Turning Point Capital

About Turning Point Capital

Turning Point Capital is a private money lender headquartered in Downers Grove, IL offering loans in Chicago. They provide rental property loans, bridge loans, short term fix and flip loans, refinancing, and commercial hard money loans. They offer loan amounts ranging from $50,000 to $10,000,000 with a maximum LTV of 90% and rates ranging between 7% and 15%. They offer loans on all of the following types of properties: single family units, multi family residences, apartment buildings, office buildings, retail units, hotels/motels, and mixed use.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: Chicago, AR, DC

Lending Guidelines for Turning Point Capital

Below are the general loan guidelines published on the Turning Point 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 Turning Point Capital.

Loan Example 1

Turning Point Capital issues a private money loan to Robin for a renovation project in Chicago, IL, on a house that costs $200,000. The terms of the deal include a 75% loan-to-value (LTV), so she must bring 25% of the price as cash to closing, which makes the principle loan amount $150,000. The terms of the deal dictate a 14% note for 6 months. They also require a 5 point origination fee, which will also be paid when the property closes.

According to the terms of the deal, Robin will need to contribute a $7,500 origination fee plus 25% of the purchase price, or $50,000, since there is a 75% LTV. The monthly interest-only payments will then total $1,750 to the lender. If Robin sells the renovated project for $290,000 at the end of the 6 month term, her gross profit (not including renovation costs) would be $72,000. This is computed by taking the sales price ($290,000) and subtracting the principle ($150,000), the origination fee ($7,500), the money she contributed to closing ($50,000), and the total interest expenses ($10,500).

Loan Example 2

Turning Point Capital makes a private money loan to Diana for a remodeling project in Chicago, IL. The loan includes the following:

a) A $160,000 purchase price, b) a 55% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 3% origination fee.

Based on a $224,000 sales price at the end of the 18 month term, the numbers for this deal would look like the following:

$224,000 sales price
- $88,000 principle (55% LTV)
- $72,000 down payment (45% on 55% LTV)
- $2,640 origination fee (3% of the $88,000 principle amount)
- $14,520 total interest paid (18 months x 11% interest)
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= $46,840 total profit (doesn't include taxes or rehab costs)

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