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Planning and Processing, The Keys To Land Loans
 

Acquisition Loans, The Financing Needed to Take Down the Property, Also Known as A&D Loans

 

Down Payment, The Key To Acquisition Loans

Before a developer or an investor can get a construction loan they need to purchase the property, or do they? If they do not have all the cash to purchase the property then they will need a loan to make up the difference between the purchase price and the cash they have to enable them to buy the investment.

DEVELOPERS SEEK THIS LOAN WHEN THERE IS A SHORTFALL IN THE PRICE

Like any smart investor the builder/developer wants to use as little of his own capital to preserve that for pre-development costs, usually known as the soft costs of the project, therefore the investor goes to the market seeking an interim loan

The builder will seek additional capital from either private investors or from a money center such as a bank, savings and loan or a credit union. That additional capital is known as an acquisition loans, or the A & D Loan which will be repaid from the construction loan. The construction loan then is the exit strategy for the payment of the loan the developer/builder used to purchase the property with.

For a No-obligation Professional Financial Loan Analysis of an Investment you may be considering please fill in the form.

 

   
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