Articles / Case Studies

Anatomy of an Actium Loan: Loan Secured by Seven Homes

Actium made a loan secured by seven single-family homes in Salt Lake County, Utah. All of the homes were recently purchased for cash by the borrower who needed funds for an investment he was making. As we researched the values on the properties we determined that the purchase price was an appropriate indication of value for five … click to read more

Anatomy of an Actium Loan: Two Former Restaurants

We were asked to make a loan secured by two restaurants whose leases had expired. Because this property had entrances from two high traffic streets, a national restaurant chain had expressed interest and issued a letter of intent for a lease. We did not feel comfortable valuing the property off a letter of intent as it was … click to read more

Walking Away From Risk: A Loan We Declined

We were asked to make a loan secured by a commercial building in Salt Lake County, Utah near a freeway exit. Because this was an area with strong traffic patterns we decided to investigate further. When we inspected the property we found it was in an area with significant vacancy. The borrower had recently signed a lease that … click to read more

Another Pass: Property Had a Great Location but the Advance Was too High

We recently declined a loan secured by commercial land in Bluffdale, Utah. This area has experienced tremendous growth over the past decade. As it is near Silicon Slopes, there continues to be great demand in this area. However, the borrower wanted an advance equal to 70% of the land’s value. Despite this property’s growth prospects, … click to read more

Anatomy of an Actium Loan: Moab, Utah Condominium

Providing financing for a multi-family development in Moab, Utah The other loan was secured by a condominium in Moab, Utah. This property lies within one of the last developments built allowing for nightly rentals. When the borrower’s original financing could not be completed before the closing date, we lent 75% of the purchase price. The … click to read more

Anatomy of an Actium Loan: Paying off a Reverse Mortgage in Holladay, Utah

Paying off a reverse mortgage in Holladay, Utah In Holladay, Utah, an exclusive suburb of Salt Lake City, Actium lent on a property just over an acre in size. The estate was subject to a reverse mortgage before the owner died, and the heirs wanted to pay off the reverse mortgage to improve the property … click to read more

Not Enough Skin in the Game: A Loan We Declined

One of the loans we recently denied was for a single-family home that was being purchased as an investment. When we underwrite a loan, we look to see how much “skin in the game” the borrower has, and on this loan we quickly concluded there was not much. The borrower was only putting up 10% … click to read more

Omaha Apartments: Acquisition of a Multi-Family Apartment Building

A real estate investor with Utah ties asked us to finance the acquisition of a multi-family apartment building in Omaha, Nebraska. We reviewed the purchase contract to make sure the buyer had significant “skin in the game” and determined that it was worth performing additional research. We consulted with brokers, not affiliated with the transaction, … click to read more

Walking away from Risk: A Loan We Declined

Not enough skin in the game and red flags from the beginning. A mortgage broker recently asked us to make a loan secured by residential building lots in Salt Lake County, Utah. Along with the request, he submitted some information of what he considered to be comparable lot sales. From our perspective, these were not … click to read more

Financing a Multi-Family Land Acquisition

Providing financing for a multi-family development in Provo, Utah. We recently received a call from a real estate developer who was in the process of assembling land for a multi-family development in Provo, Utah. The parcels were near the FrontRunner Rail Station and part of the assemblage had already been paid for. Our borrower had … click to read more