Deal Details
Private Loan Type
Purchase
Approx. Funding Date
03/09/2021
Property Type
Property City
Boynton Beach
Property State
FL
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Purchase Price
100%
Renovation Budget Funded
100%
Borrower Credit Rating
Excellent
Deal Summary
Gelt Financial, a direct hard money lender based in Delray Beach, provided 100% financing for the purchase and rehab of a single-family home in Boyton Beach. The Borrowers are 2 young guys who have flipped a number of houses in the area. We’ve had a long-term relationship with them and didn’t require them to contribute any of their own cash to this deal. The subject property was being sold at auction which is nearly impossible for most lenders to consider since the due diligence is very limited. However, this is in our backyard in Palm Beach County, so we didn’t need an appraisal. We paid a 5% deposit at the auction and then funded the balance a few days after. The title was held in an LLC that Gelt Financial owns and we also recorded a 1st mortgage, but no monthly payments were required. The 1st mortgage of $260,000 will earn interest, and we will receive 40% of the profits upon the sale, which we estimate will be around $400,000. This JV equity deal was funded in March 2021.