Radix Saves Commercial Property Owner $4,000 Per Month

The owner of a mixed-use property wanted to consolidate and refinance three separate loans totaling $325,000. When he first approached Radix, his rates were as high as 13% annually, which came out to $6,600 a month. Thanks to such high payments, the property was hemorrhaging money, and the owner felt like all of his  personal funds were flowing straight into his lenders’ pockets. Multiple banks declined the borrower’s refinance request, and it seemed as though he might be swimming in debt forever. Until, that is, Radix came to the rescue.

BORROWER’S ISSUES
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• The borrower only recently paid off a large personal tax lien
• Many of the property tenants pay below-market rent
• All of the residential tenants are month to month
• The basement has an asbestos problem
• The property could benefit from a lot of deferred upkeep

RADIX'S SOLUTION

While the property was clearly not in prime condition, it was still 100% occupied and the loan to value ratio was 65%. It was obvious to Radix that with only a small injection of cash, the owner could easily improve his property to neighborhood standards, increasing both his revenue and its overall value. Although the borrower had suffered tax problems in the past, he had no outstanding liens, and his day job paid well. For Radix, this refinance request was a slam dunk. Not only were we able to provide him with $50,000 in working capital, we were also able to consolidate the borrower’s debt and lower his annual interest rate to only  5.25%. Now, instead of paying $6,600 a month, he pays only $2,600 — a life changing adjustment. After years of owning the property, it’s finally making him money.

​To learn more about the various financing options we offer, contact a Radix representative today.