Construction Mortgage Closed, Boca Raton, FL

Construction First Mortgage closed on investment property spec home in Boca Raton, Fl.

“Marcy: Hey Jack.
Jack: Hey Marcy, let’s tell everyone we just closed something. We normally don’t do a construction loan. Why don’t you tell everyone about it?
Marcy: Okay, it’s in Florida. It actually is in, um, right by our office. And it was a builder that was building—
Jack: What city?
Marcy: Boca Raton, Florida.
Jack: That’s right.
Marcy: It was a builder that was building a home, and he was probably about 90% completed. And he ran out of cash. He was building it for cash, and he came to us for a construction loan to finish the property for him. It’s not normally something that we do—construction loans. But we felt confident that it was, you know, pretty much almost done. And they needed, you know, whatever they needed to complete it. And we were able to get it done for him within like two weeks. Everyone was happy.
Jack: So, a couple things. One, he bought the land cash, and he spent a lot of money, I’m guessing a million dollars or so to do it. He actually was living across the street from the property. And it was a luxury home in East Boca Raton. We think it’s worth— I think there was an appraisal for 2.7 million, something like that. We lent him $450,000 or so to finish the house. So, he got also to another lender, and they just, I don’t know what happened. They dropped the ball. They called us out of— I don’t want to say desperation, but they were, or they were up against it.
Marcy: Well, we’re non-bank lenders, so this is a great deal for us. This is our deal.
Jack: And I also want to sort of make the point that we’ve done a ton of exceptions. Even though we don’t do construction, this was sort of a no-brainer. And the reason we did this, we felt that even though the property was 90% done, even though it was a construction loan, the value was well worth more. It was probably worth a million dollars as is, and it was right in our back.
Marcy: Probably more than that, actually.
Jack: More than that, so we were very safe with it. So, the mortgage broker made money, the borrower was super happy. So, everyone was happy. This one here did all the work on it, and it’s close.
Marcy: Got it all done. And listen, now the Builder’s gonna finish their house, and then they’re going to sell it, and they’re going to make tons of profit.
Jack: And this came to us through a mortgage broker. Before that, I believe it went to another quote-unquote lender. It was really not a real lender. They were a mortgage broker.
Marcy: Which is something we always shout out to all the brokers out there. And borrowers, if you’re dealing with a broker and they lead you to a lender, make sure they’re really a lender. You know, we’re a direct lender.
Jack: And we’re keeping it on our books, we’re servicing it. The borrower is going to make our monthly payments.
Marcy: You deal with us through until you paid off.
Jack: And the mortgage broker made money, charged a point or two, right. So, everyone was happy. Remember when your bank says no, we say yes. Check us out at geltfinancial.com. Call us at 561-221-0900, and we’re very mortgage broker friendly and very friendly all around. Take care and have a wonderful day.”