Sherpa Capital Group

About Sherpa Capital Group

Sherpa Capital Group is a Chicago, IL based private money lender. They offer loans in Chicago. They provide commercial loans, buy and hold loans, and fix and flip hard money loans. They offer terms between 6 months and 4 years and loan amounts ranging from $100,000 to $4,000,000. They make loans on all the following property types: single family homes, multi family, apartment buildings, office buildings, retail storefronts, hotels/motels, storage buildings, senior communities, mixed use buildings, undeveloped land, churches, warehouse buildings, industrial facilities, and medical facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Church, Warehouse, Industrial, Medical

Areas Served: Chicago

Lending Guidelines for Sherpa Capital Group

Below are the general loan guidelines published on the Sherpa Capital Group 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 Sherpa Capital Group.

Loan Example 1

Elmer closes on a $280,000 renovation project in Chicago, IL, using a fix-and-flip loan from Sherpa Capital Group. The loan to value (LTV) on the deal is 55%. This means Elmer will have to bring 45% of the purchase price to the closing and the principle amount will be $154,000 on the deal. The terms of the loan dictate a 10% note for 6 months. They also stipulate a 1 point origination fee, which will also need to be paid at closing.

Elmer will have to bring $126,000 to the closing (45% on the 55% LTV), plus he will pay the $1,540 origination fee. Once the deal closes, he will pay the lender $1,283 in monthly interest payments, or 10% multiplied by $154,000 divided by 12 months in the year. Assuming Elmer sells the remodeled house for $406,000 at the end of the 6 month term, his gross profit (not accounting for rehab costs) would be $116,760. This is calculated by taking the sales price ($406,000) and subtracting the original note amount ($154,000), the origination fee ($1,540), the money he contributed to closing ($126,000), and the total interest payments ($7,700).

Loan Example 2

Leslie locates a townhouse in Chicago, IL to rehab and re-sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Sherpa Capital Group with the following parameters:

a) A $360,000 purchase price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 4% origination fee.

Leslie plans to sell the house when the note expires for $486,000. If he succeeds, the outcome would be as follows:

$486,000 sales price
- $234,000 loan principle (65% LTV)
- $126,000 cash paid at closing (35% on 65% LTV)
- $9,360 origination points (4% of the $234,000 principle amount)
- $9,360 total interest paid (6 months x 8% interest)
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= $107,280 gross profit (doesn't include taxes or renovation costs)

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