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Welcome Private Individual Investors!

Welcome, Individual Real Estate Investors!

Earn a Combined Return of up to 19% Fixed Returns from Single-Family “New Construction” Projects!

Builders Capital Group (BCCG) brings private investors together to co-invest in the “new construction” projects of home builders, real estate developers, and construction companies. Instead of submitting these financing requests to mortgage lenders, banks, and commercial finance companies, we bring these loan requests directly to individual investors (or indirectly via their investment managers) for investment consideration as passive, direct participation, short-term, fixed-income investments. So, instead of the builder making loan payments to the bank, those payments are made to the investors monthly. This creates a fixed-income stream starting at 7.5% prorated APY/current WSJ Prime Rate (as of 5/19/2025) for the entire investment term, with an additional return of up to 12.5% at maturity.

Our SFH new construction loan investments range from $50,000 to $1,750,000. However, we can effectively raise the capital to finance these projects using investment “syndication.” Syndication is the process by which the investments originated and underwritten by BCCG are offered as “fractional” investments by dividing them into smaller “investment participation notes” of $10,000 to $250,000 a piece for easy distribution among multiple investors. NOTE: ALL INVESTORS ARE SECURED IN A “FIRST LIEN” POSITION.

For example, a local builder under contract to buy a vacant, run-down, 4BR, all-brick, single-family home for an SFH new construction project that requires a short-term loan investment of $250,000 could be funded by up to 10 investors collectively agreeing to lend $25,000 each to finance that project. We work to mitigate as many of the following investment risks in every note investment opportunity:

  • MISAPPROPRIATION OF FUNDS RISK MITIGATION: The project manager cannot “take the money and run.” The construction loan proceeds will not be disbursed to the project manager immediately. A biweekly disbursement schedule will be advanced to cover the costs of materials and labor as the project progresses.
  • LOAN DEFAULT RISK MITIGATION: Monthly loan repayment default has been mitigated due to a pre-funded balance of interest reserves to be held in escrow and collected by an independent loan servicing company that will promptly remit those monthly interest-only payments to all participating loan investors.
  • SALES PERFORMANCE RISK MITIGATION: The project’s nonperformance has been mitigated due to the engagement of a local real estate brokerage firm to conduct a citywide advertising and marketing campaign promoting the subdivision’s “grand opening,” wherein the first home built is furnished, decorated, landscaped, staged, and promoted as an “open house.”
  • INSURANCE HAZARD RISK MITIGATION: BCCG has requested a comprehensive blanket insurance policy by Builders Insurance (no relation) to provide end-to-end insurance coverage for the home and the rehab project until resold. This insurance coverage (in the amount equal to both the principal and interest) also names the loan participants the “investors” (as the assignees of Metropolitan Commercial Mortgage Funding) as “co-insured” alongside the borrower.
  • LIQUIDITY LOSS RISK MITIGATION: Our “Fractional Investment” platform allows you to determine the degree of participation in any construction loan investment we offer. This gives you complete control over how much money you invest without sacrificing your liquidity. No “all or nothing” loan participation requirement could make you regret “going all in” out of fear of missing out on a good return.
  • DEPRECIATION OF COLLATERAL RISK MITIGATION: The loan has been underwritten under conservative appraisal guidelines based on a “wholesale cost to build” for the project. Therefore, individual investors’ due diligence on recent comps from the immediate local area of the project will show steady vertical growth trends of property valuations in the immediate 3-mile radius of the home and will not be “underwater” or “upside down.”

So, if you’re interested in short-term, high-yield, genuinely “passive” real estate investing, where you could put your cash investment capital to work for YOU, then we can work together to give you great returns.

