Interview Summary
Cardinal Capital Group provides flexible and competitive lending solutions for real estate investors focusing on fix-and-flip and ground-up construction projects in New England. Their underwriting approach is heavily based on borrower experience, loan-to-cost (LTC), and after-repair value (ARV), while maintaining a streamlined documentation process. For experienced or institutional borrowers (10+ projects in the last 3 years), Cardinal Capital offers high leverage financing, including up to 90% of purchase price, 100% of construction budget, and interest reserves built into the loan. All loans are primarily constrained by a maximum of 75% of ARV, which is slightly more aggressive than many competitors who cap closer to 70%. For ground-up construction, leverage typically reaches 85% LTC and 75% ARV, with strong emphasis on including interest reserves to simplify project management for borrowers. Newer investors are still welcomed, though leverage is slightly reduced to mitigate risk—typically requiring higher upfront equity (around 20%).
Key Takeaways
- Experience-Based Lending Tiers:
- 1 project → Limited experience
- 3–9 projects → Experienced
- 10+ projects (last 3 years) → Institutional borrower
- Fix-and-Flip Loan Structure:
- Up to 85–90% of purchase price
- Ground-Up Construction Loans:
- Up to 85% Loan-to-Cost (LTC)
- Up to 75% ARV
- Includes construction + interest reserves
- Permits and plans improve leverage terms
- New Investor Adjustments:
- Typically require ~20% down payment
- ARV capped closer to ~70%
- Flexibility if borrower has related experience (e.g., contractor, agent)
- Interest Reserve Advantage:
- Payments are often rolled into the loan
- Reduces operational burden for investors managing multiple projects
- Streamlined Documentation:
- Personal Financial Statement (PFS)
- Driver’s license
- Track record / experience verification
- Entity documents
- Bank statements (few months)
- No tax returns required
- Fast appraisals and title processing
- Flexible Underwriting Philosophy:
- Gives credit for adjacent experience (brokers, subcontractors)
- Case-by-case exceptions allow higher leverage
FAQ’s
What is the maximum loan-to-value (LTV) or ARV offered?
- Cardinal Capital typically lends up to 75% of after-repair value (ARV) for both fix-and-flip and construction projects.
How much of the project cost can be financed?
- Fix-and-flip: Up to 90% of purchase + 100% rehab budget
- Ground-up: Around 85% of total project cost (LTC)
Do they finance interest payments?
- Yes. Cardinal Capital often includes interest reserves (6–12 months or full term) directly into the loan, reducing the borrower’s need to make monthly payments during the project.
What are the requirements for new investors?
- New investors can still qualify but typically need:
- Around 20% down payment
- Slightly lower leverage (around 70% ARV)
Do I need prior real estate experience?
- Not necessarily. Cardinal Capital considers:
- Contractor or subcontractor experience
- Real estate agent background
- Related industry experience
What documents are required to apply?
- The process is simple compared to traditional banks:
- Personal Financial Statement
- ID (Driver’s License)
- Track record or resume
- Entity documents
- Bank statements
- No tax returns are typically required.
How fast is the approval process?
- Appraisals can be completed in a few days
- Title work is processed quickly
- Overall process is designed to be fast and investor-friendly
Does experience impact loan terms significantly?
- Yes. More experience leads to:
- Higher leverage
- Better terms
- Greater flexibility
- However, even first-time investors can still access funding with adjusted terms.
Final Takeaway
Cardinal Capital Group stands out in the New England private lending market by offering high-leverage, flexible financing tailored to real estate investors across experience levels. Their ability to lend up to 75% ARV, finance nearly all project costs, and include interest reserves makes them especially attractive for active investors managing multiple projects. Unlike traditional lenders, their streamlined documentation process and flexible underwriting allow both seasoned and first-time investors to access capital efficiently. By prioritizing market expertise, borrower experience, and project viability, Cardinal Capital enables investors to scale their portfolios while minimizing operational friction.
This is a clip from Episode 13 of the Private Lending Insights podcast, released in May 2025: New England Private Lending with Cardinal Capital Group.
