An Acquisition, Development, and Construction (ADC) Loan is a short-term loan used to finance the acquisition of land, development of infrastructure, and construction of buildings.
An advance in real estate is a form of loan disbursement given to real estate developers or builders. This is sometimes referred to as a 'draw,' where funds are released based on the completion of certain stages within a real estate project.
Front money refers to the initial capital required to begin a real estate development project. It includes funds needed for tasks like site acquisition, planning, permit acquisition, and securing loan commitments.
Low-income housing that meets specific criteria and regulations, making it eligible for special tax credits. Stringent guidelines govern tenant qualification, certification, and project financing to ensure compliance with federal and state laws.
Progress payments are partial payments made to a contractor or builder as specific stages of a construction project are completed. These payments are contingent on the fulfillment of predefined milestones, ensuring that the contractor receives payment for the work completed to date without having to wait until the entire project is finished.
Takedown refers to the instance when a borrower actually accepts money from a lender under a line of credit or loan commitment, often structured in stages to align with project milestones.
Takeout financing is a type of long-term loan that replaces short-term interim financing, allowing project developers to refinance debt incurred during the construction phase. This helps bridge the gap between the completion of a project and its permanent financing, ensuring liquidity and financial stability.