The “Single-Family New Construction” Loan Note Investment Life Cycle – Overview

  1. A local custom home builder has an idea for a “new construction” project to build a custom 4,500 Sq Ft 4 BR/3.5 BA custom home. The builder then finds a premium 2-acre lot in a gated subdivision where high-end homes are built and sold. After he secures the lot under contract, his construction permit is approved, he concludes his due diligence and a formal loan application is submitted to BCCG.
  2. BCCG performs complete independent due diligence for the subject property (and the proposed buildout), which involves obtaining a title report, home inspection report, construction estimate, and an “after-repair-value (ARV) appraisal.
  3. The exhibits are compiled into a formal “Investment Summary” for review and consideration by BCCG’s group of registered private investors.
  4. BCCG successfully obtains executed Loan Participation Agreements from the investors.
  5. As per the investors’ investment participation commitment, they deposit their participation funds into the escrow account at the title company, closing the investment.
  6. BCCG obtains “escrow clearance” from the title company’s escrow agent, stating that the investment participation funds have cleared escrow. BCCG’s attorney then drafts the loan closing documents and schedules the closing.
  7. On the loan closing date, the investor’s participation funds are released from escrow to fund the investment according to a predetermined disbursement schedule agreed upon between BCCG, the title company, and the general contractor. NOTE: BCCG uses a third-party construction project disbursement management company for “funds control” to manage the disbursement schedule to the general contractor.
  8. According to the executed “construction management agreement” with the builder, the general contractor oversees the rehab project.
  9. The subcontractors contribute their respective labor toward the rehab project as it progresses to completion.
  10. The rehabbed home passes inspection and obtains a certificate of occupancy, which is necessary to market it for prompt sale. Additionally, the home undergoes interior design/decorating, exterior landscaping, and staging.
  11. Meanwhile, the loan servicing company collects the builder’s monthly investment payments (out of escrow).
  12. The collected funds are disbursed to the investors according to their pro rata stake in the new construction commercial mortgage note.
  13. Several aggressive marketing and promotional campaigns led by the real estate agent/broker generate several “walkthrough” tours by several interested, qualified, and motivated potential homebuyers.
  14. The successful marketing efforts of the home tours result in a couple entering a contract to buy the house (at the builder’s negotiated price) through the real estate broker.
  15. On the day of closing, the house is sold to the buyer, and they obtain both the deed and the keys to the property.
  16. The title company transfers the cash proceeds of the sale (sufficient to pay off the principal loan investment amount, PLUS the contractual due-on-sale interest payment) to the loan servicing company.
  17. The loan servicing company remits the payment of principal investment with interest (the investors’ due-on-sale premium rate of return).
  18. The title company remits the remaining proceeds from the sale to the /borrower.
  19. The builder returns to BCCG to finance their next project, and the loan investment lifecycle repeats itself.

Single-Family New Construction Loan Note Investment Highlights

