Eviction moratorium, Non paying tenants and borrowing money

Marcy and Jack talk about the eviction moratorium, non paying tenants and borrowing money in today’s times.

“Jack: Okay, we’re live, Marcy.
Marcy: All right, we’re live.
Jack: So let’s continue our conversation. Marcy and I were talking before we decided to take this about the eviction moratorium. So today’s August 10th or 11th, something like that, and I think it was earlier this week the president signed an eviction moratorium or an extension of the eviction moratorium. So what’s happening is to a lot of landlords, and I don’t want to get— it’s not a political statement, it’s just a factual statement.
Marcy: No, no, the landlords aren’t getting paid. I mean, that’s the problem.
Jack: The landlords aren’t getting, that’s the problem, and the tenants are not letting appraisers in to appraise properties.
Marcy: So the landlords, the owners of all these commercial buildings, they can’t go for regular financing.
Jack: Yeah, so just so mortgage brokers and borrowers know, we’re doing deals even though the tenant’s not paying or we can’t get in. If the loan-to-value is good enough, we’ll still do the deal. Yeah, and what we’ll do is maybe we’ll escrow for payments, you know, six months, twelve months payments depending on the deal. Well, I remember when Covid hit, we did a few of them that way.
Marcy: No, but it’s just going on too long now, and the landlords are being tremendously affected by it. Listen, I hear both sides of the coin. I mean, I see what the world is saying that, you know, the tenants can’t pay, but then on the other side, the landlords aren’t getting paid, so they’re not paying their loans or they’re not getting, you know, the funds that they need from the property. So it’s a problem all the way around.
Jack: It’s a real problem, but to the extent we can, Gelt is here to help. We’re doing loans, no appraisals, no inspections, and with non-paying tenants. I know that sounds crazy, but—
Marcy: I know, but if it’s good collateral and you don’t want to lose it, we can help solve your problem.
Jack: You know what the truth is? We believe in the long term of this country, and we believe in six months, a year, two years, eventually this will be okay, it’ll straighten out, and that’s what we’re betting on. So remember, we love working with mortgage brokers. We’re lending in, I think, 42 states, something like that, deals from 50 grand to 3 million, investment and commercial deals. Call us anytime at 561-221-0900. Check us out at geltfinancial.com. Remember, when your bank says no, we say yes. Don’t forget to like the YouTube channel, like the video, but we’re doing deals. And by the way, commercial and investor, it’s important because a lot of the deals we get are on mixed-use properties and things like that.
Marcy: And mixed-use is a big selling point because we don’t have the square footage issues that the banks have. And when I say that the commercial space has to be a certain amount of square footage, the apartments have to be, and if one’s bigger than the other, the banks won’t do it. So, we don’t have any guidelines.
Jack: And we’ll do all commercial properties. We do plenty of little strip shopping centers, hotels, gas stations, you know, all kinds of stuff. You name it, self-storage, and restaurants, any kind of property you could think of, I’m guessing we have. We’ll take a look. Anyway, check us out at geltfinancial.com. Have a great day, and listen to me, for the landlords out there and the people suffering, this will pass. I know it’s very stressful for everyone, and the impact on people is terrible, but, you know, we’re all in this together somewhat, and this will pass. We just gotta deal with it, unfortunately. Take care. Have a wonderful day.”