FAQs

Here you'll find answers to some of the most frequently asked questions.

If you don't find what you're looking for here, do not hesitate to send an email to: contact@yellowfi.us 

  • 1. Why invest in REITs?

     

    REITs have a proven track record delivering competitive total returns, recurring dividend income and long-term capital appreciation.

     

    Additionally, considering its low correlation with other investment options, it's considered a strategic portfolio diversifier contributing to reduce volatility and the overall portfolio risk. 

     

    As per the National Association of Real Estate Investment Trusts, when comparing the last 45 years, REITs have provided better total return performance for most periods when compared to the broader stock market, bonds and other assets.

     

  • 2. Brickell Bay Mortgage REIT II

    The Brickell Bay Mortgage REIT II is a Private Mortgage Real Estate Investment Trust that invests in residential mortgages focusing primarily the states of Florida, Georgia and Colorado. 

     

    We do not use leverage in our strategy, which means we have around 130% of the REIT’s assets under management backed by residential real estate properties.

     

    Since its inception, in March of 2018, the Brickell Bay Mortgage REIT |I has been delivering steady dividends income with a diversified loan portfolio and higher risk-adjusted returns.

     

    Our mission is acquiring the most valuable residential mortgage notes based on first-position mortgage loans that require a minimum of 20% down payment, a verified customer’s ability-to-repay the debt, and the fact that these loans are guaranteed by residential properties.

     

    It is managed by senior professionals with more than 30 years of experience in the real estate and financial markets in the US.

     

  • 3. What is a REIT (Real Estate Investment Trust)

     

    Real Estate Investment Trust (REIT) are vehicles that have the property of financing income-producing real estate, focusing on a diversified portfolio of assets in different market segments. These vehicles give investors the opportunity to own real estate assets, receive recurring dividends and access total returns and support the progress of the communities where investments are made. 

     

  • 4. Why Brickell Bay Mortgage REIT II?

    The Brickell Bay Mortgage REIT II has the goal to deliver recurring and steady dividend income with low volatility and high risk-adjusted return, being a valued proposition for an investment portfolio. 

     

    Carries a diversified and stable residential loan portfolio. Our mortgages are usually paid-off within 3 years, the average loan amount is around US$250,000 and the average loan-to-value (LTV) is well-positioned at 70%.

     

    Our loan portfolio has hard assets as collateral with over 130% coverage of our combined outstanding loan exposure. This strategy contributes to mitigate eventual impacts of pricing fluctuation, making the performance of the assets more stable and adding additional protection to the investor that, as last resort, has the residential property as a back-up of the investment.

     

  • 5. Why Invest in the Residential Real Estate Segment?

    As we have been noticing, people are changing their habits toward a more digital behavior, purchasing merchandise online and spending more time at home. 

     

    Convenience, comfort, safety, accessibility, and connectivity have been making homes the preferred place for families to get together and spend time. This behavior is reinforced during the pandemic times and, in fact, contributes to accelerate the adoption of doing virtual business. 

     

    We are seeing some commercial real estate segments losing relevance because of this change in consumer behavior, but we do not notice the same in the residential real estate market.

     

    Residences are a basic need and we do not foresee threats in the mid-term scenario in this segment. 

     

  • 6. Why invest in Residential Mortgage Notes and not in the property directly?

    Buying a property as an investment with the objective of having steady income and capital appreciation is tricky. It requires knowledge on the market directions, region evolution, type of property, class of construction among others and management skills to manage the real estate asset. For certain, it will take from you some time to study, understand and manage the business of being a direct property owner. 

     

    Also, it brings some obligations and carrying costs like the duty of paying property taxes, insurance, condo association and all the maintenance costs to keep your asset in good condition.

     

    The desired steady income can be interrupted if tenant leaves or payments are being made with delay. Vacancy also can leave you with months without cash flow but the carrying costs will be there waiting for payment.

     

    When you invest in real estate through a Real Estate Investment Trust, you are hiring a team of specialists to manage and take care of a real estate portfolio.

     

    The team is experienced and fully dedicated to follow the trends, map the changes, and extract the best return possible from a real estate portfolio. 

     

    Furthermore, when you choose to invest in a Mortgage REIT, like the Brickell Bay Mortgage REIT II, you are also transferring the carrying costs to the borrower that is responsible for the property bills and maintenance. 

     

  • 7. Who is YellowFi Management LLC

    YellowFi Management LLC is the manager of Brickell Bay Mortgage REIT II.

     

    YellowFi Management Company has an experienced and senior team with more than 30 years of experience in the real estate and financial markets in the US. 

     

    We began our history in 2010 as a buyer of foreclosed, distressed and wholesale residential real estate. At the inception we utilized seller financing to sell the properties in our portfolio. Later, as the economy turned, we moved away from purchasing homes and focused on acquiring residential mortgage loans. 

     

    Today, considering all the sources of funding, we've provided funding for residential loans to more than 1,200 homebuyers in different states.

     

    Our mission is acquiring the most valuable residential mortgage notes based on first-position mortgage loans that require a minimum of 20% down payment, a verified customer’s ability-to-repay the debt, and the fact that these loans are guaranteed by residential properties.