  • MONTHLY “INTERIM” INTEREST PAYMENTS: Each Construction Loan has a monthly schedule of “interest-only” payments due and payable to the investors until the finished home is sold. BCCG assesses an interest reserve schedule using the current WSJ prime rate (7.5% APY) as a baseline.
  • REPAYMENT OF PRINCIPAL LOAN INVESTMENT: Short-term residential SFH new construction loans do not carry a long-term amortization schedule. The principal amount is paid at the maturity date of the loan investment.
  • A (ONE-TIME) DUE-ON-SALE PARTICIPATION INTEREST REMITTANCE: An additional one-time interest payment is due and payable to the investors at maturity (the day the finished home is sold). This amount is a fixed return assessed on a sliding scale, ranging from 8.5% to 15.5% of the principal note investment amount. Along with the principal, this amount is paid at the maturity date of the loan investment.
  • HIGH RATES OF RETURN: Current new construction investment opportunities offering 10.5% -14.5% at maturity (when the newly built home is sold), in addition to MONTHLY payments of “interest-only” during the buildout and sell-off period.
  • LOAN INVESTMENT FUNDS HANDLED VIA ESCROW: Investors directly deposit their funds into escrow at the title company handling the closing of their desired investment. BCCG does not have access to or control over investor funds placed in escrow.
  • MANAGED CONSTRUCTION LOAN DISBURSEMENTS: Post-closing construction investment proceeds are handled by an independent construction investment administration (servicing) company that disperses funds toward the buildout according to a predefined construction draw disbursement schedule set by the contractor. Furthermore, BCCG engages a construction site inspector to inspect the construction site as the work progresses to ensure the proper management of construction funds for materials and labor is handled accordingly.
  • INVESTMENT OPTIONS: Loans are divided into smaller mortgage shares called Loan Participation Notes (LPNs) at $10,000 – $250,000 per LPN. BCCG’s “New construction” Loan Notes are divided into up to 20 LPNs. One investor is NEVER obligated to invest in a new construction loan.
  • COMPLETE PROJECT DUE DILIGENCE: Third-party reports (fully executed purchase and sale contracts, title reports, inspection reports, appraisals, AND “professional grade” construction estimates) are part of the application process.
  • SOLID EXIT STRATEGY VIA THE RE-SALE OF THE PROPERTY: A “due-on-sale” premium rate of return in addition to the principal investment amount to be paid off when the property is sold (see the scenarios on the next page)
  • A SIMPLE INVESTOR REGISTRATION PROCESS: Please note that we must have a completed “Prospective Investor Registration Packet” on file for you before you execute an investment participation letter of intent. After registering with us, you must review the Syndicated Construction Loan Investment Summary of the investment you wish to participate in. Then, you must sign the last page of the investment summary, which is the Loan Participation Letter of Intent.
  • SIMPLE INVESTMENT EXECUTION AND EVIDENCE OF YOUR INVESTMENT: Upon registration and executing a Loan Investment Letter of Intent, you will be issued a Loan Participation Agreement with escrow deposit instructions for prompt execution. Once the Escrow Agent receives your deposit, BCCG will issue you an Investment Participation Certificate with Loan Participation Note serial numbers for every note you purchase. You will also be issued an Investor ID Number.

