When a borrower ran short of capital to complete the repairs and their current lender would not lend them more money, Gelt step up and approved a second mortgage.
“Jack: Hey, Michael, how are you?
Michael: How you doing, Jack?
Jack: Okay, Michael, I wanted everyone–to tell everyone we just looked at a deal, and we verbally approved the deal, you told the guy, right?
Michael: Yes.
Jack: Okay, property, the guy bought a property, what like a year or so ago?
Michael: A year ago.
Jack: To fix up, gorgeous property.
Michael: Beautiful work.
Jack: He, I think he paid like five something for it, and he wants to sell it for?
Michael: He paid $590,000, he put $200,000 into it, and they’re selling in that area rehab for over a million.
Jack: And he ran a little bit short, how much again?
Michael: $40,000.
Jack: He approached us to refinance the whole thing, but to be candid with you, it really doesn’t pay to refinance the whole thing because he has?
Michael: Cost him a hundred grand by the time he’s done.
Jack: Closing costs and title insurance and all this, he only needed $40 or $50 grand. What we offered him was a $40,000 or $50,000 second, and we’re…we get…we’re not saints here, we get a small piece of the profit. So, we’re going to save him a ton of money. But more important, with our $40 grand, he’s going to fix up the property, and he’s going to be able to sell it. What’d you say the offer?
Michael: In his eyes, he was…he was just offered $825,000, the realtor told him….
Jack: (Jack adjusts the phone) Oh, that’s much better.
Michael: Why don’t we redo it?
Jack: No, it’s good. Let them see our flaws.
Michael: The realtor said it’ll be worth over a million bucks easily, so he’ll make 200 grand more.
Jack: That’s right. So again, we got creative. It’s a safe deal for us. It’s a safe deal for him. So effectively, we’re giving him a second. We’re getting a small piece of the property.
Michael: And he needed for 90 days just to sell the property, so that’s a great deal.
Jack: That’s exactly right. Great deal, good solution.
Michael: Yeah.
Jack: You’re using your thinking cap.
Michael: Very creative, Jack.
Jack: Very creative. Remember when your bank says no, we say yes. Check us out at geltfinancial.com. Like this YouTube or TikTok or wherever you see it. Leave your questions and comments and have a fantastic day.
Michael: Call us any time.
Jack: Call him any day. What’s your phone number?
Michael: 561-221-0900, extension 110.
Jack: I’ve been trying to enlist him in this Marcy’s on vacation, so he’s the new guy. Take care.”
Category: Deals Done
Tag: fix-and-flip
