Radix Finances Hotel After Multiple Bank Declines

When a beautiful hotel along the Washington Coast was turned down for a $1,207,000 refinance by multiple financial institutions, one of the bankers who declined the loan was thoughtful enough to pass the co-owners’ information to the Radix Financial Group. The loan perfectly fit our criteria from the get-go!

BORROWERS’ ISSUES

• One of the hotel owners had a credit score under 600. The other owner’s score was not much better.
• One of the hotel owners had a couple of foreclosures in her history.
• The hotel was unflagged (meaning that it was not part of a major hospitality brand).
• The LTV (Loan to Value) required for the loan was around 85%.
• Most traditional lenders will not even consider a specialty purpose property at such a high LTV.

RADIX’S SOLUTION

Despite the borrowers’ troubled financial past, this deal was a perfect fit. The property was in a beautiful location and thanks to the owners’ industry experience, the business showed a healthy profit every year. The LTV was high, but thanks to the SBA (Small Business Administration) guarantee, we were able to offer financing up to 90% LTV at the low rate of 6%. Of course, most traditional lenders would not touch a specialty purpose property at 90% LTV, but thankfully, Radix is not a traditional lender. 

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