Property Owner

Joint Venture

Do you have an existing detached garage that has unobstructed access from the alley or driveway?

If so, you may qualify for $0 Money Down / 100% Financing, and have SkyDADU do all the work to build a new DADU.

Two Options:

1. You and SkyDADU share the profit 50/50. In this option, you as the Property Owner are interested in generating income from the sale of the new DADU. But you also have an option* to buyback the equity and turn the DADU into a passive income stream.
2. You sell the existing detached garage to SkyDADU outright. In this option, you as the property owner are interested in selling the (old, dilapidated…?) existing garage as-is, and receiving the sales proceeds at the closing before SkyDADU builds a new DADU.

*Terms and conditions apply.

Partnership

Do you have unused space in your yard where a DADU can be built?

The new law is upending municipal zoning by allowing DADUs to be built in what used to be considered the encroachment areas. SkyDADU will perform feasibility to ensure viability and comprise all cost associated into a breakdown for you to review.

So, if you believe DADU to be a better investment than the stocks and bonds, start at the 50% equity position and let SkyDADU help you achieve your long-term financial goals.

Hybrid

Do you need financing for your DADU but intend to rent it only to your family members?

If you plan to exclusively have your family members move into the DADU but don’t have enough funds to cover the entire cost, SkyDADU will still need to provide the legal services (condominiumiziation, LLC & HOA set ups, etc.) until you buyout the entire equity. In this scenario, SkyDADU can bridge the gap through its equity financing program up to 50%.

Or, do you have the funds to cover the entire construction cost of your DADU but need assistance to set it up properly so you can rent it to non-family members?

In this scenario, you hire Sockeye Homes directly, but SkyDADU can still provide its legal services to condominiumize the DADU, set up the LLC and HOA, etc. to protect you from potential issues that can arise with non-family renters.

Cash-on-Cash Return (CoCR)

Cash-on-Cash Return (CoCR) for Property Owner:

CoCR is a key metric used in real estate investment to measure the annual return on the cash invested in a property. This metric provides you, the Property Owner, with a clear picture of your DADU’s profitability relative to your initial cash outlay. It helps you understand how much cash flow you can expect to receive as a percentage of your cash investment, making it a straightforward tool for assessing whether your DADU can be a good passive income stream or not.

Example – Alex, the Property Owner:

• Total DADU Construction Cost: $380,000
• Alex’s Investment: $190,000 (50% equity) + $9,500 (SkyDADU Legal Origination Fee of 5%) = $199,500
• Projected Rental Income:
• Monthly Rent: $4,000 – $700 (Projected Property Tax, Insurance and HOA Fee) = $3,300
• Annual Rental Income: $39,600

• Alex’s Share of Rental Income:
• Since Alex invested the minimum requirement of 50%, Alex receives 50% of the rental income:
• Alex’s Projected Annual Rental Income: $19,800

• Cash-on-Cash Return (COCR):
• COCR = $19,800 ÷ $199,500 = 9.92%

In this example, Alex earns a Cash-on-Cash Return of about 10% annually. Of course, the rent may not remain at $4,000 per month during the 5-year SkyDADU contract duration so the CoCR can vary based on the rental market conditions.