Flat, buildable land is scarce in the Kanawha Valley. That is why much of the region's new housing goes up in Teays Valley, Cross Lanes and other areas with gentler ground, and why site work can make or break a Charleston infill budget.
In short: LendingStreet finances ground-up construction of 1-8 unit investor projects around Charleston, including spec homes, build-to-rent houses, infill duplexes and fourplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost, terms are set per project, and funds are released through a draw schedule after inspections. Approved plans, permits, a detailed budget and builder experience are required.
Putnam County, especially Teays Valley, Hurricane and Scott Depot, has seen the most subdivision building in the region, and new homes there rent to families commuting to Charleston or Huntington. In Kanawha County, Cross Lanes and parts of Sissonville and Elkview have land at lower prices, while Kanawha City and the East End have occasional infill lots where an older house has been removed.
Infill inside the city can support a duplex or fourplex where zoning allows. Check the City of Charleston zoning map before you buy the lot, since allowed uses, setbacks and parking requirements vary.
Lot prices in established Putnam County subdivisions are higher than raw land farther out, but they usually come with roads, public water and sewer already in place. That can save months of site work and makes the finished home easier to appraise against nearby sales.
Construction in the Kanawha Valley often spends more below grade than builders from flatter regions expect.
Get a site plan and grading estimate from a local engineer before you sign a lot contract. A lot that looks cheap can carry a large retaining wall or a long driveway, and those costs do not add to the finished value the way living space does.
We size ground-up loans on loan-to-cost: the share of land, hard costs and soft costs the loan covers. The exact percentage is set per project based on plans, budget, location and your track record. Your cash goes in first, then the loan funds the rest through draws.
Lenders also check the finished value. The completed home or building has to be worth enough, and rent for enough if you plan to hold it, to support the takeout loan.
Contingency matters too. A line-item budget with a reasonable contingency shows that you have thought through the risks, and it gives the project room if material prices or site conditions change during the build.
This example is illustrative and not a quote. A builder plans a spec home in Teays Valley. The lot costs $55,000, hard costs are $285,000 and soft costs such as plans, permits, engineering and interest reserve total $30,000, for a total of $370,000.
If this project were set at 85% of cost, the loan would be $314,500 and the builder would contribute $55,500. Funds are released in stages as an inspector confirms progress.
| Draw | Share of hard costs | Amount |
|---|---|---|
| Foundation and site work | 15% | $42,750 |
| Framing and roof | 25% | $71,250 |
| Dry-in, windows, mechanical rough-in | 20% | $57,000 |
| Insulation and drywall | 15% | $42,750 |
| Interior finishes | 15% | $42,750 |
| Final and certificate of occupancy | 10% | $28,500 |
Build-to-rent investors finish the house, lease it and refinance into a 30-year DSCR loan based on the rent. Before you break ground, estimate rent from leased homes in the same subdivision, and budget property taxes at the non-owner-occupied class, Class III outside city limits or Class IV inside them. That way the refinance math is settled before the first draw.
New homes in Teays Valley and Hurricane tend to attract tenants who want newer systems, a garage and a good school district. Rent comps from similar newer homes, not older houses in the same zip code, give the most realistic estimate for your takeout loan.
Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify. Have stamped plans, a permit or a clear path to one from the City of Charleston or the county, a line-item budget and a builder's resume ready. Licensed West Virginia contractors are required for most residential work.
Winter weather and wet springs can slow site work in the valley. Build a realistic schedule, and choose a term that leaves room for delays in inspections or materials. Use the draw schedule calculator to map payments against your timeline.
Inspection timing matters as well. Draws are released after an inspector confirms each stage, so schedule inspections promptly and keep the site ready. A delay on one draw can hold up the next phase of work.
If you plan to sell, look at how quickly comparable new homes in the same area have sold, and at what price per square foot. Builders in Putnam County compete with each other for the same buyers, so price, finishes and timing all matter.
Plan your loan term to cover the build plus a realistic selling period. If the home does not sell as quickly as expected, having a rental exit, with a DSCR refinance based on market rent, can protect the project.
Send the lot address, plans, budget, timeline, builder information and your exit plan, whether sale or rental. We will tell you how the loan would be sized and what else we need.
Include any soil reports, survey and utility letters you already have. They answer questions that would otherwise come up during underwriting and can shorten the path to the first draw.
Yes. LendingStreet finances 1-8 unit investor construction in Charleston, Kanawha County and Putnam County, including spec homes, build-to-rent and infill. We also look at the finished value of the project.
Loans are sized on loan-to-cost and set per project. Strong plans, a firm budget and builder experience support higher leverage.
Through a draw schedule. An inspector confirms each stage of work before the next payment is released. Keep receipts and photos for each stage.
Yes, if engineering, drainage and retaining walls are planned and budgeted. Site work is often the biggest variable in this area.
You need plans and permits, or a clear path to them. Projects without plans or permits usually do not qualify.
Yes. Many investors refinance into a DSCR loan once the property is complete and leased.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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