TN · Nashville
Bridge, Flip & Construction
Loans in Nashville, TN
Bridge, fix & flip, construction, renovation and DSCR loans for residential investment property in Nashville, $1M to $5M, term sheet in 24 to 48 hours. For US investors and foreign nationals on the same terms.
Passy Capital finances Nashville investors who buy, renovate and build residential investment property: bridge loans, fix & flip loans, and ground-up construction for spec homes, infill townhomes and build-to-rent, then renovation loans and DSCR loans as the long-term hold. Loans run from $1M to $5M, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file.
Much of Nashville's investor activity is infill: an older house on a lot in East Nashville, The Nations, Sylvan Park or Wedgewood-Houston is bought, then renovated or replaced with new construction, often two units where zoning allows. Further out, in Williamson, Rutherford, Wilson and Sumner counties, builders put up spec homes and build-to-rent communities. Each of these needs a loan that funds land or acquisition plus the build, and an exit through a sale or a DSCR refinance once leased.
We lend the same way to a Nashville builder and to an investor based outside the United States. A non-US investor borrows through a US LLC on the same terms, with no US credit history required. All loans are business-purpose and for non-owner-occupied property.
Nashville Market Highlights
Infill new construction
Tear-down and rebuild on in-town lots is a core Nashville strategy. Construction loans go up to 85% of total cost and are drawn as the work is inspected, so the budget and schedule carry as much weight as the lot.
Non-judicial foreclosure
Tennessee loans are secured by a deed of trust with a power of sale, and foreclosure generally runs through a trustee's sale rather than a lawsuit.
Recording taxes
Tennessee charges a recordation tax of 37 cents per $100 on a property transfer, and 11.5 cents per $100 of the loan amount (above the first $2,000) when the deed of trust is recorded. Both belong in the closing budget on a purchase and on a refinance.
Short-term rental limits
Metro Nashville no longer issues new non-owner-occupied short-term rental permits in its residential zones; they are limited to certain commercial and mixed-use districts. Underwrite a residential Nashville hold as a long-term rental unless the permit is already in place.
Residential tax assessment
Tennessee assesses residential property at 25% of appraised value under its constitution, whether the owner lives in it or rents it out, which keeps the property-tax math on a rental straightforward.
Entity taxes
Tennessee has no personal income tax on wages, but an LLC holding Tennessee property is generally within the state franchise and excise tax. Price it in with your tax adviser before choosing the holding structure.
Key Submarkets
East Nashville
The Nations
Sylvan Park
Wedgewood-Houston
12South
Germantown
Antioch
Madison
Franklin
Murfreesboro
Mount Juliet
Gallatin
Property Types We Finance
Single-Family
2-4 Units
Condo / Townhome
Small Multifamily (5-9 Units)
Build-to-Rent
SFR Portfolios
Loan Programs
Bridge Loans
Buy, refinance or cash out an investment property, closing in about two weeks.
Construction
Ground-up spec homes and build-to-rent, with draws tied to milestones.
Renovation / Rehab
Rehab financing on 1-4 unit and small multifamily, drawn against completed work.
Fix & Flip
Purchase and rehab in one loan for 1-4 unit flips, closing in about two weeks.
DSCR / Rental
Long-term rental financing based on property cash flow.
Investing in Nashville from outside the US
If you are buying in Nashville from outside the United States, financing is usually where the process stalls: no Social Security number, no US credit history, and no retail bank willing to underwrite a foreigner. We lend to your US LLC instead, underwrite the property rather than a US profile you have no way to build, and charge no foreign-national premium for it.
Frequently asked questions
Do you finance new construction in Nashville?
Yes. We finance ground-up spec homes, infill townhomes and build-to-rent up to 85% of total cost, from $1M to $5M, with draws released as work is completed and inspected. On completion the property is sold or refinanced into a DSCR loan, up to 80% LTV.
Can I finance a short-term rental in Nashville?
We look at the property and the plan. In Nashville the plan has to match the permit: new non-owner-occupied short-term rental permits are not issued in residential zones, so most residential investment property is underwritten as a long-term rental.
Can a foreign national finance a Nashville investment property?
Yes. The loan is made to a US LLC and underwritten on the property and the plan, not a US credit file, so a non-US investor with no US credit history borrows on the same terms as a US investor. Talk to a tax adviser about Tennessee franchise and excise tax on the LLC before you buy.
What does the loan cost upfront?
Nothing. Our fee is 1-2% of the loan, paid at closing, with no upfront fees.
Learn More
Who finances build-to-rent construction in Nashville under $5M?
Construction up to 85% of cost, then DSCR on long-term rents.
Construction Loans: Development Financing
How ground-up loans are sized against cost and drawn during the build.
Construction Loan Draw Schedule
How draws are inspected and released on a spec or build-to-rent project.
Refinancing a Bridge Loan into DSCR
The exit from a new build or renovation into a long-term rental loan.
Foreign National Financing
How non-US investors borrow on US terms through a US LLC.
More answers in investor questions, answered and the glossary of lending terms.
Other Cities in Tennessee
We also finance investors across other Tennessee markets.
Have a deal in Nashville?
Submit your deal in 2 minutes. We'll review it and get back to you within 24 hours with financing options.
Submit a Deal