a sum of money lent by a bank used until the borrower secures permanent financing. Usually very short term (six months to 3 years). Generally, they have higher interest-only payments and used to re-position apartment communities that don’t qualify for permanent agency financing.
Capital Expenditures(CapX) –Funds used to acquire, upgrade, and maintain a property. It is considered a CapX when it improves the useful life of a property and is capitalized. This included both interior and exterior renovations. Examples of exterior CapX are replacing the HVAC system, installing carports, resurfacing the parking lot, replacing a roof, etc. Examples of interior CapX are new countertops, carport or flooring, new appliances, new blinds, etc.