Sky Equity

About Sky Equity

Headquartered in New York, NY, Sky Equity is an asset-based lender providing funding in New York, New Jersey, Connecticut, Pennsylvania, Washington DC, Virginia, and Florida. They offer bridge loans, fix-and-flip loans, and loans for investments properties. Their lending parameters are flexible, including terms between 6 months and 2 years, rates ranging between 11% and 13%, and loans with a maximum LTV of 75%. They make loans on the following types of properties: single family, multi family, apartments, and mixed use.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Mixed Use

Areas Served: NY, NJ, CT, PA, DC, VA, FL

Lending Guidelines for Sky Equity

Below are the general loan guidelines published on the Sky Equity website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Sky Equity.

Loan Example 1

Ashlee is an investor in Brooklyn, NY. She discovers a run-down property and wants to rehab it and flip it for a profit. The property has a cost of $280,000 but she does not have the full amount so she takes a hard money loan with Sky Equity. The loan to value (LTV) on the deal is 80%. This means Ashlee will bring 20% of the sales price to the closing and the principle amount will be $224,000 on the deal. The parameters of the deal dictate a 9% note for 6 months. They also stipulate a 1 point origination fee, that will also be paid upon closing.

Ashlee will have to contribute $56,000 to closing (20% on the 80% loan-to-value), plus she will have to pay the $2,240 origination fee. After the deal is closed and Ashlee takes on the project, she will need to begin making monthly payments of $1,680 to Sky Equity ($224,000 principle x 9% / 12 months). If Ashlee accomplishes her goal of a $364,000 sales price when the loan term expires, she would make a total profit of $71,680 after re-paying the principle on the note and subtracting the money she brought to closing, the origination fee, and the monthly interest payments.

Loan Example 2

Deborah is a an investor in Brooklyn, NY. She finds a run-down house for a remodeling project and obtains a fix and flip loan from Sky Equity with the following terms:

a) A $390,000 sales price, b) a 80% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 2% origination fee.

Deborah intends to sell the project at the end of the term for $585,000. If she succeeds, the deal numbers would be the following:

$585,000 sales price
- $312,000 principle (80% LTV)
- $78,000 down payment (20% on 80% LTV)
- $6,240 origination points (2% of the $312,000 principle)
- $51,480 total interest paid (18 months x 11% interest)
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= $137,280 total profit (doesn't include taxes or rehab costs)

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