Private Construction Financing by Center Street Lending

In the 5th episode of the Private Lending Insights podcast, I interviewed Jeremiah Wiedman and Erik Brown from Center Street Lending to learn all about ground-up construction for residential investment properties and small multifamily properties throughout the United States. We talk about trends in 2024-2025, requirements to get a loan, the pricing structure, costs, draw process, ADU building and additions in California and more. Watch the video, listen to the podcast or read the summary below.

Interview Summary

In this episode of Private Lending Insights, host Rocky Butani interviews Jeremiah Wiedman and Erik Brown from Center Street Lending to explore the current trends in ground-up construction financing for residential investment properties throughout the United States. Based in Southern California, Center Street Lending provides nationwide funding for ground-up construction, fix-and-flip projects, bridge loans, and DSCR rental loans.

Trends in Construction Lending

• Investor demand for ground-up construction loans is growing.
• Many investors “graduate” from cosmetic rehabs and ADU projects to full-scale ground-up developments.
• Smaller subdivision projects and tear-downs are becoming more common.
• High demand for Accessory Dwelling Units (ADUs) as a strategy for increasing rental income.

Construction Challenges & Market Conditions

• Biggest challenge for builders:
  • Liquidity – having enough cash reserves for upfront costs.
  • Permitting delays in certain cities and counties.
  • Hillside construction – expensive and time-consuming due to excavation and retaining wall requirements.
  • Squatter issues in some areas (especially in Los Angeles).
• ADU projects are increasingly popular, especially in California, North Carolina, Texas, and Florida.
• Builders are shifting from traditional bank financing to private lenders for faster funding and less red tape.

Build-to-Rent vs. Build-to-Sell

• 75% of CSL’s clients build to sell, 25% retain properties as rentals.
• Some builders intentionally extend projects beyond 12 months to qualify for long-term capital gains tax rates.

Why Builders Choose Center Street Lending

• Direct lender with in-house loan servicing (not outsourced to third parties).
• Fast & flexible draw process – no rigid phase schedules.
• Personalized underwriting – based on project viability, borrower financials, and experience.
• Works with brokers and respects their client relationships.

Center Street’s Construction Loan Program

• Ground-up construction loans available even for first-time builders (with strong financials and a qualified general contractor).
• Up to 100% of construction costs financed.
• Up to 60% of land value if land purchase is included.
• Loans typically range from $150,000 to $5M+, with most deals under $3M.
• 12 to 18-month terms standard.
• No prepayment penalties.
• Interest Rates range from 9.5% to 11.5%.
• Flexible draw schedules – borrowers manage their own cash flow.
• Funds are reimbursed upon completion of each phase (materials must be on-site).
• Loan approvals focus on market demand, borrower experience, and local regulations.

Geographic Focus

• Center Street Lending is national, but most of its projects are in:
  • California – Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento.
  • Tennessee, Florida, Texas, Washington, Oregon, North and South Carolina.

View Center Street Lending’s profile and contact them directly. They pay us a monthly fee to be listed on our platform.