Everything You Need to Know About Second Mortgage Loans
Second mortgages are a type of loan that are secured by the equity in a property. This means that
the loan is secured by the value of the property above and beyond any outstanding first mortgages
or liens. In the commercial real estate space, second mortgages are often used to finance a variety
of different types of projects, including the acquisition of new properties, the renovation of existing
properties, and the refinancing of existing loans.
One of the key benefits of using a second mortgage to finance a commercial real estate project is it
allows borrowers to take on additional leverage on new purchases or it allows property owners to
access additional capital locked in the project on a refinance.
It’s important to note that second mortgages are not without their risks. Because the loan is secured
by the equity in the property or a lien against the property, the lender has the right to foreclose on
the property if the borrower defaults on the loan. This means that property owners who take out
second mortgages need to be careful to ensure that they are able to make their payments on time
and in full.
Overall, second mortgages can be a useful tool for commercial real estate investors who are looking
to access additional capital or additional leverage. By carefully considering the potential risks and
rewards, investors can determine whether a second mortgage is the right financing option for their
specific needs.
Private Money Lender – Related posts
Gelt Financial president H. Jack Miller was recently featured as a real estate expert in the feature “What Happens to My Mortgage If My Lender Goes Bankrupt?” on U.S. News [...]
Noah Miller, Vice President of Gelt Financial LLC, was featured on Bloomberg Radio with host Matt Miller and Paul Sweeney. Miller discussed the health of the real estate market and [...]
As a borrower, you may be curious about your options in securing a loan for your commercial mortgage, to grow your real estate investments, and to fund your projects [...]
Closed loan on a Mixed-use property. We financed this borrower one year ago right out of bankruptcy with a one-year term loan, now they have reestablished their credit and we [...]
DEAL CLOSED IN CINCINATTI, OHIO! Gelt Financial is excited to announce we just closed on a $100K first mortgage on a Multifamily property in Cincinnati, OH. Our borrower requested [...]
Loan amounts $50,000,00 and above Commercial Properties or Investment Real Estate Commonsense Underwriting- Deal with decision-makers Customized terms to meet the borrower’s needs (we can be flexible) Purchase, refinance, storied [...]
Gelt Financial, a leader in non-bank commercial real estate financing, today announced that it is relocating from Fort Lauderdale, Florida to Boca Raton, Florida. Beginning January 21th, 2016 Gelt Financial’ [...]
There’s been a trend in real estate, and it has been in how buyers and moguls finance their investments. There is an increasing amount [...]
Jack attended the Crittenden Financing Conference in Miami, Fl September of 2018 and was there meeting with industry leaders, people speaking about the latest trends, challenges, and opportunities with his [...]
Benefits of using a family owned lender: Using a family-owned lender, also known as a private lender, can provide several benefits for real estate investors. Here are some of the [...]
We are pleased to announce a loan closing on an office building in the suburbs of Philadelphia. Our loan paid off a bridge loan with a 30 year fixed rate [...]
Gelt Financial, LLC approved a “DIP” Debtor in Possession first mortgage on a health care facility in New England. Over the years Gelt has developed a specialty in helping owners [...]
Are you wondering about what your options are for commercial mortgages? The good news is that you aren’t limited—you’ll come to discover the terminology of hard [...]
DEAL CLOSED IN MIAMI, FLORIDA! Gelt Financial just closed on a $300K First Mortgage on a single-family, investment property in Miami, FL. The non-owner-occupied home was bought vacant and [...]
Jack Miller is pleased to speak and take part in a panel discussion “Critical Capital Markets Updates and Office Market Strategies" at the 3rd Annual New Jersey Office Summit Iselin, New [...]
We are happy to close a commercial mortgage loan for an experienced real estate investor in Pittsburgh, Pa on a blanket mortgage of 3 properties, 2 retail centers and 1 [...]
JUST CLOSED IN CITRUS SPRINGS, FLORIDA! Gelt Financial just closed a $225K First Mortgage on an owner-occupied restaurant in Citrus Springs, FL. Our borrower bought both the restaurant and [...]
JUST CLOSED IN DAYTON, OHIO! Gelt Financial just closed a $115K First Mortgage on a retail/office building in Dayton, OH. This small-balance mortgage used Gelt's funding to purchase two [...]
JUST CLOSED IN WARREN, OHIO! Gelt Financial is excited to announce we just closed a Dollar General in Warren, OH. This First Mortgage was for a repeat borrower and [...]
JUST CLOSED IN NEW YORK CITY, NEW YORK! Gelt Financial is proud to announce we just closed a $500K second mortgage on a 40+ unit apartment building in New [...]
Gelt Financial, LLC is pleased to provide financing for an owner of a 6 unit multi-family investment property in Cincinnati, Ohio. This was No income verification cash-out refinance with a [...]
