IL · Chicago
Bridge, Flip & Construction
Loans in Chicago, IL
Bridge, fix & flip, construction, renovation and DSCR loans for residential investment property in Chicago, $1M to $5M, term sheet in 24 to 48 hours. For US investors and foreign nationals on the same terms.
Passy Capital finances investors who buy, renovate and build residential investment property in Chicago: single-family houses, two-flats and three-flats, 2-4 unit buildings, condos and townhomes, and small apartment buildings up to 9 units. Bridge, fix & flip and ground-up construction loans come first, then renovation, with DSCR as the long-term hold once the property is rented. Loans run from $1M to $5M, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file.
The two-flat and the three-flat are Chicago's own investor product. A brick two-flat bought tired, gutted, converted or deconverted, and then either sold or rented out unit by unit is a deal we see often, and it fits our box well: a fix & flip or renovation loan up to 90% of cost covers the purchase and the work, and a DSCR loan up to 80% of value can take out the bridge once both units are leased. The same structure works for a portfolio of single-family houses, or for a builder putting up new single-family or 2-4 unit product on city lots with a construction loan up to 85% of cost.
We lend on the same terms to investors based outside the United States. A non-US buyer with no US credit history borrows through a US LLC, and the loan is underwritten on the property and the business plan rather than on a US credit file. All of our lending is business-purpose, on non-owner-occupied property. The fee is 1-2% of the loan, paid at closing, with no upfront fees. Larger Chicago deals outside our residential box are placed through our capital-partner network.
Chicago Market Highlights
Two-Flat and Three-Flat Stock
Chicago's neighborhoods are built on small brick multi-unit buildings. They are the core flip, renovation and buy-and-hold product for local investors, and they fall inside our 2-4 unit and small multifamily lending.
Judicial Foreclosure State
Illinois forecloses only through the circuit courts. Distressed property reaches the market on a court timeline, not through a quick trustee sale, which matters when you are sourcing inventory.
City Transfer Tax Paid by the Buyer
Chicago's real property transfer tax is $3.75 per $500 of price paid by the buyer, plus a $1.50 per $500 CTA portion paid by the seller. On a flip you pay the first going in and the second going out, so budget both.
No Homeowner Exemption on Investment Property
In Cook County the homeowner exemption is limited to owner-occupants. An investor's tax bill does not carry it, so underwrite a hold on the full bill rather than on the seller's.
Residential Assessment Class
Cook County assesses single-family homes, condos and apartment buildings of six units or fewer as Class 2 residential at 10% of market value. Buildings of seven or more units fall in Class 3, also at 10%.
Same Terms From Abroad
A foreign investor buying a Chicago two-flat or a small apartment building borrows through a US LLC on the same terms as a local investor, with no US credit history required.
Key Submarkets
Logan Square
Avondale
Irving Park
Portage Park
Albany Park
Lincoln Square
Humboldt Park
Bridgeport
Pilsen
Lakeview
Oak Park
Evanston
Property Types We Finance
Single Family
Two-Flats & Three-Flats
2-4 Units
Condo / Townhome
Small Multifamily (5-9)
New Construction
Build-to-Rent
SFR Portfolios
Loan Programs
Bridge Loans
Buy, refinance or cash out an investment property, closing in about two weeks.
Construction
Ground-up spec homes and build-to-rent, with draws tied to milestones.
Renovation / Rehab
Rehab financing on 1-4 unit and small multifamily, drawn against completed work.
Fix & Flip
Purchase and rehab in one loan for 1-4 unit flips, closing in about two weeks.
DSCR / Rental
Long-term rental financing based on property cash flow.
Chicago investment property: what we fund, what we place
A Chicago apartment building of five units or more is usually financed as a commercial loan, even when every unit is residential. We fund residential investment property up to 9 units ourselves, from $1M to $5M, and place the rest through our capital-partner network.
| Property | How | Loans |
|---|---|---|
| Single-family, condo, townhome | Funded in-house | Bridge, fix & flip, renovation, construction, DSCR |
| Two-flats, three-flats, 2-4 units | Funded in-house | Bridge, fix & flip, renovation, construction, DSCR |
| Apartment buildings of 5 to 9 units, fully residential | Funded in-house | Bridge, renovation, construction, DSCR |
| Apartment buildings of 10 units or more | Placed through our capital-partner network | We say which within 48 hours |
| Mixed-use (a shop or office in the building), retail, office, industrial | Placed through our capital-partner network | We say which within 48 hours |
The full box is on what we fund, and the state view on Illinois investment property loans.
Investing in Chicago from outside the US
If you are buying in Chicago from outside the United States, financing is usually where the process stalls: no Social Security number, no US credit history, and no retail bank willing to underwrite a foreigner. We lend to your US LLC instead, underwrite the property rather than a US profile you have no way to build, and charge no foreign-national premium for it.
Frequently asked questions
Do you finance commercial real estate investment in Chicago?
We fund residential investment property in Chicago ourselves: single-family houses, two-flats, three-flats, 2-4 unit buildings and apartment buildings up to 9 units, all held for investment, from $1M to $5M. Apartment buildings of 10 units or more, mixed-use buildings and commercially zoned property are placed through our capital-partner network rather than funded in-house, and we say which of the two it is within 48 hours.
Do you finance two-flats and three-flats in Chicago?
Yes. Two-flats, three-flats and other 2-4 unit buildings are core property for us, as are small apartment buildings up to 9 units. We finance the purchase and renovation with a bridge, fix & flip or renovation loan, and can refinance the stabilized building into a DSCR loan once it is leased.
What loan sizes and leverage do you offer for Chicago deals?
Loans run from $1M to $5M. Bridge loans go up to 80% LTV, fix & flip and renovation up to 90% of cost, ground-up construction up to 85% of cost, and DSCR up to 80% LTV. The fee is 1-2% of the loan, paid at closing, with no upfront fees.
Can a foreign national finance a Chicago investment property?
Yes. The loan is made to a US LLC and underwritten on the property, so a non-resident with no US credit history borrows on the same terms as a US investor. You do not need to travel to the United States to close.
How fast can you close in Chicago?
We issue a term sheet in 24 to 48 hours and close in about two weeks on a clean file. Title, appraisal and, for foreign investors, the US LLC and its bank account are what usually set the pace.
Learn More
How does a renovation loan work on a Chicago two-flat?
Purchase and rehab in one loan, draws in arrears, then a DSCR refinance.
Fix and Flip Financing Guide
How purchase-plus-rehab loans work, what loan-to-cost means, and how draws are released as the work is done.
Can I refinance a bridge loan into a DSCR loan?
The buy, renovate, lease, refinance sequence that suits a Chicago two-flat held for rent.
How to Set Up a US LLC as a Foreign Investor
The borrowing entity a non-US investor needs before financing US property, and how to form it.
More answers in investor questions, answered and the glossary of lending terms.
Related US Markets
We finance US and foreign investors in other markets too.
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