Acquisition and Development Loans
Acquisition and development facilities finance the acquisition of raw or improved land, and the horizontal and/or vertical infrastructure. The primary repayment source for acquisition and development facilities consists of release proceeds from the sale of the finished lots, or the finished units.
An acquisition and development loan, by definition, is intended for the purchase of property and construction of commercial buildings and other facilities on that property. Real estate developers are among the most frequent applicants for these loans and must provide a full description of the planned development in order to satisfy lenders regarding the security of their investment. Acquisition and development loan arrangements can be used to fund the construction of a variety of projects that include office buildings, shopping malls, industrial warehouses, factories and residential living communities. Depending on the financial situation of the borrower, the lending institution may accept the property to be purchased as adequate collateral or may require additional securities in order to fund the purchase and construction project.
CNF Exchange can help construction companies and other real estate development firms obtain the funding they need quickly and conveniently through its online interface, which allows these businesses to submit their application once for review by numerous lenders. By taking advantage of the added services available from CNF Exchange, these companies can present their cases for funding more effectively and boost their chances of obtaining the acquisition and development loan arrangements they need to succeed in the competitive marketplace.