High-Leverage Solutions for Experienced Sponsors

A hybrid lending solution combining senior-secured debt with equity-style upside—without JV structures or giving up control.

Why Choose Preferred Equity Loans

Key Loan Terms

Structure Details
Loan Type Preferred Equity (Debt + Equity Hybrid)
Loan Position First Position (Senior Secured)
Leverage Up to 90% Purchase + 100% Rehab, or 70% ARV
Interest Rate Fixed 7%–8% (monthly payments)
Equity Participation 20% of Sponsor Equity at Close
Loan Term 12–18 Months (Extensions Available)
Draw Schedule Rehab funded by milestone-based inspections
Loan Size $250K to $5M+
Property Types 1–4 Unit Residential, Small Multifamily, or Land
Closing Timeline 7–10 Business Days

Sample Deal Scenario

Purchase Price

$500,000

Rehab Budget

$150,000

ARV

$925,000

Total Capital Needed

$650,000

Blue Dot Loan

$585,000 (90% purchase + 100% rehab)

Interest Rate

7% fixed, interest-only

Equity Bonus

20% of borrower’s equity granted at close

Ideal Use Cases

Why Sponsors Choose Blue Dot