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Acquisition Loan
This is an commercial financing loan that provides development and construction loans for subdivision projects. Developers use the capital from these loans for buying real estate and prepping raw land or for building office buildings, shopping centers, hotels, industrial complexes, condominium developments, or residential home subdivisions.
Acquisition loans usually include capital financing for putting in streets, curbs and utilities. Loan repayment is usually from either from a take-out loan or a permanent loan once the project is complete, or by the sale of individual units.