Gelt Financial, LLC just closed a $50,000.00 first mortgage on an office building in Kansas City, for a real estate investor. Gelt focuses on closing small commerical and investment mortgages.
“Jack: Michael, we’re on. Okay, tell everyone about the deal we closed. Was it $55,000?
Michael: $55,000 on a free and clear office building in Kansas City, Missouri. It was rented out, had about eight tenants currently, and there was one large space that was like an Event Center that the current tenants use for whether there’s meetings or conferences. Our client was a little bit behind on their taxes on the property and wanted to get that event space renovated for a new tenant for a long-term lease. So, we did a quick closing about a week and a half or two weeks, got him the capital he needed to pay off the taxes and the cash to renovate the property.
Jack: We did $55,000.
Michael: Very small balance loan, three-year deal.
Jack: We would have done a longer term, right?
Michael: Yeah, I know, but we got creative. No one’s really doing these small loans. The property had good value. It was stabilized, 14,000 square feet, and you know we were able to—
Jack: Close quick, no appraisal, very quick. I’m glad you said that because the point of me making this video is we love small deals, $55,000, we’ll do them all day. The week before, I think we closed one for $50,000 or $52,000, something like that. The truth is, if you don’t have perfect credit, don’t verify all your income, and everything’s perfect, you can’t go to a bank, and there are very few lenders who will do those deals, and we do those deals all the time. We love to do those deals.
Michael: Yeah, and I want to mention, so very important not to be confused, our collateral still has that strong as-is value over $250,000, so it’s still good properties with an operator that maybe doesn’t want to go to a bank or can’t go to a bank. This particular client actually had no debt; they had no mortgages, no loans. They owned the property and inherited the property from a family member. The point being, they didn’t even know how to go about getting a small loan.
Jack: What was this property worth, just out of curiosity?
Michael: Let’s say $500,000 to be safe, maybe $600,000 easily.
Jack: Again, a guy who wants to borrow $50,000.
Michael: But no one would give him a loan.
Jack: That’s my point.
Michael: He couldn’t get a loan.
Jack: Except from Michael at Gelt Financial. That’s exactly the point. That’s the point I want to drive home. Was a broker involved with this deal?
Michael: No.
Jack: Okay, but we’ll do them through mortgage brokers. That’s the point I want to—
Michael: They found us on Google.
Jack: Okay, whatever. We’re doing those small deals, commercial and investment deals. We’re really not credit score-based; we don’t do appraisals. We’re focusing on the property.
Michael: Yeah, I mean, show us leases, show us proof of income, let us get comfortable with the value of the property, and we move quickly. We didn’t do a third-party appraisal; we did our inspection, we got title, and really, I mean, he was so happy. We would have lent him more, but he only wanted $40,000-$50,000, so it was a perfect deal.
Jack: Remember when your bank says no, we say yes. Check us out at geltfinancial.com. Like wherever you’re seeing this, YouTube, Twitter, I don’t know, Instagram, wherever Tik Tok, wherever it is, like it. And if you leave a question, we’ll answer it, I promise. And you can call him 561-221-0900, ext. 110. Take care; have a great day.”
Category: Deals Done
