Fort Worth is one of the fastest-growing large cities in the country, and much of the growth is on the north and west edges. Closer in, older neighborhoods offer infill lots that suit a new home, duplex or small rental building.
In short: LendingStreet finances ground-up construction in Fort Worth and Tarrant County for investors building 1 to 8 units, including spec homes, build-to-rent homes, duplexes, fourplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and funds are released through inspected draws. Expansive clay soils and the tax bill on the finished home are the two Fort Worth items we check first.
Infill investors work in the Near Southside, Fairmount, Ryan Place, Polytechnic, Como, Riverside and Linwood, where older lots can take a new home or a duplex. Proximity to TCU, the medical district and downtown supports rental demand.
On the edges, spec and build-to-rent projects follow new subdivisions in north Fort Worth near Alliance, west toward Walsh and Aledo, and south toward Crowley and Burleson.
Fort Worth also grows into areas served by different school districts, utility providers and, in some cases, county services rather than the city. Two lots a few miles apart can have very different tax rates and development rules. Pull the full list of taxing units for each lot from the Tarrant Appraisal District and confirm water and sewer service before you buy, especially on the far north and west edges.
Common Fort Worth 1-8 unit projects: Each type has its own exit and its own local issues.
| Project type | Where it is common | Local note |
|---|---|---|
| Infill spec home | Near Southside, Fairmount, Ryan Place | Sale exit; historic district rules in some areas |
| Duplex or fourplex | Polytechnic, Riverside, near TCU | Rental exit into DSCR |
| Build-to-rent single-family | North Fort Worth, Crowley | MUD or PID taxes common |
| Spec in new subdivision | Alliance area, west Fort Worth | Compare to builder inventory |
Fort Worth's Development Services handles permits inside city limits. Some central neighborhoods are historic or conservation districts with design review. Many newer subdivisions on the city's edge sit in municipal utility districts or public improvement districts that add to the tax bill.
Texas has no state income tax and relies heavily on property taxes. On a finished rental with no homestead exemption, the tax line can be a large part of the DSCR payment, so budget it before you choose the exit. Texas has no real estate transfer tax.
North Texas clay expands and shrinks with moisture, so most new homes use post-tension slabs or other engineered foundations. Hail is frequent, and impact-resistant roofing can help with insurance. Lots near the Trinity River and creeks may be in flood zones.
Three things drive the loan: the total project cost, the loan-to-cost percentage set for your project, and the finished value. Terms are set per project after we review plans, budget, permits and the builder.
Your equity covers the gap between the loan and total cost. On Fort Worth projects, soft costs and site work often run higher than investors expect, so a complete budget gives you a more accurate loan amount from the start.
This example is illustrative and not a quote. An investor builds a spec home in the Near Southside to sell on completion. Land costs $140,000, hard costs are $420,000, soft costs are $55,000 and the contingency is $25,000, for a total project cost of $640,000.
At a sample 80% loan-to-cost, the loan is $512,000 and the investor puts $128,000 into the project. Most of the loan funds through draws as work is completed.
If the finished property sells for $760,000 in total and selling costs run about 6%, or $45,600, net proceeds of $714,400 repay the $512,000 loan and leave $202,400 before interest and carrying costs, against $128,000 of cash invested.
| Item | Amount |
|---|---|
| Land | $140,000 |
| Hard construction costs | $420,000 |
| Soft costs (plans, engineering, permits, fees) | $55,000 |
| Contingency | $25,000 |
| Total project cost | $640,000 |
| Loan at a sample 80% LTC | $512,000 |
| Investor cash in the project | $128,000 |
| Sale price | $760,000 |
| Selling costs at about 6% | $45,600 |
| Left after repaying the loan, before interest and carry | $202,400 |
Funds are released through a draw schedule, not in one lump sum. You finish a stage of work, request a draw, an inspector confirms the work in place, and the funds for that stage are released.
Build the schedule around how your Fort Worth builder actually sequences the job. Our construction draw schedule calculator can help you map stages to dollars before you apply.
We look for investors with a buildable plan and the team to execute it. Experience can be your own or your general contractor's. Projects without plans or permits, or with no build track record and no experienced general contractor, usually do not qualify.
We also look at the land. Owning the lot, or having it under contract with a clear closing date, along with a survey and any soils work, makes the Fort Worth file faster to review and the budget easier to confirm.
Decide the exit before you close. A sale exit should be supported by recent new-build sales nearby. A rental exit should be supported by local rents that can carry a DSCR loan at the 1.0x standard minimum, with sub-1.0 programs available in some cases.
If the finished property needs more time, a short-term bridge loan can sometimes fill the gap before the sale or long-term refinance.
Our investor loans are business-purpose loans on non-owner-occupied property. For your Fort Worth project, share plans, budget and land details through the form below, or call (877) 298-1001.
Yes. We finance investor construction across Fort Worth and Tarrant County, including newer subdivisions, subject to plans, permits, budget and builder experience.
Expansive clay soils require engineered foundations. A geotechnical report sets the design, and the cost belongs in the budget from the start.
They are part of the DSCR payment after you refinance. Without a homestead exemption, and with any MUD or PID added, the tax bill can be significant. Budget it early.
Yes, but design review may apply. Confirm the rules before you finalize plans, since they can affect materials and timeline.
Loan-to-cost is the loan divided by the total project cost, including land, hard costs, soft costs and contingency. Construction loans are sized this way, with terms set per project.
Yes. Small 5-8 unit buildings are part of our residential construction program. Buildings of 9 or more units are commercial.
Draws are tied to the approved budget, so overruns beyond the contingency generally have to be covered by the borrower. A realistic budget and contingency protect the project.
Usually only with an experienced general contractor on the project. A borrower with no build track record and no experienced GC usually does not qualify.
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