Alternative Lending for Real Estate Sponsors
Real Estate Construction Financing
Construction capital structured around qualified projects, experienced sponsors, documented budgets, disciplined draws, and a credible completion and repayment plan.
Construction financing must account for more than a property’s current value. Mid Atlantic evaluates the sponsor, plans, permits, market, cost basis, contractor, schedule, contingency, collateral, and exit strategy before proposing a structure. All financing is subject to underwriting and approval.
Financing Designed Around the Build
Qualified proceeds may support approved acquisition, hard construction costs, certain soft costs, interest reserves, and other documented project expenses. The proposed structure depends on the asset, stage of construction, sponsor equity, budget, market evidence, and expected repayment source.
Core Underwriting Questions
Sponsor
Does the sponsor have relevant experience completing, operating, selling, or refinancing comparable projects?
Project Readiness
Are plans, permits, contracts, consultants, and the construction schedule sufficiently developed?
Budget
Are costs supported, is sponsor equity clearly documented, and does the plan include an appropriate contingency?
Exit
Is repayment supported by realistic sales, stabilization, lease-up, or refinance assumptions, with a credible backup plan?
Draw Controls and Monitoring
Construction loans commonly fund through documented draws rather than a single advance. Depending on the transaction, funding may require inspections, progress verification, lien waivers, updated budgets, evidence of contributed equity, and confirmation that the loan remains in balance. These controls help monitor how capital is used but do not eliminate construction, market, cost-overrun, or repayment risk.
Information to Provide
Prepare a project overview, organizational chart, sponsor résumé and track record, current financial statements, property information, plans and specifications, permits, construction contract, line-item budget, schedule, sources and uses, market or appraisal support, and a detailed exit strategy.
From Initial Review to Closing
- Project intake: Describe the asset, location, current stage, total budget, requested capital, and timeline.
- Diligence: We assess the sponsor, collateral, documents, cost basis, construction plan, market, and repayment strategy.
- Structure: If the project fits, proposed terms address collateral, equity, draws, covenants, reporting, and closing conditions.
- Closing and administration: Approved transactions proceed through legal documentation and the required monitoring process.
Review Your Construction Financing Scenario
Share the project type, location, current stage, budget, capital request, and proposed exit.
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Review Mid Atlantic’s alternative lending products and disciplined underwriting approach.
Schedule a Consultation
Share the property, project stage, capital request, and proposed repayment plan.
Important Lending Disclosure
This page is for general informational purposes and does not constitute a commitment to lend or an offer of specific terms. Availability, structure, pricing, proceeds, collateral, guarantees, covenants, fees, and closing requirements vary by transaction and remain subject to underwriting, diligence, approval, and definitive documentation. Trust metrics are management-supplied and should be reviewed with current company materials.