In this video, Michael discusses how Gelt Financial handles prepayment penalties on commercial mortgages. They offer a creative solution by negotiating an exit fee that allows clients to avoid paying minimum interest for a year while still being able to pay off the loan early. They emphasize their willingness to work with clients:

Jack: Okay, Michael Kelman. On most deals, most commercial loans, there’s some sort of prepayment penalty, including us. We charge a minimum interest— standard, but we have a way to get around. So, tell everyone what happened on the deal last week.

Michael: I guess what I like to say is we’re very creative. It’s never really a ‘no’. Clients have needs, and we want to try to always accommodate them. So, whatever the deal may be, sometimes they don’t want a pre-payment penalty, they demand– but they demand. They say, ‘Listen, you know I’m okay with your deal, I’m okay with your terms, I’m okay with your rate, but I don’t want to be responsible for a year of minimum payments.’ So, I like to get creative and give them that option. They want to feel like they win, they don’t want to pay the minimum interest due over a year. So, but they still want our deals. So, we’re able to negotiate an exit fee that makes sense for everybody. It leaves them very happy, not responsible for paying us off in one year or one month. So, it’s something extra that we can do on any deal.

Jack: So, we just closed the deal. Literally, we just made a video on it. Closed last week in three, four days. Nope, the guy could have paid us off the day after closing. The exact same economics.

Michael: Cash out investment condo

Jack: That’s what you get at Gelt Financial when you get Gelt Finan— I think it makes a difference, Michael, is they can speak to you. You’re very creative. We make deals.

Michael: I’ll think of I’ll think of things that they don’t I will try to—

Jack: we can get creative and were deal makers.

Michael: I will try to make the deal work. Use other collateral, right. We’re always looking to try to make the deal work.

Jack: Remember, like the YouTube video. Whatever, subscribe to it, leave questions, we’ll answer. Check us out at or call us at 561-221-0900. We love mortgage brokers, and we love helping people. Take care, have a good day.

Category: Education

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