Key Takeaways
- • Silverback Capital has deployed over $500 million in capital across more than 1,000 loans since its 2014 founding, with the expansion now covering 40 states across nine core lending programs.
- • The firm's non-Dutch interest model allows borrowers to pay interest only on funds actually drawn rather than on the full committed loan amount, creating measurable cost savings for construction and rehab projects with staged draw schedules.
- • Core lending programs include Fix & Flip Financing (up to 100% of purchase price and rehab costs), Ground-Up Construction (up to 75% land value plus 100% construction), and DSCR Rental Loans (30-year fixed and adjustable options starting at 5%).
- • The competitive differentiation centers on cost efficiency for multi-project investors; traditional hard money lenders charge interest on committed capital from closing, while Silverback's structure only charges on drawn capital.
Summary
Silverback Capital, a Folsom, California-based private real estate lender, announced a significant expansion of its lending footprint across 40 states on August 14, 2026. The expansion positions the firm's non-Dutch interest financing model as a competitive alternative to conventional hard money lending structures in the residential and commercial real estate construction market.
Since its founding in 2014, Silverback Capital has deployed over $500 million in capital across more than 1,000 loans. The expansion reflects growing institutional and individual investor demand for alternative financing structures that reduce carry costs on construction and renovation projects. The firm's proprietary non-Dutch interest model addresses a structural inefficiency in traditional hard money lending: borrowers typically pay interest on the entire committed loan amount from the closing date, regardless of the actual capital drawn at any given time.
According to David Simmons of Silverback Capital, this approach creates material savings for investors managing multiple concurrent projects. Under the firm's model, if a borrower draws $100,000 of a $300,000 committed loan, interest accrues only on the $100,000 drawn rather than the full $300,000. For projects with staged construction draws over 12-24 months, this structure can meaningfully reduce total project financing costs—a critical variable in an environment where investors operate with tighter project margins.
The expansion includes nine core lending programs: Fix & Flip Financing (including a flagship 100% program covering full purchase price and rehab), Ground-Up Construction loans (up to 75% of land value plus 100% of construction costs, with no plans or permits required for funding), and DSCR Rental Loans (offering 30-year fixed and adjustable rate options beginning at 5%). The breadth of products suggests positioning across diverse borrower profiles, from fix-and-flip operators to ground-up residential developers and buy-and-hold rental investors. This multi-program approach may indicate a scaled origination and underwriting infrastructure capable of serving institutional, family office, and individual investor demand across multiple real estate investment strategies.
Since its founding in 2014, Silverback Capital has deployed over $500 million in capital across more than 1,000 loans. The expansion reflects growing institutional and individual investor demand for alternative financing structures that reduce carry costs on construction and renovation projects. The firm's proprietary non-Dutch interest model addresses a structural inefficiency in traditional hard money lending: borrowers typically pay interest on the entire committed loan amount from the closing date, regardless of the actual capital drawn at any given time.
According to David Simmons of Silverback Capital, this approach creates material savings for investors managing multiple concurrent projects. Under the firm's model, if a borrower draws $100,000 of a $300,000 committed loan, interest accrues only on the $100,000 drawn rather than the full $300,000. For projects with staged construction draws over 12-24 months, this structure can meaningfully reduce total project financing costs—a critical variable in an environment where investors operate with tighter project margins.
The expansion includes nine core lending programs: Fix & Flip Financing (including a flagship 100% program covering full purchase price and rehab), Ground-Up Construction loans (up to 75% of land value plus 100% of construction costs, with no plans or permits required for funding), and DSCR Rental Loans (offering 30-year fixed and adjustable rate options beginning at 5%). The breadth of products suggests positioning across diverse borrower profiles, from fix-and-flip operators to ground-up residential developers and buy-and-hold rental investors. This multi-program approach may indicate a scaled origination and underwriting infrastructure capable of serving institutional, family office, and individual investor demand across multiple real estate investment strategies.
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