What Fountainhead Will and Won’t Finance

I get calls and emails all day long from commercial mortgage brokers, which I’m very, very grateful for; however, I want to try and explain very simply what we will finance and what we won’t finance. We have two loan products–the SBA 504 loan and our low LTV conventional loan. We’ll do up to 65 percent LTV. We want to do these on owner/user properties–so, multi-purpose buildings, like freestanding office buildings, industrial warehouses, and commercial condos. Whether they’re retail, industrial, or office condos, those are all our multi-purpose projects that we’ll finance. We’ll also do special-purpose projects. The most we will do–the one that we dominate with–is hotels; we do a lot of flagged hotels. Now we’ll also do free-standing restaurants, daycares, and auto repair. We do a variety of other things–occasionally assisted-living facilities.

Those are all the projects that we will finance. What we won’t finance–this is really important–we don’t do any single-family residences. We don’t do any multi-family properties. At the moment, we don’t do investor properties, meaning multiple-tenant properties. Those are all totally off our radar screen. You can ask me who does them and I don’t even know half the time. I can barely spell residential mortgage. We stick to commercial properties that are owner/user in those categories that I identified and that’s it.   

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