DEAL CLOSED IN CHICAGO, ILLINOIS! Gelt Financial just closed on a $900k Bridge-to-Agency Loan in Chicago, IL. This professional investor could not close with traditional financing from Fannie/Freddie due [...]
JUST CLOSED IN SEVEN BUSINESS DAYS! Gelt Financial just closed a $750K First Mortgage on a retail building in Fort Lauderdale, FL. This loan needed to close FAST, and we [...]
We were excited to close the first mortgage on a value add property in Jackson, MS. This was brought to us by a mortgage broker, the property was partially [...]
Gelt closed another Mobile Home Park Mortgage Closed in Indiana. Remember, when your bank says NO, we say YES! "Jack: Okay, Marcy Berger, we're here. Marcy: We're here. Hi, guess what? [...]
4 Day Investment Property Closing, Gelt Financial moves very fast-Commercial & Investment mortgages.
4 Day Investment Property Closing, Gelt Financial moves very fast-Commercial & Investment mortgages."Marcy: Hi Jack.Jack: Marcy, we just closed a couple of deals, but one, in particular, closed in. It came in [...]
Jack and Marcy of Gelt Financial are back with another success story. We helped a client in Vineland, New Jersey with a joint venture equity loan and provided 100% of the [...]
What is a DSCR? (Debt Service Coverage Ratio). Why use it, and how is it calculated? Jack Miller of Gelt Financial LLC goes into the details and provides step-by-step detail. "Hello, [...]
In the video, Jack discusses "daisy chains" in mortgage brokering. It involves multiple brokers passing on potential borrowers, but very few of these deals actually close, leading to wasted time and [...]
In the video, Jack shares valuable tips on the importance of paying attention to the details when investing in real estate. He emphasizes the need for personal involvement in conducting due [...]
Commercial Mortgage Pawn Shop in Fort Lauderdale, FL "Marcy: Hi, Jack. Jack: Hey, Marcy. To tell people, I should, I say at the end, but I'm going to say at the [...]
Gelt Financial loves providing Real Estate Investors and Small Business owners the small balance mortgage financing they need. We Finance Cannabis Retail locations, contact us to learn more. [...]
Gelt Financial does the processing for mortgage brokers. Gelt has been helping commercial real estate and investment borrowers since 1989. When your bank says NO, we say YES!
Jack and Marcy discuss the current market and share their observations, including the types of deals Gelt is currently closing and not closing, and the reasons behind these decisions. They outline [...]
Gelt Financial loves working with Mortgage Brokers, and a very common question is how they get paid. This very short video answers that question. "Jack: Michael, how do Brokers get paid? [...]
We are here to help our borrowers through the financing process. When one of them was short $150,000.00 on a mixed-use property, we lent them the additional money. One of the many [...]
A must-watch for everyone who wants to be a commercial mortgage broker or who is one. A simple, easy tool that everyone should have and is easy to get. What do you [...]
Networking is a great source of business for mortgage brokers, Jack and Marcy at Gelt talk a little about it. "Jack: Okay, Marcy. So, like our YouTube channel or wherever you're [...]
Gelt Financial is a South Florida based Private lender and will provide financing for rehabs, construction and land in South Florida: "Marcy: Hi Jack. Jack: Hey Marcy. So, we want to [...]
In this video, H. Jack Miller shares common mistakes he has seen people make in real estate investing, especially with fix-and-flip projects. To succeed, you need to excel in three key [...]
Gelt Closed a first mortgages on 7 residential Investment condo's in Orlando, FL, No appraisal and a cash out on a commercial building in Des Moine, Iowa. Both deals came from [...]
Michael talks about the financing Gelt Financial provides owners of Funeral Homes and other business. Remember when your bank says NO, we say YES!
Gelt just provided the financing and funding on 3 single family investment properties in Florida all purchased at an auction. "Jack: Hey, this is Marcy and Jack at Gelt Financial. Hopefully, [...]
How do we dig in and use real life math and market data to determine the market value of a real; estate investment property at Gelt Financial. "Jack: Jack and Michael [...]
Mortgage and Real Estate Professional Tip: If you plan on selling or refinancing real estate, make sure your title to the property is clear and cleaned up. Often there are mortgages, liens, [...]
Gelt Financial closes a refinance on 2 small multi family properties in CT. "Jack: Hello, this is Jack and Marcy at Gelt Financial again, super excited. We're always excited here, but [...]
Jack Miller gives a little explanation on why lenders charge prepayment penalties, the different types of them and some tips on how to analyze and negotiate the best one for your [...]
We made this for our borrowers and mortgage brokers, we all know in life things do not always go as planned or smoothly. We are here to help and work with [...]
