loan that covers the difference between the full amount of the
permanent loan and the floor loan.
instance, John builds an apartment complex and arranges for a
permanent mortgage in the amount of $2,000,000 that will fund
when the apartments are 80% occupied. From completion of
the construction, at which time it becomes tenantable, until
the building is 80% occupied the mortgage is only 1,700,000.
John may arrange for a gap loan of $300,000 to cover the
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