How to Finance a $3M–$10M Ground-Up Construction Project: What Private Lenders Look For

Last updated: December 2025

Quick answer

Private lenders finance $3M–$10M ground-up construction projects by focusing on borrower experience, viable exit strategies, project feasibility, and strong collateral. Unlike banks, they offer flexible, fast funding, even for complex or unconventional construction projects .

When it comes to ground-up construction projects in the $3M–$10M range, traditional financing can be slow, rigid, and often unrealistic. 

Developers and investors working at this level need speed, flexibility, and a lender who understands the nuances of real estate development, not just a checklist of underwriting criteria.

That’s where private lenders like Marquee Funding Group come in. Whether you’re building a custom home, multifamily complex, or commercial structure, understanding what private lenders look for can make or break your ability to fund a project efficiently.

Here’s what you need to know.

Why private capital is ideal for ground-up construction

Private construction loans, also known as hard money loans, offer distinct advantages over bank financing for large-scale development:

• Faster approvals and closings (often in days, not weeks or months)
• Common-sense underwriting that  considers the full story, not just credit scores
• Willingness to fund land, soft costs, and vertical construction
• Flexibility with entitlements, builder experience, and project complexity

Private lenders are not subject to the same regulations as banks, which allows them to fund deals that make sense, even if they don’t fit traditional guidelines.

Constraints on construction lending, documented in the Federal Reserve’s Senior Loan Officer Survey, help explain why developers increasingly rely on private capital for large ground-up projects.

What private lenders evaluate in large ground-up construction deals

Unlike institutional lenders who underwrite based on rigid formulas, private lenders focus on the  full picture: the borrower, the project, and the exit.

Here’s what Marquee and similar lenders prioritize:

1. The borrower’s experience and track record

While private lenders are more forgiving of past credit issues, they place significant weight on:

• Prior successful construction projects
• Experience managing similar build types or price points
• A clear business plan and timeline
• Demonstrated Ability to manage budgets and contractors

First-time builders may still qualify for financing, but they’ll need a strong team or strategic partners to demonstrate execution capability.

2. Strength and value of the collateral

Lenders will assess both:

• Current as-is value of the land or existing improvements
• Projected completed value (ARV) based on plans, comps, and market conditions

For $3M–$10M projects, a detailed appraisal, contractor estimates, and pro forma are often required. Lenders also consider zoning, location, and entitlements.

Permitting timelines and development feasibility are closely tied to local approval cycles, as tracked by the Census Bureau’s Building Permits Survey, which lenders consider when assessing construction risk.

3. Loan structure and leverage

Most private construction loans are structured using the following parameters:

Borrowers may need to bring equity to the table or show “skin in the game.” This can come from land ownership, prior work completed, or a direct cash investment.

4. Clear and viable exit strategy

The lender must feel confident that the loan will be repaid, either through:

• A refinance (takeout loan or permanent mortgage)
• Sale of the completed property (spec home or pre-sold deal)
• Stabilized income for long-term hold

Exit planning is crucial for larger projects. Lenders want to see strong comps, market demand, and borrower liquidity in case of delays.

What sets Marquee apart in construction financing

Marquee Funding Group specializes in complex, high-value private loans, including ground-up construction in the $3M–$10M range. 

Our team offers:

• Same-day approvals and funding in as little as 5–7 business days
• Creative structuring for unique or unconventional deals
• Interest reserves and flexible draw schedules
• Options for spec builders, first-time developers, and qualified foreign nationals
• Lending to individuals, trusts, entities, and retirement accounts

We evaluate the entire story, not just the numbers, making us a trusted partner for experienced builders and developers looking to scale.

When to use private construction loans

Private construction financing is ideal when:

• Banks have denied your loan due to credit, income, or project type
• You’re working under a tight deadline and can’t wait 45–90 days for approval
• Your project involves raw land or major entitlements not funded by banks
• You need short-term capital to bridge until you secure long-term financing

If your deal makes sense but falls outside conventional guidelines, private lending could be the fastest path forward.

Tips for getting approved for a high-value ground-up construction loan

Here’s how to make your application stand out:

• Provide a full construction budget with hard and soft costs
• Submit a timeline or draw schedule showing major milestones
• Include detailed plans, permits, and entitlement status
• Show experience, either through past projects or your team
• Demonstrate a clear exit, including strategy and backup options

The more clarity and professionalism you provide upfront, the faster and more confidently a private lender can fund your project.

Start your project with confidence

Financing a $3M–$10M ground-up construction project doesn’t have to mean jumping through hoops or waiting months for approvals. 

With a private lender like Marquee Funding Group, you get access to experienced professionals who understand the pace and complexity of real estate development.

Whether you’re building your next luxury spec home or developing a new multifamily asset, Marquee can provide the capital, speed, and flexibility to make it happen. 

Need fast funding for your next $3M+ project? See if you qualify with Marquee Funding Group.

Frequently asked questions: Financing a $3M–$10M ground-up construction project