Why underwriting for experienced developer loans is different
Underwriting a construction loan for an experienced developer is a fundamentally different process from approving one for a novice investor. The risk models, evaluation criteria, and documentation expectations are tailored to entities with a proven development track record.
Instead of assessing personal credit or income streams, lenders focus on project history, entity structure, and operational capability.
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Marquee Funding Group, for example, doesn’t accept applications from individuals or first-time borrowers. Our focus is strictly on business entities (LLCs or corporations) with three or more completed development projects.
This threshold creates a more streamlined, professional underwriting process that rewards capability and reduces unnecessary red tape.
Connect with Marquee Funding Group right now to start the ball rolling on your project evaluation.
What lenders look for in your project history
When reviewing a loan application, experienced developer lenders want to see tangible proof of your ability to deliver results. This doesn’t mean a flashy resume; it means real-world execution.
Here are the top aspects underwriters evaluate:
- Quantity of projects completed: Three or more is the baseline. More matters, but recency and relevance matter more.
- Project scope and similarity: Have you built similar types of projects before? A track record in single-family homes doesn’t always translate to a multifamily development.
- Completion timelines: Did you deliver on schedule, or were there delays? If delayed, were the causes reasonable and resolved professionally?
- Profitability and value creation: Appraisal data, resale price, or stabilized value compared to total cost shows business acumen.
- Management team consistency: Is the same team executing each deal, or are there gaps in operational continuity?
Lenders see past projects as a predictor of future performance. A clean, organized portfolio shows you’re a serious operator.
How to document and present your development track record
A well-prepared track record file can move your loan from submission to approval in days, not weeks. But experienced developers often underestimate how critical presentation is.
Here’s what to include:
- Project addresses and dates (start to finish)
- Property type and scope (ground-up, heavy rehab, conversion, etc.)
- Budget and actual spend (show planning and execution discipline)
- Lender used and loan amount (especially if previous loans were paid off without issue)
- Outcome (resale price, appraisal value, stabilized income)
- Visuals (before-and-after photos, construction timeline graphics)
Pro tip: Bundle your track record in a single PDF or project summary deck. Include a project table with columns for type, location, value, date, and outcome. That level of organization immediately elevates your credibility.
The key financial metrics lenders evaluate
While experience is the core qualification, private lender requirements still consider several financial metrics to manage risk. For business entities, the most important are:
- Liquidity: At least six months of interest reserves or cash to cover contingencies.
- Leverage ratios: Total project cost vs. entity equity contribution.
- Project margin: Projected profit must justify the loan risk; typically 15%+. Industry data from the Construction Financial Management Association shows typical profit margins vary significantly by project type and market conditions.
- Draw schedule logic: Do the timing and amounts of draws align with construction milestones?
- Exit strategy realism: Whether it’s resale, refinance, or lease-up, your exit must be feasible within the loan term.
Marquee evaluates these metrics in tandem with experience. A borrower with a 3+ project record but unrealistic numbers will raise flags. Experience must be paired with operational precision.
Entity-level underwriting: What your LLC or corporation must show
Experienced developer underwriting doesn’t stop at the project; it extends to the borrowing entity itself. Your LLC or corporation needs to be structurally and legally sound.
Here’s what lenders like Marquee require:
- Articles of Organization or Incorporation
- Operating Agreement or Bylaws with clear decision-making authority
- EIN verification (IRS assignment letter)
- Certificate of Good Standing (state-verified)
- Borrowing resolution authorizing the loan
In addition, the entity’s financial health will be reviewed. While most construction lenders don’t require audited financials, having a basic balance sheet, P&L, and proof of current banking relationships enhances credibility.
An experienced developer entity isn’t just a shell for a project; it’s a business. Lenders underwrite accordingly.
Risk flags: What gets experienced developers denied
Even seasoned borrowers can face rejections if certain red flags appear. These are the most common deal-killers:
- Inconsistent or outdated entity docs: If ownership or signatory rights aren’t clear, underwriting stalls.
- Unverifiable project history: If you can’t document past completions, experience claims won’t hold weight.
- Unrealistic budgets or timelines: Inflated projections or underpriced scopes trigger risk reviews.
- Pending legal issues or liens: Any litigation or cloud on title must be resolved before closing.
- Poor communication: Delays in submitting documents or providing clarifications erode underwriter trust, even for experienced borrowers.
Avoiding these pitfalls starts with preparation. Your experience gives you leverage. Use it by being responsive, transparent, and proactive.
Final checklist: What to include to streamline underwriting
If you’re pursuing an experienced developer loan, here’s the complete set of materials you’ll need to speed through underwriting:
Project history file
- Project summary table (3+ deals minimum)
- Photos or media files
- Completion documentation
- Sale or appraisal outcomes
Entity documentation
- Articles of Organization/Incorporation
- Operating Agreement or Bylaws
- Borrowing resolution
- EIN letter and Certificate of Good Standing
Financial documentation
- Entity bank statements (3 months)
- Budget and draw schedule for new project
- Exit strategy outline
- Proof of liquidity
Project documents
- Purchase agreement or deed
- General contractor agreement
- Preliminary title report and survey (if available)
When your submission is packaged properly, underwriting moves quickly and with fewer conditions.
At Marquee Funding Group, we reward that kind of professionalism with fast closings and customized loan structures.
Ready to put your experience to work?
If your LLC or corporation has three or more completed projects, Marquee’s experienced developer loans are designed specifically for you.
Our underwriting team knows what proven developers need: a lender that understands execution risk, not just spreadsheet risk.
Apply now with Marquee Funding Group and move forward with a financing partner built for professionals like you.