Gelt Financial, LLC just closed a $1,000,000.00 first mortgage on a Building leased to Wendy’s in TN. This was closed without an appraisal and within a week, the borrower needed a very quick closing and we did it.
“Jack: Michael, we’re on first oh wherever you’re seeing this like the YouTube, TikTok, or Twitter like this and subscribe, and we’ll answer your questions, we really do. So, Michael, tell everyone about the deal that just closed. Tell everyone like the Genesis of it and how it came in one way and just walk everyone through.
Michael: So, we had a broker who has a deal. They have a client that needs a million dollars quickly. They came to us with a 130,000 square foot industrial building that had a $2 million First Mortgage on it. So, the initial request was for a million-dollar second mortgage on an industrial building in Florida. Not the most exciting, not the most secure for our position. So, we kind of went back and forth, and I asked to see other real estate for our sponsor and see if we could possibly be a first on something—
Jack: Can I back up? We do— do some seconds, but we’re very careful. Seconds are very risky; we’re very careful.
Michael: Well, we have to look, you know, our overall basis. We would be in this for about 3 million bucks… so I just was, you know, for us, I wanted to see if there was something else with that type of, you know, real estate.
Jack: I don’t think there’s anything wrong with saying we’re looking for the most secure we can.
Michael: I did it, and listen, they appreciate that, and sure enough, Jack, they had a Wendy’s and a 7-Eleven free and clear triple net beautiful property.
Jack: Okay, so let’s focus on this now.
Michael: So, back and forth, you know, we were speaking to the client, speaking with the broker, and we ended up doing a million-dollar first mortgage on a triple net lease Wendy’s in a beautiful part of Tennessee. And from the time we signed the term sheet and closed, it was about a week.
Jack: A week, excellent. Now a couple of things I want to also point out. No environmental, no appraisal, internal valuation. This was pretty much an asset-based loan. We got the lease; we got the lease insurance and title insurance. So very simple. The broker charge, I don’t know what the broker charge, but and wasn’t this one the broker charge?
Michael: No, we actually, we did negotiate. We lowered our fee by a quarter point. I’m proud we did. We had to make the deal work for everyone. The broker lowered the fee a little bit, you know, but it was a good deal, and we wanted to help.
Jack: Is this—I hope I don’t make a fool of myself—but is this the one where you told me the broker was trying for like a long time to get this to close?
Michael: Over 60 days because he was focusing on an industrial building because that’s what the clients were so focused on getting a second on. They needed a million dollars; we wanted to be safe. We have the capital; we did a first on the Wendy’s.
Jack: Got it. So the bottom line, the borrower’s happy, the broker’s happy. They went 60 days with the broker; they came to us. You offered an alternative approximately a week from the time they wanted to move forward. And by the way, in that week, there were a couple of days they had an attorney who reviewed our documents. It probably could have been quicker, right?
Michael: Yeah, oh absolutely. But again, you know, we don’t feel we’re rushed in that situation. We’re ready to go, but they needed the money quickly.
Michael: No, no, but that’s our specialty. I mean, we were able to get everything done, you know, very quickly in a timely manner. Everybody was, you know, all on board with Title and Insurance and, you know, all the special docs we needed so.
Jack: Now I’d like to talk about something else. This is a beautiful property. It’s leased to a great tenant Wendy’s. It’s Bank material. The only reason the borrower came to us is because they needed the capital quickly. Banks are taking forever today, and a lot of them aren’t doing deals. In fact, there was just an article I read it yesterday, but it was—I’m always a couple of days behind on my Wall Street Journal—how banks are shrinking their balance sheets to improve their Capital ratios, which means they’re not lending, and they’re pushing deals off the books. So we’re doing a lot of deals that are Bank quality, but the banks won’t do them, or the banks are taking forever. And with us, it’s as nothing is hassle-free in life, but it’s as hassle-free as you can get a lot of deals like that. And with us, you’re always dealing.
Michael: But Jack, you know, I think you say it so easily, and I’m going to say this for everybody watching you as a consumer. I’m going to take myself as a consumer. I don’t ever get to speak to the owner of a company, and you get involved in every deal. So you are literally—you’re on the front lines with me on every deal. It’s not some big, huge fancy company where all of a sudden there’s no decision-maker that we communicate with. They’re talking to you, the owner, or myself who’s communicating with you. So, you know, an issue with this deal, Jack, when you went to a bank, you got 40 people trying to make a decision, and they could never make a decision. So, they deal directly with us.
Jack: That’s a good point. From when you heard about it, how quick did it take you to tell them yes?
Michael: Oh well, so they came to me. The truth is we worked together for one month three weeks. They wanted to work with the industrial building. After one day of me telling them what we could do for the Wendy’s, it took about five days after that.
Jack: Okay, very quick. This happens every day at Gelt Financial. You know, it’s interesting. We’re closing a deal tomorrow. Tomorrow’s Thursday. We got the deal in the door Monday morning. We’ll make another video about it. It’s going to be, God willing, a 4-day closing, and that happens a lot here. It really does. It really does. What else did I leave out? We love—oh, this deal came from a mortgage broker. Mortgage broker was happy, left us positive reviews. We love working with mortgage brokers. What else? Remember, like us, leave questions, and if we missed anything, leave a question. We’ll answer it. Take care, have a great day.”
Category: Deals Done
Tag: bridge mortgage
