Chicago Private Lending

About Chicago Private Lending

Chicago Private Lending is a Skokie, IL based private money lender who offers loans in Chicago. They offer rental property loans, commercial loans, short term loans, and fix and flip hard money loans. Their loan guidelines are versatile, including loan amounts ranging from $5,000 to $5,000,000 with a maximum LTV of 80%, rates ranging between 27% and 30%, and terms up to 12 months. They provide loans on most types of properties, including single family residences, multi family, apartment buildings, offices, retail units, mixed use buildings, and industrial facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial

Areas Served: Chicago

Lending Guidelines for Chicago Private Lending

Below are the general loan guidelines published on the Chicago Private Lending 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 Chicago Private Lending.

Loan Example 1

Chicago Private Lending makes a fix-and-flip loan to Dale for a remodeling project in Chicago, IL, on a house that is listed for $350,000. The lender agrees to make a loan with a 65% loan to value (LTV) so they are willing to extend $227,500 on the house. The parameters of the deal also stipulate a five point origination fee that is to be paid at the closing and a 18 month, interest only note with a 11% rate of interest.

Dale will need to contribute $122,500 at closing (35% on the 65% loan-to-value), plus he will need to pay the $11,375 origination fee. After the loan is closed and Dale takes on the project, he will begin making payments each month of $2,085 to the lender ($227,500 principle x 11% / 12 months). At the end of the loan, he sells the rehabed house for $507,500. After deducting the $37,538 in total interest payments ($2,085 multiplied times 18 months), the $11,375 origination fee, the $227,500 principle amount on the loan, and the $122,500 he brought to the closing, he will make a gross profit of $108,588 ($507,500 price minus $398,913 in total costs). This profit would be reduced by any building costs paid by Dale.

Loan Example 2

Regina is a real estate investor in Chicago, IL. She finds a run-down property for a renovation project and takes a fix and flip loan from Chicago Private Lending with the following features:

$170,000 sales price
65% loan to value (LTV)
6 month term
11% interest rate
4% origination fee

After the renovation project is complete, if Regina sells the project for $238,000, the outcome would be as follows:

$238,000 sales price
- $110,500 principle on note (65% LTV)
- $59,500 down payment (35% on 65% LTV)
- $4,420 origination fee (4% of the $110,500 principle)
- $6,078 interest payments (6 months x 11% interest)
-----------------------
= $57,503 total profit (doesn't include taxes or rehab costs)

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