Real Estate Development Loans That Bring Projects to Life
Flexible financing for subdivisions, multifamily builds, and commercial developments.
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What Are Real Estate Development Loans?
A real estate development loan provides short-term capital for building or redeveloping large-scale projects. Unlike bank loans that require strict pre-leasing or long approval processes, development loans are structured around land acquisition, horizontal improvements, and vertical construction costs.
Typical terms range from 12–36 months, often interest-only, giving developers the time they need to build, lease, or sell before refinancing into permanent financing.
At Nelson Funding, we specialize in structuring development loans for:
- Residential subdivisions
- Multifamily projects
- Mixed-use communities
- Office, retail, and industrial developments
With access to private lenders, institutional partners, and alternative capital, we fund projects banks won’t — quickly and creatively.
Why Developers Choose Nelson Funding
- Fast Approvals and Closings
We move in weeks, not months, so developers can break ground faster. - Higher Leverage Options
Up to 85% Loan-to-Cost (LTC) and 75% Loan-to-Value (LTV). - Nationwide Coverage
From Texas subdivisions to California mixed-use, we fund across the U.S. - Flexible Structures
We build around your exit plan — whether it’s sell-out, lease-up, or refinance.
Common Use Cases for Development Loans
- Subdivisions and Communities:
Acquire land and finance horizontal infrastructure (roads, utilities, grading) plus vertical home construction.. - Multifamily Development:
Finance ground-up apartment complexes, townhomes, and high-rises. - Mixed-Use Projects:
Fund developments combining residential, retail, and office space. - Commercial Developments:
From warehouses to shopping centers, we structure flexible financing for large commercial projects.
Loan Highlights
- Loan Sizes: $2M to $50M+
- Terms: 12–36 months, interest-only
- Up to 85% LTC, 75% LTV
- Land + construction financing available
- Renovation and infrastructure reserves structured in
- Nationwide coverage
Development Loans vs. Other Financing
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vs. Bank Loans
Banks often require lengthy approvals, presales, and rigid covenants. Development loans from Nelson Funding move faster, are more flexible, and fund projects banks reject.
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vs. Construction Loans
Construction loans typically fund vertical building only. Development loans cover both horizontal improvements (roads, utilities) and vertical construction.
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vs. Hard Money Loans
Hard money loans are faster and smaller in scale. Development loans are structured for larger, complex projects with higher leverage.
Example Scenario
Borrower Profile
Developer in Austin, TX
Project
Acquisition and development of a 50-lot residential subdivision with homes to be sold individually.
Challenge
The bank required 30% cash equity and wouldn’t finance horizontal infrastructure. The developer needed higher leverage to acquire land and start work.
Solution
Nelson Funding arranged a $12M real estate development loan with 80% LTC and a 24-month term. Funds covered both land purchase and site improvements. Once homes were built and sold, proceeds repaid the loan in full.
Without this loan framework, the subdivision would have stalled. Nelson Funding helped the developer move from blueprint to community.
Who Benefits from Development Loans?
- Subdivision Builders: needing funding for land and infrastructure
- Multifamily Developers: constructing apartments, condos, and mixed-use
- Commercial Developers: financing warehouses, retail, or office projects
- Value-Add Investors: redeveloping existing properties into new use cases
- Family Offices & Private Equity: executing portfolio-scale developments
Why Work With Nelson Funding
Real estate development is complex. Developers choose Nelson Funding because we:
- Understand the Full Development Cycle: 7–14 day closings are possible
- Provide Access to Multiple Capital Sources: private, institutional, and alternative lenders
- Offer Higher Leverage: up to 85% LTC
- Move Faster Than Banks: 2–3 week closings possible
- Deliver a Track Record of Success: $100M+ in loans closed across multifamily, subdivisions, and commercial projects
“We don’t just finance buildings — we finance communities. Nelson Funding gets tough development projects funded.”
FAQs Real Estate Development Loans
Yes. Development loans can cover land acquisition, horizontal improvements, and vertical construction.
Up to 85% LTC and 75% LTV depending on project type and borrower experience.
Not always. Many of our lenders will fund projects without presales, especially in strong markets.
Nelson Funding can close development loans in 3–4 weeks, compared to months with banks.
Most borrowers refinance into permanent financing, sell individual units, or sell the completed project
Ready to Build Your Next Development?
From subdivisions to multifamily complexes, Nelson Funding structures real estate development loans that move projects forward. Fast approvals, flexible terms, and nationwide coverage.
Apply Now