The Construction Loan Documents and the Note Investment Participation Documentation

NOTE: The red asterisk (*) represents documentation issued to the mortgage note investors, and the green asterisk (*) refers to documentation executed between BCCG and the Builder/Borrowing Entity.

  • THE CONSTRUCTION LOAN AGREEMENT*: is a legally binding contract between BCCG and the homebuilder that details the terms of the loan used to finance the construction project. This document specifies the loan amount, repayment schedule, interest rates, and various conditions, while also clarifying the rights and responsibilities of both the lender and the borrower, including the circumstances that may lead to default. This agreement serves as the foundation for creating the promissory note and security instruments, which are subsequently assigned to the participating mortgage note investors. These documents are finalized on the first business day following the loan closing and are filed with the county clerk’s office as required.
  • SFH NEW CONSTRUCTION LOAN INVESTMENT SUMMARY & DUE DILIGENCE EXHIBITS REVIEW (ISSUED UPON REQUEST)*: The Investor introductory packet. First-time investors or firms new to working with BCCG are introduced to both BCCG and current loan investment opportunities in the “Investor introductory packet.” The Investor summarizes the investment opportunity into concise bullet points on investment consideration. BCCG provides download links (via Box.com) for a comprehensive set of due diligence documentation that all Investors are advised to review. The due diligence documentation includes loan applications, appraisals, title reports, construction estimates, sales contracts, project information, etc., according to the “Due Diligence Checklist” on the previous page.
  • NOTE INVESTMENT PARTICIPATION LETTER OF INTENT EXECUTION* (issued upon satisfactory review of the Due Diligence Exhibits): BCCG provides a blank loan participation “Letter of Intent” form at the end of every due diligence packet to Investors willing to specify their willingness, capacity, and preferences concerning their desired participation in the multifamily development loan. This helps BCCG obtain an initial “headcount” of the requisite number of loan participants to confirm the loan closing date.
  • NOTE INVESTMENT PARTICIPATION AGREEMENT*: (issued upon receipt of a Loan Participation Letter of Intent) – Once BCCG receives a completed and executed letter of intent form, we immediately submit a Loan Participation Agreement for execution by the Investor. Each investor executes a Loan Participation Agreement whereby they agree on how much of a “stake” in the loan investment they are willing to take. The Loan Participation Agreement sets forth how many loan participation notes are “mortgage shares” of the entire face amount of the note that participating investors can purchase. NOTE: A minimum of TWO (2) investors must participate in the loan investment to qualify as a “Tenants-In-Common/Participation Loan.” The loan participation agreement also provides “escrow deposit instructions” that instruct loan participants to safely and securely deposit their funds DIRECTLY into the title company’s escrow account to facilitate the loan’s closing. BCCG is NOT a controlling party, custodian, or recipient of loan participation funds placed in escrow.
  • NOTE INVESTMENT PARTICIPATION CERTIFICATE*: (issued upon receipt of an executed Loan Participation Agreement) – Once the Investor executes a loan participation agreement and deposits its funds into escrow, BCCG issues a loan participation certificate that formally acknowledges the investment. The loan participation certificate is issued in both actual certificate format and a Loan Participation Acknowledgment letter that provides the Investor with the tracking numbers assigned to them and the loan participation notes (LPNs) purchased.
  • ASSIGNMENT OF MORTGAGE NOTE AGREEMENT*: (Issued 2-Business Days after the loan closing) – The “Fractional Assignment of Mortgage Agreement” is a document that legally assigns, conveys, and irrevocably transfers equitable and beneficial rights to each loan participant as a lien holder and creditor to the builder according to the loan participant’s capital contribution to the loan made to the builder/developer. The mortgage agreement assigns the loan participants their requisite share in the underlying collateral, security instruments, repayment of principal, and interest schedule according to their pro rata share in the mortgage investment amount. NOTE: A specimen copy of the document is available for review in the due diligence checklist.
  • CONSTRUCTION PROCEEDS DISBURSEMENT MANAGEMENT AGREEMENT*: In the “official” loan investment summary, BCCG will formally introduce/disclose the loan proceeds disbursement agent who will, on behalf of BCCG and the participating loan investors, serve as an independent “Loan Disbursement Agent” who will be the party solely responsible for dispersing loan proceeds to the construction manager of the project according to the construction loan agreement and the disbursement schedule executed between BCCG, the title company and the builder.
  • CONSTRUCTION SITE/AUDITING AGREEMENT*: In the “official” loan investment summary, BCCG will formally introduce/disclose the experienced construction site/draw inspector who will be responsible for conducting routine site visits to each construction project in between the scheduled disbursements to provide BCCG and the loan participants with detailed reports, photos, and videos on the progress of the project, and the accurate appropriation of disbursement proceeds that were previously and will be advanced toward the project.
  • INDEPENDENT LOAN SERVICING AGREEMENT*: In the “official” loan investment summary, BCCG will formally introduce/disclose the loan servicing company that will serve as the investor remittance agent. It is its fiduciary responsibility to disperse all monies that comprise both the principal and interest repayment at maturity, in addition to the monthly disbursement of the “interest-only” remittances.

