$1.1M Construction Financing via Private Mortgage Powers Duplex Development in Delta
- Jul 14
- 2 min read
Updated: Aug 8

Client: Group of Three Builders, Delta
Property Value: $1,170,000 CAD (Lot Purchase)
Loan Amount: $1,100,000 CAD (Institutional Private Mortgage)
A group of three experienced builders identified a premium duplex lot in Delta, BC, valued at $1,170,000. Their goal: to develop two high-end residential units with an expected sale price of $1.3 million each—representing a combined project value of $2.6 million.
However, they required fast real estate funding to close the land purchase.
We structured an institutional private mortgage for $1.1 million at 11.95% interest with a 1.5% lender fee. This tailored construction financing solution reduced their out-of-pocket cost to just $70,000, preserving essential liquidity for the development phase.
To further streamline the financing, the loan was secured using one builder’s principal residence—freeing up project cash and preventing unnecessary equity dilution.
Loan Structure & Development Timeline
Loan Type: Institutional private mortgage
Term: 1-year open with interest-only payments
Purpose: Secure land and bridge to future construction mortgage
Security: Principal residence of one partner
This gave the clients time to finalize zoning, secure building permits, and lock in their construction budget.
Exit Strategy
Once permits are secured, we will transition the loan into a construction mortgage with the same lender—simplifying the refinance process and minimizing additional fees.
Results
Minimal Cash Needed: Only $70K required upfront
Liquidity Preserved: Capital reserved for actual construction
Clear Timeline: Construction to begin upon permit approval
Planned Profitability: Projected sales of $2.6M (2 x $1.3M)
This case demonstrates how construction financing through private financing can be structured strategically to unlock value on high-potential real estate developments—especially when traditional lenders hesitate to move quickly.
Discover how we’ve helped clients secure the funding they needed by exploring our case studies. Visit our services page to see everything we can do for you.
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