Gelt Financial loves small commercial and mortgages. When a bank can’t do it we are a great alternative. Do you need private funding for a commercial or investment property? Give us a call.
Gelt offers private financing to real estate investors and commercial property owners with programs that include no income verification mortgages, bridge mortgages, foreclosure buy-out mortgages, foreign national programs, DIP lending, hard money loans, and more. Bank turndowns and credit problems are welcomed. Call us today!
“Jack: Marcy and Jack at Gelt Financial, you know what I want to talk about today, Marcy. I want to talk about what is a small loan. You know a lot of brokers and borrowers, really, I want to focus on brokers. They don’t want to do small loans. You know there’s not a big market. They think they can’t make money. They’re focused on the deals that are, you know, a million, five million, and that’s great if you can close them. The reality is we’re a bread-and-butter shop. I think our average loan is like $420,000 across the portfolio.
Marcy: I mean even as low as $250,000. I mean we have some, you know, we’ll go—
Jack: We have loans for $50,000 on the books.
Marcy: Right.
Jack: Yeah, so we will do deals from 50 grand all the way up to 3-4 million. We don’t do the big stuff, and I think brokers are missing an opportunity in that they could charge a flat fee. Again, self-understood. You can’t spend a lot of money on marketing on them, but if you get those deals, a solid $100,000, $200,000, $300,000 deal. We have a deal today closing for $250,000.
Marcy: Yeah. I mean the marketplace, there’s not a lot of commercial lenders that do those small deals, and we’ll do that.
Jack: We love them.
Marcy: We love them. I mean that is definitely, you know, a niche that we have in the marketplace that we will lend, you know, on that lower end, and we’re fine with it.
Jack: So, we’re fine doing smaller deals. Again, smaller to us is $50,000 to, you know, a million, $500,000. Now, keep in mind, those deals are more expensive. You have to pay the same closing costs. It costs the same thing to document a deal for $75,000 or $100,000 as it does for a million.
Marcy: Right. So, we still do prepare our closing package. I mean some of the costs are just, they’re hard.
Jack: They’re not cheap, but it’s an alternative compared to nowhere. Self-understood. If they can go to a bank, let them go to a bank, but if they can’t go to a bank, we’re a great alternative. Now, the one thing I brought up when you and I were talking privately.
Marcy: Yes.
Jack: Uh, privately, we don’t really talk that much privately, but.
Marcy: We talk all day long because there’s a lot of things to talk about here.
Jack: We talk about specific things.
Marcy: We talk about mortgages. We talk about deals.
Jack: Borrowers.
Marcy: Absolutely.
Jack: But do you think we talk a lot?
Marcy: No, not so much. You know about real-world stuff. Not so much, no, because as of, you all know, brokers, puzzles, mortgages are puzzles.
Jack: We’re busy. We’re busy. We’re busy.
Marcy: We’re taking and all the pieces and putting them together.
Jack: We have a minimum property value of $250,000.
Marcy: Because that comes up a lot when a lot of brokers call me, and they email me, and I don’t want, you know, we want to be really clear that yes, we do the smaller loans, but the property has to be valued at least $250,000 as a purchase price, not a future value, at least $250,000.
Jack: There’s some exceptions here and there.
Marcy: A little bit here and there if the deal makes sense.
Jack: So, focus on small deals. You can make a lot of money. Again, you’re not going to make home runs, but we’re—I operate. We do a lot of singles and doubles and triples here. We don’t focus on home runs. We just keep hitting and hitting and hitting and hitting for years.
Marcy: And then a lot of, you know, properties that fall into that category are those mixed-use properties, and we do that. And a lot of commercial lenders do not do mixed-use practices.
Jack: There’s very few places that non-bank borrowers can go to borrow a hundred grand.
Marcy: And we’re one of them.
Jack: Think of us. Remember small loans. It’s a niche. Remember, check us out at geltfinancial.com. Call us at 561-221-0900. If you’re seeing this on YouTube, like the channel. Leave questions, comments. We answer them all. Have a good day. Peace. Thank you.”
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