REAL ESTATE INVESTOR FINANCING
Build-to-Rent Guide
Two-close vs one-time-close, stabilization, DSCR takeout, and rental projections before the property exists.
What It Is
Financing for investors constructing properties they intend to retain as income-producing rentals. Two strategies: Maximum Leverage Build & Hold (a standalone construction loan up to 95% LTC followed by a separate DSCR refinance) and One-Time-Close Build-to-Rent (one closing that transitions into permanent rental financing after construction).
What Problem It Solves
Building a rental requires construction capital, then permanent rental capital. These are usually two separate loans. Build-to-Rent structures coordinate the two — either as two closings (higher construction leverage) or one closing (a predefined transition into permanent financing).
When It's Commonly Used
Investors building new residential rentals they intend to hold for cash flow, rather than selling on completion.
Who Generally Qualifies
First-time builders can qualify. Zoning, entitlements, the GC, completed value, and projected rent are reviewed. The builder's ability to execute and the project's rental feasibility both matter.
Current Green Fire Program Requirements
Maximum Leverage Build & Hold: standalone construction up to 95% LTC, 100% eligible construction, complete the project, then a separate DSCR refinance. One-Time-Close: up to 87.5% construction LTC, 100% eligible construction, up to 80% permanent LTV, one initial closing, no second closing after completion, zero + deferred point options, no prepayment penalty on the core structure, ~two-week initial close, construction-phase interest-only.
Key Differentiation
The construction and permanent financing are arranged as one overall financing plan. Instead of closing a construction loan and later completing an entirely separate refinance transaction, the one-time-close structure is designed to transition into permanent rental financing after construction and required conversion conditions are completed. One initial closing; no second refinance closing; long-term hold planned upfront.
How the Money Moves
Two-close: construction draws fund the build (24-hour digital inspections), the project is completed and stabilized, then a separate DSCR refinance pays off the construction loan. One-time-close: construction draws fund the build, then the financing transitions into permanent rental financing after the applicable completion and conversion conditions are met — without a second closing.
Rental Projections Before the Property Exists
Projected rent is evaluated using market-rent support, comparable rentals, and conservative underwriting — the property doesn't exist yet, so the projection is supported by comparables, not an operating history. If projected rent doesn't support the permanent loan, the permanent loan amount or structure may need adjustment.
Biggest Risks & Tradeoffs
Two-close: the investor must qualify for permanent financing later, and market/pricing conditions can change between the construction loan and the DSCR refinance. One-time-close: lower construction LTC (87.5% vs 95%) in exchange for a predefined transition. A certificate of occupancy and stabilization/conversion conditions apply.
When to Use a Different Product
If the goal is to sell on completion (not hold as a rental), standalone Ground-Up Construction is the right product. If the project is a renovation of an existing property, Fix & Flip (with a DSCR exit) is the route. If the core requirement (contract, spread, seller carry, or funded end buyer) is missing, a different product — or a restructured transaction — is usually a better fit than forcing the structure.
How Green Fire Structures It
Green Fire reviews the construction budget, completed value, projected rent, GC, and the investor's hold intent, then matches the deal to Maximum Leverage Build & Hold (higher construction leverage, separate refinance) or One-Time-Close (lower construction LTC, predefined transition).
Frequently Asked Questions
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The product page has the complete program specifications, pricing, and qualification snapshot.
Explore Build-to-Rent ProgramsEducational content only. Guides describe how financing structures generally work and are not approvals, commitments, or guarantees of terms. Programs, eligibility, leverage, rates, fees, terms, timelines, and availability vary by provider, property, location, borrower qualifications, documentation, and deal structure. All financing is subject to independent provider review, underwriting, and final approval. Green Fire Strategies does not guarantee approval, terms, closing, or funding.
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