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Creative Small Balance CRE Hard Money with Gelt Financial

By Rocky Butani
Sponsored
Interviews
CRE
Podcast
Reading Time: 4 minutes Published: May 24, 2025 Updated: July 16, 2025
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In the 14th episode of the Private Lending Insights Podcast, I interviewed Jack Miller, President of Gelt Financial to talk about hard money loans for small commercial properties, their unique lending guidelines, the company’s long history, and more. Gelt is one of the most creative and flexible lenders in the private lending space. Operating primarily in the commercial real estate sector with loans typically under $2 million, Gelt Financial is known for stepping in where banks and other private lenders step back. Watch the video, listen to the audio, or read the summary below.

 

Summary of Interview with Jack Miller / Gelt Financial

Jack offers a deep dive into how Gelt navigates today’s complex market—favoring “have to do” deals like foreclosure bailouts, tax liens, and partnership buyouts over opportunistic loans. He shares how the firm’s capital independence and in-house servicing structure allow for highly tailored, quick-turnaround loans, many of which are funded without appraisals and structured creatively with cross-collateralization, JV partnerships, and even second-position liens when necessary.

Market Outlook
Jack doesn’t hold back on market insights—emphasizing that now is the time for investors to take action while others sit on the sidelines. He warns of tightening bank regulations and prolonged approval processes but views that as an opportunity for private lenders like Gelt to step in.

Gelt’s Philosophy
Gelt Financial operates with a relationship-first mentality. The company maintains a streamlined, commission-free team structure that prioritizes fast closings and open communication with borrowers—attributes that have helped many clients weather financial challenges.

About Gelt Financial:

  • Founded in 1989, based in Boca Raton, Florida

  • Staff of 13–14, no commission-based roles

  • Lends in 36–37 U.S. states (not licensed in CA, NV, AZ, etc.)

  • Specializes in sub-$2M commercial real estate loans

Core Loan Guidelines:

  • Loan amounts: $50K to $2M (considering up to $5M with new products)

  • LTV: Typically 65%, up to 80–85% in high-growth markets via creative structures

  • Interest rates: ~12%

  • Term lengths: 1–3 years (extendable)

  • Typical fees: 3 points, interest-only payments

  • Collateral: First-position loans preferred; low-leverage seconds possible

  • No appraisals required—internal evaluations used

Property Types Funded

Most Common:

  • Mixed-use (e.g., retail + apartments)

  • Small strip retail centers

  • Residential investment properties

  • Credit-tenant properties (e.g., Walgreens)

Also Considered:

  • Hotels, gas stations (at conservative LTVs)

  • Multifamily properties

  • JV partnerships and cross-collateralized portfolios

  • Foreign nationals (with minor requirements)

  • Condominium/HOA association loans (via UCC filings)

Not Funded:

  • Heavy construction

  • Raw land

  • Very rural or specialty-use properties (e.g., bowling alleys)

What Makes Gelt Unique?

Capital Structure:

  • Entirely private capital—no bank debt

  • Funded in-house and by high-net-worth individuals/family offices

  • Not dependent on warehouse lines or loan buyers

Creative Deal Structures:

  • JV equity deals where Gelt may fund 100% in exchange for ownership and preferred returns

  • Loans secured by borrower’s ownership interest in a property

  • Cross-collateralized loans to help borrowers bridge equity gaps

  • Willing to offer non-recourse loans at low leverage

In-House Loan Servicing:

  • Direct communication with borrowers throughout the loan term

  • In-house workout team and property management for distressed deals

  • Some backend functions outsourced for cost-efficiency

Markets of Focus

Active and Favorable Markets:

  • Florida, Texas, Carolinas, Tennessee, Virginia, Kansas City

  • Brooklyn (despite New York’s legal complexity)

Challenging but Considered:

  • New York, New Jersey, Pennsylvania, Illinois

  • Conservative LTVs due to legal/tax implications

Generally Avoided:

  • California, Nevada, Arizona, Hawaii, Oregon, the Dakotas

Final Thoughts from Jack Miller

  • Most current deals are “have to do” loans—foreclosure bailouts, tax liens, and balloon payments

  • High borrower gratitude due to flexible, fast funding and realistic underwriting

  • Encourages investors not to stay on the sidelines—now is a time of great opportunity

  • Gelt is actively seeking smart JV partners and ready to deploy capital for the right opportunities

 

Visit Gelt Financial’s profile to see all of their guidelines, and you can contact them directly. They pay us a monthly fee to be listed on our platform.

Check out Gelt’s YouTube channel to find some educational contact about originating private/hard money loans: https://www.youtube.com/@GeltFinancialLLC.

This post contains CONTENT SPONSORED BY Gelt Financial, LLC
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