How New Construction Deals Can Boost Your Brokerage Pipeline

New construction tends to be overlooked by brokers and lenders in favor of more popular programs such as ARV or DSCR loans. But with inventory levels remaining low across the country, and the first interest rate cut of 2025 finally arriving, new construction can be a massive opportunity to boost your deal pipeline. It offers brokers the chance to not only expand their deal flow, but also stand out in a crowded financing market. Having a variety of loan programs on offer means you can meet the needs of every investor, and market yourself as a versatile financing provider.

Read on as we break down why new construction is a golden opportunity for brokers in 2025, and how you can leverage it to grow your pipeline in the coming months.

Why New Construction Matters Right Now

The current state of the market exemplifies why brokers should start taking new construction seriously. Despite dropping rates set to increase real estate activity across the board, the US housing deficit has remained large at nearly 4.7 million homes. Additionally, investors prefer the modern designs and lower maintenance costs that come with new properties, and buyers are willing to pay a premium for these perks. More and more investors are set to join the new construction market to meet these growing needs, and brokers like you can take advantage of conditions by offering specialized loan programs designed for new construction investments.

The Broker Advantage in New Construction Deals

How do new construction loans benefit you as a broker, though? For starters, they are a great opportunity to add a stream of revenue from repeat clients. The investors who build new homes don’t typically stop at one; they usually go on to build multiple properties or even entire subdivisions. Providing a great financing experience ensures that they will come back to you for future projects.

New construction is also a growing niche, with more predictable timelines and pricing structures when compared to fixer-uppers. There are often fewer surprises when building a new property than when renovating an existing home, but they share many of the same processes in terms of loan approval and draw schedules. If you have experience with renovation or ARV loans, you’re sure to have an easy transition to offering new construction financing.

How New Construction Boosts Your Pipeline

New construction helps you grow your brokerage’s pipeline in a variety of ways. As we mentioned, the investors who build new homes regularly move on to build other properties, not to mention the build-to-rent investors who will seek out long-term financing after construction is complete. Brokers who are able to fund new construction projects build lasting relationships with these clients, and they can become one of your best sources of repeat business. 

Adding new construction programs to your loan offerings also helps diversify your revenue streams, making you more resilient to downturns in any particular asset class. Additionally, they offer an opportunity to expand your network by connecting with construction professionals, such as builders and developers who often need financing as well. Last but not least, offering new construction loans allows you to market yourself as a specialist in a growing but less competitive niche, and positions you to capture a larger market share than with other types of projects.

Tips for Brokers Entering the New Construction Space

Let’s quickly cover some tips that help you enhance your reach as a broker entering the construction space:

• Familiarize yourself with the ins-and-outs of new construction financing, from loan guidelines to draw processes and repayment schedules. This way, you can educate your clients on program specifics, which they will be sure to appreciate.

• Build relationships with local builders, developers, and contractors, as well as tax professionals familiar with new construction. Then, you can refer these professionals to your clients to help streamline their investments.

• Partner with a lender that understands the investor-focused construction space, and has a proven track record of delivering funding for these deals. These lenders will be able to offer you flexible and streamlined programs that help you win more business.

• Stay on top of zoning, permitting, and local new construction trends in your jurisdiction to not only help keep investors in compliance with these regulations, but also to give you the ability to offer more relevant investment advice.

RCN Capital

Just as important as the programs you offer is the wholesale lender you choose to partner with. If you want to help your clients maximize the returns on their next investment, choose a lender that can provide you with the best leverages and rates. RCN Capital works with real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors and lending partners. If you are looking to offer new construction programs to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.