Private lending has become a go-to funding option for real estate investors and developers who want to move quickly, work with flexible capital, and avoid the red tape that comes with banks. But not every project is a perfect fit, and not every lender understands the unique demands of real estate.
So what kinds of projects actually work best with private lending?
What Is Private Lending in Real Estate?
Private lending is a form of non-bank financing where funding comes from individuals or private companies rather than large financial institutions. These loans are typically short-term, asset-based, and focused on the deal itself rather than the borrower’s income or credit history.
At Avondale Private Lending, this means providing smart, fast capital for real estate projects that need a lender who understands the business and moves at your pace.
Why New Construction Projects Are a Perfect Fit for Private Lending
Banks are often cautious when it comes to new builds. They worry about timelines, permits, and changing market conditions. That’s where private lending stands out. We look at the project’s potential, not just its current paperwork.
Private lending for new construction provides faster capital access, more flexible structures, and a direct path to funding when banks slow the process down.
Here’s why builders, developers, and investors use private lending to fund ground-up construction.
Speed That Keeps Construction Moving
Time kills deals. And in construction, delays cost money.
Private lending can take you from approval to funding in days instead of weeks. You can purchase land, lock in your contractor, and start moving forward without waiting on a long bank process.
Flexible Loan Structures Tailored to Project Phases
Whether you’re building a single home or a multi-lot subdivision, private lenders can structure the loan based on your construction schedule. Staged draws, interest-only payments, and custom terms are all on the table.
We build the loan around your project, not the other way around.
Funding That Looks Forward, Not Just at the Land Value Today
Banks tend to underwrite loans based on current land value, which can limit your budget. Private lenders are open to evaluating the after-construction value, giving you more leverage to build.
This forward-thinking approach to new construction real estate financing gives builders and developers more leverage and flexibility during the planning phase. This makes a big difference when you’re adding value through new development.
Less Red Tape, More Progress on Site
Private lending doesn’t come with layers of approvals or endless paperwork. You work directly with decision-makers who understand what you’re trying to do and can give you clear, timely answers.
That means fewer delays and more time focused on the build.
Other Real Estate Projects Suitable for Private Lending
There are many types of real estate projects for private loans beyond new construction. There are a few we regularly fund at Avondale such as Buy and Hold rental investments.
Looking to buy and stabilize a property before refinancing into long-term debt? Private loans help you move fast and improve the property before locking in a conventional loan.
Why Banks Don’t Always Work for New Construction
Banks tend to be conservative. They don’t love land without improvements, lengthy permit processes, or builder timelines. And they’re usually not interested in anything outside the box.
Here’s what you’re dealing with when you go the bank route:
- Long approval timelines
- Conservative loan-to-value ratios
- Inflexible underwriting
- Delayed construction draws
- Multiple layers of review
When time, flexibility, and deal experience matter, private lending becomes the go-to alternative financing for new builds.
Why Builders and Developers Choose Avondale
We work with experienced investors and builders who need a lender that moves fast, understands construction, and funds deals without unnecessary hold-ups.
At Avondale, you get:
- Quick turnarounds to keep your timeline intact
- Custom loan terms based on your project, not a preset formula
- Direct access to real decision-makers
- Reliable capital that doesn’t slow you down
We know you have work to do. Our job is to help you do it without interruptions.
Ready to Get Your New Build Off the Ground?
Private lending is built for speed, flexibility, and execution. New construction is one of the best matches for this kind of financing, especially when banks can’t keep up or won’t support your vision.
Whether you’re breaking ground on a spec home, building out multiple units, or developing a neighborhood from the ground up, private lending helps you move with confidence.
Let’s talk about your project and how we can help you move faster with financing that fits your strategy.