Forsyth County has room to build. Infill lots in older city neighborhoods, small subdivisions in Clemmons, Lewisville and Kernersville, and growth along the new Northern Beltway all give investor builders options for spec homes, build-to-rent houses and small multi-unit projects.
In short: LendingStreet finances ground-up construction of 1-8 unit investment properties in Winston-Salem and Forsyth County, 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. Plans, permits, a detailed budget and builder experience drive approval.
Inside Winston-Salem, builders are filling vacant lots and replacing teardowns in neighborhoods near downtown, the hospitals and the universities. New construction there competes with renovated older homes and often wins on energy efficiency, layout and maintenance. Infill lots can be narrow and irregular, so plans have to fit setbacks and the character of the street.
In the suburbs and the county, Clemmons, Lewisville, Pfafftown, Kernersville, Walkertown and the areas along the US 52 and future I-74 corridors have lots for single-family spec and build-to-rent homes. Davie County communities such as Bermuda Run and Advance also draw Winston-Salem buyers and renters.
Demand for new homes has been steady as the region's medical and research employers grow and as buyers and renters priced out of Charlotte and Raleigh look at the Triad. That does not mean every lot pencils. Land, site work and utility costs vary sharply between an infill lot with sewer at the street and a county lot that needs a long driveway and a septic system.
Winston-Salem and Forsyth County share a joint planning department and Unified Development Ordinances, which set what can be built on a lot, from single-family to duplexes and small multi-family. Rezoning or special use approvals add months, so confirm the zoning allows your plan before you buy land.
Water and sewer service comes through the City-County Utility Commission in much of the county. Outside service areas, lots need septic and well approvals from the county's environmental health office, and the Piedmont's red clay soils do not perc everywhere. Utility availability can make or break a lot's value.
Impact, tap and permit fees add up, especially for new water and sewer connections. Ask the utility for current fees before you finalize the budget, and include them in soft costs rather than assuming the contingency will cover them.
This example is illustrative and not a quote. A builder plans a four-bedroom spec home on a Lewisville lot with public water and septic. The lot costs $80,000, hard costs are $355,000 and soft costs (plans, engineering, permits, impact and tap fees, builder's risk insurance and interest reserve) are $38,000. Total project cost is $473,000.
At 85% loan-to-cost the loan is $402,050, and the builder contributes $70,950. With a projected sale price of $575,000, the margin leaves room for selling costs and schedule slippage. Draws follow construction stages after inspection.
The builder's equity is usually spent first, on the lot and early costs, before loan funds are drawn. Each draw request should match a budget line and come with photos, invoices and lien waivers. Clean draw packages fund faster, and interest is charged only on what has been drawn.
| Draw stage | Share of hard costs | Amount |
|---|---|---|
| Footings and foundation | 12% | $42,600 |
| Framing, sheathing and roof | 28% | $99,400 |
| Rough mechanicals, windows and doors | 22% | $78,100 |
| Insulation, drywall and trim | 20% | $71,000 |
| Finishes, final inspection and certificate of occupancy | 18% | $63,900 |
Build-to-rent houses and duplexes are a growing strategy around Winston-Salem, because new homes attract tenants who want lower utility bills and fewer maintenance calls. If you plan to hold, size the project so the finished rent supports a DSCR loan at the expected value, and design for durability: hard-surface floors, simple exteriors and efficient HVAC.
A build-to-rent duplex on an infill lot can be a strong fit where zoning allows two units. Check the UDO for the lot's district before drawing plans.
For build-to-sell spec homes, watch the price band. New homes priced near the middle of the local market have tended to attract the deepest pool of buyers, while high-end specs can take longer to sell, which raises interest carry.
Winston-Salem's winters are milder than the Northeast's, so building runs most of the year, but summer thunderstorms and the occasional winter ice event can halt work. Remnants of Atlantic hurricanes sometimes bring heavy rain to the Piedmont. Erosion control on graded lots is enforced, and silt fencing and stabilization belong in the site budget.
Schedule site work for drier months when possible. Red clay turns slick and hard to grade after heavy rain, and foundation crews can lose days at a time. A schedule with slack for weather costs less in interest than one that assumes perfect conditions and then needs an extension.
The project and the team matter most.
Experience is judged on completed projects similar in size and type. A builder with a few finished single-family homes is a good fit for another spec home or a duplex; a first small multi-family building calls for a team with multi-family experience.
Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify. Buildings of 9 or more units are commercial; see our multifamily loans page for those.
Builders new to Forsyth County can still qualify if they have completed similar projects elsewhere and bring a local team that knows the inspections office and the utility process.
Our investor loans are business-purpose loans on non-owner-occupied property. When construction ends, sell the property or refinance into a DSCR loan once it is leased. Use our construction draw schedule calculator to plan draws, and see construction loans in North Carolina for statewide details. Share your project with the form below to start.
On loan-to-cost: land, hard costs and soft costs together. Terms are set per project.
Through draws after an inspection confirms each stage is complete.
If the lot's zoning under the Unified Development Ordinances allows it. Confirm before buying.
They can, with septic approval from county environmental health. Soils vary, so test early.
Yes. Build-to-rent homes can refinance into a DSCR loan once leased.
You will usually need an experienced general contractor and a complete set of plans, permits and budget.
Yes, for residential buildings of up to 8 units. Larger buildings are commercial.
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