Construction Loans for Ground-Up Projects
Tallridge provides construction loans from $1M to $30M for ground-up development projects. We offer 12-24 month terms with up to 85% loan-to-cost, interest reserves, and flexible draw schedules. Perfect for experienced developers building multifamily, industrial, and mixed-use properties with verified progress-based disbursements.
Capital to build from the ground up. Structured for progress, delivered with certainty.
What are the key facts about Tallridge construction loans?
| Parameter | Typical Range / Details |
|---|---|
| Loan Amount | $1M–$30M (typical) |
| Term | 12–24 months; interest-only with reserve |
| LTC | Up to 85% (experience/market dependent) |
| Draws | Inspector-verified; budget line-item control |
| Asset Types | Multifamily, industrial, mixed-use, hospitality, select commercial |
| Use of Proceeds | Land (case-by-case), hard costs, soft costs, interest reserve |
What is a construction loan and how does it work?
A construction loan is a short-term, interest-only loan that finances the cost of building a new property. Funds are disbursed in draws as construction milestones are met and verified by inspections. The borrower typically refinances or sells the asset upon completion.
How are draws managed?
Draws are tied to your approved budget and schedule of values. Funds are released after a third-party inspection confirms work completion, ensuring capital is used for its intended purpose and reducing lender risk.
What is an interest reserve and why use it?
An interest reserve sets aside a portion of the loan to cover interest payments during construction. This improves borrower cash flow and ensures timely servicing even before the property generates income.
Who qualifies?
Experienced developers or sponsors who can provide:
- Detailed plans and specifications.
- Firm construction budget with contingency.
- Permits and approvals (or clear path to obtain).
- Executed GC agreement with performance track record.
- Documented equity injection and liquidity reserves.
What can be financed?
Land Acquisition
Case-by-case, depending on entitlement status.
Hard Costs
Materials, labor, site work, vertical construction.
Soft Costs
Architecture, engineering, permits, legal.
Interest Reserve
Optional, based on loan structure.
Construction Loan Draw Process
Submit Request
Submit draw request with invoices and lien waivers
Inspection
Third-party inspector verifies completed work
Approval
Lender reviews and approves draw amount
Funding
Funds disbursed within 24-48 hours
Exit Strategies
Construction loans require a clear exit strategy upon project completion:
Permanent Refinance
Convert to long-term financing once the project is complete and stabilized with tenants or buyers.
Sale or Condo Conversion
Sell the completed project to end users or investors, or convert to condominiums for individual unit sales.
Important Note on Exit Planning
We underwrite your exit strategy from day one. Whether you're planning to hold and refinance or sell upon completion, we ensure your construction loan aligns with your long-term business plan. Our team can help you model different exit scenarios to maximize your ROI.
Example Scenario
A developer secures a $12M construction loan at 80% LTC to build a 120-unit apartment complex.
Result: Loan includes a 3-12 month interest reserve with draws tied to construction progress. Upon completion, they refinance into a 30-year permanent loan at stabilized occupancy.
Advantages
High leverage potential
Up to 85% LTC for qualified sponsors.
Progress-based funding
Funds match actual progress, protecting both lender and borrower.
Interest reserve option
Can include interest reserve for smoother cash flow.
Considerations
Requires detailed pre-closing documentation.
Any change orders must be approved and may affect timing or costs.
Market shifts during build may impact take-out financing.
Frequently Asked Questions
Do you finance land acquisition?
Can I change my general contractor mid-project?
What's the typical inspection process for draws?
Ready to Build Your Vision?
Get the capital you need to bring your project from concept to completion.
Additional Resources
Rates/terms subject to change and underwriting. Not an offer to lend. Equal opportunity lender.