Another deal closed! Gelt Financial discusses their recent closed loan on a 400k second mortgage in Tampa, FL. No appraisal, 85% debt. Interest only, short term, six month deal. We focused on the property and closed less than ten days.
“Jack: Jack and Marcy at Gelt Financial, we want to talk to you. Today, we’re doing a lot of mezz and seconds.
Marcy: Yeah, it seems to be what’s going on in the market right now.
Jack: Yeah, so we are closing today. We’re not going to release this until it’s closed. A second mortgage in Florida, Tampa.
Marcy: It was like six units, so multi-family.
Jack: Multi-family. Guy bought a property fairly recently for whatever reason. The bank held a first mortgage on it. He renovated it, fixed it up. He also put—anyway, second mortgage, $400,000. The guy bought this property; he totally rehabbed it. He needed money 100% to stabilize it. He put it under agreement of sale and needed money for, I think, a 60 or 90-day period.
Marcy: Yeah, just to carry him to the closing date.
Jack: And we’re providing $400,000 as a second.
Marcy: Yep, and also the borrower sold it, and we’re in the deal, and we’ll be out of the deal.
Jack: Again, no appraisal. We’re focused on the property.
Marcy: Yes, all in the collateral.
Jack: And what’s the LTV?
Marcy: 85% combined.
Jack: 85%. So, you know, it’s kind of weird because we go out there all the time, and on the first mortgage debt, we say we’re 65%, but there are cases where we go 85%, sometimes 100%. Again, not on every deal. Don’t call us, and if we don’t do your deal, don’t be upset with us.
Marcy: We always say in advertising, everyone thinks that they want 100% financing, and I’m like, it depends on the situation.
Jack: But in this case, it’s 85%, interest-only short-term six-month deal, and we approved the deal, I think, the day we got it.
Marcy: And we’re closing it within 10 business days, less than that, almost seven business days.
Jack: And you weren’t here for most of it.
Marcy: Yeah, I worked from my vacation.
Jack: Could we have closed it of less if you didn’t go on vacation?
Marcy: No, I think you guys did a great job when I wasn’t here.
Jack: So, think about us again if you’re looking for mezzanine, second mortgages, JV, preferred equity. I like to think of us as capital providers, not just first mortgage providers. And again, it’s not on every deal. We don’t do ground-up; we don’t do new construction or land stabilized or value-add. We do very well, and we can move very, very fast. I think we can get to closing almost—I don’t want to say faster than anyone because that sounds braggadocious, but I think as fast if not faster than anyone.
Marcy: Okay, one little disclosure, as long as the title is clear.
Jack: As long as the title, yeah, self-understood. There’s a lot of—
Marcy: Believe it or not, it’s self-understood. I have a lot of people that are like, you know, and I’m like if the title isn’t clear, there’s nothing I can do about that. That has to be the borrower.
Jack: So that has to be the borrower. So think about us for your equity needs, any type of capital needs, think about us. We’re here. Contact us at 561-221-0900. You can call any of us; we act as a team here. Check us out at geltfinancial.com. Like the YouTube, like the video, like the channel, and most important, have a fantastic day. Oh, and we answer your comments. Leave us comments. Take care and have a wonderful day.”
Category: Deals Done
