Closed First Mortgage Chicago Day Care Center

Gelt is excited to provide first mortgage financing for an owner of a day care center in Chicago. He is an experienced operator and this is a new business for him.

“Marcy: Hello.
Jack: Jack and Marcy again at Gelt Financial here to talk to you about another closing, daycare center in Chicago. This was interesting. The guy bought a grocery store, ALDI’s, a big grocery store. He bought it very cheap. He happens to own a daycare center close by. I’m going to say within a couple of miles of this, and it’s very successful. He wanted to expand, and what happened? He went to a couple of banks—
Marcy: He actually approached us, and then decided to go with another lender because, I guess, they offered less money. When they didn’t fund it, they came back to us. We got the deal done within two weeks. We were ready to close; the seller held up the closing a little bit because there was something with the city—
Jack: Title problem, I think.
Marcy: Yeah, there’s a title issue in Chicago.
Jack: By the way, this is from Chicago. Chicago has a bad name, but we do a good amount of business there.
Marcy: Yeah, it depends on the area. We’ll check it out for you. So we got it done for this borrower, and you know what? It was an amazing deal because we helped him expand his business, and he’s living the American dream, being an owner of his own business.
Jack: His ultimate plan is to take out an SBA loan, but another interesting thing, even though he owned a daycare center a couple of miles away—I forget how long—this is going to be a brand new one. So he really had no track record, no financials, nothing on this one.
Marcy: Right, so he couldn’t go for conventional financing.
Jack: And this came from a mortgage broker.
Marcy: Yep, came from a mortgage broker, and everyone was happy.
Jack: And we approved it. I wasn’t here, but you and Noah approved the deal.
Marcy: We approved it, yep.
Jack: Again, when you’re coming to us, there’s always someone in the office.
Marcy: That can approve a deal.
Jack: Instantly on the phone call, boom.
Marcy: Right, and that’s basically how it went down. We talked to them, we liked the property, we liked the borrower, there was enough equity in the deal, and—
Jack: Broker was thrilled, borrower was thrilled, and
Marcy: On this particular deal, we even let the borrower have some rehab money. We’re holding back because he’s using the money to convert the property into a daycare. Yeah, so we’re helping him with that, and we’ll disperse the money to him in draws, and he’s going to have his business up and running hopefully by August, that’s the plan.
Jack: No appraisal.
Marcy: No appraisal.
Jack: By the way, most of the deals we’re doing now are without appraisals. We’re doing internal valuations to get them to close fast. I think that’s it. Anyway, check us out at geltfinancial.com, call us at 561-221-0900, extension 103. Give us a call, like the YouTube, leave comments. We answer your comments all the time and like the channel so you’re notified about more. And again, a broker did this; a broker made money on this. Most of the deals we get are from brokers. You know what? Right after this, Marcy, we’re going to do a whole deal on brokers, how to make—
Marcy: Okay. Remember, make it a great day. And when your bank says no, we say yes.”