Rates typically fall within the range between 11% and 13% depending upon the usual factors such as: Quality and experience of sponsorship, location, cash flow (or the lack thereof), the nature of the borrower’s business plan and the amount of time necessary to execute same. Our loans are typically structured with a fixed rate.
While the most typical loan term is one year, we will consider loans with terms ranging from six months to two years.
For first mortgages, Sky Equity, LLC will typically lend up to 75% loan to value – to be determined on a case-by-case basis. Mezzanine and second mortgage loans will only be considered on cash-flowing properties for strong sponsors with real expertise, net worth, liquidity and meaningful guarantees.
Our loans typically have no prepayment penalty after a short lockout period.
The loan origination fee will typically range from 1% to 3% of the total loan amount with 2% being the most typical.
Most loans are structured with full recourse.
Most loans are introduced to Sky Equity, LLC by our valuable network of mortgage brokers. We always welcome the opportunity to expand our network of commercial mortgage brokers, so call or email us with your bridge loan opportunities.
Depending upon the nature of the loan request and the financial strength of the Sponsor, we may structure the loan with a Payment Reserve to cover part of the monthly payments.