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, you’re having a great day.
Marcy: We’re very busy today.
Jack: So, I want to talk about sort of three deals we just closed. You know, people often call us about buying properties at auction. And one of the downsides to buying properties at auction is you have to have cash. And in this particular county, I don’t really want to say where it is, but it’s a county in Florida. You have to come up with, I think, 5% or 10% at the time or prior to the auction. And then the auctions are Monday, and then by Tuesday at 2 o’clock, maybe 1 o’clock—
Marcy: You have to pay in full.
Jack: In full. So, you don’t have time to, and by the way, you also can’t do an inspection of the property, and there’s no title report. So, you’re sort of buying it subject to seeing it. You don’t know the conditions; you don’t know what’s on title. That’s very dangerous, not knowing what’s on title. That sounds like a recipe for disaster. So why would we do such a crazy situation? Well, the reality is in this case, we ran into two guys, very nice guys, and they had a little bit of money. Not a lot of money, but a little. I don’t say a lot of money; it’s all relative. But compared to the amount of properties they wanted to buy, not a lot of money. They came to us, and we fashioned a deal that they would put up a certain amount of money, and we would put up a certain amount of money, but their money would be first lost. So we felt comfortable in funding these deals at auction. So far, we’ve done three of them, literally with almost no due diligence. Within 24 hours of us hearing it, no inspection, no title report because their money in was the first lost money. So literally, they call us on a Monday at, you know, 1 o’clock, 2 o’clock, and said this money has to be wired Tuesday morning by 10 o’clock—
Marcy: But we look at the collateral.
Jack: We look at the collateral. In this case, what we worked out with them is they send us a spreadsheet with the comps. So, a couple of days before, they send us sort of a spreadsheet and with the range that they’re buying in—
Marcy: So, we were prepared. We had information before the auction to make a decision.
Jack: Fantastic deal for them, fantastic deal for us. It gives them a tremendous competitive advantage because very few people are buying properties this way on a cash basis. Why tell you? Because we get calls all the time for people who are looking to buy properties at auction. This may be something that you can explore because it’s really a great way to make money.
Marcy: You can come talk to us and let us know what state you’re in, what you’re interested in, what you’re looking for at the auction, and we can give you some feedback.
Jack: Anyway, back to this deal. So the bottom line, we funded three deals so far, and we’ve extended them a line of credit. We’re gonna do hopefully 2, 3 – 4 months with them, and they’re thrilled. I can’t even tell you how thrilled they are because we gave them the opportunity that really almost no one else would because we’re really funding it without a title, without any research, or very little.
Marcy: But it made sense.
Jack: It made sense because they brought some money from home to the table that they raised. Anyway, we’d love to do business with you too. Give us a call at 561-221-0900, extension 238. Check us out at geltfinancial.com. Like the YouTube, like the YouTube channel, leave your comments; we’ll respond to them. Anyway, have a great day and be happy and healthy and safe. Most important, take care.”
Category: Borrowers
