Residential Property Construction Lending

Malve Capital, a real estate private lending fund, funded a $706,000 ground-up construction loan for a single-family home in Forked River, Ocean County, NJ. We funded 100% of the $517,500 construction budget and 48% of the $389,000 purchase price, while the Borrower contributed 52% cash to the purchase at closing. The completed value was estimated at $1,205,000 so our loan-to-completed value was 59%. The Borrower had good credit. They plan to sell the property upon completion of the construction project. The interest rate was 12% and we charged 2% origination points. The loan term was set at 12 months. This ground-up construction loan was funded in February 2025.

RCN Capital, a national direct private lender, funded a $1,128,800 ground-up construction loan for a single-family home in Charlotte, NC. We funded 100% of the $828,000 construction budget. The completed value was estimated at $1,900,000. The Borrower is a repeat and experienced investor with good credit and 5 verified ground-up projects. This sale will bring their total to 6 completed projects. Over the past 36 months, the Borrower has successfully completed 15 rehab projects. The Borrower acquired the subject property for $500,000 on 6/27/24. Since acquisition, they have secured all necessary plans and permits and have already demolished the existing structure, allowing the land to be appraised accurately “as is.” The Borrower plans to exit the loan by selling the completed property. The subject property is approximately 4,540 square feet. The interest rate was 11.74% and we charged 1% origination points. The loan term was set at 18 months. This ground-up construction loan was funded in October 2024.

I Fund Cities, an alternative lending platform, funded a $257,706 senior-lien position ground-up construction loan for a single-family home in North Charleston, SC. The land purchase price was $75,000 and the construction budget was $268,609. The completed value was estimated at $445,000 so the loan-to-value was 58%. This build-to-rent Borrower learned about IFC through a local wholesaler who works with loan officer Vincent DeMarco. The investor was funding his first new construction project entirely in cash but decided to preserve more cash on hand to purchase additional lots as opportunities arose. While many lenders hesitate to fund a first-time new construction project due to concerns about local knowledge, network, and expertise, IFC approved the loan for several reasons. We had extensive knowledge of the area and had previously worked with the investor’s general contractor. This allowed us to provide funds for the remaining construction costs and reimburse some of the investor’s capital already spent on soft and hard costs. With this partnership, the investor could pursue new opportunities and lay the foundation for many future projects with IFC as his trusted capital partner. The loan term was set at 12 months. The Borrower plans to lease the home and refinance into a long-term rental loan. This ground-up construction loan was funded in October 2024.

Center Street Lending, a direct lender for residential real estate investors, funded a $1,003,750 first-lien position ground-up construction loan for a single-family home in Saint Augustine, just south of Jacksonville, FL. The Borrower is an experienced builder who has closed 3 loans with us. He requested the loan shortly after the project had started. The property value was estimated to be $2,900,000 upon completion so our loan is around 35% loan-to-value. We funded 100% of the $978,750 construction budget. This new modern luxury coastal design was presented by McFarland Family Homes in the gated golf community of Palencia. The size will be 5,045 square feet of interior space. With 5 bedrooms and 5.5 baths, the home will be perfect for entertaining. The Borrower plans to sell the property as an exit strategy. The loan term was set at 12 months. This ground-up construction project was completed in September 2024.

I Fund Cities, an alternative lending platform, funded a $203,808 senior lien position ground-up construction loan for a single-family home in Gastonia, NC. We funded 100% of the $201,775 renovation budget. The purchase price of the land was $35,000. The completed value was estimated at $305,000 so our loan-to-completed value was 66%. This builder, a repeat client and a major spec home builder in the area, struggled to scale using the bank’s funding due to caps on exposure (the amount of debt a Borrower can carry) and spec ratio (the number of builds a Borrower can undertake). The banks also offered lower leverage, requiring the Borrower to bring more cash to deals. We supported this builder’s volume of over 100 new builds per year and funded 85% of the project cost, closing in two to three weeks – much faster than the bank’s 60-day timeline. The loan term was set at 12 months. This ground-up construction loan was funded in June 2024.

Center Street Lending, a direct lender for residential real estate investors, funded a $1,08,110 1st lien position ground-up construction loan for a single-family spec home in Delray Beach, FL. The land value was estimated at $850,000 and was owned free and clear. We funded 100% of the $931,110 construction budget. The completed value was estimated at $2,800,000 so our loan-to-value was 38%. The Borrowers had trouble finding financing previously since they are not US citizens. Given the strong equity position they had in the land, we were able to fund the entire project costs and closed within 4 weeks of receiving the loan application. The home will be a luxury residence on a 7,105 square-foot lot, located in the heart of the prestigious La Hacienda neighborhood, just minutes from Downtown Delray Beach. The Borrower plans to sell the property upon completion of the project. The loan term was set at 18 months. This SFR ground-up construction loan was funded in April 2024. 

Secured Capital Lending, a direct hard money lender, funded a $655,000 1st lien position construction completion loan for a single-family home in the Glassell Park neighborhood of Los Angeles, CA. The property value was estimated at $950,000 so our loan-to-value was 68%. We paid off a previous loan balance of $501,000. We funded 45% of the total $292,900 construction budget. The completed value was estimated at $1,125,000 so our loan-to-completed value was 58%. The Borrower started the project with her own funds but due to inflation and construction costs going up, their budget was increased, and they were not able to finish on their own. They came to us mid-construction during the framing stage, and we were able to quickly underwrite and approve the loan. We ended up paying off her previous lender and gave her the entire completion funds to complete the project. It required us to get out of our comfort zone and do a little more work to make sure there was no hair left on the deal. We eventually got comfortable with the project and got the job done. The subject property was approximately 850 square feet set in a 4,640-square-foot lot. The Borrower had excellent credit. They plan to sell the property as an exit strategy. The interest rate was 11%, and we charged 2% origination points. The loan term was set at 12 months. This SFR construction loan was funded in February 2024.