TN Market
Bridge, Flip & Construction
Loans in Tennessee
Bridge, fix & flip, construction, renovation and DSCR loans for investors buying in Tennessee, from the US or abroad, on the same terms. $1M to $5M. Foreign nationals welcome.
Passy Capital finances investors who buy, renovate and build residential investment property in Tennessee: bridge loans, fix & flip loans, and ground-up construction for spec homes and build-to-rent, then renovation loans and DSCR loans as the long-term hold. Loans run from $1M to $5M, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file.
Tennessee has two very different investor markets. Middle Tennessee, around Nashville, is a building market: infill new construction in the city, and spec homes and build-to-rent in the surrounding counties. Memphis is a rental market, where investors buy, renovate and hold portfolios of single-family houses and refinance them into DSCR loans. We also lend in Knoxville, Chattanooga and the state's other markets. Leverage goes up to 80% LTV on bridge loans, 85% of cost on construction, 90% of cost on fix & flip and renovation, and 80% LTV on DSCR loans.
A non-US investor borrows through a US LLC on the same terms as a US investor, with no US credit history required. All loans are business-purpose and for non-owner-occupied property. Larger commercial deals are placed through our capital-partner network.
Tennessee Market Highlights
Non-judicial foreclosure
Tennessee loans are secured by a deed of trust with a power of sale, and foreclosure generally runs through a trustee's sale rather than a lawsuit.
Recording taxes
Tennessee charges a recordation tax of 37 cents per $100 on a property transfer, and 11.5 cents per $100 of the loan amount (above the first $2,000) when the deed of trust is recorded. Both apply on purchases and on refinances.
Residential tax assessment
Under the Tennessee constitution, residential property is assessed at 25% of appraised value, whether it is owner-occupied or rented, so a rental is not taxed at a higher ratio.
Entity taxes
Tennessee has no personal income tax on wages, but an LLC holding Tennessee property is generally within the state franchise and excise tax. Price it in with your tax adviser before choosing the holding structure.
Two strategies, one lender
Ground-up and infill construction in Middle Tennessee, buy-renovate-hold in Memphis. We finance the build or the renovation and the DSCR refinance that follows.
Foreign investors, same terms
A non-US investor forms a US LLC, which becomes the borrower. Underwriting looks at the property and the plan rather than a US credit file, and there is no foreign-national premium.
Cities We Serve
Nashville
Franklin
Murfreesboro
Mount Juliet
Gallatin
Clarksville
Memphis
Germantown
Bartlett
Collierville
Knoxville
Chattanooga
Property Types We Finance
Single-Family
2-4 Units
Condo / Townhome
Small Multifamily (5-9 Units)
Build-to-Rent
SFR Portfolios
Loan Programs
Bridge Loans
Buy, refinance or cash out an investment property, closing in about two weeks.
Construction
Ground-up spec homes and build-to-rent, with draws tied to milestones.
Renovation / Rehab
Rehab financing on 1-4 unit and small multifamily, drawn against completed work.
Fix & Flip
Purchase and rehab in one loan for 1-4 unit flips, closing in about two weeks.
DSCR / Rental
Long-term rental financing based on property cash flow.
Tennessee financing by asset class
Each asset class has distinct financing dynamics in Tennessee. Browse the asset-specific pages for market context, loan products, and FAQs.
TN · Single Family & 1-4 Unit
Tennessee Single Family & 1-4 Unit →
Bridge, fix and flip, renovation and DSCR loans on Tennessee houses and 2-4 units, $1M-$5M.
TN · Ground-Up Construction
Tennessee Ground-Up Construction →
Ground-up construction loans for Tennessee spec homes and small residential builds, up to 85% LTC, $1M-$5M.
TN · Build-for-Rent
Tennessee Build-for-Rent →
Build-for-rent loans in Tennessee: ground-up up to 85% LTC, then a DSCR take-out once leased.
Other US Markets
We finance investment property for US and foreign investors in other markets too.
FL
Florida →
No-tax growth market, Miami, Orlando, Tampa
TX
Texas →
Population boom, Dallas, Houston, Austin
CA
California →
Spec builds and flips, Los Angeles, Bay Area, San Diego
NY
New York →
1-4 unit and small multifamily, NYC, Brooklyn, Long Island
AZ
Arizona →
Flips and build-to-rent, Phoenix, Scottsdale, Tucson
GA
Georgia →
Flips and spec builds, Atlanta metro
NC
North Carolina →
Spec builds and flips, Charlotte, Raleigh
CO
Colorado →
Flips, infill and rentals, Denver metro
IL
Illinois →
Two-flats, flips and rentals, Chicago
OH
Ohio →
Flips and buy-and-hold, Columbus
WA
Washington →
Infill and middle housing, Seattle
VA
Virginia →
Flips and rentals, Richmond
SC
South Carolina →
Flips and coastal rentals, Charleston
MT
Montana →
Higher-price builds and rentals, Bozeman
NJ
New Jersey →
Flips and small multifamily, Jersey City, Newark
PA
Pennsylvania →
Rehabs and flips, Philadelphia, Pittsburgh
MO
Missouri →
Flips and rentals, St. Louis, Kansas City
Have a deal in Tennessee?
Submit your deal in 2 minutes. We'll review it and get back to you within 24 hours with financing options.
Submit a DealTennessee City Guides
How we finance flips, new construction and rentals in Tennessee's markets.