Executive Summary  

At IMN Land & Homebuilder West, a clear message emerged regarding capital formation:

• Capital remains available, but underwriting discipline has materially increased.  

• Partnership now outweighs simply pursuing the lowest cost of funds.

• Institutional and private credit have stepped in as regional banks have pulled back.  

• Speed, flexible structuring, and certainty of execution have become key competitive advantages.

• Once leverage reaches 75–85% of cost, financing becomes a true partnership, not a transaction.  

For builders navigating today’s market, assembling the right capital stack is less about pricing and more about alignment, durability, and execution.

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Anchor Loans’ Perspective: Completing the Capital Stack  

At the IMN Land & Homebuilder West conference in Las Vegas, the panel “Completing the Capital Stack: Financing Strategies, Securing A&D Loans, and Using Forward Purchase Agreements” reinforced what we are seeing across our platform at Anchor Loans: the capital stack has evolved.  

Regional banks have significantly reduced their exposure to land and development lending. In response, institutional capital and private credit providers have expanded their activities. Over the past 18–24 months, land banking and A&D have gained broader institutional acceptance as financeable asset classes.

This shift is reshaping borrower–lender dynamics.  

Today, financing is not just about sourcing the cheapest capital. Builders are now prioritizing:

• Certainty of execution  

• Speed of funding  

• Lenders who understand entitlement and development risk  

• Flexibility in structuring around complex projects  

Banks historically struggled to execute development at a fast pace. Builders need draws funded in days - not weeks. They need partners who understand absorption pacing, infrastructure timing, and vertical takeout coordination.  

In this environment, private credit’s creative structuring abilities have become a core part of the value proposition. Lenders may accommodate partial commercial components, higher proceeds, or phased funding structures that traditional banks might avoid.

As one panelist noted, when leverage moves into the 75–85% of cost range, the relationship ceases to be transactional. At that point, capital providers and builders are fully aligned in execution risk. It becomes a partnership.  

For builders planning their 2026 pipelines, the question is no longer, “Who offers the lowest rate?” Instead, it is, “Who can reliably execute alongside us across multiple phases of the project?”

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How Builders Should Think About Sequencing Capital in 2026

If the conversation at IMN made one thing clear, it is that capital strategy can no longer be reactive. Builders planning for 2026 should approach financing as a phased strategy rather than a series of individual transactions. That begins with understanding how capital needs evolve from land control to horizontal development and vertical construction, and structuring each phase with appropriate leverage, duration, and liquidity discipline.

Effective sequencing requires realism. Maturities must align with absorption timelines, infrastructure pacing, and lot delivery schedules. Extension scenarios should be underwritten at origination, not negotiated under pressure. Early-stage financing decisions - particularly around land banking and acquisition & development (A&D) structures - should preserve flexibility for vertical takeout and long-term execution.

The competitive advantage in 2026 will not simply be access to capital. It will be the ability to design a capital structure (across land banking, A&D financing, and bridge capital) that supports operational execution across the full project lifecycle.

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