Short answer:
Private lenders look for clear numbers, solid planning, and skin in the game. If you want to fund a ground-up construction project, they’ll want to know you’ve done your homework—and that the deal makes sense.
Let’s walk through what that really means.
Building a home from scratch—or developing multiple units—isn’t for the faint of heart. There’s no existing structure, no repair estimate, and no resale history to lean on. It’s a fresh start, which means private lenders (aka hard money lenders) take on more risk.
That’s why ground-up construction loans require more upfront planning than a typical fix-and-flip deal.
But here’s the good news: If you’ve got a strong plan and the numbers check out, you don’t need perfect credit or a traditional bank relationship to get funded.
Private lenders like Silverton Capital offer flexible loans for new builds in Dallas, Tarrant, and Collin counties—and here’s what they’ll be looking for.
Before they fund anything, lenders want to see your Scope of Work (SOW). This is your construction roadmap. It doesn’t have to be fancy, but it should be complete.
Include:
This document shows lenders that you’re serious—and organized.
Next, private lenders want a clear breakdown of the construction budget.
This includes:
Lenders want to know: Is your budget realistic? Are you padding it properly? Have you done this before or do you have a trustworthy builder onboard?
Pro tip: Being transparent here builds trust. If you lowball your numbers, experienced lenders will see right through it.
Hard money loans are asset-based, even when the asset isn’t built yet. That means the projected resale or rental value (a.k.a. the After-Build Value) is critical.
Be ready to support your ARV with:
If the lender believes the completed home will appraise well, they’re much more likely to say yes.
No lender wants to be the only one with money on the line.
Expect to contribute:
Why it matters: Lenders know you’re less likely to walk away from a project if you’ve got your own money in the mix.
Have you built before? Great—share those details.
Haven’t done a new build before? That’s okay too—but you’ll need to show that you’ve hired licensed, experienced contractors, subcontractors, or a project manager.
Private lenders want to be confident that the project will be completed. They don’t expect you to swing the hammer yourself—but they do expect a capable team in place.
If you’re planning a ground-up construction project in Dallas, Tarrant, or Collin counties, you don’t need to wait on a slow bank to greenlight your plans.
Silverton Capital offers flexible private financing with fast turnaround times for real estate developers and investors ready to build.
Whether you’re doing a single home or a small-scale development, our team can walk you through the funding process and help structure a loan that fits your timeline.
Apply now to get started.
Ground-up construction requires more planning upfront—but with the right lender and a strong plan, it doesn’t have to be stressful. Private lenders want to fund good projects with solid fundamentals. If you come prepared, you can build your next project without draining your credit lines or dealing with banking delays.
Looking to finance a new build in Dallas, Tarrant, or Collin County?
Apply with Silverton Capital for fast, flexible funding tailored to your construction goals.
This article is for informational purposes only and is not intended to serve as legal, financial, or investment advice. Please consult with a licensed professional before making financial decisions.