Sierra Mountain Capital

About Sierra Mountain Capital

Sierra Mountain Capital is a private money lender based in Reno, NV providing funding throughout Nevada. Their focus is primarily on commercial loans. Their lending parameters are flexible, including loans with a maximum LTV of 70% and terms between 1 year and 2 years. They make loans on all the following property types: multi family, apartment buildings, offices, retail storefronts, hotels and motels, storage facilities, senior living communities, mixed use buildings, warehouse spaces, industrial buildings, medical buildings, raw land, and churches.

Loan Types Offered: Commercial Hard Money Loans

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

Areas Served: NV

Lending Guidelines for Sierra Mountain Capital

Below are the general loan guidelines published on the Sierra Mountain Capital 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 Sierra Mountain Capital.

Loan Example 1

Dave owns a business in Las Vegas, NV and decides to acquire a new office space for his operations. Since he is unable to secure a standard loan from a bank, he turns to Sierra Mountain Capital for a commercial private money loan. The building is listed for $330,000. Dave will have to put 45% down, or $148,500, because the lender will only loan 55% of the acquisition (the loan to value or "LTV"). Accordingly, the principle amount on the loan will be $181,500. In addition, the lender will require a 1 point origination fee along with the 8%, 18 month term on the note. They will not enforce a pre-payment penalty in the event that Dave pays off the loan before expiration. By the rules of the deal, Dave will need to pay an origination fee of $1,815 at closing (1% x $181,500 principle amount) and will then start making payments of $1,210 per month ($181,500 principle amount x 8% interest / 12 months in a year). he will also make a balloon payment of the $181,500 principle amount when the loan expires, or sooner if he chooses to pay off early.

Loan Example 2

Sierra Mountain Capital issues a hard money loan to Traci for a renovation project in Las Vegas, NV. The deal dictates the following:

a) A $280,000 sales price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 5% origination fee.

If Traci achieves her goal of a $336,000 sales price, the outcome of the project would be the following:

$336,000 sales price
- $238,000 note principle (85% LTV)
- $42,000 cash paid at closing (15% on 85% LTV)
- $11,900 origination points (5% of the $238,000 principle)
- $26,180 total interest paid (12 months x 11% interest)
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= $17,920 total profit (does not include taxes or rehab costs)

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