This is a short video on the types of commercial and investment mortgages that Gelt Financial Provides.
“Jack: Okay, you’re on, Michael. What do you want to make a video on today?
Michael: I wanted to make a video to explain sort of our Strike Zone. What does it take to get money from Gelt Financial, you know, for commercial real estate?
Jack: Okay, and the answer is…
Michael: So, location, right? Be in a state we lend in, in a city that’s populated. A good market, good collateral that’s stable, low leverage (65% or under), and I think if the right borrower with the right tenant, and we’ll be able to do the deal. I think that we’re lending comfortably between that $200,000 to a million; that’s our sweet spot, I would say.
Jack: So, let’s break it down. You started to say the right location. So, we lend in, I think, 38 states. Okay. And you said populated areas, so we’re not rural lenders. I feel bad for people who are in rural areas; we’re just not that lender.
Michael: We like the city, 50,000 plus.
Jack: Yeah, big city. So, when you go to Google Maps, if it’s 50,000 plus, even 30,000.
Michael: Yeah, or nearby.
Jack: We like populated areas, right?
Michael: Yup.
Jack: Okay, so what was the next thing you said?
Michael: A stable tenant.
Jack: Okay, so again—
Michael: It doesn’t always happen.
Jack: Doesn’t always happen; it could be. Now when you say a stable tenant, what we mean is an existing tenant, or let me rephrase it, suppose it’s a vacant property but it can be rented out easily.
Michael: Yes, so strong collateral.
Jack: Yes, strong collateral. What we don’t want are specialty properties like bowling alleys, ice skating rinks. We want a property where we could or you could call a realtor easily and say, “lease this property out,” right?
Michael: Easily marketable.
Jack: Yes, so even if it’s a short-term lease, we want a property that can easily be rented out. So, if you have like this 150,000 square foot cold refrigerated warehouse, that’s not easy to rent out. If it’s a 1,500-2,000 square foot store, or if it’s an apartment or a house that’s easily rented, that’s what we mean by stability, right?
Michael: Yeah, we love single-family investment properties, multi-tenant retail, office, apartment buildings, condos, single tent condos, even Flex space. If you’ve got some office space with a couple bay doors, we lend on that, gas stations, mobile home parks. So, I would say if you’re not sure, call me because let me review the deal anyway.
Jack: Okay, easily, a property easy to rent out, good location, easy to rent out. What else do we like?
Michael: I mean low leverage. I mean, who doesn’t, right? 65% or less of our valuation.
Jack: So, fair evaluation—
Michael: But when I say our valuation, we’re not going to charge your client five, six thousand to go get an appraisal for them to come back and say it’s not worth it. We’ll do our own valuation; we charge them that at closing. So, we basically will work almost and do all this up front; they could pay us at closing. We require an upfront due diligence deposit on our loans, and we’re able to close very quickly.
Jack: So, if you have all those things, it’s pretty easy to get a loan through at Gelt, correct?
Michael: Yes.
Jack: Okay, so check us out at geltfinancial.com, call anytime at 561-221-0900. Remember, “When your bank says no, we say yes.” Like our YouTube, TikTok, Instagram. What else am I missing, Michael?
Michael: Facebook.
Jack: Facebook. Like it all. Take care; have a great day.”
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