In the video, Jack shares an interesting story about closing a 100% loan-to-value deal on land in Ohio. Despite not typically offering land loans, Gelt made an exception due to the borrower being a preferred developer for Dollar General and having additional collateral. The previous lender dropped out, but Gelt swiftly stepped in, obtaining a signed term sheet on Monday and closing the deal on Friday. The loan included collateral from multiple states and was completed within an impressive three to four days:
Hey, we don’t do land loans. We almost never lend on land. But yet, we just closed 100% loan-to-value on a piece of land in Ohio. How is this possible? We lost our minds. I don’t know, maybe. No, I’m joking. I’ll tell you the story. First of all, this has so many components to it. But a 100% LTV on a piece of land that they’re going to put up a Dollar General. Why? We did it because the guy owned several other properties that we blanketed. So, to us, it was a lower loan-to-value that we were comfortable with, and we were fine with it.
To the borrower, it was it accomplishes needs. So, the situation is the borrower is a preferred developer for Dollar General. He called us up or the broker called us up, and there was supposed to close. The other capital provider dropped the ball literally two days before closing. We got a term sheet signed on a Monday. We closed the deal on a Friday. It was 100% loan-to-value on a piece of land in Ohio with several other, I think, four other pieces of collateral in several states. I think it was three or four states. And we did it in three or four days. In fact, it was great. The broker sent, or actually made a social media post after that. This was, we broke the record for speed on a closing. And it was fantastic to break that record. The borrower was thrilled again. What happened was he was supposed to close with another lender. They dropped the ball. They got nervous because the interest rate environment and whatever. Maybe their capital dried up. We don’t know the reason. We got the deal. We instantly approved it. We got a term sheet signed up, and we closed it.
Like I said, we got the signed term sheet on a Monday. We closed the deal on a Friday, 100% LTV on land, which we very rarely do, but in this case, we did because it made sense. Guy to other collateral was a blanket loan, asset-based loan. We really dealt with the real estate; we really didn’t look into the borrower at all. And that was a story. A mortgage broker was thrilled. Check us out at geltfinancial.com. Like the YouTube, leave your questions or comments. This is a very interesting deal, and Marcy and the gang did a fantastic job. And remember, “When your bank says no, we say yes.”
Category: Deals Done
Tag: fast closing
