Cheyenne has been adding homes on its east and south edges for years, and new data center and base-related jobs keep demand for newer rentals steady. Builders and investors use ground-up loans to put up spec homes, duplexes and small rental buildings.
In short: LendingStreet finances ground-up construction for 1-8 unit investor projects in Cheyenne: spec homes, build-to-rent houses, infill duplexes and fourplexes, and small 5-8 unit buildings. Loans are sized on loan-to-cost (LTC) with terms set per project, and funds are released through a draw schedule after inspections. Approved plans, permits, a realistic budget and builder experience are what make a file work.
Most investor construction falls into a few patterns. Spec single-family homes go up in east Cheyenne subdivisions near Dell Range Boulevard and in south Cheyenne. Build-to-rent duplexes and townhomes fill lots on the edges of established areas. Infill lots in older neighborhoods support a single home or a small multi-unit building where zoning allows.
County lots outside city limits, including the Ranchettes, can work for spec homes but bring wells, septic and longer utility runs into the budget.
Demand for newer rentals has been supported by the data center campuses, base housing needs and households moving north from Colorado. Newer homes with attached garages and low-maintenance exteriors stand out in a market full of older stock.
The loan is a share of total project cost: land, hard costs and soft costs such as plans, permits, engineering and fees. The appraiser also estimates the completed value, and the loan has to fit both measures. Terms, including the LTC percentage, are set per project based on the plans, budget and your track record.
Projects without approved plans or permits, or a borrower with no build history and no experienced general contractor, usually do not qualify.
Your equity in the deal can come from cash, from land you already own, or both. The appraiser's completed value also caps the loan, so a project that costs more than the finished home would sell for will be sized down.
This example is illustrative and not a quote. An investor builds a side-by-side duplex on an east Cheyenne lot. Land is $90,000, hard costs are $540,000 and soft costs are $48,000, for a total of $678,000. For illustration, assume the loan covers 85% of cost, or $576,300, with the land and early soft costs counting toward the investor's share.
After completion, each side leases for $2,250. If the duplex appraises at $740,000 and is refinanced into a DSCR loan at 75% LTV ($555,000), estimated principal and interest is about $3,833, the payment with assumed taxes and insurance is about $4,453, and the DSCR is about 1.01x.
| Draw stage | Share of hard costs | Amount |
|---|---|---|
| Foundation and footings | 15% | $81,000 |
| Framing and roof | 25% | $135,000 |
| Dry-in, windows and mechanicals rough-in | 20% | $108,000 |
| Insulation, drywall and interior trim | 20% | $108,000 |
| Finishes, flatwork and final | 20% | $108,000 |
Construction funds are released in stages. After each phase, an inspector confirms the work, and the draw funds against the budget line. You or your builder cover costs until each draw arrives, so plan working capital for at least one stage at a time.
Use our draw schedule calculator to map your budget to stages before you apply.
Keep receipts, lien waivers and change orders organized. Draws move faster when the inspector and the lender can match each request to the approved budget.
Cheyenne building codes require footings below the local frost depth, and wind loads matter for roofs, garage doors and siding. Many designs include basements, which add space but also excavation cost.
Wind exposure on the open east side also affects framing schedules and crane or lift work, so build some weather days into your timeline.
Inside city limits, plan review and permits go through the City of Cheyenne; outside them, Laramie County handles planning and building. Water and sewer service in the city come through the Cheyenne Board of Public Utilities, and tap fees can be a real budget line. Confirm zoning for duplexes and multi-unit buildings before you buy the lot.
Larger projects may need a site plan, drainage review or traffic review before building permits are issued. Ask the city or county early what your project type requires, since review times stretch in the spring building rush.
Spec homes usually sell to owner-occupants. Build-to-rent projects refinance into a DSCR loan once leased, which pays off the construction loan. Running the rental numbers on completion before you break ground protects both exits.
For spec homes, price the finished product against recent new-construction sales in the same subdivision. Builders compete in east Cheyenne, so incentives from larger builders can affect your resale.
Small projects can run over on items outside the house itself. Include them in your line-item budget so the draw schedule covers them.
Plans, permits or permit status, a line-item budget, the builder's resume and license, the lot purchase details and your exit plan. Call (877) 298-1001 or use the form below to get started.
Yes, if zoning allows it. We finance 1-8 unit residential projects, including fourplexes and small 5-8 unit buildings.
No. Land can be part of the project cost, though owning it outright can count toward your equity. If you are buying the lot as part of the project, the purchase can close at the same time as the construction loan on some programs.
After an inspector confirms each stage of work, funds are released against the budget. Our draw schedule calculator helps plan stages.
Usually only with an experienced, licensed general contractor and complete plans and permits. Projects without either generally do not qualify. Builders with a record of finished projects in Cheyenne or nearby Front Range markets usually get the strongest terms.
Possibly, if the project fits program guidelines. Well permits, septic design and utility access need to be in the budget and plan.
You sell the property or refinance into a long-term DSCR loan based on the rent. A build-to-rent project that leases quickly can move to the DSCR loan sooner and stop paying construction interest.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you or your family will live in does not qualify.
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