A “SAMPLE” Single-Family New Construction Loan Investment Scenario

  • A typical scenario is outlined in the “Additional Information” section below. 

LOAN REPAYMENT STRUCTURE (PER LPN):

  • Loan Term (in months): 12
  • Fractional LTV: 3.25%
  • Monthly Interest-Only Payment: $7,365.00
  • Principal Loan Amount (Balloon Payment): $26,000
  • Due-On-Sale Interest Rate Payment: $2,730
  • Due-On-Sale Interest + Balloon Payment: $29,185

The above scenario revolves around a single-family residence for illustration purposes only. To review actual upcoming construction loan note investment summaries, please click here to register with our investor relations department.

Independent Third-Party Engagements In Every Loan Investment

BCCG has a fiduciary responsibility to our participating note investors to safeguard investment capital, secure the underlying collateral from depreciation, protect the construction loan proceeds from mismanagement, and consistently deliver a premium return on investment in every note investment opportunity.

Therefore, the following parties and their respective engagements, collaborations, and contributions will be present and apparent in every loan investment opportunity presented to our investor base.

  • COMMERCIAL REAL ESTATE ATTORNEY: Each construction loan closing is overseen by an independent commercial real estate attorney firm, with a local or regional presence in most of BCC G’s metropolitan service areas. This attorney is tasked with ordering title, confirming the legal status of all borrowing entities, drafting essential documents such as the loan commitment memorandum and construction loan agreement, as well as the closing and post-closing documents. They also represent BCC G as lender counsel. In addition to these responsibilities, the real estate attorney acts as the trustee, fiduciary, and custodian for the note investment funds held in escrow for BCC G’s participating note investors. This role is crucial in ensuring that all financial transactions are managed with integrity and compliance, safeguarding the interests of all parties involved in the loan process.
  • INDEPENDENT CONSTRUCTION ESTIMATOR: BCCG will utilize the services of an independent construction cost estimator to review the construction budget presented to BCCG by the builder during the application process. The purpose of the independent construction budget review is to ensure that the budget submitted to BCCG by the builder does not contain deflated, inflated, or inaccurate numbers for materials and labor. BCCG will adjust the scheduled loan amount accordingly if the construction estimator recommends increasing or decreasing the construction loan proceeds.
  • REAL ESTATE APPRAISAL FIRM: BCCG will engage the services of a local commercial/residential real estate appraisal company to offer comprehensive certified commercial real estate valuations of every residential development or construction project that BCCG is underwriting.
  • TITLE COMPANY/LOAN CLOSING AGENT: The title coordinator, closing coordinator, or real estate attorney may differ depending on the project’s immediate local/geographic market. Nonetheless, the title company engaged by BCCG will be able to obtain and deliver title reports, issue whole coverage title insurance policies, and coordinate lien waivers and releases as construction disbursements are advanced to each construction project.
  • ESCROW AGENT: The title company will also serve as the escrow agent for all loan participation funds on every residential/commercial construction and development loan originated and underwritten by BCCG. Each loan originated and underwritten by BCCG will have an individual “loan participation escrow account” set up with a unique accounting and routing number. The participating loan investors will be directed to deposit their loan participation funds into escrow. All loan participants will be required to deposit all loan participation funds into escrow no later than 7 to 10 business days before the scheduled loan closing date as set by BCCG. Once the note investment funds clear escrow, the title company (as closing agent) will be able to issue a “clear to close memorandum” to BCCG, the builder (borrowing entity, real estate counsel representing both parties, and all participating investors. This will allow us to engage our commercial real estate attorney to draw up the final loan closing documents for execution on the loan closing date.
  • CONSTRUCTION SITE/DRAW INSPECTION COMPANY: BCCG will engage an experienced construction site/draw inspector who will be responsible for conducting routine site visits to each construction project in between scheduled disbursements to provide BCCG and the loan participants with detailed reports, photos, and videos on the progress of the project, and the accurate budget of disbursement proceeds that were previously advanced to the project. It will be their job to recommend BCCG, the title company, and the loan disbursement agent (see below) if the next disbursement should be advanced.
  • CONSTRUCTION PROCEEDS DISBURSEMENT AGENT: BCCG will engage an independent “Loan Disbursement Agent” to be the party responsible for dispersing loan proceeds to the construction manager of each project according to the construction loan agreement and the disbursement schedule executed between BCCG, the title company, and the builder.
  • INDEPENDENT TRUST COMPANY: BCCG has requested that the title company overseeing each transaction open a specialized trust/escrow account with an independent corporate trust financial institution. The Trust Company will be the “custodian” for the impounded withholdings from the sale of every finished lot, single-family home, condominium, or townhome as encumbered for loan repayment of principal and interest. Once the requisite proceeds from every sale have been deposited into escrow with the trust Company, the trust Company is contractually instructed to remit the entire lump sum of collected monies to the loan servicing agent within 5 to 7 business days before the maturity date.
  • INDEPENDENT LOAN SERVICING COMPANY: The Loan Servicing Company is the investor remittance agent. It is their fiduciary responsibility to disperse all monies that comprise both the principal and interest repayment at maturity, in addition to the monthly disbursement of the “interest reserve” remittances. A “Registry of Loan Participants” is compiled according to the parties named in each respective assignment of mortgage agreement executed between BCCG and the participating investors.

Recently “SOLD” New Construction Home Sales by State (in BCCG’s Southeast Regional service areas) from Realtor.com

The following external links to realtor.com highlight the recent sales of single-family “newly built and sold” homes (in BCCG’s Southeast Regional service areas) from Realtor.com. NOTE: These links are provided to demonstrate the feasibility of our single-family new construction loan note investment premise and NOT meant to imply or misrepresent that BCCG financed any of the properties listed therein.

