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How a Construction
Loan Works 

Construction loans — also called a self build loan, ground-up development financing, and new construction loans — are designed for commercial real estate investments. Ground up construction loans are short term financing options used to develop non-owner occupied single-family, multi-family, and mixed-use propertied on a permitted or permit-ready lot.

Construction loan lenders consider the following for investors applying for construction funding:

• Successful track record with similar real estate investments
• Real estate development experience
• Credit score
• Clean financial and criminal background
• Size of the down payment
• Amount of liquid reserves
  
  If you’re new to construction project financing, read our commercial real estate construction loans guide. 

Using a Hard Money
Construction Loan

Hard money construction loans provide fast funding to cover the cost of building non-owner occupied investment properties on permit-ready lots. Oftentimes, hard money loans for ground-up development properties are based on the ARV.

Typical ARV from hard money construction lenders is 70%. At Revolution, we offer up to 75% ARV on private construction loans for proven borrowers.

Not a developer but looking to make huge returns on construction loan programs? Become a commercial construction loan broker with Revolution Realty Capital for access to industry-leading private-construction loans.

Benefits of Construction
Financing

New construction financing creates an opportunity for developers to earn huge returns developing small or large construction projects. 

Typically, direct private lenders offer dispersed financing to borrowers with fixed amounts. For real estate investors, these favorable terms mean interest is only paid on the amount owed vs. the full project cost. 

Ground up construction loans from private lenders have a faster closing process than conventional loans, giving real estate investors the funding they need, when they need it. 

Benefits of Revolution’s construction project financing include:

• Fast pre-approval process
• As little as 10 days to close
• Higher LTC for proven borrowers
• Up to 75% ARV
• Funding between $500K – $5M
• No prepayment penalty or exit fee
• Access to our state-of-the-art online platform for borrowers
• Nationwide lending in 42 of 50 states

If you’re ready to fund your ground-up development, apply now, and let’s talk about your deal.

Best Private Lenders
for Construction Loans

Revolution Realty Capital offers the best private construction loans for real estate investors. We offer higher LTC for proven borrowers, up to 75% ARV, 10 days or less to close, and no personal income requirements with rental property loan rates starting at 11.5%.

When you choose to fund your commercial construction project with Revolution, you get access to our team of real estate professionals with over 40 years of experience and our intuitive borrower portal.