Jack and Marcy go into details on what they are seeing in the marketplace and how Gelt is doing deals. No appraisal, rush deals, bank and other lender turndowns and much more.
“Jack: Hello, this is Jack and Marcy, Gelt Financial. You can see our.. we try to take use of all the advertising spree, advertising we can get. We wanted to speak to mortgage brokers and borrowers today. We’re making this it’s February 4th, and you know the world, the country is in a lot of turmoil. You know we’re; I keep saying we’re in the middle of COVID. If I said that…
Marcy: It’s basically a year already, I mean…
Jack: It’s unbelievable.
Marcy: Yeah, and a lot in the world has changed. The way everything is done is different.
Jack: Yeah, you’re right. We’re coming up on a year.
Marcy: It’s a year.
Jack: And they told us that we’re shut down for 14 days and we’re going to be fine. So anyway, yeah, a lot is going on in the world. I think the country’s still paralyzed from the election or traumatized. And you know, we wanted to make this video, really boost people up. You know, we’ve been lending consistently. Really, we also, Marcy, wanted to make another video. We just had our 32nd-year anniversary on February 1st. But we’ve been lending consistently for 32 years. But more importantly, throughout the COVID, we’ve just constantly been doing loans. You know, we recognize that it’s tougher to do loans. Things have changed. We wanted to give you our take on it. And to the borrowers out there, we wanted to tell you that, you know, if your bank is putting you under distress, if you have tenants who aren’t paying you and you can’t refinance, if you’re behind on your mortgage, we’re there for you. We’re gonna go into a little detail on that. And to the mortgage brokers, we want to tell you that we’re out there doing.. So, really, the purpose of this is, to really.. to lay out what we’re good at and what we can do. Is that how do I? How do I do it?
Marcy: Yeah, and just to reach out and, you know, just let everyone know that everyone’s going through the same thing. You know, even all the brokers that we talked to. I mean, the business is like it has a lot of curves right now. We definitely are seeing a lot of deals that I think really can’t even get funded in the market right now because of different reasons. And we just kind of wanted just to have like a conversation about, you know, things that we do good, good jobs at, and do well for the brokers. You know, we wanted to talk about like that we can get a loan done for you really quickly.
Jack: Yeah, when you call us, whether you’re speaking to anyone here, you’re always going to be speaking to a decision-maker. You know, there’s more here than Marcy and I, but a lot of people here. But for whatever reason, we’re the face of the company, but you’re always going to be speaking to a decision-maker. And I think this is important. A lot of the deals we do are rushes and turndowns from other lenders.
Marcy: Right, we’ve been seeing a lot of that lately, especially through, I mean, I have to say COVID, but that’s really what we’ve been seeing a lot. A deal gets to the table on another lender and they don’t fund it.
Jack: A lot of them, there’s always people in the marketplace who present themselves as lenders, but it seems there’s more, they’re not. So a lot of those. But so, I’m gonna start from the very beginning. When we see a deal, you’re always going to speak to a decision-maker on the phone. With that, to you, Noah, myself, whatever, and we can make a decision. We can quote out the terms right on the phone with you, with the borrower, and send you a term sheet, usually within a half hour or an hour. Of course, if you catch us at like 5:15, it may be the next day. But very quickly, we’re going to issue you a term sheet. All of us have the ability to engage the company in what we do. So you’re going to know, and the borrower is going to know right up front if we can do it and we can’t do it. Sometimes people say, “Oh, you turned, you said no too quickly.” Well, you know, we try to give answers as quick as possible, whether it be yes or no, so everyone understands where we are.
Marcy: And that’s just a good point. Like, I have a lot of brokers that, you know, I say no to a considerable amount of deals. I mean, I’m being honest with you. I mean, but there’s reasons for it. And due to the fact that we are straight collateral lenders, we base our whole decision on the collateral. So there are some things that come into play. It could be the area, it could be too rural.
Jack: A 100%.
Marcy: But what I’m saying to brokers is do not give up on us because there’s going to be a deal that’s a match for us.
Jack: Part of the game, the reality is, and you know, we say no more than we say yes, but we close loans. And if we said yes to everyone, we wouldn’t be in business 32 years, we’d be out of business. So the first thing is you’re always going to speak to a decision-maker. We can quote the right, the deal out right on the phone. Everyone knows everything. We disclose everything. Everything’s right on our terms. So that’s number one. So I’ll call it on-the-spot approvals. The other is when you deal with us, we’re doing the processing. We’re speaking to the borrower, the title company, all that stuff.
Marcy: And that’s where I come into play. You know, throughout the deal, you know, you deal with myself, but then I take the loan to closing and I’m very good at what I do.
Jack: Just for the record, I just noticed you put your hair different today.
Marcy: Yeah, I know. I pulled it up.
Jack: For the video or just generally like just going that way?
Marcy: Just for a different…
Jack: Yeah, that’s another thing. Yeah, it’s just I’m a man and I noticed.
Marcy: I haven’t really cut my hair since the pandemic, and it got so long. No offense to you guys.
Jack: I don’t wanna talk about cutting my hair, but…
Marcy: Because I just decided not to get my haircut because, less exposure to someone, anyway, but I will take your loan to closing, and you know, once we get it through, I get your paperwork, title order, insurance updated.
