Yrefy SLP4, LLC Investor Portal

Yrefy SLP4, LLC

We are Proud to Bring You Our Fourth Portfolio, Yrefy SLP4, LLC

Raising $50,000,000 for Student Loan Refinancing

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At the start of 2021, over 44 million Americans owed more than $1.71 trillion in student loan debt, amounting to almost 11% of all consumer debt in the U.S. — roughly $739 billion more than the total of all credit card debt.

thefinancialbrand.com | "Skyrocketing Student Loans Threaten to Suffocate Lending’s Future"

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operations summary

Yrefy, LLC (pronounced “why refi”) enable distressed borrowers to refinance their student loans at prime borrower rates. Borrowers who find themselves in this situation are typically paying interest rates north of 20% and in many cases are at the maximum usury laws in the state they reside. The average Yrefy borrower’s interest rate is 3.9%. The Company believes that it can lower a borrowers monthly payment by approximately 40%-50%. Additionally, Yrefy, LLC reports the new loan and payment history to the credit agencies which may improve borrowers/co-borrowers FICO scores.

Yrefy, LLC targets delinquent and defaulted borrowers whose primary/largest debt is their student loan debt. Approximately 68% of the borrowers have co-borrowers whose credit is being damaged by non-payment of the outstanding loans. Both the borrowers and co-borrowers are highly motivated to take advantage of the opportunity to refinance their outstanding student loan debt at a rate that will enable them to pay off these loans.

Yrefy, LLC, on behalf of the Company, can offer these low rates because we are able to buy the existing loans at a discount from the current lender/loan servicer. These are non-performing loans where borrowers have often not made a payment in 6-12 months or longer to their existing lender. Yrefy SLP4, LLC passes a portion of these savings on to the borrower to create a manageable student loan payment amount. Yrefy SLP4, LLC offers these borrowers a payment program that fits within their budget. We believe the Yrefy SLP4, LLC program is truly unique in that it takes subprime borrowers and refinances their student loan debt at interest rates typically reserved for only the most creditworthy individuals.

A typical private student loan debt borrower will have $29,800 in private education loans, and some may have as much as $300,000. The initial interest rate on private student loans varies widely depending on the lender and borrower but can be as low as 3.8% and as high as 14%, with most having variable rate loans. Borrowers who are in collections or who have a judgment against them may have an effective interest rate in excess of 20%. Sometimes the interest rates may reach maximum usury rates.

Borrowers with private education loan debt, unlike federal education loan debt do not have access to federal programs for balance or payment relief on the debt, and student loans, federal and private, are rarely dischargeable in a bankruptcy. Benefiting from the experience and lender relationships of Yrefy, LLC, Yrefy SLP4, LLC will originate a Refinanced Student Loan by paying off the Existing Student Loan creditor at a significant discount, and through Yrefy LLC’s detailed underwriting process based on the real creditworthiness of the borrower and/or co-borrower, offer a Refinanced Student Loan with better fixed interest rates and payment terms for the borrower and/or co-borrower, which Yrefy, LLC believes will lead to better performance and lower rates of default.

The payoff percentage of the Existing Student Loan(s) will differ based on the lender, state of the collection efforts, and motivation of the original lender/loan servicer. Based on Yrefy SLP4, LLC experience as well as the experience of the management team, after over four years of operations between Yrefy, LLC and affiliates, As of January 2021, payoffs are averaging 38% or $0.38 on the dollar.

The fallout from the student loan crisis goes far beyond the debtors’ finances. In addition to the ordinary financial pressures and obligations that come with young adulthood, studies show that many of those struggling to repay these mountainous student loans are also experiencing serious mental health problems, caused in large part by the crushing weight of these loans.

hbr.org | "What Will It Take to Solve the Student Loan Crisis?" | September 23, 2019

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terms of the offering

$50,000,000

Minimum Offering: $100,000

Minimum Investment: $100,000 (1 Note)

The Company is offering a minimum of 1 and a maximum of 1000 Option A-E Secured Promissory Notes each with a face value of a minimum of $25,000 per Note with a minimum total investment of $100,000. Upon completion of the Offering between 1 and 1000 Option A-E Secured Promissory Notes will have been issued.

Option: A

Principal Amount: Minimum of $100,000

Yield: Annualized rate of return of four and one quarter percent (4.25%); interest payable monthly, with the unpaid principal balance paid at maturity.

Maturity: Twelve (12) months from Date of Issuance

Terms: The Company may convert the Note from Interest-Only Payments to Principal and Interest at its sole discretion. There is no prepayment penalty should the Issuer retire Note Principal Balance and pay any outstanding interest due.

Security: Certain collateral note assets in accordance with the Security Agreement attached as Exhibit C of this Memorandum.

Liquidity: Investor may request from Borrower the Principal Amount invested prior to the Maturity Date with written notice to Borrower at Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal. See “Exhibit D - Option A-E Loan Agreement and Promissory Note”.

Option: B

Principal Amount: Minimum of $100,000

Yield: Annualized rate of return of four and three quarters percent (4.75%); interest payable monthly, with the unpaid principal balance paid at maturity.

Maturity: Twenty-Four (24) months from Date of Issuance

Terms: The Company may convert the Note from Interest-Only Payments to Principal and Interest at its sole discretion. The issuer shall pay a minimum of 12 months interest. Thereafter, there is no prepayment penalty should the Issuer retire Note Principal Balance and pay any outstanding interest due after the 12 months but prior to prior to the Maturity Date.

Security: Certain collateral note assets in accordance with the Security Agreement attached as Exhibit C of Memorandum.

Liquidity: Investor may request from Borrower the Principal Amount invested prior to the Maturity Date with written notice to Borrower at Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal.

Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal. See “Exhibit D - Option A-E Loan Agreement and Promissory Note”.

Option: C

Principal Amount: Minimum of $100,000

Yield: Annualized rate of return of five and one-half percent (5.50%); interest payable monthly, with the unpaid principal balance paid at maturity.

Maturity: Thirty-six (36) months from Date of Issuance

Terms: The Company may convert the Note from Interest-Only Payments to Principal and Interest at its sole discretion. The issuer shall pay a minimum of 18 months interest. Thereafter, there is no prepayment penalty should the Issuer retire Note Principal Balance and pay any outstanding interest due after the 12 months but prior to prior to the Maturity Date.

Security: Certain collateral note assets in accordance with the Security Agreement attached as Exhibit C of Memorandum.

Liquidity: Investor may request from Borrower the Principal Amount invested prior to the Maturity Date with written notice to Borrower at Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal. See “Exhibit D - Option A-E Loan Agreement and Promissory Note”.

Option: D

Principal Amount: Minimum of $100,000

Yield: Annualized rate of return of six and one quarter of a percent (6.25%); interest payable monthly, with the unpaid principal balance paid at maturity.

Maturity: Forty-Eight (48) months from Date of Issuance

Terms: The Company may convert the Note from Interest-Only Payments to Principal and Interest at its sole discretion. The issuer shall pay a minimum of 24 months interest. Thereafter, there is no prepayment penalty should the Issuer retire Note Principal Balance and pay any outstanding interest due after the 12 months but prior to prior to the Maturity Date.

Security: Certain collateral note assets in accordance with the Security Agreement attached as Exhibit C of Memorandum.

Liquidity: Investor may request from Borrower the Principal Amount invested prior to the Maturity Date with written notice to Borrower at Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal. See “Exhibit D - Option A-E Loan Agreement and Promissory Note”.

Option: E

Principal Amount: Minimum of $100,000

Yield: Annualized rate of return of eight and one quarter (8.25%); interest payable monthly, with the unpaid principal balance paid at maturity.

Maturity: Sixty (60) months from Date of Issuance

Terms: The Company may convert the Note from Interest-Only Payments to Principal and Interest at its sole discretion. The issuer shall pay a minimum of 30 months interest. Thereafter, there is no prepayment penalty should the Issuer retire Note Principal Balance and pay any outstanding interest due after the 12 months but prior to prior to the Maturity Date.

Security: Certain collateral note assets in accordance with the Security Agreement attached as Exhibit C of Memorandum.

Liquidity: Investor may request from Borrower the Principal Amount invested prior to the Maturity Date with written notice to Borrower at Borrower’s address set forth in Section V above (an “Early Withdrawal”). Within 90 days of receipt of written notice from Investor requesting an Early Withdrawal, Borrower will return to Investor the Principal Amount less any interest payments paid by Borrower to Investor. From the date of written notice through the date of return to Investor of the Principal Amount, subject to the terms of this Section X, no further interest will accrue or be paid to Investor. The penalty for an Early Withdrawal is loss of all interest earned by Investor through the date of receipt of written notice for an Early Withdrawal. See “Exhibit D - Option A-E Loan Agreement and Promissory Note”.

Undergraduate enrollment has increased by more than 3.5 million students since 2000. And more people are going to graduate school too. From 2000 to 2018, graduate school enrollment increased 41%.

- forbes.com | "What Is Driving The $1.5 Trillion Student Debt Crisis"

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Management Team

The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.

Donald F. Fenstermaker

Donald F.
Fenstermaker

Donald F. Fenstermaker

Chairman & Managing Member

Don has 31 years’ experience, including being the CEO of NextStudent, the largest privately held student loan company, originating $7 billion in federal and private student loans. He originated all available federal products and pioneered new private consolidation/refinance products. He securitized $2.7 billion of loans originated by his company and sold another $4.3 billion of their production to other entities for their own securitizations. He has built extensive financial control systems, including multiple systems focused on internal and external oversight and audits. He was also the CEO of a debt settlement company which is relevant to this project because negotiation methods with student loan lenders are very similar to negotiating general consumer debt.

Laine Schoneberger, Managing Partner & Chief Investment Officer

Laine
Schoneberger

Laine Schoneberger

Managing Partner & Chief Investment Officer

Laine has 25 years’ experience in the financial services industry. Laine sold his first business entering the family-owned financial services business in 1995. After growing the company significantly, he elected to retire in 2017 and focus his efforts on Yrefy as a Founding Partner and the Chief Investment Officer.

Through an initial Regulation D “friends and family” offering, Yrefy found its footing and the company was launched (as of 1/1/2021, this offering is still open and available).

Since 2017, Laine and his team have raised nearly $15M in investment capital through several Regulation D Private Placement Offers for Yrefy Student Loan Portfolios (SLP’s).

Mary Jo Terry

Mary Jo
Terry

Mary Jo Terry

Managing Member

Mary Jo is a successful entrepreneur and business tactician. She is an executive with over 20 years of strategic management experience in financial services, consumer lending, and information technology. She has built multiple student and private loan origination platforms and CRMs. Mary Jo was a key stakeholder/stockholder in a three-year project building a federal financial aid software management system which was sold to Oracle. Mary Jo was also the Founder and President of The Student Loan Processors, Inc., an education lending business, where in four years, the company averaged $60 million a month originating both federal and private student loans. In peak season, the company averaged over $125 million a month totaling close to $1 billion annually. The company was eventually sold to National Lending Associates, Inc. and she stayed on as president and as a member of the Board of Directors.

CONTACT US

Please complete the contact form and we will get back to you about any questions you have about our offering.

Yrefy SLP4, LLC - 6910 E. Chauncey Lane Suite 105 - Phoenix, AZ 85054 — laine@yrefy.com — (800) 614-8569

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so much more than what you see

The Yrefy SLP4, LLC Investor Portal provides the ability to learn about our investment opportunity. Once registered, you will be able to:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
  • Access to our SEC filing;
  • View real time offering metrics of how far along we are in the offering process;
  • View a timeline of your progress in the subscription process;
  • View company contact information - directly contact us with any questions;
  • Easily upgrade your account with the click of a button to go through the subscription process.

Once your account is upgraded you will have additional tools including the ability to:

  • Complete the subscription documents;
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  • Access instructions on transfer of investment funds;
  • Access company documents including Reports, Financials, and Supporting Documents;
  • Access the Asset Portfolio as applicable;
  • View News articles written by the company;
  • View and download documents associated with your account.

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