THE CASE FOR GMI CAPITAL
WHY REAL ESTATE LENDING
Why These Markets
Francis saw the opportunity in 2012. Technology was making it possible to live anywhere. The cities that had captured population for decades were becoming less attractive. The Sun Belt and Mountain West were becoming more attractive. That thesis has played out exactly as the data predicted.
GMI Capital concentrates in five markets: Nevada, Idaho, Arizona, Utah, and Texas. Key MSAs: Las Vegas, Boise, Phoenix, Salt Lake City, and Houston. Each market has shown sustained population growth, rising real estate demand, and a constrained supply of quality bridge capital.
21.8% population growth 2010 to 2020
GMI's home market
Deep relationships and local knowledge accumulated over 20 years
22% population growth 2010 to 2020
One of the fastest growing metros in the United States
Technology migration from the West Coast driving sustained demand
18.8% population growth 2010 to 2020
Major corporate relocation destination
Strong demand across residential, industrial, and mixed-use product types
SALT LAKE CITY, UTAH
15.2% population growth 2010 to 2020
Economically diverse & young demographic
Robust construction activity
HOUSTON, TEXAS
Strong population growth
Deep economy & significant build-to-rent
Residential demand driving bridge loan activity
Why Now
Community banks are constrained
The number one lenders in GMI Capital's target markets are community banks. Those banks are currently hamstrung by regulatory scrutiny. Their ability to serve proven borrowers who need speed and flexibility is significantly reduced.
Debt funds are overleveraged
Larger debt funds and public mortgage REITs carry excessive CBD office exposure. They are managing distressed assets, not deploying fresh capital. The market has created a gap that disciplined private lenders are positioned to fill.
The strategy is proven and replicable
Early Fund II investments performed in line with or ahead of underwriting. The pipeline demonstrates that deal flow is real, consistent, and growing across both existing and new markets.
Why GMI Capital
[ 01 ]
Local presence in the market
[ 02 ]
Right loan size for the opportunity ($3M to $15M)
[ 03 ]
Bridge structure that matches borrower need
[ 04 ]
Execution efficiency that closes on time
Large banks have the capital but not the local presence or flexibility. Community banks have the relationships but are still regulated, slow and bureaucratical. Local hard money lenders struggle above $3M to $5M, have rigid pricing structures and often take higher risk than GMI would accept. Debt funds start at $10M to $20M minimum loan sizes. GMI Capital lends between $3M and $15M them and can dictate pricing and terms and achieve lower-risk deals that other lenders cannot or will not execute. GMI Capital lives in the gap between them and can dictate pricing and terms and achieve lower-risk deals that other lenders cannot or will not execute. That combination is genuinely rare in these markets.
For the first three funds over 50% of the loans have been sourced off-market.
The deal flow is a function of relationships, not only marketing.
Our Parameters
Target Markets
Nevada, Idaho, Arizona, Utah, Texas
Loan Size
$3M to $20M
Loan Term
12 to 24 months with extension options
Loan Structure
First position mortgages and trust deeds. Second lien and mezzanine available on select structures.
Target LTV
Below 70%
Origination Fee
2%
Target Interest Rate
8% to 12% depending on the loan
Target Net IRR