Acquisition and Development loans
A land development loan are used to take an unimproved parcel and
split it up into a number of smaller parcel, it is held by a mortgage, to finance the making, installing, or
constructing of the upgrading necessary to transfer raw land into construction-ready building sites. The
upgrading may be subdividing, leveling, grading, building roads and bringing sewer, water and power to the
An acquisition and development loan (A&D loan) is a loan where some of the cash are used to acquisition the property. The
project cost would comprise the soft costs (including an interest reserve and sales commissions) and
a contingency reserve and cost of the land, the
hard costs for the upgrading.
When in search of an acquisition and development loans or just land
development loan the lender will want to identify if you can afford it, do you a sufficient amount of income to
live on not including using the funds or credit to maintain your living expense, what is the exit strategy, how are
they going to get paid off.If the developer has a plan to develop in
stages and each of which he will sell off as completed, a lender will be much more interested.
The acquisition and development of real estate can be an overwhelming
event, and attaining financing for it should not make the mission even more complicated. TMLG Funding can help
you get the funds for an acquisition and development loan or just land development loan, if your plans involve
an entire commercial development, a single commercial building, or a residential community.
Development loans sizes can range from $500,000 to $30 million on
properties Worldwide, and at any stage of the entitlement process, including raw land with or without any
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