REAL ESTATE INVESTOR FINANCING
Build-to-Rent
Build it once. Finance the hold from day one.
Financing for investors constructing properties they intend to retain as income-producing rentals. Two paths: a maximum-leverage standalone construction loan (up to 95% LTC) followed by a separate DSCR refinance, or a one-time-close construction-to-permanent structure (up to 87.5% construction LTC, up to 80% permanent LTV) with a single closing and no second closing after completion. Both shown side-by-side below.
Available approaches
Two ways to structure this deal
These are separate programs with separate parameters — never merged into one table. Both feed into the same application; the selected approach is captured when you apply.
Maximizes construction-phase leverage. After completion and stabilization, refinance into separate DSCR financing.
- Structure
- Standalone ground-up construction loan
- Construction LTC
- Up to 95%
- Construction Financing
- Up to 100% of eligible construction
- Loan Amount
- Up to $3 million
- Term
- 12–18 months, interest only
- Draws
- 24-hour digital inspections
- Permanent Phase
- Refinance into separate DSCR after stabilization
- Prepayment Penalty
- None
- Up to 95% construction LTC
- 100% eligible construction financing
- Higher construction leverage
- More flexibility selecting the permanent takeout
- Build → Stabilize → Separate DSCR refinance
Structures construction and permanent rental financing together from the beginning, eliminating the second closing after completion.
- Structure
- One-time-close construction-to-permanent
- Construction LTC
- Up to 87.5%
- Construction Financing
- Up to 100% of eligible construction
- Permanent LTV
- Up to 80%
- Closings
- One closing — no second closing after completion
- Closing Timeline
- Approximately two weeks or less
- Permanent Phase
- Structured together from the beginning
- Prepayment Penalty
- None
- Up to 87.5% construction LTC
- 100% eligible construction financing
- Up to 80% permanent LTV
- One closing — no second closing after completion
- ≈ Two weeks or less core closing
- No prepayment penalty
Typical Market
What investors commonly see in the market
Typical market ranges for build-to-rent / construction-to-permanent financing across independent lenders. These are broad market reference points, not averages and not a guarantee.
- Construction Leverage
- Typical market range ~85–95% LTC
- Construction Funding
- Up to 100% of eligible construction on qualifying programs
- Permanent LTV
- Roughly 75–80% LTV as a common permanent cap
- Construction Term
- Approximately 12–18 month build terms
- Permanent Takeout
- DSCR-based rental financing after stabilization
The Green Fire Strategies programs shown below are separate from these market ranges — compare the two directly.
Who
Who this product is for
Build-to-Rent is for investors building single-family or small multifamily properties they intend to hold as rentals — with a long-term hold strategy and a planned permanent rental takeout. It fits developers who are building to keep, not building to sell, and who want the construction phase and the permanent rental takeout evaluated together rather than financing construction now and figuring out the exit later.
What
What the financing does
Build-to-Rent covers land acquisition and vertical construction, then transitions into long-term DSCR rental financing once the property is stabilized and income-producing. The construction phase funds land plus vertical build through milestone draws, just like ground-up construction; the difference is that the permanent rental takeout is part of the plan from the start, so the build and the hold are evaluated together.
When
When an investor uses it
Use Build-to-Rent when you are building a property specifically to keep as a rental and want the construction phase and permanent rental takeout evaluated together. It fits the moment between permits and a long-term hold — the window where you have an approved plan, a builder, and a projected completed rent, and you want the construction capital and the permanent takeout lined up as one strategy.
Why
Why use this instead of traditional financing
Build-to-Rent pairs the construction phase with a permanent rental takeout, so the build and the long-term hold are evaluated together rather than financed separately. That matters because the construction financing differs from a normal mortgage — it funds land plus vertical construction through milestone draws with a rental exit already in mind — and because lining up the permanent takeout up front removes the risk of finishing a build and then scrambling to find long-term financing. For a property you are building to keep, that integrated approach usually makes more sense than treating construction and permanent as two unrelated transactions.
Use cases
Typical use cases
- Single-family build-to-rent development
- Small multifamily build-to-rent
- Rental development with a long-term hold strategy
- Construction transitioning to a permanent rental takeout
Process
How the loan works
- 1
Assemble the project
The investor secures land, completes plans and permits, engages a builder, and projects the completed rent the property will produce.
- 2
Submit the deal
Land, budget, plans, projected rent, units, and the long-term hold strategy are submitted.
- 3
Structure review
The lender evaluates the construction phase and the permanent rental takeout together — the build and the hold as one strategy.
- 4
Construction and draws
Close, build, and draw construction capital by milestone through to completion.
- 5
Stabilize as a rental
The property is completed and stabilized as an income-producing rental producing qualifying rent.
- 6
Permanent takeout
Transition into long-term rental / DSCR financing — either the one-time-close converts to permanent, or the standalone loan is refinanced into separate DSCR.
Underwriting
What lenders generally evaluate
A Build-to-Rent lender evaluates the construction project and the permanent rental takeout together. On the construction side, they review the budget, plans, permits, builder capacity, and borrower experience. On the permanent side, they review the projected completed rent, the DSCR the property will support, and whether the stabilized property will qualify for the permanent takeout. The completed value and the projected rent both matter, because they determine whether the permanent financing will close.
Exit
Exit strategies
- One-time-close path: the construction loan converts to permanent rental financing after completion — no second closing
- Maximum-leverage path: refinance the completed, stabilized property into separate DSCR financing
- Sell the completed property if the hold strategy changes
Considerations
Important considerations
- Construction risk and timeline risk apply during the build phase
- Permanent takeout is subject to stabilization and provider underwriting
- Reserves and experience may be required
- Actual leverage and terms depend on the transaction, borrower, property, and capital source
Build toward the full capital requirement
Your first loan funds the property. Gap capital can fund the rest. Qualifying borrowers may be able to combine primary hard-money financing with eligible gap capital to address the purchase or down payment, closing costs, reserves, rehab, and other eligible deal costs — building toward 100% of the capital the deal requires when the combined structure qualifies.
- Primary Financing
- The hard-money loan — acquisition plus eligible rehab or construction, sized around total project cost and after-repair value.
- Gap Capital
- Eligible supplemental capital that may help cover the down payment, closing costs, reserves, rehab float, earnest money, and other eligible shortfalls the primary loan does not cover.
- Full-Capital Structure
- The combined stack. Potentially cover up to the full capital requirement when the combined structure qualifies and the primary lender's source-of-funds rules are satisfied.
100% financing is not guaranteed. The primary lender's source-of-funds, equity, reserve, and seasoning rules still control whether borrowed gap capital counts toward required liquidity. Qualify from a position of strength first, then preserve working capital when the structure permits.
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