Private Money Nevada
Construction and Development Loans in Nevada
Differentiating Between Rehab and Construction Financing
While a rehab loan funds improvements on an existing structure, construction loans finance building projects from the ground up. These projects carry more risk for lenders because there is no collateral until construction advances. In Nevada, where new subdivisions, multifamily properties, and commercial developments are springing up, construction loans fill an important niche. Private lenders offer these loans when banks may hesitate, especially if the borrower lacks an extensive construction track record.
Preparing for a Construction Loan
To secure construction financing, you need more than a good idea. Lenders require detailed plans, budgets and proof of expertise. Assemble a team including an architect, general contractor, and, if necessary, engineers to develop plans and obtain permits. Provide a comprehensive project budget that outlines costs for site preparation, foundation, framing, roofing, systems (electrical, plumbing, HVAC), interior finishes and landscaping. The more thorough your documentation, the more confident the lender will be.
Draw Schedules and Inspections
Construction loans are usually disbursed in stages. An initial advance covers land acquisition or payoff, and subsequent draws are tied to construction milestones like slab completion, framing and final finishes. Before releasing a draw, lenders often send an inspector or third-party fund control company to verify progress. This ensures that funds are being used appropriately and that the project is on track. Staying organized with invoices, permits, and lien waivers makes this process smoother.
Building in Different Nevada Regions
Nevada’s construction landscape varies. In Henderson and Las Vegas, infill lots require careful consideration of zoning, HOA restrictions, and existing infrastructure. Near Reno and Sparks, developers should factor in snow loads and energy efficiency to meet local building codes. In rural counties, access to utilities like water, power, and sewer may be limited, requiring off-grid solutions or significant infrastructure investment. Land in these areas may be cheaper, but logistical challenges can add costs.
Mitigating Risks
Construction projects are susceptible to budget overruns, contractor delays, and regulatory hiccups. Borrowers should build a contingency of 10 to 20 percent into their budgets. Fixed-price contracts with contractors can help control costs, but be wary of bids that seem unrealistically low. Check your contractor’s licensing, insurance, and track record. Stay in communication with both your lender and contractor. If delays occur, alert your lender early; many will extend the loan if progress is reasonable and documented.
Let’s Build Something Together
If you’re planning a construction or development project anywhere in Nevada, Private Money Nevada can provide the funding to get your vision off the ground. Our construction loans are tailored to the unique challenges of building in the Silver State. Contact us to discuss your plans, and we’ll craft a financing solution that keeps your project moving forward.
Contact Private Money Nevada Today:
Phone: (702) 205-7070
Email: info@privatemoneynevada.com
Las Vegas Office: 6230 McLeod Dr. Suite 120, Las Vegas, Nevada 89120
Licensed Nevada Mortgage Lender | NMLS #123456
Find trusted private money lenders offering fast approvals, competitive rates, and quick funding for Nevada investment properties, fix and flip projects, and commercial real estate throughout Las Vegas, Reno, and Henderson.
PRIVATE MONEY NEVADA
helping Nevada real estate investors achieve their investment goals