The Pivot to Arixa: Saved at the Last Minute
How one phone call replaced 4 months of failure and cut monthly costs from $25K to $3,900
The Phone Call That Changed Everything
On March 4, 2026, I got on a call with John at Arixa Capital and my broker Reka. Arixa is a direct lender based in Los Angeles. They lend their own money. No crowdfunding. No waiting for investors.
What they confirmed on that call:
- They pay 100% of construction costs -- every penny gets reimbursed
- No penalty for paying off early -- "That's not a feature we have in our docs"
- Fast draw processing -- their team sends money in about 3 days
- They'll talk to our contractor -- they wanted to meet Morgan at Koala-T before closing
How the New Loan Works
Arixa's loan replaced everything. It paid off my old $760K mortgage and covered all construction costs. One simple loan instead of two stacked on top of each other.
| MVI (Failed) | Arixa (New) | |
|---|---|---|
| Loan type | 2nd mortgage behind $760K | 1st mortgage (pays off $760K) |
| Loan amount | $1,424,000 | $2,137,000 |
| Interest rate | 13.99% | ~10.25% |
| Construction funding | Partial | 100% reimbursement |
| Interest reserve (auto-pays the loan) | None (all out of pocket) | $174,476 |
| Monthly cost out of pocket | $25,880 | ~$3,904 |
| Early payoff penalty | Unknown | None |
Read that monthly row again. $25,880 per month down to about $3,904 per month -- and that $3,904 is just my other household debt, because Arixa's interest gets paid automatically out of a reserve and the old mortgage is gone.
How It Actually Closed
The call was in March. The loan recorded on May 27, 2026. Here are the real, closed numbers -- straight off the settlement statement, not the projections:
| Line | Amount |
|---|---|
| New 1st trust deed (Arixa) | $2,137,000 |
| Construction reserve | $1,087,000 |
| Interest reserve (auto-pays construction-period interest) | $174,476 |
| Rocket Mortgage payoff | $749,659 |
| Arixa origination (2 points) | $42,740 |
| Broker fee (Rancho Ted / Reka) | $21,370 |
| Cash refunded to me at closing | $52,449 |
I walked away from the closing table with $52,449 back in my pocket -- on a construction loan. That's what a properly structured first trust deed does that a stacked second mortgage never could.
Monthly Cost Comparison
| Monthly Bill | MVI Plan | Arixa Plan |
|---|---|---|
| Loan interest | $16,601 (cash) | $0 (from the $283K set aside) |
| Old mortgage | $5,375 | $0 (paid off) |
| Other mortgage | $2,694 | $2,694 |
| Car payment | $1,210 | $1,210 |
| Total | $25,880 | $3,904 |
| 8-month total | $207,040 | $31,232 |
That's $175,808 saved over the construction period. My savings stay near $400K instead of draining to $296K.
Getting Out at the End
The bigger loan actually makes it easier to pay off later:
- 75% of appraised value = $2,520K new loan, covers Arixa with $174K cash back
- No penalty means I can refinance the moment rates look good
- Airbnb-friendly lender could use actual rental income to qualify for a bigger loan
The Lesson
Sometimes the "bigger" loan is actually cheaper. Arixa's 10.25% on $2.35M looks scarier than MVI's 13.99% on $1.42M. But the full picture -- auto-paid interest, single mortgage, no out-of-pocket carry -- makes Arixa much cheaper in practice. Always look at the full monthly cost, not just the interest rate.