Loan Investment Structure

(Example) When the builder accepts the terms of the construction loan agreement, our real estate attorney draws up a promissory note. That $500,000 promissory note is divided into ten smaller shares and sold to multiple private mortgage note investors at face value. By purchasing the mortgage shares, the investors become legally and contractually entitled to receive principal and interest payments from the builder directly according to the terms of the note. We divide our loans into mortgage shares, commonly called “Loan Participation Notes (LPNs), ranging from $10,000 to $50,000, respectively. For example, our minimum loan request of $50,000 will be divided into five (5) loan participation units of $10,000 each, and our maximum loan request of $5,000,000 will be divided into 100 Loan Participation Notes of $50,000 each.

Loan Investment Tiers

(Key) Price Per LPN/Min Project Size/Max. Project Size/Min Qty. LPNs/Max Qty. LPNs:

  • $50,000/$1,600,000/$5,000,000/32/100
  • $40,000/$1,200,000/$2,600,000/30/65
  • $37,500/$750,000/$1,200,000/20/32
  • $25,000/$525,000/$750,000/21/30
  • $17,500/$350,000/$525,000/20/30
  • $12,500/$250,000/$350,000/20/28
  • $10,000/$120,000/$250,000/12/25

Quick Review

  • Builders Capital Group (BCCG). BCCG specializes in the private placement of Single-Family Residential development and construction loans to the private real estate investor community.
  • BCCG only works with experienced, reputable local home builders with a verifiable track record of successfully creating and selling high-quality new home inventory.
  • BCCG structures all note investments as passive, “from-their-armchair”, real estate-secured investments.
  • Each note investment (per investor) will NOT exceed 15% LTV or 10% of the builder/developer’s project budget.
  • BCCG’s note investment structure provides a FIXED monthly payment until the finished home is sold.
  • BCCG’s note investments offer Fixed APY (usually starting at the current WSJ prime rate = 8.5%) prorated over monthly interim interest-only payments PLUS a lump sum repayment of principal and interest up to 12.5%.
  • BCCG’s private mortgage investors capitalize on the margin between the project’s wholesale/discounted cost-to-build and the highest possible retail price point at which the newly built/rehabbed home/condo/townhome is sold.
  • The BCCG loans are structured as “direct participation private debt investments.” This means participating investors agree to participate in the loan directly with the borrower. They are not investing in or through BCCG or the borrower’s operating entity in any way whatsoever. There is no stock purchase or JV/partnership with/or between the investors, BCCG, or the builder.
  • Depending on the size and scope of the project, the minimum note investment is $25,000, and the maximum is $250,000.
  • Each construction loan investment is divided into a maximum of twenty (20) smaller “mortgage investment shares” referred to as “Loan Participation Notes (LPNs)” for easy distribution among multiple investors. An investor is NOT ELIGIBLE to participate as a single investor. At least two (2) investors must participate in a mortgage note.
  • BCCG DOES ALL THE WORK. It intakes and processes the builder’s loan application (and collects all supporting exhibits), orders title insurance, reviews construction estimates and performs real estate appraisals. All underwriting and approval decisions are solely within BCCG’s authority and responsibility.
  • As the mortgage banker, BCCG performs “full due diligence” on all borrowers, properties, and projects with complete processing, structuring, underwriting, title, legal counsel, and loan servicing in place.
  • BCCG uses one nationwide title/escrow company for all loans.
  • BCCG stipulates that in every deal (wherever and whenever feasibly possible), the builder/developer contracts with an experienced local real estate broker professionally engaged to market the property to pre-qualified or “cash-ready” buyers who will buy the property upon completion.
  • NOTE: To help BCCG present the loan investment opportunities that best align with their real estate investing objectives, prospective investors must complete a questionnaire that will tell BCCG the specific participation time frames, parameters, details, and geographic preferences in which BCCG can present private mortgage loan investment opportunities for consideration.

Additional Information

  • View Our Introductory YouTube video (here)
  • Loan Participation Notes (LPNs) Defined (from CBonds.com)
  • Download our “Full” PDF Version Introductory Packet (here)
  • View our FAQs (here)
  • Meet Our Atlanta, GA, Team (here)
  • View a “sample” investment scenario (here)
  • Set a meeting or schedule a call with our commercial mortgage banker (here)

Investor Registration Form

Please complete the form below to access our “Prospective Homebuilder Construction Loan Note Investor Questionnaire” to tell us about your SFH new construction loan investment preferences. We’ll then start sending you summaries that best suit your needs.

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