Ep. 85 | Bank vs. Private Lending: Why Construction Financing is Changing in 2025

What are construction loans, and why are they a game-changer for private lenders, builders, and real estate investors? In this episode, Neal and Ryan take a deep dive into the world of construction loans with a focus on the private lending space. They break down what construction loans are, why banks often avoid them, and how private lenders can fill that gap with speed, flexibility, and a more practical approach.

They discuss the challenges builders face in financing, the pros and cons of private loans versus traditional bank loans, and the ideal borrower profile. Whether you’re a first-time developer, a seasoned contractor, or an investor exploring new opportunities, this episode is packed with real-world advice, personal experiences, and insights on how construction loans can unlock new possibilities in real estate. Listen and enjoy the show!

Show Notes:

02:34 – Neal and Ryan catch up and share their thoughts on the economic outlook

03:11 – Introduction to construction loans: what they are and how they work

04:27 – Differences between private and traditional construction loans

06:35 – Why banks often avoid construction lending

08:58 – What it takes to qualify for a private construction loan

11:17 – Common borrower profiles in private construction lending

12:59 - Why does private lending work so well for construction?

17:35 - How the private draw process works: from weather-tight to completion

20:34 – Construction loan calculator available to brokers and builders

Resources:

If you are a broker and want a copy of the construction calculator, visit us at https://www.keycap.ca/

• Keystone Capital Group
• CPLP Instagram: @cplpodcast
• Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn

Find Ryan on:
LinkedIn
E-mail: ryan@keycap.ca