Mini Perm

AAA

DEFINITION of 'Mini Perm'

Short-term financing used to pay off income-producing construction or commercial properties, usually payable in three to five years.

INVESTOPEDIA EXPLAINS 'Mini Perm'

In this case, "perm" is short for "permanent", alluding to permanent financing. Mini perm financing is something a developer would use until a project has been completed and can therefore start producing income. In other words, a developer will use this type of financing prior to being able to access long-term financing or permanent financing solutions.


RELATED TERMS
  1. Medium Term

    An asset holding period or investment horizon that is intermediate ...
  2. Loan

    The act of giving money, property or other material goods to ...
  3. Commercial Real Estate

    Property that is used solely for business purposes. Examples ...
  4. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  5. Long Term

    Holding an asset for an extended period of time. Depending on ...
  6. Short Term

    1. In general, holding an asset for short period of time. 2. ...
RELATED FAQS
  1. If a telecommunication company wants to build a tower on my land how much should ...

    It is impossible to answer, with anything close to a specific dollar amount, the question of how much to charge a telecommunications ... Read Full Answer >>
  2. What are some of the challenges in real estate development?

    The act of manipulating, building on, and/or designing and constructing new uses for real estate is known as developing. ... Read Full Answer >>
  3. What's the difference between housing starts and building permits?

    Housing starts and building permits are economic indicators used to determine the health of the housing sector. In the United ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Will Corporate Debt Drag Your Stock Down?

    Borrowed funds can mean a leg up for companies or the boot for investors. Find out how to tell the difference.
  2. Investing Basics

    Do Your Investments Have Short-Term Health?

    If a company is strong enough to survive tough times, it is more likely to provide long-term value.
  3. Entrepreneurship

    Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  4. Mutual Funds & ETFs

    Non-Traded REITs: Risks and Rewards

    An overview of the risks and rewards of non-traded REITs and how they compare to exchange-traded REITs.
  5. Mutual Funds & ETFs

    Investing in REITs: What You Need to Know

    Thinking of investing in REITs? Here's what you need to know first.
  6. Mutual Funds & ETFs

    Want Emerging Market REIT Exposure? Eye These ETFs

    It's possible (and easy) to invest in emerging market real estate from the United States — just look at these REIT ETFs.
  7. Home & Auto

    What does "In Escrow" Mean?

    Escrow is a financial agreement involving two parties, usually a buyer and a seller. The buyer deposits money, securities or other funds into the escrow account, where they are held until both ...
  8. Economics

    What The Department of Housing and Urban Development Does

    The HUD runs programs intended to support homeownership, increase safe and affordable rental housing, reduce homelessness and fight housing discrimination.
  9. Economics

    Where International Real Estate Is Booming

    Which country has the hottest property market right now? The answer will undoubtedly surprise you.
  10. Options & Futures

    The Real Estate of Oil

    When it comes to real estate, it is location, location, location - and a location with oil or gas underneath may be the most attractive type of all.

You May Also Like

Hot Definitions
  1. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
  2. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  3. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  4. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  5. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  6. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
Trading Center