Looking to scale your portfolio with duplexes, triplexes, or fourplexes?
For experienced developers operating through LLCs or corporations, multi-unit construction loans offer a powerful way to build high-demand housing while optimizing cash flow and capital efficiency.
Unlike large-scale apartment complexes, 2–4 unit projects are often easier to entitle, faster to build, and more flexible to exit—whether you’re selling, refinancing, or holding for rent.
In this guide, we’ll break down how Marquee Funding Group serves experienced developers with specialized multifamily construction financing.
You’ll learn what qualifies, why 2–4 units are a strategic target, and how to prepare your project to secure capital quickly.
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Why small multifamily projects deserve specialized financing
When most lenders talk about multifamily construction financing, they often jump to 20+ unit apartment complexes or large-scale developments.
But for experienced developers structured as LLCs or corporations, 2–4 unit projects present some of the most strategic opportunities in high-demand urban markets.
These smaller multi-unit builds are often:
- Faster to complete
- Easier to sell or rent
- Can generate outsized returns (with the right financing partner)
That’s why Marquee offers tailored multi-unit construction loans for business entities with 3+ completed projects and a clear development track record.
Additionally, many municipalities are now encouraging “gentle density” infill as a housing solution—making these projects not only profitable but also increasingly prioritized for permitting and approvals.
Developers who can move quickly on entitled land and execute efficiently are well-positioned to dominate this niche.
Who qualifies for multi-unit construction loans with Marquee?
We specialize in working with serious developers—not beginners or one-off flippers.
To qualify for financing:
- Your borrowing entity must be an LLC, corporation, or other business structure
- You must have 3 or more successfully completed projects
- Your project must fall between $750,000 and $5,000,000
- Location must be in an eligible urban core market, especially in California, Florida, or Texas
- The property must be non-owner occupied and used for business purposes only
We underwrite projects based on your experience, the strength of your budget and timeline, and market-based exit potential. This isn’t consumer lending—it’s strategic developer financing.
Why 2–4 unit projects are a sweet spot for experienced developers
In many cities, duplexes, triplexes, and fourplexes strike the perfect balance:
- Zoning flexibility: Often easier to entitle than larger multifamily projects
- Exit versatility: Can be sold individually, as rentals, or kept in portfolio
- Speed: Faster permitting, build, and sell cycles than large multifamily
- Risk mitigation: Lower exposure compared to 10+ unit ground-ups
For investors looking to scale intelligently, these projects offer a powerful blend of liquidity, velocity, and profit margin.
And in California, especially, recent legislation has made it easier to split lots and build multiple units on formerly single-family parcels.
Our multifamily construction financing approach
Unlike institutional lenders that treat all multifamily the same, we tailor our underwriting and draw schedules to small-scale multifamily.
Here’s what you can expect with a Marquee multi-unit construction loan:
Loan features
- Loan size: $750,000 to $5,000,000
- Terms, LTV, rates: Varies by project complexity, borrower experience, and market.
Specific loan structure—including draw schedules, loan-to-value, and interest terms—is determined through project review and borrower consultation.
Project types financed
- Ground-up construction of 2–4 unit properties
- Urban infill developments in zoned residential areas
- Value-add redevelopment of existing small multifamily structures
This flexibility allows us to serve both developers doing repeat projects on similar footprints and those transitioning into slightly larger deals.
Borrower profile: what we look for
Marquee’s multi-unit construction loans are reserved for experienced developers.
Here’s what our ideal borrower profile includes:
- Business entity borrower (LLC or Corporation)
- Minimum of 3 completed ground-up or major rehab projects
- Detailed budget, timeline, and scope of work
- Experienced GC or licensed subs
- Strong understanding of local permitting and zoning
- Exit strategy clearly defined (sale, refi, rental, etc.)
We understand the value of developer experience. A strong track record not only opens the door to better terms—it also enables faster closings, higher leverage, and reduced red tape.
Pre-construction readiness: what to have in place
Before applying for a multi-unit construction loan, developers should be prepared with:
- Entity documentation: Articles of organization, EIN, operating agreement
- Site control: Purchase agreement or proof of ownership
- Budget and scope: Line-item construction budget and project summary
- Draw schedule: Anticipated timeline and funding phases
- Exit strategy outline: Whether you’re planning to sell, refinance, or hold as a rental
If you’re working with a design/build firm or architect, include preliminary plans and renderings—especially if you’re planning a resale strategy and want to show product-market fit.
Any comps or market data that support your valuation are a bonus during underwriting.
Key markets for multi-unit development loans
While Marquee’s lending footprint includes key markets beyond California, most of our 2–4 unit developer borrowers operate in high-barrier-to-entry metros where we have deep experience and strong deal flow, including:
- Los Angeles County: Teardown duplexes in opportunity zones
- Bay Area: Fourplex builds with condo maps
- San Diego: Triplex infill near transit corridors
- Austin & Dallas: BTR developments in high-rent submarkets
- Miami & Tampa: Urban small-lot multifamily with fast lease-ups
We especially prioritize markets with strong rental demand, limited housing stock, and favorable permitting environments.
If you have a project in an emerging metro or are expanding to a new region, we’re happy to explore the opportunity.
Fast reviews. Fast closings.
With over $3.1B in funded deals, Marquee is built for speed, transparency, and developer alignment.
We know that time is money in construction, and we don’t waste either.
- No personal income verification
- Stated income programs are available for entities
- Draws based on actual construction progress
- Dedicated loan officer and underwriting team
We partner with developers who are looking to move fast, close cleanly, and repeat success across multiple properties.
Whether you’re targeting high-end duplex builds in coastal markets or workforce housing fourplexes in up-zoned suburbs, we can provide the capital you need.
Ready to fund your next multi-unit project? Apply with Marquee Funding Group today and get a quote fast.