In today’s business environment it can be said that the fast eat the slow. Speed trumps size, empowers action and is impossible to ignore.
Recently, Fountainhead was put to the ultimate test of needing to deploy speed, efficiency and resolve in order to help a borrower create wealth by owning commercial real estate… and lightning fast!
A respected referral source of ours called to ask for help. They were working on a great deal in Colorado but at the last minute, they were not going to be able to help the borrower close the loan on time. Their backs were against the proverbial wall. They needed to find another lender they could trust who could “save the day.” A lender that could come back with a fast YES!
We were positive that with our speed and agility, we could get this deal closed quickly. It took a team effort, collecting and reviewing tons of documents, organizing and preparing our internal credit approval memorandum, calling an emergency loan committee meeting to get the deal approve but…
Mission accomplished – in just 2 days – Loan approval issued!
Time to take a deep breath and get prepared for closing, right? Well, not so fast. Another challenging hurdle was placed in front of our team at that point.
The SBA, for reasons that are not exactly logical to us, were unable to approve the deal as an SBA 504 loan. Uh oh! Time to get creative.
We worked closely with the borrower, their advisors, and our team to find a solution and quickly…
The solution was to fund a conventional first deed of trust for 50% LTV, and for the borrower to use their Section 1031 tax-deferred exchange funds to fund the remaining 50%. That’s right: we turned what should have been a perfectly eligible SBA 504 deal into a low loan-to-value conventional deal for a hospitality project.
And with that 25-day total time-frame, from start-to-finish, we are pleased to announce our latest closing:
Interstate 17 Inc. closed on a $6.8 million 77 room Quality Inn located in Westminster, Colorado. Fountainhead provided a $3.4 million first deed of trust. The owners have a combined 22+ years’ experience in the hospitality industry, and we wish them much success in making this hotel another profitable venture for their family.
If you, or your clients, find yourselves in a similar position as this borrower was, then you need to contact Fountainhead immediately so that our team can get working on a solution for you. Long delays are not in our DNA. You will get answers quickly from us! And we WILL consider low LTV conventional deals, even on hospitality projects.
If you want an experienced lender that utilizes speed as a competitive advantage, then you need to contact us to help you close deals! Oh and we almost forgot: this referral source will be receiving a nice, five-figure referral premium shortly. If you’re curious how much, then you really ought to join our FastTrack504 program today.
Please remember: if you know an owner of a small to midsized business looking to create wealth with commercial real estate ownership or you are one yourself, please visit our website or just give us a call to explore how Fountainhead can help you or those you know realize this today. You can join those mentioned above and many other existing clients who are positively delighted they contacted us! And if you’re a lending professional or work with small business owners, get on our FastTrack504 program today… to help us help you in helping others (apologies to Jerry Maguire).
P.S. Next week, we’ll provide some strategic sales/marketing suggestions for lending professionals and others on how to best take advantage of the forthcoming 504 refinance program. Stay tuned for more details…