way. The value of our properties and investments may increase or decrease.


    Nada Holdings, Inc. ("Nada"), as a manager of Cityfunds I, LLC (“Cityfunds”) operates the www.nada.co website (the "site") and the mobile-based app (the "App") and is not a broker-dealer or investment advisor. All securities ("shares") related activity is conducted through Dalmore Group LLC, a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Place, Woodmere, NY 11598. You can review the brokercheck for Dalmore.


    You should speak with your financial advisor, accountant and/or attorney when evaluating any offering. Neither Nada, Cityfunds, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. The Site may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration.