Sky Equity has a broad range of loan programs covering a wide variety of assets across America. These programs fall into two categories; short-term interest only bridge loans and long-term permanent financing.
Bridge loans will include such programs for fix & flips, ground up new construction, commercial real estate acquisition and more. Term loans are designed for holding rental assets and are available for traditional market rental properties or those being utilized as short-term vacation rentals. Click the appropriate link below for your goals.
We lend only in the first lien position.
All loans on residential assets are for Non-Owner Occupied purposes only and are originated as business purpose loans to a LLC.
Loans include an origination fee typically ranging from 1% to 3% of the total loan amount with 2% being the average.
Most loans are structured with full recourse.
A borrower must have relevant experience, net worth and liquidity to secure preferred rates
Experience is qualified by completed transactions of like assets, budget, and general size of the scope of work. Experience is as a Guarantor, not as a GC or minor investor (less than 20%).
Liquidity and Experience are key factors in pricing all loans, and even more so for consideration of New Construction. Qualified Experiences are validated in the past 48 months (36 highly preferred); Number of Experiences of 1-3, 4-9, 10+ create incremental price adjustments.
All bridge loans require a viable exit strategy.
Bridge loans are originated for 12 months with minimal payments of 3 or 6 month, and extension options of 6 months for a fee of 1 point. New Construction Bridge Loans can be originated for 24 months.
Mixed-Use Term Loans require a 51% residential footprint by square foot, while Bridge Loans can have a larger commercial footprint.
Mixed Use is considered Commercial for purposes of due diligence (such as appraisal, environmental, and municipal use).
Depending upon the nature of the loan request and the financial strength of the Sponsor/Borrower, we may structure the loan with an Interest Reserve or Payment Reserve to cover part of the monthly payments.
Participation in The Sky Equity Capital Fund I is available for “Accredited Investors” only.