HOA and Condo Association Financing

Gelt provides Condo and HOA Association Financing when banks won’t. Typically banks wont deal with small associations, high delinquency, low reserves or high investor condensations as well as other reasons and that’s when Gelt comes in.

“Marcy: Hi, and we’re back.
Jack: We’re on; there’s no time, Marcy.
Marcy and Michael: We didn’t even get to change.
Jack: We don’t have time for this, so I want to tell everyone, uh, it’s a very niche product that we offer. But we offer it, we close it; loans to condominium associations. It’s not secured by the real estate; it’s secured by the Association. This particular one, I don’t want to give any too much details out because it’s confidential. It’s in South Florida. I think there’s 191 or 192 units.
Marcy: And they needed a loan to do some improvements on a property.
Jack: They needed a million and a half dollars; we extended them in financing, and I think they needed to keep two or three hundred thousand in reserves. The problem with it, to be candid, they’re very nice people, but they just don’t have the reserves, and their financial performance is weak. So, they couldn’t go to a bank, and self-understood if you can go to a bank, you go to a bank; you’re going to get a better deal. In this case, they couldn’t go to a bank; we came; we approved it. Bing, bang, boom, we negotiated back and forth. They needed to spend a couple of special things done; we did it. There’s very, very few non-bank lenders who are lending to condo and HOA associations, almost none.
Marcy: Right, it is to understand like our collateral is the dues that the tenants pay every month. So, we’re putting our lien against the HOA dues.
Jack: If usually, if they’re strong, they’re going to get a much better deal with the bank. But if they’re not financially strong, they’ll come to us. Or banks typically don’t do condo associations like under 25 units with high investor concentrations and things like that. So…
Michael: Yeah, but you can do that in every state, every state.
Jack: That’s correct; we have them all over the country, all over the country. So, check us out at geltfinancial.com for condo associations. Remember, “When your bank says no, we say yes,” and we love deals; we love doing deals, and we love helping people.”