Private Lending for New Developments and Construction Loans
In today’s evolving real estate and development landscape, traditional lending channels are often too slow, too rigid, or simply unavailable for many builders, developers, and project sponsors. Whether it’s a lack of pre-sales, insufficient net worth, or restrictive debt covenants, getting financing for a new project can quickly become an uphill battle.
This is where private lending plays a pivotal role.
Why Developers Are Turning to Private Lenders
Private lending offers flexibility, speed, and a practical understanding of real-world development challenges. Unlike institutional banks, private lenders are more focused on the asset, the viability of the project, and the exit strategy—rather than strict underwriting formulas and long approval cycles.
Key reasons developers choose private financing:
- Speed to Funding – Many private lenders can close within weeks, not months.
- Creative Structures – Loan structures can be tailored to suit land assembly, soft costs, site servicing, or construction draws.
- Tolerant to Risk – Private lenders may accept higher risk profiles in exchange for higher yields, making them ideal for early-stage or transitional projects.
- Bridge Solutions – Often used when conventional financing is pending or as a stepping stone to institutional capital.
The Rise of Hybrid Financing Models
An emerging trend is the combination of private debt with equity or mezzanine layers to create hybrid structures. These allow greater flexibility for developers who may not meet bank criteria but still want to maximize leverage or share risk with investors.
At The Coterie Group (TCG), we understand the nuances of these structures and have relationships with private capital groups and family offices across North America, Europe, and select global markets who are actively seeking:
- Hybrid loan-to-own opportunities
- Participating debt
- Preferred equity or convertible mezzanine
- Strategic JV partnerships
These partners are particularly interested in reviewing mid-sized to large development opportunities that are well-conceived, professionally underwritten, and supported by experienced development teams.
Is Private Lending Right for Your Project?
If your project is facing challenges with bank financing, or if you’re seeking a faster, more creative approach to capital, private lending might be the key.
At TCG, we’re always open to reviewing development proposals that require:
- Land acquisition financing
- Servicing or entitlement capital
- Vertical construction loans
- Bridge-to-permanent solutions
- International development funding
Our team can guide you through the process, structure the transaction, and align you with the right capital partner.
Interested in learning more?
Contact The Coterie Group to explore how private capital solutions can work for your next project.
