Apply For Property Development Loans to Build New Spaces in Texas

October 21, 2025

Property development is a popular investment opportunity for individual partners in the Texas real estate market. Whether you’re an experienced investor or expanding your portfolio for the first time, securing property development loans can be a great way to turn opportunities into profitable ventures.

Understanding the financial landscape for non-owner-occupied investment properties can make the difference between a successful project and a missed opportunity. Texas Gulf Bank specializes in supporting clients throughout the Southeast Texas Gulf Coast region with non-owner occupied construction loans designed specifically for investment properties.

Our experienced lenders understand the unique requirements of real estate development projects and work closely with partners to structure financing that aligns with your project timelines and cash flow needs.

Learn about the benefits of working with our knowledgeable lending team to support your project.

Understanding Non-Owner-Occupied Construction Loans

The key to successful property development lies in securing appropriate financing that supports your investment strategy while minimizing risk. Non-owner-occupied construction loans may offer the flexibility and terms needed to effectively manage development projects, providing the foundation to help you and your partners build wealth through real estate investment.

Keep in mind that non-owner-occupied construction loans are specifically designed for investors developing properties they do not intend to occupy personally. These loans differ from traditional owner-occupied financing in terms of requirements, down payments, interest rates, and loan structures.

The loan process for non-owner-occupied properties involves evaluation of key factors, including the following:

Contractor/builder history
Current cash flow and expenses
Rental and occupancy projections
Exit strategies for residential and commercial property
Financial stability of the partnership
Viability of the project(s)
Market conditions of the location of the property
Cash flow projections for the future property

This comprehensive evaluation helps ensure that both parties understand the project’s potential risks and returns. The review also allows us to understand the specific nature of the development project you are pursuing.

Types of Non-Owner-Occupied Development Projects

Investment-focused property development encompasses various project types, each offering unique opportunities for generating returns. The choice of development type often depends on market conditions, investor expertise, local demand patterns, and available real estate.

The Southeast Texas Gulf Coast region offers diverse opportunities across residential, commercial, and mixed-use developments. Our lenders are ready to support the development process by reviewing financing options for this sample of projects.

1. New Residential Properties

Residential development projects may offer stable investment opportunities with consistent demand across growing markets. Single-family homes, townhomes, and small multi-family properties can create diverse options for investors looking to enter the residential development market.

These projects typically have shorter construction timelines and more predictable cost structures compared to larger commercial developments. Some key considerations for residential development include the following:

Market demand analysis for specific home types and price ranges.
Zoning requirements and development restrictions.
Infrastructure availability, including utilities, roads, and drainage.
Construction timeline coordination with seasonal market patterns.
Exit strategy planning for sale or rental upon completion.

Residential development applications typically benefit from pursuing spaces where there is established market demand. Also, having a documented plan to work with experienced builders and contractors to help ensure quality construction may strengthen your application.

2. New Commercial Properties

Commercial property development may offer higher return potential through rental income and property appreciation. For example, office buildings, retail centers, warehouses, and industrial facilities serve growing business communities throughout the Texas Gulf Coast region.

These projects typically require more substantial initial investment but may provide steady cash flow through long-term lease agreements. Some commercial development considerations include the following:

Tenant demand analysis and pre-leasing opportunities.
Location accessibility for target businesses and customers.
Parking requirements and traffic flow considerations.
Utility capacity for commercial operations.
Compliance with commercial building codes and ADA requirements.

A successful commercial development project requires understanding tenant needs and market trends that drive business location decisions. Having pre-leasing arrangements may support your application by allowing us to preview expected cash flow to support loan repayment.

3. Mixed-Use Developments

Mixed-use developments feature a combination of spaces – such as residential, commercial, retail, healthcare, and offices – within a single project. These developments help create vibrant communities that serve multiple market segments while diversifying investment risk across different property types.

Mixed-use projects often benefit from synergies between residential and commercial components, potentially creating enhanced value for both residents and businesses. From a construction lending perspective, mixed-use development factors include the following:

Balancing residential and commercial components for optimal returns.
Coordinating different construction timelines and requirements.
Managing multiple tenant types and lease structures.
Parking and traffic management for diverse uses.
Community planning that enhances the appeal of all components.

The complexity of mixed-use developments requires experienced project management and financing structures that accommodate different construction phases and tenant requirements. Having a documented history of success with various combinations of spaces may support the viability of your application.

Why Texas Gulf Bank for Property Development Loans?

Texas Gulf Bank brings decades of commercial real estate lending experience to support non-owner occupied real estate projects throughout the Southeast Texas Gulf Coast region.

Our lenders understand the unique requirements of investment properties and work closely with investors to structure financing that supports your project. We review each borrower’s experience, may conduct site visits, and verify that each project has a solid foundation for completion on time and within budget.

We provide a streamlined loan application and approval process that may include timely decisions according to your project timeline. Our local lenders are prepared to provide a comprehensive evaluation of project budgets, financial statements, tax returns, and construction plans to help ensure proper loan structuring.

If you are approved for financing, we strive for prompt funding. Construction loans for investment properties typically operate on a draw schedule, releasing funds as construction milestones are completed.

This general structure protects us and you by ensuring funds are used appropriately throughout the construction process. Then, construction loans typically convert to mini-permanent financing upon completion.

Start Your Property Development Project Today

Property development loans may provide the foundation you need to create wealth through strategic real estate investment. Whether you’re planning to build residential homes, commercial properties, or mixed-use developments, securing appropriate financing is the first step toward project success.

Our experienced commercial real estate lenders are ready to support your investment goals with tailored financing solutions. We serve the Southeast Texas Gulf Coast region exclusively so that we can provide financing that aligns with market conditions and development requirements.

We are committed to supporting individual partners on a local basis by providing expert guidance and responsive service. We aim to create long-lasting partnerships that extend beyond individual transactions.

Contact Texas Gulf Bank today to discuss your property development goals. Our commercial real estate lenders will review your project requirements and help you get started with construction financing options.

Take the first step toward building your next investment property. Work with a trusted lending partner committed to your success.

All loans subject to credit approval