The owners of a Seattle-based auto repair shop found themselves paying 14% interest rates on a loan they used to purchase their property. The reason they were paying such high rates is because they lost two properties to foreclosure in 2011, and traditional banks are reluctant to extend credit to business owners with such recent foreclosures. Fortunately, one of those bankers – who had been unable to help out himself – recommended that the owners contact Radix. They are certainly happy they did!
Despite the owners’ past foreclosures, Radix always tries to look on the bright side. In this case, it was easy: The property’s debt service coverage ratio was fantastic and the loan to value was even better. Overall, this loan was exactly the type of financing that Radix specializes in, and we were able to help the borrowers find a 25-year loan at just 6.25%. With the help of lower rates, the borrowers now save over $2,000 per month on their payments!