Gelt closes loans so fast because we do everything in-house, and you always speak to a decision-maker; most of our commercial and investment mortgages close in 10 days or less. We provide capital to real estate investors and owners of small businesses.
“Marcy: Hello.
Jack: We wanted to make a video on why we can close a commercial loan in 10 days or less. First of all, Marcy, I’m guessing about 80% to 90% of our loans close a week to two weeks, is that correct?
Marcy: 100%.
Jack: Yeah, they close, boom, boom, boom.
Marcy: Well, let’s tell them why we can get them closed so fast.
Jack: Okay, tell them why.
Marcy: Because we do everything in-house, and we’re a direct lender. We also waive our appraisals because we have a staff here that does evaluations for us, and we move along. So, the only thing that we need to order from a third party is title work, and as soon as we get title in, we can get the loan closed.
Jack: A couple of things. You’re 100% right. A lot of our loans, it’s the reality, it doesn’t sound nice, but it’s Rowdy. They go to another lender, someone drops the ball, or the other lender pulls the funding. So, a lot of them have title already.
Marcy: And which is true because that’s really what’s been going on out in the streets is that there’s a lot of lenders that they’re closing a loan, believe it or not, and then they’re not funding it. So those we’ve been seeing a lot of those deals that come to us like it with a sense of a full package.
Jack: So, I want to start at the beginning. I want to talk about when someone calls, when a mortgage broker or a borrower calls Gelt or emails Gelt. First of all, they’re always going to speak to a decision-maker. So, you know, we’re not a huge company. There’s 12 people in the office, so you’re always going to speak to someone who can make a decision. And on the very first call or email, Marcy or Michael or Noah or myself or Ross or whatever is going to be able to tell you the loan amount, tell you the term, price it out, list all the fees. We usually—
Marcy: Which is in essence so important because we don’t have, like, what we call, you know, most lenders have a loan committee, you know, we’re the loan company. So, it’s just so you get instant gratification, but you get your answer. You don’t have to wait. You know where we stand with the situation right away. So, and don’t get me wrong. I mean, exactly what Jack was saying is that we don’t say yes, all the time on each deal, but we do obviously; do say yes, a lot on the deals. We’ve been doing a lot of business.
Jack: And because we can talk to them about the terms. If there’s a negotiation—there was one the other day, I forget, we quoted it for 24 months, they went 36 or 48, so we’re back and forth. Or there was another one that went around, I forget what our minimum interest was, there was always—
Marcy: Right, which we can get feedback—
Jack: We’re flexible.
Marcy: Right, we get feedback from the borrowers, and if we can work with them, of course, we do. So, you know, there’s nothing set in stone; we’ll modify if we need to, to get the deal done.
Jack: So right up front, they’re going to speak to someone; they’re going to get an idea of the general terms and conditions. Within usually an hour or so, you’re going to get a term sheet in writing. The borrower can electronically sign in if they want, and everything is there; every fee to the penny is there, boom, boom, boom, boom, boom. Again, if there are any questions, I get back. Then when we get the term sheet back, that’s when we have a team, Marcy, Jonelle, a whole team that works with processing the deal and getting it to closing, and that’s where you really lead. So talk to them once we get a signed term sheet.
Marcy: Sure, once we get a signed term sheet, we go full force. We order everything that needs to be done; we ask for everything we need from the borrower. We order updated insurance; we order title work, or if you have everything already, we just get everything updated with our mortgagee clause on it. We would then engage an attorney to prepare the package because we do lend in so many different states that every state has different conditions and laws. So we
have an attorney prepare the package, and then, you know, whatever title agent the borrower picks, you know, they close the loan. If there’s a remote notary needed, there’s a remote notary scheduled, and that’s as fast as the process goes. Again, you know, we always ask our borrowers, and I can’t emphasize this enough in every single solitary video that I do, please tell us the whole story up front. You know—
Jack: You know what I was just thinking that you know what I was going to tell them, we don’t close every loan, and it’s the reality.
Marcy: But the reason is because the broker, they don’t tell us the whole story.
Jack: We had one, can I tell? I don’t want to go into details.
Marcy: Don’t give details, but you can give a general sense.
Jack: It was a mixed-use property in a major city; it happened to be a city where I was born, City of Brotherly Love. I won’t go any more into details. We spoke to the borrower. The borrower told us he owned the business and operated the business on the first floor, and there were, I think, four or five apartments that were rented out. Well, it turns out there were only two rented.
Marcy: Two rented and three being renovated.
Jack: It would have been nice to know that up front, and he sold the business and didn’t tell us. When we called him, we found out. We said, “Why didn’t you tell us that?” He said, “You didn’t ask us,” you know so—
Marcy: And then there was also, like, a quick in-and-out bankruptcy.
Jack: Oh yeah, he forgot to tell us the bankruptcy. So, it’s important for you mortgage brokers, and we made a bunch of videos on this. We should probably be doing more.
Marcy: And I constantly bring it up in the videos. I can’t help but I feel like I’m a broken record but—
Jack: Now, the truth is, in that case, you know, all those things are fine, but it’s nice to know it up front. You know, we’re not a bank lender; you’re paying higher rates than banks with us. We understand risk; we’re willing to take risk, but it’s important for mortgage brokers and borrowers. Deal goes smoothly when they tell us the whole picture. Yeah, another example of a deal, and again, I’m not going to mention names. The guy tells us he has, you know, all this money in the bank, and he’s so strong financially, and we asked him for bank statements just to see because the property had a negative cash flow. Wouldn’t send any bank statements, and then when he sent them, there was no money in the bank. And again—
Marcy: Which, in a sense, like when we say we’re a non-bank lender and we do things without tax returns and stuff like that, but we can see cash flow and bank statements.
Jack: We don’t want to own the property, and we want to set people up to succeed, not fail. So the bottom line is we can close a loan quick. Ninety percent of our deals close in a week to two weeks, something like that.
Marcy: Most of the time we’re ready to close, and there could be a hang-up with the seller or the borrower or traveling, but we’re ready.
Jack: But make sure everything’s— you tell us everything upfront. You disclose everything about the dirty stuff, the good stuff. You don’t have to tell us.
Marcy: Yeah, but we want to know the whole story.
Jack: That’s right. Okay, so the bottom line is we’re making our own decisions. You’re always going to deal with a decision-maker here. We don’t outsource anything. The processing is done in-house, the underwriting is done in-house, the funding, the loan servicing, everything’s done within these four walls. All the decisions.
Marcy: And we keep our loan, so you’re always going to deal with us until you pay us off. Which is nice because, you know, life, you plan things but sometimes life doesn’t go exactly as we want, and we’re always here to listen and come up with a strategy to make it work for everyone. So.
Jack: Make sure you like our YouTube, subscribe to the channel so you get more of these crazy things, leave comments, we answer the comments all the time. Check us out at geltfinancial.com, and remember when your bank says no, we say yes. Have a great day.”
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