Anatomy of an Actium Loan: Home Renovation in Ogden, Utah

We were recently called by a real estate broker in Ogden, Utah whose office was handling the sale of a home located near the redevelopment area of Ogden’s downtown. The buyer needed to close quickly and was able to make a significant down payment but did not have access to all of the funds needed for the purchase.

We inspected the property and determined that due to its proximity to Ogden’s Central Business District that it would be a desirable location enhanced by the renovations the buyer intended. However, to be conservative we only valued the property as it was at the time of closing.

We lent 63% of the purchase price and earned a 2% fee. The loan had a duration of one year and carried a 12% interest rate.