Greenville's downtown revival and the Upstate's manufacturing growth have made it a busy market for small builders. Spec homes and new rentals are going up in the city and across Greer, Simpsonville, Mauldin and Travelers Rest.
In short: LendingStreet finances ground-up construction in Greenville and the Upstate for investors building 1 to 8 units, including spec homes, build-to-rent homes, duplexes, townhomes 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. City versus county jurisdiction and South Carolina's investment property tax assessment are two of the first items we review.
Inside the city, infill homes and duplexes go up in West Greenville, the Viola Street area, Nicholtown, Overbrook and areas near the Swamp Rabbit Trail. Demand comes from downtown, the hospital systems and the manufacturing employers along I-85.
In the suburbs, spec and build-to-rent projects follow land in Greer, Simpsonville, Mauldin, Fountain Inn and Travelers Rest.
Builder competition in the Upstate is strong, and national builders often offer incentives in new subdivisions. Small spec builders compete best on infill lots, unique floor plans or locations close to downtown and the trail. Build-to-rent investors should compare their planned rent with recent leases on newer homes in the same school area, and include the investment-rate property tax in the payment they test.
Common Greenville-area 1-8 unit projects: Each type has its own exit and its own local issues.
| Project type | Where it is common | Local note |
|---|---|---|
| Infill single-family | West Greenville, Nicholtown | Sale exit |
| Duplex or townhomes | Near downtown and the trail | Rental or sale exit |
| Build-to-rent single-family | Greer, Simpsonville, Fountain Inn | Rental exit into DSCR |
| Suburban spec | Travelers Rest, Mauldin | Compare to builder pricing |
The City of Greenville adopted a new development code in recent years, which changed some zoning rules. Much of the area outside city limits falls under Greenville County, and Greer, Simpsonville and Mauldin have their own offices. Confirm the jurisdiction first.
South Carolina charges a deed recording fee based on price, and investment property is assessed for property tax at a higher rate than primary residences.
Neighborhoods close to downtown also have design and character standards in some areas, and a few have historic designations. Check those requirements early so your plans pass review without a redesign.
The Upstate has rolling terrain and red clay soils that may need grading and erosion control. Some lots near creeks are in flood zones. Sewer availability varies on the edges of the metro, and some lots rely on septic systems.
Construction loans are sized on loan-to-cost (LTC): the loan as a share of the total project budget, including land, hard costs, soft costs and contingency. Terms are set per project, so the percentage depends on the plans, the budget, the location and your experience.
The finished value matters too. A Greenville budget that works on cost but leaves little margin against the expected sale price or appraised value will usually be sized down, because the exit has to work.
This example is illustrative and not a quote. An investor builds a duplex in Greer to hold as a rental. Land costs $90,000, hard costs are $430,000, soft costs are $50,000 and the contingency is $20,000, for a total project cost of $590,000.
At a sample 80% loan-to-cost, the loan is $472,000 and the investor puts $118,000 into the project. Most of the loan funds through draws as work is completed.
Once the two units lease for a combined $3,500 a month and the property appraises at $650,000, a DSCR refinance at 75% LTV would be $487,500, enough to repay the $472,000 construction balance. The rent then has to cover the new payment, including taxes and insurance, at the program's DSCR minimum.
| Item | Amount |
|---|---|
| Land | $90,000 |
| Hard construction costs | $430,000 |
| Soft costs (plans, engineering, permits, fees) | $50,000 |
| Contingency | $20,000 |
| Total project cost | $590,000 |
| Loan at a sample 80% LTC | $472,000 |
| Investor cash in the project | $118,000 |
| Monthly rent at completion | $3,500 |
| Completed value | $650,000 |
| DSCR refinance at 75% LTV | $487,500 |
Each draw follows an inspection. When a stage is finished, you request funds, an inspector verifies the completed work and the money for that stage is released to keep the job moving.
A draw schedule that matches the real sequence of a Greenville build avoids cash gaps. Front-loaded schedules and vague line items slow approvals, so tie each draw to work an inspector can see.
A complete package gets a faster, clearer answer. Lenders generally pass on projects without plans or permits, and on borrowers with no build track record and no experienced general contractor.
If you are newer to building, pairing with a general contractor who has finished similar Greenville projects can make the difference. Their resume, licenses and recent projects become part of your file.
Every construction loan needs a clear exit. Spec builders sell the finished property. Build-to-rent investors lease it up and refinance into a DSCR loan that qualifies on the property's rent, with no W-2s or tax returns, a 620 minimum credit score, LLC borrowers standard and 30-year terms available.
If a sale takes longer than planned, a leased property can still refinance into a DSCR loan, so it helps to design a home that would also rent well in Greenville.
Our investor loans are business-purpose loans on non-owner-occupied property. Send your Greenville plans, budget and land details through the form below, or call (877) 298-1001, and we will come back with how the project can be sized.
Yes. We finance investor construction across Greenville County and the Upstate, subject to plans, permits, budget and builder experience.
It may. The city updated its development code, so check current rules for your lot rather than older guidance.
South Carolina assesses investment property at a higher rate than primary residences. Budget taxes on that basis.
Yes. Once leased, it can refinance into a DSCR loan that qualifies on rent, with 30-year terms available.
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.
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.
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