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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