Gelt Provided 100% financing of the sales price on an office Building In Illinois. No appraisal, quick close deal.
No appraisal, rush deals, bank and other lender turndowns, and much more 561-221-0900
Gelt has been helping commercial real estate and investment borrowers since 1989. When your bank says NO, we say YES!
“Jack: How you doing, Marcy Berger?
Marcy: I’m doing really well today. How about you?
Jack: Very good, no complaints. Look, the main thing is we’re healthy. Honestly, I’m a little overwhelmed, got many things to do. It’s tax return time. We’re making this, what’s today, 11th? We do approximately— I’m going totally off-topic, but we have to get through over 50 tax returns. We’re delirious, so whatever. Anyway, we wanted to talk to you—
Marcy: We’re going to talk about the deal that we’re closing today, and it’s an office building.
Jack: Springfield, Illinois. Springfield, Illinois, I think 16,000 square feet.
Marcy: Yeah, an office building with different types of businesses in there.
Jack: Doctor is a tenant in there, and the building apparently was, I’ll call it disrepair and a lot of vacancy a few years ago. This doctor and her son entered into, let’s call it like a master lease lease purchase installment sale agreement to buy it for a certain price, and they took over the property. They put in some money.
Marcy: And they managed it. They collected all the rents, did a very good job, and you know, just took the owner out of the equation completely.
Jack: They entered into a like a lease purchase, a lease with an option to buy it, and now they want to buy it. The property is, let’s say, double— we can talk real numbers; we’re not giving confidential information. Our loan was $665,000, I believe, and that was the purchase price. So, they went to traditional banks, and banks only wanted to lend them 70%, 80%, or 65% of the $665,000. We think the property’s worth a million, million two, something like that, and we lent them the $665, so you know, this is a case that the borrower had good credit, good income, great property, but the bank just wouldn’t do it, and I believe they went to numerous banks. We did it because we used the real what we thought the real value was and not necessarily the purchase price.
Marcy: Which you can figure out from the rent roll and take the NOI and figure out what the property’s worth.
Jack: Very good point. We didn’t do an appraisal. We’re doing very few appraisals now, and what we’re doing is we’re doing what I call internal valuations. We look at the income; we look at the expenses. We come up with a market cap rate, and we get back into it. So that’s how we did the deal, and we closed it. The broker was thrilled.
Marcy: Everyone was happy. We got it done really fast. It was, like, I’m gonna say, I want to say it was like a little maybe 12 business days, yeah, that’s it.
Jack: No prepayment penalty, no appraisal, deals closing, broker’s happy, borrower’s happy. Marcy, most important, are you happy?
Marcy: Of course, because you know what? I did my job, and I did it really well, and everyone appreciated it.
Jack: Yep, and the broker’s making, I think, like 10 grand on this. On to the next deal. We got plenty more. Okay, remember when your bank says no, we say yes. Check us out at geltfinancial.com. Oh, like the YouTube, like the channel, so you’re notified. Leave comments; we answer all our comments. And most important, make it a great day. Life is too short, goes by quick. You get old like me. Take care; have a great day.”
Category: Deals Done
