REAL ESTATE INVESTOR FINANCING
Ground-Up Construction Guide
How total project cost is built, why 100% construction financing ≠ 100% total project, and draw mechanics.
What It Is
Short-term financing for investors and builders developing new residential investment properties. Funds land acquisition and vertical construction through a milestone-based draw schedule. Two Green Fire programs: Maximum Leverage (up to 95% LTC) and Express (up to 90% LTC, no-appraisal express structure).
What Problem It Solves
New construction can't be financed by a traditional mortgage until the property exists and a certificate of occupancy is issued. Construction funding advances the land and build costs as work progresses, then is repaid by a sale or a permanent refinance (DSCR or conventional).
When It's Commonly Used
Spec builds, infill development, new residential construction, and build-to-rent projects (before the permanent refinance).
Who Generally Qualifies
First-time builders can qualify on the Maximum Leverage and Express programs. An experienced, licensed general contractor materially strengthens the file; permits and plans status are reviewed. The builder's ability to execute on budget and schedule is a core underwriting factor.
Current Green Fire Program Requirements
Maximum Leverage: up to 95% LTC, 100% eligible construction, up to $3M, 12–18 months, 24-hour digital draws, zero + deferred point options, no prepayment penalty, first-time builder program. Express: up to 90% LTC, up to 75% completed value/ARV, ~$75K–$5M+, 9–24 months, ~680 FICO, no-appraisal express, ~48-hour draws, first-time builder product.
Total Project Cost — Read This
Total project cost may include land acquisition, hard construction costs, eligible soft costs, permits/plans where applicable, and contingency. 100% construction financing means up to 100% of eligible construction costs — it does not mean 100% of the total project. LTC is measured against the total project cost; the loan is not advanced as a lump sum at closing.
How Draws Work
The approved construction budget is held back and released through draws as milestones are completed. Complete a stage, submit a draw request with photos/documentation, have the completed work verified (24-hour digital inspection or ~48-hour on Express), then approved draw proceeds are released. Interest is generally paid on drawn funds, not the entire approved budget at once.
What Documents to Have Ready
Land information or purchase contract, construction budget, plans, permits status, contractor/GC credentials, completed-value or ARV support, proof of liquidity, and insurance (builder's risk).
How the Money Moves
Land is funded at closing; vertical construction is funded through draws as milestones are verified. The borrower does not receive the entire construction budget upfront. At completion, the loan is repaid by a sale or a permanent refinance (DSCR or conventional).
Biggest Risks & Tradeoffs
Construction overruns, permit delays, and contractor issues are the main risks — carry a contingency reserve. Interest-only means the balance doesn't decline. A delayed certificate of occupancy can push the exit past the term; extensions may be available but are not automatic.
When to Use a Different Product
If the project is a renovation of an existing property (not new construction), Fix & Flip is the right product. If the goal is to build and hold as a rental with one closing, Build-to-Rent's one-time-close may fit better than a standalone construction loan + separate DSCR refinance. 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 land, construction budget, plans, permits, GC, completed value, and the builder's ability to execute, then matches the deal to Maximum Leverage or Express based on whether leverage or speed matters more.
Frequently Asked Questions
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The product page has the complete program specifications, pricing, and qualification snapshot.
Explore Construction 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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