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Exploring the Relationship: Gershman Investment Corp. & Modular Sure Site's Entrepreneurial Vision

In a recent interview, the dynamic business relationship between Gershman Investment Corporation and Audree Grubesic, Owner of Modular Sure Site was discussed, highlighting their entrepreneurial spirits and mutual respect. This blog post delves into their conversation, shedding light on Gershman's expertise in HUD-insured financing for multifamily housing for traditional and offsite construction. There are opportunities and challenges faced in their respective fields, emphasizing the value they bring to their clients through their unique approaches and collaborative efforts.

Gershman Investment Corporation: HUD-Insured Financing for Multifamily Housing Gershman, an established private bank, has been operating in the niche market of HUD-insured financing since the 1960's. While most people associate HUD or FHA with single-family financing, Gershman focuses on HUD's multifamily housing program (for traditional and offsite construction methods). As one of the ten lenders approved by HUD to underwrite loans and receive loan insurance, Gershman offers attractive terms and programs to borrowers. These loan programs cover various scenarios, including refinancing and new construction, providing developers with favorable financing options. Notably, amidst a credit contraction in the private banking sector, developers are increasingly turning to HUD-insured financing due to limited lending options. Despite some stigma associated with federal government involvement and the program's more comprehensive process, the benefits outweigh the challenges for many borrowers.

Exploring Modular and Traditional Construction and Funding Audree, owner of Modular Sure Site and, shares her recent focus on modular construction. Working closely with developers, she has been assisting them in navigating the challenges and opportunities of modular building projects. With a network of 30 to 40 factories, Audree helps developers establish their pre-construction teams and select suitable modular construction partners. However, one hurdle has been securing funding for these projects. Developers often face difficulties when their lenders withdraw or encounter funding issues. This realization prompted Modular Sure Site's interest in Gershman's HUD-insured financing, as it could offer a viable solution to the funding challenges faced by modular and traditional construction projects. By creating a business relationship with Gershman, Audree aims to provide clarity to her clients, ensuring they qualify for financing discussions early in the project development stage.

Benefits and Considerations The benefits of Gershman's HUD-insured financing include:

  1. Accessible to Various Property Types: Contrary to common misconceptions, HUD financing is not limited to underserved communities. The program caters to properties across the spectrum, including high-end developments with premium amenities. HUD is eager to support a wide range of projects.

  2. Comprehensive Support: Gershman takes pride in providing comprehensive support to their borrowers. They guide clients through every step of the process, offering assistance and expertise in navigating the intricacies of the loan program. With in-house construction administration and servicing, Gershman ensures seamless communication and problem-solving, avoiding delays caused by outsourcing services.

  3. Lower Equity Requirements: Compared to traditional bank financing, Gershman's program offers an attractive proposition with reduced equity requirements. Developers can raise less equity while still moving forward with their projects, making it an appealing option for those struggling to secure substantial equity.

Despite these advantages, some considerations are worth noting: like Design-Build Requirements: HUD does not allow design-build approaches, requiring developers to submit complete sets of plans and specifications for approval. This can pose challenges for modular construction projects, where design-build is more common. Clear communication between Modular Sure Site's pre-construction teams and Gershman Investment Corp.'s underwriting requirements is essential to ensure compliance.

For more information on HUD Lending Contact:

Keith Grosz

Gershman Investment Corp.


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