Ground-up construction financing for new builds in South Carolina.
Ground-up construction represents the most ambitious and potentially rewarding segment of real estate development, creating new properties precisely designed for market needs rather than adapting existing structures. In Myrtle Beach and the rapidly growing Grand Strand region, new construction addresses persistent housing demand, replaces storm-damaged properties, and creates innovative developments that reshape neighborhoods. Our specialized construction hard money loans provide the substantial capital, flexible structuring, and experienced guidance necessary to transform development visions into completed, income-producing or saleable properties.
The Grand Strand construction market presents exceptional opportunities for qualified developers. Residential construction addresses the region's persistent housing shortage driven by population growth, retirement migration, and seasonal workforce needs. Commercial development supports expanding retail, office, and hospitality sectors throughout the area. Multi-family construction meets demand for rental housing from young professionals, service industry workers, and retirees seeking low-maintenance living. Even specialty construction including medical facilities, senior housing, and mixed-use developments find strong market support in this growing region.
Construction financing presents unique challenges that traditional lenders handle poorly. Banks require extensive pre-development completion including approved permits, finalized plans, secured contractors, and pre-sales or pre-leasing before funding. Draw schedules are rigid, inspection requirements burdensome, and change order processing slow. The bureaucratic approach that characterizes bank construction lending frustrates experienced developers who need responsive capital partners rather than compliance monitors.
Our hard money construction loans take a fundamentally different approach, recognizing that successful development requires partnership rather than mere financing. We work with experienced developers to structure loans accommodating realistic construction timelines, reasonable contingencies, and inevitable project adjustments. Draw processing moves quickly to keep contractors paid and projects on schedule. We understand construction realities and maintain flexibility when conditions require plan modifications. Our goal is successful project completion that generates profits for all parties, not rigid adherence to initial projections that may no longer reflect optimal outcomes.
Single-family home construction appeals to builders creating speculative homes for sale or custom homes for specific buyers. The Grand Strand's strong housing demand supports new construction across price points from entry-level homes to luxury beach properties. We finance land acquisition, infrastructure, and vertical construction for single-family developments ranging from infill lots to subdivision builds. Our loans accommodate both quick-turn production building and higher-end custom construction with extended timelines.
Multi-family construction including duplexes, townhomes, and apartment buildings addresses the region's rental housing needs. These projects generate ongoing rental income upon completion, making them attractive for build-to-hold developers and investors. We finance multi-family construction with loan structures recognizing the extended timelines of larger projects and the lease-up period required to achieve stabilized occupancy. Interest reserves and flexible draw schedules accommodate the unique characteristics of rental property construction.
Commercial construction encompasses retail centers, office buildings, warehouses, and mixed-use developments throughout the Grand Strand. These projects require substantial capital, sophisticated planning, and often anchor tenant commitments before construction begins. Our commercial construction loans provide the significant funding required while accommodating the complex permitting, tenant negotiations, and phased construction schedules typical of commercial development.
Speculative construction without pre-sales or pre-leasing commitments carries higher risk but offers greater profit potential when market timing proves favorable. We work with experienced developers on speculative projects, structuring loans with appropriate leverage, contingency reserves, and terms reflecting the higher risk profile. These projects require strong market knowledge and construction expertise to execute successfully.
Subdivision development involves land acquisition, infrastructure installation, and either lot sales to homebuilders or direct home construction. These larger-scale projects require extended timelines and substantial capital but can generate significant returns. Our subdivision loans provide phased funding aligned with development milestones, allowing projects to generate revenue through lot sales while construction continues on remaining phases.
Construction projects inevitably encounter challenges that test both developer capability and lender flexibility. Cost overruns represent the most common issue, as material price fluctuations, labor shortages, site conditions, and scope changes drive expenses beyond initial budgets. Our construction loans include contingency reserves and flexible draw processing that accommodate reasonable cost adjustments without jeopardizing project completion.
