Building on the Grand Strand means building for wind and water. Elevation requirements, wind-rated roofs and windows, and stormwater rules shape the budget before the first board goes up, and lenders look closely at whether the plan accounts for them.
In short: LendingStreet finances ground-up construction of 1 to 8 unit investment properties in the Myrtle Beach area, including spec homes, build-to-rent houses, infill duplexes and fourplexes and small 5 to 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. Plans, permits, a realistic budget and builder experience drive the decision.
Horry County has been one of the faster-growing parts of the Southeast, and most new construction is inland. Carolina Forest, Conway, Longs, Little River, Loris and Aynor have lots in subdivisions and on rural parcels where spec and build-to-rent homes make sense. SC 22, SC 31 and US 501 tie these areas to jobs and the beach.
Closer to the ocean, infill opportunities include teardowns in older parts of Myrtle Beach, Surfside Beach and North Myrtle Beach, where a small cottage lot may support a larger single-family home or a duplex where zoning allows. These projects carry higher land costs and stricter flood requirements.
| Project type | Typical areas | Main budget driver |
|---|---|---|
| Spec single-family | Carolina Forest, Conway, Little River | Lot cost, finishes, sale timing |
| Build-to-rent home | Longs, Loris, Aynor, Conway | Rent vs. total cost |
| Infill duplex or fourplex | Older Myrtle Beach and North Myrtle Beach streets | Zoning, land value |
| Coastal teardown rebuild | Surfside Beach, Garden City, North Myrtle Beach | Elevation, pilings, wind rating |
| Small 5 to 8 unit building | Conway, Myrtle Beach | Site work, utility capacity |
Construction loans are only as strong as the plan behind them. We look for stamped or approved plans, a permit or a clear path to one, a line-item budget, a schedule and a builder with a track record. Projects without plans or permits, or a borrower with no build history and no experienced general contractor, usually do not qualify.
This example is illustrative and not a quote. A builder buys a subdivision lot near Little River for $90,000 and plans a single-story home with $285,000 in hard costs and $30,000 in soft costs for plans, permits, utility and tap fees and builder's risk insurance. Total project cost is $405,000.
At 85% loan-to-cost the loan is $344,250, and the builder contributes $60,750 in cash. That equity goes toward the lot, with the loan funding the rest of the lot and soft costs at closing and the hard costs through draws. Comparable new homes support a sale price of about $495,000, so the loan is about 69.5% of the finished value. After selling costs of about $29,700 and estimated interest of about $18,000 on the drawn balance over a ten-month build and sale, the estimated profit before income taxes is about $42,300.
| Draw | Stage | Amount |
|---|---|---|
| Closing | Balance of lot cost and soft costs | $59,250 |
| 1 | Site work, foundation and slab | $34,200 |
| 2 | Framing, roof and sheathing | $71,250 |
| 3 | Windows, doors, mechanical, electrical and plumbing rough-in | $65,550 |
| 4 | Insulation, drywall and exterior finishes | $57,000 |
| 5 | Interior finishes, final inspection and certificate of occupancy | $57,000 |
| Total | Loan amount | $344,250 |
New homes in FEMA flood zones must generally be built with the lowest floor at or above the base flood elevation, and many local governments require extra height above that. In coastal high hazard areas closer to the ocean, homes are typically built on pilings with breakaway walls below. These requirements add cost and time, so they belong in the budget and the schedule from the start.
Horry County and the municipalities have tightened stormwater and floodplain standards in recent years, particularly after the 2018 flooding. Ask the permitting office about current fill, drainage and elevation rules for your parcel.
Funds are released in stages. You submit a draw request, an inspector confirms the work in place and the money for that stage is released. Draws track completed work, not invoices for materials not yet installed, so keep cash on hand for deposits. Our construction draw schedule calculator helps you map stages to your budget.
If you plan to keep the home as a rental, the exit is a DSCR refinance after completion. Inland new construction in Longs, Conway or Loris can rent to local workers, and newer homes often have lower insurance costs. The rent must cover the new payment, with taxes at the 6% assessment ratio for a non-owner-occupied home. Run that math before you break ground.
Inspections are scheduled around the builder's progress, so keep the inspector informed and submit draws when a stage is truly complete. A partial stage often gets a partial release, which can strain subcontractor payments on a tight Grand Strand schedule.
Permits come from Horry County for unincorporated areas or from the city or town, such as Conway, Myrtle Beach or North Myrtle Beach. Plan review, utility connections and inspections all take time. Hurricane season, roughly June through November, can pause work and disrupt material deliveries, so build cushion into the schedule and your interest reserve.
Consider the rent before you choose plans. A three-bedroom, two-bath single-story home with a garage tends to fit the inland tenant base, while large custom features may raise the cost without raising the rent. Building to the rent, not to the finishes, keeps the refinance workable.
Send the lot address, plans, budget, schedule, builder information and your exit, sale or hold. We size the loan on cost, review the draw schedule and tell you what is needed to close. Use the form below or call (877) 298-1001. See our South Carolina construction loan page for statewide information.
Labor and materials can tighten after a storm, when roofers, framers and supply yards are pulled toward repair work across the coast. Lock in key subcontractors and order windows, trusses and HVAC equipment early, and keep a contingency line in the budget for price changes during the build.
On loan-to-cost, meaning a percentage of land, hard and soft costs. Terms are set per project based on the plan, budget, builder and exit.
You need permits or a clear path to them. Projects without plans or permits usually do not qualify.
Usually only with an experienced licensed general contractor and a strong plan. A borrower with no build history and no experienced GC typically does not qualify.
Yes, for 1 to 8 unit investment properties, if the plans meet coastal and flood requirements and the budget reflects them.
Through a draw schedule. Each stage is inspected before the funds for it are released.
Yes. A DSCR refinance can pay off the construction loan if the rent covers the new payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes, up to 8 units. Projects of 9 or more units are commercial and are covered on our multifamily page.
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