Self Managed/Small Condominium Association Financing

Gelt provided financing to a small self managed condominium association in Seattle, Washington. They were unable to obtain bank financing due to them being self managed, under 20 units, and they needed $30,000.00 for capital improvements. Gelt jumped all over this when a broker brought us the deal issued a terms sheet and closed the loan within days.

“Jack: We just closed the loan, I think two, three weeks ago, on a condo association, I think it was like 17 units, something like that in Seattle, Washington. We lent them $30,000.
Marcy: Yeah, I mean, they needed it to do some repairs in their condo, and they didn’t have any reserve. They didn’t want to assess their tenants right now, so they came to us for a loan, and it’s not—everyone doesn’t do those types of loans.
Jack: No. Well, on the condo association, why they couldn’t go to a bank, it’s self-managed. It’s 17 units. They only needed, I think, $30,000, and I think we did a three-year deal or a straight four-year deal, self-amortizing deal.
Marcy: Yeah, I think it was three.
Jack: Something like that, either way. So we’re doing condo associations. Again, they can be self-managed. They can be high investor concentration. They could be small units. You know, we’ll close it very quickly, and remember we’re lending on the association, not the condominiums. There’s no personal guarantees on this.
Marcy: Right. So our collateral is the dues.
Jack: That’s correct, the association dues. You know, a lot of times you say condominium association loans, they think it’s the real estate, but it’s really not. It’s a little bit of a niche we have, but I don’t know too many non-banks who are doing it. If you can’t go to a bank, there’s not a lot of choices. So hopefully, we’ll get more.
Marcy: Shout out to condo associations.
Jack: We’re looking for condo management companies. Check us out at geltfinancial.com, give us a call, 561-221-0900, and like the YouTube, like the channel. You’ll be notified about more stuff. And remember, when your bank says no, we say yes. Thank you. Have a wonderful day.”