Construction delays arising from weather, permitting issues, contractor problems, or material shortages extend timelines and increase carrying costs. We structure construction loans with realistic completion schedules and extension provisions accommodating reasonable delays. When significant delays occur, we work with borrowers to adjust loan terms rather than forcing distressed positions that threaten project success.
Market shifts during construction can affect sale prices, rental rates, or financing availability upon completion. Projects planned during strong markets may complete during softer conditions, reducing expected returns. We underwrite construction loans based on conservative projections and stress-test scenarios, ensuring loans remain viable even when markets soften. Our experience across market cycles helps identify emerging risks and develop appropriate responses.
Contractor management and quality control directly impact construction success. Problematic contractors cause delays, cost overruns, and quality issues that affect project profitability and loan security. While contractor selection remains the borrower's responsibility, we provide guidance based on our experience with numerous construction projects and maintain relationships with qualified contractors throughout the region.
Our construction lending begins with comprehensive project evaluation including land characteristics, development plans, cost estimates, timeline projections, and market analysis. We work with experienced developers who demonstrate capability to execute projects successfully. Initial assessments focus on project feasibility and appropriate loan structure rather than rigid compliance with predetermined criteria.
We structure construction loans with acquisition funding for land (if needed) and construction funds held for draw disbursement. Draw schedules align with construction milestones, with inspections verifying completion before fund releases. Typical construction loans range from $250,000 to $5,000,000+ with terms from 6 to 24 months depending on project scope. Interest reserves fund loan payments during construction, preserving developer capital for the project itself.
Throughout construction, we maintain communication with developers and contractors, facilitating problem-solving when issues arise. Draw requests process quickly, typically within 24-48 hours of inspection, to keep projects moving. When changes or challenges emerge, we work collaboratively to find solutions rather than imposing rigid requirements that may no longer serve project success. Our extensive construction lending experience provides perspective on diverse situations.
We provide construction financing throughout South Carolina's Grand Strand region and beyond, including Myrtle Beach, North Myrtle Beach, Conway, Surfside Beach, Little River, and surrounding communities. Our construction lending extends to qualified projects throughout the state for experienced developers.
We finance residential construction including single-family homes, townhomes, and multi-family buildings, as well as commercial construction including retail centers, office buildings, warehouses, and mixed-use developments. Both speculative construction (without pre-sales) and build-to-suit projects with committed buyers or tenants are eligible. Land development and subdivision projects are also within our lending scope. We work with experienced developers on projects ranging from single infill homes to larger multi-phase developments.
Construction funds are disbursed through a draw system tied to construction progress. We establish a draw schedule during underwriting that allocates funds to specific construction milestones (foundation, framing, roofing, etc.). As work is completed, the borrower submits draw requests with documentation of work performed and invoices paid. We inspect the property to verify completion, then release funds, typically within 24-48 hours of inspection. This system ensures work is completed before payment while keeping projects funded and moving forward.
Yes, we can structure construction loans to include land acquisition financing along with construction funds. In this structure, a portion of the loan funds the land purchase at closing, with the remainder held for construction draws. Alternatively, if you already own the land, we can provide construction financing using the land as equity contribution. Land values for these purposes are typically determined by appraisal or based on actual purchase price if acquired recently. Including land in the construction loan preserves your capital for other project needs.
Construction cost overruns are unfortunately common. Our construction loans include contingency reserves, typically 10-15% of hard construction costs, to address reasonable overruns. For overruns exceeding contingency, we evaluate options including borrower equity contributions, scope modifications, or loan modifications. We work with borrowers to find solutions rather than allowing projects to stall. Open communication about emerging cost issues allows us to address problems collaboratively. Significant overruns affecting project viability may require restructuring or additional collateral.
Construction loans require demonstrated construction or development experience. We look for track records of successfully completed projects, relevant professional background, or partnerships with experienced builders. First-time developers face significant hurdles securing construction financing due to the complexity and risk of construction projects. We may consider working with less experienced developers who partner with qualified general contractors and demonstrate thorough preparation including detailed plans, realistic budgets, and conservative projections. Each application is evaluated individually based on project merit and sponsor capability.
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