Tennessee · Build-for-Rent
Tennessee build-for-rent financing.
Ground-up construction for rental houses, then a DSCR take-out once the homes are leased. Up to 85% of cost during the build, interest only on drawn funds, $1M to $5M.
By David Hodara ·
85% LTC
Construction
80% LTV
DSCR take-out
$1M-$5M
Loan range
24-48h
Term sheet
Tennessee build-for-rent market context
Build-for-rent is two loans in sequence: construction judged on budget, contractor and schedule, then a rental portfolio judged on rent. We arrange the DSCR take-out (up to 80% LTV) before the first draw and phase delivery so the first homes lease while the last are still being built.
In Tennessee the rent assumption has to be local: Nashville-area and Memphis-area rents support very different construction budgets, and the take-out is sized on the rent the homes actually achieve.
Non-US investors build to rent in Tennessee on the same terms as US investors, through a US LLC and without a US credit history.
Typical loan products for Tennessee build-for-rent
Each deal gets routed to the product structure that fits. Most build-for-rent deals in Tennessee use one of the following.
Construction loans
Ground-up financing for spec houses, small residential buildings and build-to-rent, up to 85% of cost, interest only on the drawn balance, draws against inspected work.
Bridge loans
Lot or land acquisition while permits and horizontal work are finished, ahead of the first construction draw.
DSCR loans
The hold or the exit: long-term financing qualified on the property's rent rather than personal income, up to 80% LTV.
Buying Tennessee build-for-rent from outside the US
We finance build-for-rent in Tennessee for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
Tennessee build-for-rent FAQ
Who finances Tennessee build-for-rent projects under $5M?
We do, as a construction loan up to 85% of cost with a DSCR take-out arranged before the build starts.
Is the project financed as construction or as a rental portfolio?
Both, in sequence: construction during the build, drawn against inspected work, then DSCR on the leased homes.
What does the financing cost upfront?
Nothing. There are no upfront fees. Our fee is 1 to 2% of the loan, paid at closing, and the rate is set on the term sheet by leverage, the business plan and the sponsor's completed projects.
Can a foreign national finance build-for-rent in Tennessee?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents borrows on the same terms a US investor receives. You do not have to travel to the United States to close.
Other Tennessee asset classes
Got a Tennessee build-for-rent deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose investment property financing only.