Jack: And for the mortgage brokers, we do the work, but you’re copied and you’re involved in anything, so you’re not, you’re included in everything. So, on-the-spot approvals, quick approvals, very quick closing. If we see a deal, we can close it as quick as they have the title. We’ve closed deals in days, not weeks, a lot of times. Most of the reality is, most of the deals that we’re, what we’re closing, we get a call from a broker, from a borrower, “I need to close, it’s time-sensitive, boom, boom, boom”, you know.
Marcy: We usually get those closed within less than 10 working days, believe it or not, which is crazy.
Jack: We also, I think there’s a lot of deals that can’t be done today because the tenants are not paying and the lenders won’t do it, or the tenants won’t let an appraiser inside to do pictures inside.
Marcy: We’ve done quite a few deals with no appraisals.
Jack: I’m guessing in the last nine months, since COVID.
Marcy: Yeah.
Jack: What do you think the percent without appraisals, I have a number.
Marcy: 75 percent.
Jack: That’s the number I was going to use, I swear to God we didn’t talk about it before.
Marcy: 75 percent of our deals we didn’t get at all appraisals. I mean, yes, we organize the deal to make sense to us to not do appraisals, but it works for the borrowers, so it works.
Jack: Just to be clear, when we say not appraises what we do an internal evaluation without a formal appraisal. We believe on most properties we just closed a hotel deal in a week. I think it was like 10 days, no appraisal, we’ve done.
Marcy: I mean, due to the fact, Jack, because we’re able to figure out the value.
Jack: That’s exactly.
Marcy: We can figure out the value from the NOI.
Jack: That’s exactly.
Marcy: And the area, it’s just, it’s the truth, it is what it is, numbers speak.
Jack: Big-time savings to borrowers and, big money saved on appraisals, so no appraisals, quick closing. Other lenders’ turndowns. I personally think there’s a tremendous pent-up explosion of bad stuff going to be happening because of COVID. And you know if you haven’t been paying your bank or there’s a backlog on payments, it’s going to catch up to borrowers sooner or later. And so, yeah, mortgage brokers can make a lot of money with us. They do fantastic, they really do. We’re great to deal with, and they love us. Our reviews are fantastic. You know, we get repeat business, but they have to be in tune. So really, that’s the purpose of it. Look, we’re not everything for everyone. We don’t do—I think it’s fair that we spend just a minute or two and say what we’re not gonna—we don’t do. We don’t do long-term deals. You know, we’re doing a year or a short period up to five years. You know, we’ll do small balance loans. We have a deal closing for 50 grand.
Marcy: 50 thousand. I mean, this particular person has a property he could not get a loan in a bank, and we’re doing a deal and no appraisal, and we’re just doing a deal for 50,000, and you know what, it’s helping him out, it’s giving him what he needs, so it’s working.
Jack: We don’t do long-term deals. So, if a guy is looking for a 30-year fixed rate, that’s not us. We’re short-term lenders, year to five years. Some people say bridge, some people say hard money, but short term, one to five years. Our average rate is ten and a half percent I would say.
Marcy: I mean, it will go up, you know, if your borrower has a very low credit score, he’s going to get a little bit of higher rates. So, you know, it did. We price our deals on an overall basis of the property, deal, and borrower.
Jack: It’s a good point. It’s a fair point. So, when we price our deal, we take into consideration risk, reward, and work. The reality is on a 50,000 deal, coincidentally we have next week and it’s the two extremes, but this is the truth. A 50,000 dollar deal closing and how much is that deal?
Marcy: Three million five hundred deal.
Jack: A three and a half million dollars. The 50, and believe it or not, it’s almost the same work.
Marcy: Same work.
Jack: Same work. So, they’re priced differently because that’s just the way it goes. What else do we leave? I think we covered a lot.
Marcy: Yeah, we just wanted to say hi to everyone today.
Jack: Look, we’re here for you. I want to give a personal message. Okay, I started the company in 1989. I’ve not a penny and I worked from a trade table in a bedroom, and I’ve been through all kinds of ups and down markets. I’ve been dragged outside, I’ve been beaten up, my eyes have been bloody, broken ribs, humiliated, everything bad. Every economic bad downturn has happened to me, and you survive because you pivot, you adjust, you help others, you lean out and help others, and really that’s what we’re doing.
Marcy: And we’re transparent.
Jack: And you know what.
Marcy: You know we tell exactly what you’re getting is on our terms sheet, it’s transparent and that’s important.
Jack: I love to come to work, and I love not even coming to work. I speak to everyone seven days a week, literally every day, and you know, Sundays every day of the week, we speak to people and I love it. But you know what, I like most that we are helping our borrowers. People don’t realize it. People are just like, “Oh, hard money, blah blah blah.”
Marcy: Oh no no no, we definitely, we bridge them in to firm and finances, so..
Jack: Almost all of them are happy. The brokers are happy, the borrowers are happy. We’re an alternative. We’re giving them the capital they need to either make money. They’re either making money with our money or saving money. Are we leaving anything out?
Marcy: No, but everyone, have a great day.
Jack: Have a great day. Remember, like the YouTube, like the channel, leave comments, we answer the comments. What else? Check us out at GeltFinancial.com. Call us if you need, it’s 561-221-0900. And have a great day. And you know what, again, don’t ask what you can get, ask what you can give. I forget who said that, but it’s the truth. When you give to other people, you get back. And that’s what we want to do. We want to help our borrowers, we want to help our mortgage brokers. And check us out online and we’re here to do business and call us, we love to do your deals. Take care, have a wonderful day.”
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