When the owner of a stereo manufacturing company wanted to refinance $1.2 million of high rate debt into a single, ten-year loan, he was declined by multiple banks. His business’ cash flow was negative, and - without collateral - most banks would never consider such a risky debt refinance. So he approached Radix to see if we could help facilitate the consolidation.
From the beginning, it was obvious that the borrower could save on rent by purchasing his property. By combining the debt refinance with a real estate purchase, the borrower could even extend his amortization, drawing the entire loan amount out over 25 years while lowering both his rates and rental payments in the process. The borrower was thrilled with the idea, and the current landlord was happy to sell. Less than 90 days later, the borrower was paying about $25,000 less per month -- and the property title was in his name.
8/20/2021 06:49:55 pm
Great blog post thanks for sharing
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