Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

BUILDING LUXURY HOMES: How to FUND 75% with DEBT! #shorts

28 Jun 2026 · 1 min

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In this short, the speaker outlines a financing structure for a luxury home builder named Chris from Calgary. The model raises 75% of the project’s capital through debt and 25% through equity. The builder is charged an 11% interest rate on the debt, while investors receive a guaranteed 8% return. Funding is organized in draw-based disbursements, meaning the builder only pays interest on the principal amount drawn, not the full loan amount. By project completion, the expected debt balance is about $4.5 million and the equity contribution totals roughly $1.7 million.

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Chris is from Calgary. He's a luxury home builder, and we're currently raising him 75% debt, 25% equity on his luxury home models. So when he builds a luxury home, we're raising most of his capital through debt. We're charging him 11% and paying guaranteed 8% to the investor. So, and then we're also setting it up in draws. So he's not paying a full— he's only paying on principal borrow. He's not paying on the entire thing. By the time he's done with the project, he'll have $4.5 million in debt, and then we'll have 100 or 1 point— what is it? $1.7 million in equity for them.