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 money needed to make the deal happen.
“Jack: Hello, it’s Jack and Marcy. Oh, so remember to like the YouTube channel, like the video, leave your comments. We answer the comments all the time, almost every—I think every comment we answer, and we like. We learn from it, and it gives us ideas. So, I want to talk to you now about a deal that we closed, I believe, January. My month may be off, but a guy contacted us. He found a property in Vineland, New Jersey, and he also had a non-profit tenant that wanted to lease the property. We provided a hundred percent—repeat, a hundred percent—of the money. We did a JV equity deal for him, where we provided the first mortgage debt as well as the equity. He was the contractor on it, so he actually made money contracting the deal. So really, he didn’t, not only didn’t come to us with money, he made money on the deal. Now, fast forward, we’re making this—what month is this? October? Whatever. The work is done; the tenant started paying rent. We’re into the deal. I don’t want to use the exact numbers, but we’re into the deal for what we’re into it, and we’re putting it up for sale for about double what it sold for. So this guy, who’s a good guy but just couldn’t go to a bank, didn’t have the financial resources, is going to get 50% of the profits on a deal. His share is going to be about a quarter of a million bucks when he sells this property, God willing, hopefully.
Marcy: Bottom line is, Jack, you took—we took the deal because we like the collateral, and we were, like, we felt confident that this collateral was going to hold the value, increase in value, and do what it was going to plan to do.
Jack: And it’s a JV equity deal. We provided the debt; we provided the equity. Borrower put up no money. He found the property. Again, we can’t do this on every deal. I have one guy now; he sends me emails every day, what he’s doing. He’s just going on LoopNet and CoStar and just sending me stuff. It really has to be special, and it has to be a good property. But here’s a great example because we’ve now completed the deal, and the tenant’s paying rent—a deal. So, think of us. If you have a fantastic property and you’re looking for a capital partner, think of us as a capital partner. We’re great capital partners. We have the capital; we have the experience, and we can move very quick.
Marcy: Sounds great.
Jack: Sounds great. Check us out at geltfinancial.com. Remember to like the YouTube, like the channel, like just like everything. Like us. Even if you don’t like us, that’s okay. Leave comments; we’ll answer them. Have a great day.”
Category: Borrowers
Tag: JV equity
