Construction Development Loans
You have the plans and the permits. Now you need the capital.
A bank gives you an answer. As your loan broker, I give you options.
You’ve done the hard part: the land, the plans, the budget and the team. Then the bank wants the building finished before it believes in it. I’m Kevin Kermeen, and I place construction development loans for developers and owners nationwide. Whether you need ground-up construction loans, commercial construction financing for a value-add project, or development financing for the next phase, I take one complete file to 200+ capital partners. Don’t Beg the Bank!
Call Kevin 7 days a week (Arizona Time).
- Ground-up, value-add and construction-to-permanent
- Draw-based funding against a budget
- Minimum loan $150,000, up to $100 million
- I review every file personally
Construction Development Loans for Real Situations
If one of these sounds like your week, you are not the only one. Here is how I work each problem when you need construction development loans.
Your budget grew and the loan didn’t
Costs went up, the schedule slipped and your original lender won’t fund the gap. The contractor is asking when the next draw is coming.
You have land and approvals but no lender
The site is entitled and the plans are drawn, but every bank wants pre-leasing or a track record you’re still building.
Your project is done and the construction loan is maturing
The building is finished, tenants are moving in and the construction note comes due before it’s fully stabilized.
Banks hand out umbrellas when the sun is shining, not when you are weathering the storm.
Call Kevin 7 days a week (Arizona Time).
How Owners and Investors Use Construction Development Loans
Most people look for construction development loans when something has changed: a purchase, a maturing note, a project that needs capital or equity they want to put to work. Here is what each situation usually needs.
Ground-up construction loans
Ground-up construction loans fund in draws against an approved budget. Capital partners want plans, permits, the contractor and a clear exit.
Commercial construction financing for value-add
Commercial construction financing can fund a major renovation or conversion that changes what the property earns.
Development financing for the next phase
Development financing can cover horizontal work, a later phase or a gap when costs rise above the original loan.
Construction to permanent
Some construction development loans convert to long-term debt once the project is finished. Others refinance at completion. I compare both.
Whatever the reason, the best construction development loans are the ones that fit your plan for the property. A loan that looks cheap on paper can cost more if the term, the prepayment rules or the reserves do not match what you are trying to do. I start with your goal, then shop the construction development loans that match it.
What Capital Partners Look At on Construction Development Loans
Every capital partner has its own guidelines, but most construction development loans are reviewed on the same core questions. Knowing them before you apply saves time and surprises.
- Budget and plans: complete, realistic and reviewed
- Permits and entitlements: what’s approved
- The contractor: experience and bonding
- Your experience: projects you have completed
- Equity in the project: land and cash
- The exit: sale or long-term refinance
- Credit and history: personal credit, plus any past bankruptcy, foreclosure or default
- The paper trail: leases, operating statements and title
If one of these is weak, it does not automatically end the deal. It changes which capital partners fit. That is the work I do on construction development loans before your file goes out.
For national construction trends, see the Census Bureau construction spending data and the BLS construction industry profile.
My Process for Construction Development Loans
- You call or click. Call Kevin 7 days a week (Arizona Time) at (480) 915-8690, or start the application. Tell me the real story of the deal, including the parts that worry you.
- You apply once. The commercial real estate loan application takes about five minutes, and estimates are fine. After you submit, you can upload documents to a secure link.
- I review the file personally. I look for what a capital partner will question and fix the story before it goes out.
- I match the deal. I take your request for construction development loans to the capital partners in my 200+ network whose guidelines fit your property, purpose and profile.
- You compare terms. I walk you through each option in plain English, including costs and conditions.
- I stay with you to closing. I stay on the file through appraisal, underwriting and closing, so you are not left chasing updates.
Call Kevin 7 days a week (Arizona Time).
Gather these first
To get a quote, capital partners usually want a mortgage statement or the purchase contract, the rent roll and leases if there are tenants, 12 months of operating history, photos of the property, a personal financial statement, a schedule of real estate owned and two months of bank statements. Don’t have everything yet? Start your application anyway. You can send the rest later.
Why Use a Broker for Construction Development Loans
A bank can only offer its own loan. A broker can compare many. I am a nationwide commercial loan broker, not a lender, and I work for you. My job is to know which capital partners are lending on construction development loans right now, and to present your deal so it gets a fair look. Don’t Beg the Bank!
“Kevin works for you, not the lender. Having your full financial picture up front lets him match you with the capital partners that fit your situation best, out of 200+, so you don’t have to apply over and over.”
- Need $150,000 or more
- Have a property, a contract or a real project
- Can share income, expenses and your financial picture
- Want options, not a single take-it-or-leave-it offer
- Need less than $150,000
- Are buying a primary residence
- Want a promise of approval before anyone sees the file
- Are not ready to share documents
Just Funded: Real Commercial Real Estate Deals
Want proof? These are real deals from my Just Funded posts. Read the full story behind each one.
Call Kevin 7 days a week (Arizona Time).
Construction Development Loans FAQ
What are construction development loans?
Construction development loans fund building or major renovation of commercial property, released in draws as work is completed against an approved budget.
What do ground-up construction loans require?
Usually plans, permits or a path to them, a detailed budget, a contractor agreement, your experience and a clear exit through a sale or long-term loan.
Can commercial construction financing cover cost overruns?
Sometimes. A gap or rescue loan can fund overruns when the original lender won’t, depending on the project and the remaining equity.
Does development financing require pre-leasing?
Not always. It depends on the property type, the market and the capital partner. I will tell you what’s realistic for your project.
What is the minimum for construction development loans through you?
The minimum loan is $150,000. Loans can go up to $100 million depending on the property, the deal and your file.
Is approval certain if I apply?
No. Every file is subject to credit approval, and rates and terms depend on the property, the deal and your file. What I can promise is a personal review and a straight answer.
Do you work in every state?
Yes, I work nationwide in all 50 states. Call Kevin (480) 915-8690 to discuss your situation, 7 days a week (Arizona Time).
Other Commercial Real Estate Loans
Need a different property type? See all commercial real estate loans, or pick a program below.
Ready to Talk About Your Construction Development Loans?
A bank gives you an answer. As your loan broker, I give you options.
Tell me what the bank would not hear. I review every file personally. Call Kevin 7 days a week (Arizona Time). Don’t Beg the Bank!
Call Kevin 7 days a week (Arizona Time).
Subject to credit approval. Terms vary. This is not a commitment to lend.